Assetz plc has published the results of a survey of 3,300 investors and it reveals some interesting information about the motivation of buy-to-let landlords. Assetz heads up a group of property and financial services companies and it has just published its annual Buy to Let Investor Survey.
The two main priorities for investors planning buy-to-let purchases in the next twelve months are a stable income and a boost to insufficient pension provision. Confidence in the UK buy to let sector is robust according to this survey which found that three quarters of investors stated that they intend to buy additional investment properties over the coming year. They said that their income was being limited by low bank savings rates and poor returns on the stock market.
65% of investors are taking a long term view stating that rental income for retirement is their main motivation. It would be interesting to find out how many of our landlord insurance clients view their buy to let properties as part of their pension planning. Most of the people surveyed said that they are currently achieving gross rental yields of more than 6% with almost a fifth achieving yields of 9% or higher. A large proportion of the people questioned as part of the Assetz survey said that they are buying either outright with cash or with a very small mortgage. This means that they are at an advantage over people struggling to secure finance for to buy a property as their own home.
If you are seeking to boost your retirement income and are seeking a regular income from a property you need to take careful account of repair costs. They can easily eat into your gross yield and make life very difficult if you will be depending on your rents to maintain your lifestyle in retirement. An unexpected bill for new window frames or roof tiles can knock a big hole in your calculations. Take as much advice as you can before entering the market.
For more information visit assetz.co.uk