A Buy-to-Let property is an income-producing residential investment, with potential for making a capital gain when the property is sold. An investor buys a property either off-plan or immediately available and makes money on their investment by renting out the property in the short term, with the long term goal of making a profit on the property when they eventually sell it. Buy-to-Let property is generally seen as a stable, medium to long term, low-risk investment and has become a very popular income generating scheme for many in the UK.
Those purchasing Buy-to-Let property usually fall into one of two categories; the investor with a portfolio of properties that is using rent from tenants as their sole income, or an investor that is looking for an added income stream by having one or two homes that they rent out.
In the current financial climate, property investment is widely considered as an attractive investment option compared to saving which offers low interest rates or the volatility of the stock market.
There are two key factors to look for when making a Buy-to-Let purchase in order to achieve maximum value on your investment.
Invest in a ‘promising’ area that:
Galliard has identified the best locations for return on investment as ‘regenerating’ areas.
Here at Galliard Homes we have built our reputation on acquiring sites in London areas where there was little or no development, unlocking the potential for our investors to attain huge capital growth by joining us in these yet to be regenerated locations.
Our regeneration masterplan began in the early 1990s when we helped pioneer London’s Docklands, taking the locale from an undesirable residential address, bogged down by part constructed schemes and buildings in receivership, to an attractive place in which to live and invest. Buyers who acquired homes at our Papermill Wharf development in 1993 have seen their £50,000 investment now valued at £500,000.
In 1995, Galliard reinvented the South Bank with conversion schemes at County Hall and The Whitehouse - creating over 1,000 luxury homes. We unlocked the potential of this area long before the Tate Modern, London Eye, London Aquarium, and the myriad of bars and restaurants that now grace this highly sought-after locale.
Similarly, in 1997, Galliard helped to transform car parks and derelict warehouses adjacent to Butler’s Wharf into a premier riverside postcode, with schemes such as Spice Quay Heights, Tea Trade Wharf and Cayenne Court. We were able to spot the potential of these sites and, once again, we passed on a great opportunity to invest with us and achieve capital growth.
Just like any investment, there is risk involved; however, house prices have a pretty good habit of continually increasing in value, even through times of economic downturn. Savills' five-year forecast for 2015–2019 predicts a 10.4% increase in London house prices.
It is important that you research the market prior to committing to any investment strategy. In terms of Buy-to-Let, this includes calculating affordability and making a contingency plan for any outgoings which this type of investment may incur, for example mortgage payments and property maintenance/repairs.
Even if you have chosen the most popular area of London to purchase your Buy-to-Let property, there may be periods where your property is empty. You will need to contingency plan for times like this, and also unexpected costs such as repairs or a new boiler.
Lastly shop around for your mortgage provider and consider seeking advice from a specialist Buy-to-Let broker in order to secure the best deals. ThisisMoney.co.uk provides an excellent Best Buys table.
Without this scheme I would not have been able to purchase this specific property nor would I have probably joined the property ladder. Galliard were very helpful throughout the process and dealt very well with my case, I would most definitely recommend the scheme to other purchasers.
The Galliard Homes staff were great, very responsive, and did everything in the times they said. I found the overall help to buy service helpful and a life saver! I would absolutely recommend this scheme to other purchasers. A very positive opinion from me.