Landlords May Choose To Sell Quickly And Rent Back | For many years, buy to let has been an excellent way to make money. All you had to do was take out a mortgage on a property and while the rent pays for the mortgage payment, the capital of the house rises year after year. This has been to date, one of the best investments around and many buy- to- let landlords have made a fortune as mortgage rates stayed low and house prices grew. However there are signs that this way of making easy money is coming to an end.
Landlords are not finding it so easy now, mortgage rates are rising and there is a predicted downturn in the housing market. Landlords are beginning to find that everything is becoming more expensive and starting to feel the pinch as rent on properties is no longer sufficient to meet the cost of the mortgage, maintenance and repairs. Some landlords find themselves balancing the books by diverting money from other business assets.
In areas where there is surplus of landlord properties being sold, rents remain low and there are warnings that there may be worse to come. Repossessions are already thirty percent up on last year; this market is becoming too costly for the average investor.
In July this year new rules came into force concerning the running of large rental properties in England to improve safety and quality in properties owned by landlords, particularly where five unrelated people live in the same house. They now have to meet precise fire standards and require a licence from local authorities.
This new licensing system, means local authorities carrying out basic checks, which will be specific to the property and the landlord. It will also, mean investigating any criminal records. The cost of complying with these rules and obtaining a license will all be an extra burden on the landlord. It will probably lead many to review their portfolios and consider their viability.
An added problem is that licences are not transferable meaning that a new landlord buying an existing portfolio will have to obtain a new licence. Licences vary from town to town with each local council setting its own cost. The final straw, which can lead a landlord to consider selling their property, may be a difficult tenant. However selling can be a long and tedious process if you decide to use a commercial estate agent. Timescales are usually four to six months from accepting an offer and many don't want to wait that long.
There is a simpler answer if you are a landlord who has problem tenants, or are finding your property investment is under performing and giving you a poor return. An established house sale specialist, such as A Quick Sale Direct, will be able to help you by taking this troublesome property, or even your portfolio off of your hands. They will buy your tenanted property at a time to suit you.
You do not need to worry about the condition of the property or which part of the UK it is situated. A guaranteed quick cash sale can be achieved to release equity. If the landlord wishes to remain in control, there is rent back and even a buy later option. I consider this an excellent way for finding a quick solution to a problem.
|
|
