9th January 2020 - Tracey Payne

Is buy-to-let a good investment option?

Getting your finances in order is often something that people think of as a New Year’s resolution and this means our phones ring regularly with new enquiries throughout January and into February. With people wondering about how to make their savings work harder for them the options can be daunting. One question our Financial Planners often get asked is “should I look at investing in buy-to-let property?”. Given our high level of technical expertise, this is, of course, exactly the sort of thing that we are here to help you with.

As a starting point you may wish to read the following article, published by Which? magazine.

https://www.which.co.uk/news/2020/01/15-things-buy-to-let-landlords-need-to-know-in-2020/

One of our Chartered Financial Planners, David Herbert, drew this to my attention. I feel it provides a worthwhile overview of the reality of buy-to-let investing and would urge anyone thinking about this as an investment option to have a read.

We have always been a bit sceptical about the real returns do-it-yourself landlords achieve as it is human nature to think about the good things in life and try to forget (or make excuses for) the bad. This often causes investors to focus on the rental income and capital growth but to ignore the negatives. The impact of agency fees, maintenance costs, a lack of liquidity and periods of vacancy have always been draws against buy-to-let properties. But the Which? article also notes the increasing burden that new legislation is having on landlords.

If, after reading this article, you are left with more questions than answers about how to make your money work harder for you, we would love to help you work through the options and come to the right decision.

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