Investing in Ashford buy to let property has become a very different sport over the last few years.
In the glory days of the first five years of the Millennium, where we had double-digit house price growth, mortgage companies (notably Northern Rock and HBOS) desperate to get on the buy to let mortgage bandwagon with rates so low it made the belly of a snake seem high and an open willingness to give loans away with little more than a note from your Mum and with hardly any regulatory intervention… anyone could make money from investing in property – in fact it was easier to make money than falling off a log! Then we had an unexpected flourish in the property market, with a post credit-crunch jump in the property market after 2010, when all still seemed rosy in the garden.
Yet, over the past five years, the thumbscrews on the buy to let market for British (and de facto) Ashford investors have slowly been turned with new barriers and challenges for buy to let investors. With changes in taxation rules on mortgage relief starting to bite plus a swathe of new rules and regulations for landlords and mortgage companies, it cannot be denied some Ashford landlords are leaving the buy to let sector, whilst others are putting a pause on portfolio expansion.
With the London-centric newspapers talking about massive reductions in house prices (mainly in Prime London – not little old Ashford) together with the red-tape that Westminster just keeps adding to the burden on landlords’ profit, it’s no wonder all appears to be doom and gloom for Ashford landlords … or is it?
One shouldn’t always believe what one reads in the newspaper. It’s true, investing in the Ashford buy to let property market has become a different ballgame in the last five years thanks to all the changes and a few are indeed panicking and selling up.
Ashford landlords can no longer presume to buy a property, sit on it and automatically make a profit
Ashford landlords need to see their buy to let investments in these times in a slightly different light. Before landlords kill their fatted calves (sell up) because values are not growing wildly beyond expectations, let’s not forget that a property also produce income in the form of rent. The focus on Ashford buy to let property in these times should be on maximising rent and not simply being preoccupied with house price growth.
Rents in Ashford’s private rental sector increased by 0.19% in the past 12 months
Rents in Ashford since 2008 have not kept up with inflation, it is cheaper today in REAL TERMS than it was 11 years ago and landlords are beginning to realise that fact with our help:
Looking at the last few years, it can be seen that there is still scope to increase rents to maximise your investment (and landlords are catching on) yet still protect your tenants by keeping the rents below those ‘real spending power terms’ of the 2008 levels.
Buy to let must be seen as a medium to long-term investment….
Rents in Ashford are 4.29% higher than they were 3 years ago and property values are 20.93% higher than Jan 2016
…and for the long term, even with the barriers and challenges that the Government is putting in your way – the future couldn’t be brighter if you know what you are doing.
Investment is the key word here… In the old days, anything with a front door and a roof made money – yet now it doesn’t. Tenants will pay top rent for the right property in the right condition.
Do you know where the hot spots are in Ashford,whether demand is greater for 2 beds or 3 beds in Ashford? Whether town centre terraced houses offer better ROI than suburban semis? With all the recent regulation changes many Ashford landlords are employing us to guide them by not only managing their properties – taking on the worries of maintenance, the care of property and managing any wayward tenants’ behaviour – but also advising on the future of their portfolio. We can offer specialist support (with ourselves or selected partners) on the future direction your portfolio needs to meet your investment goals, (judging needs between long term capital growth and regular income), specialist finance, and whether you would benefit from transferring your property empire within a limited company structure.
If you know someone who is an Ashford buy to let landlord, do them a favour and share this article with them – it could save them a lot of worry, heartache, money and time.