Forum Topic

Buy to let investment, good or bad for the area?

I recently read a very good article about the pro’s and con’s of buy to let investment and what impact it has on the local community. One school of thought was it erodes communities with the constant movement of people, on the other hand there was the argument that it revitalises areas and helps local businesses thrive with new custom.I’m thinking of making my first purchase, is this a good move in Acton??

Reg whiteman ● 5456d4 Comments

Hi Reg, I think there are two issues to tackle here and perhaps better to seperate them.1. Is buy to let in Acton Right?2. Is buy to let anywhere right?Personally, I'd say with the transport links, hospitals and popularity with lots of different commuities then yes Acton is good. Although I'd consider that just about everyone and their grandmother now have a portfolio of BTL properties and the competition is fierce. That said, with the shortage of housing stock, the current financial uncertainty and issues with many getting access to lending, the rental market does seem to be having a good time of late with yields up on what they were.I'd suggest you consider your target market (students, young profs or families) and make your purchase with that in mind. Expect void periods, and sadly you may have problem renters. But of course you may be very lucky and get good renters who stay a considerable time and look after your home. It's somewhat the luck of the draw, though I'd say young profs spend less time actually in the property than others, although they may not be so used to respecting others property. Taking a good deposit is key and using a reputable agent is also important. Hope this helps, and appreciate it answers far more questions than you actually asked.Good luck, Carl

Carl Tamboli ● 5456d

Depends on whether you want to do the best for yourself or the best for a community.One with a disproportionate number of BTL does feel friable. There's more movement and less commitment to what's going on in or happening to a community...but then young professionals, who might be the target, don't have much time for that sort of thing anyhow in my experience.BTL is also not the easiest way to earn a living - sometimes it all goes smoothly but there are tenants from hell to go woth the landlords... or not even from hell just careless, irresponsible and not prone to clean the cooker.But are you talking house, flat, HMO of bedsits? They all have their challenges. For the community's sake I'd say either of the first two may be fine but chances are the third one won't be!

Sara Nathan ● 5455d

One of the big problems with buy to let is the high level of vacancy that it seems to bring. Buy to let actually is usually buy to sell with 'investors' not taking on a tenant because the expect a capital gain and when if the price falls they don't take on a tenant because they want to sell. Have a look at the number of lights on in the evening in somewhere like Bromyard House and you'll quickly see that the actual level of occupancy is quite low.

Alan Fairchild ● 5449d

Good for you....bad for the area. The tax relief you obtain on the loan will help you price out owner occupiers. Those priced out will pay tax to fund the Housing Benefits that will enable your tenants to afford the high rent. The area will degrade and inequality will increase.

Robert Murray ● 5446d