Buy to Let : A Brief History Started 1995 By ARLA with a panel of lenders Mortgage rates nearer domestic rates than commercial Finance 75% LTV Interest cover 1.25 to 1.4 times Medium to Long Term Investment Slow start then huge upsurge buying off plan speculation
Demand Supply Price Location Available Finance Legislative Changes in the future Other threats
Demand How do you establish strength? National Trends Localised Reports Local Knowledge
Local Agents Stock Check Portals : Rightmove, Zoopla etc Remember stock advertised may be what is not in demand Who holds the actual data for an area?
Price What impacts on price? Owner Occupier Demand Available Finance Landlords Competing Buy to Let Trends do not follow Owner Occupier Trends Does it give potential for capital growth?
Location Location is key to demand One side of a street can make all the difference One end of a street can make all the difference Competition in area
Available Finance Own Funds Available Mortgage Funds Available Length of Borrowing Term Rates not following Base Rate When do you need liquidity?
Legislative Changes Landlords Register Minimum Standards Changing in Law Local Licensing Schemes Regulation of BTL Finance Tax Changes
Other Threats Institutional Investment Build to Rent New Student Accommodation New Retirement Accommodation Large Developments Planned Local Employment Changes
Who Can Help? Good Financial Adviser (Tax Advice) Good Conveyancer Experience Local Agent