Buy to let landlords celebrate a good investment
According to Property Professional June 2015, buy to let landlords have made returns of 1,400% over the past 18 years through the booming property market. Good news for any landlords that have been in the business for that long. A report by economists at Wriglesworth Consultancy looked at returns from investors who bought a property with 75% loan-to-value mortgage. It shows that landlords who borrowed to purchase the buy-to-let property made significantly higher returns than those who paid in cash. So bricks and mortar are still a solid investment.
But what of the future?
The property market in Aylesbury is very buoyant at the moment. In the last 12 months, we’ve seen prices rising monthly, but now it looks like things are starting to settle. Property prices have risen and so too have rental prices. A one bedroom property on Poets Chase, off the Wendover Road, just 18 months ago would have been on the market at around £550 pcm, if it was ship-shape throughout. We have just let the same for £650pcm. Again, good news for landlords. As things seem to be settling down I don’t see rental prices maintaining this kind of increase, but people will always want to rent. Many of my landlords are surprised that their high value 5 bedroom property is in demand, wondering why someone who can afford £2k pcm doesn’t buy. But the renting culture is becoming more and more popular. It gives people flexibility to move with their jobs with just a months notice. It also means they don’t have to worry about unexpected bills for, say, a new boiler.
Despite the recent rise, Aylesbury still represents value for money. Increasingly we are seeing an influx of people from High Wycombe, wanting more for their money. There is still the constant supply of commuters who can rent large detached properties for the same as their current two bed flat in London. In exchange for larger homes and cleaner living, all they need to do is hop on the train each morning with a Grande Cappucino and copy of Metro, and they can be at their desk an hour and a half later.
With so much investment into the town centre, Aylesbury is now seen as up and coming. The current construction near the theatre should see the Waterside transformed into a cluster of cafes and restaurants giving people that coffee-bar culture that is attractive to so many. New businesses mean new jobs, which is good for everyone.
So I’m pretty sure investing in buy to let will remain a good investment for some time. If I had any money to spare (but with two young children and one in nursery I am making my own sandwiches) I know I would be investing in Aylesbury.