A lot of headlines and property websites have recently been proclaiming the death of buy-to-let schemes, as tax and regulatory changes have caused potential landlords to steer clear of purchasing residential homes from an estate agent or property auction Lake District, for the sole purpose of renting them out. This may be something of an exaggeration, however, as buying to let is still viable, just with less return following the changes.
The changes include tax penalties on landlords, which are set to decrease the amount of profit that they will make. Combine this with the large amounts of time and hassle involved in managing a property, or multiple properties, being a landlord seems like a much less rewarding prospect. If you consider the large upfront sum needed to purchase the home from an estate agent or property auction Lake District, it paints a picture of a rather unpopular path to follow.
Although buy-to-let mortgages may be becoming more regulated, the property is still an incredibly popular investment. 49% of people in a recent study by the Office for National Statistics think that buying property, whether at property auctions Lake District or through an estate agent, is the best way to save up a nest egg for when they retire, a greater percentage than those who think a pension is the best way to save.
However, there are still some lucrative solutions for those who love the property sector but are frustrated with their current situation and the changes happening within the industry. These options will often yield similar property market returns, with a lot less hassle and risk. They also won’t incur the need to spend large sums of money on properties at property auctions Lake District or estate agents!
Investing in a property portfolio may seem like a risky decision, but if you do your research wisely, you can find a very successful one that can offer good returns. However, these portfolios may require a larger investment fee so may not be ideal for everyone. It can be an idea to look for successful portfolio owners who are launching a new initiative, as they may have a lower buy-in fee, but still have the experience needed to create a portfolio with good return potential. There are numerous websites that offer a simple way to invest, including Bricklane who have bought properties at property auctions Lake District across the country, allowing for investment diversification.
Housebuilders’ shares can also be a smart option for investment. With the number of new homes popping up across the country, this may seem like a very reliable choice for a good return on your investment, but it’s worth keeping in mind that the new home market moves quickly, and out of sync with the property market, making it harder to monitor fluctuations. However, the income is often more stable as there is no risk of a property underselling at a property auction Lake District because they are often used for assisted living or just sold flat out at a set price.
Lending within the property market is also another way to keep your foot in the door in the sector, without having to manage properties yourself. These investments can see steady returns, but smaller returns than being a buy-to-let landlord.