Discussion Title: Young investors eager to take part in the buy-to-let bonanza

New research has revealed that as many as 4 million people aged 18-39 are actively seeking to acquire a buy-to-let (BTL) property, eager to cash in on the well-documented boom. A report found that nearly half of young people hold the belief that becoming an amateur landlord is the best investment available, with many keen to jump on this increasingly popular bandwagon. Rising interest from younger buyers would grow demand for buy-to-let ever further. As things stand, it’s already outpacing demand for the UK residential market by some distance. With mortgage rates on buy-to-let properties at record lows, demand is expected to remain high despite George Osborne’s recent measures to restrict higher rate tax relief on properties of this type. It is no surprise that becoming a BTL landlord has significant appeal to the younger generation. Demand in the private rented sector has increased substantially in the last few years and continues to go from strength to strength. As we’ve written about in previous blogs, BTL landlords can achieve excellent rental yields and considerable returns on their investment if they are sensible and purchase in the right sort of areas. Still, as with any investment, there is an element of risk when it comes to BTL property. It’s important that young investors – particularly those that have no experience of letting property – know full well what they are getting themselves into. Here are a few things to bear in mind... Renting property not a one way ticket to untold riches Letting properties won’t, unless you’re very, very lucky, lead to you become an overnight millionaire. You can make a good living out of BTL property, but it’s not a fool-proof way to make tonnes of money. Like anything else, you get out of it what you put in. If you keep your property in good condition, treat your tenants well and adhere to all the necessary safety and security regulations, you should be able to achieve very decent rental yields, especially here in East London. However, you will have to work hard and invest money into your properties to make this a reality. Being a landlord is a serious business You can’t go into it half-hearted. It might all sound very exciting and lucrative – and it very much can be this – but it will also mean a lot of time, money and answering queries from tenants. It is, in other words, a big commitment. Young property investors need to make sure they are in it for the long-term and are really prepared for life as a landlord. Thinking of your investments as a business rather than a hobby will help. This will help you to remain professional, organised and up to date with all the necessary rules and regulations. Picking the right location is crucial This might sound quite obvious, but it’s still a hugely important consideration to make. There is, after all, no point in investing in an area that has very few tenants. Major cities and towns will have greater demand for rental properties than rural areas and tiny villages, as will locations near university campuses and cultural or financial centres. Also, try and target your property towards particular different demographics – for example, students and families will have very different needs and requirements. For further advice and guidance on buy-to-let property, please contact East London letting agents Amilli Property on: 0203 189 1925. If you would like to find out what monthly rent you could be achieving in the current marketplace, check out our instant online valuation tool. https://blog.amilliproperty.com/young-investors-eager-take-part-buy-let-bonanza/