Considering a buy to let in Grantham?
You might be wondering, ‘why buy a rental property in Grantham? After all, the global landscape is treading on eggshells at the moment, with a new event seemingly occurring every week.
However, all the findings suggest that now is a great time to invest in a rental home and enjoy the financial benefits of being a landlord that comes with it.
Therefore, it’s a great time to bag a bargain and invest in a buy-to-let property.
10 Reasons Why You Should Consider an Investment Property
There are many benefits to owning property. Whether you're toying with the idea of becoming a landlord or sold on the idea, here are ten good reasons to invest in a rental property right now.
It’s a tangible investment
It’s never too early (or late) to invest in the future. Rental property in Grantham is appealing to many since it's a tangible investment and one that's relatively familiar and easy to understand. For many, it’s also a far more accessible investment compared to bonds, stocks or shares that require some market skill and know-how for capital growth.
It can be a money-spinner
Sure, property prices fall and rise, but as far as long-term investments go, it’s one of the best ways to enjoy a sizeable financial return.
The latest figures reveal that buy-to-let landlords in England and Wales enjoyed £79,770 in capital gains in 2018. The findings also revealed that the vast majority (85 per cent) of landlords with a buy to let property for sale manage to sell it for more money than they originally paid for it.
Market for renting
From students to relocated workers and families to couples, the rental market in Grantham is vast and varied. It's thought that one in five households in the UK is a rented home. With this in mind, it's likely you will always find demand for your buy-to-let property, given property prices for purchasing a home are not attainable (or appealing) for many.
Annual salary
Of course, one of the benefits of being a landlord in Grantham is the annual salary that comes with it. This varies depending on the size, condition and location of your property. However, there’s much appeal, with the average landlord earning £15,000 a year in rent before tax and deductions. For some, this could make the difference of being able to go part-time in their job or retire early. For others, it is an excellent way to top up their salary.
Guaranteed income
There's no denying that there are certain stresses that come with owning a rental property. However, many will agree that the benefits of being a landlord far outweigh this. One of these benefits is some guarantee of a regular income.
Most rental contracts are for six if not 12 months in duration. This offers landlords some peace of mind in terms of a regular monthly payment. Some might say, even more security than a full-time job offers.
Grow your portfolio
Many individuals who start with a buy-to-rent property in Grantham find that it’s a viable business. This offers a foray into the real estate industry, growing your portfolio as you acquire more properties. This can be a great career choice, especially for those with an interest in the property market and business investments.
A second home
Some private landlords invest in buy-to-let property as a future nest egg for themselves that covers your mortgage rates until you are ready to move in.
Not just in terms of financial gain, but also as a retirement home. As part of your long-term strategy, you may decide to invest in a second home to rent now, which you will later take off the market to live in yourself.
You’ll also have the added benefit of knowing the property has been in good hands in an area you’re already familiar with before moving.
There’s lots of support
Even if you’re new to the buy-to-let market, there’s plenty of support in the industry. This includes the Residential Landlords Association who represent and assist its members.
Support your family
One of the benefits of owning property is the opportunity to provide a secure rental to your family. If you have children at university, this will be an all-too-familiar scenario.
Many families turn to buy-to-let properties to ensure their children have a stable residence during their higher education. This can still be rented out beyond their tenancy, making it a handy side hustle if you like!
Expand your knowledge
Whether you already own a property or you're looking for a buy-to-let for the first time, you will undoubtedly expand your knowledge along the way, from learning the lingo to understanding lending rates and regulations around being a responsible landlord. It's a great chance to grow yourself in ways you might not have previously considered.
Frequently Asked Questions About Why You Should Buy a Rental Property in Grantham
Why should I consider purchasing rental properties?
Investing in rental properties can provide a steady stream of rental income, allowing you to build wealth over time. The annual rental income generated can not only cover mortgage payments but also offer potential profits, making it a lucrative long-term investment.
How do rental properties help with mortgage payments?
Rental income from your property can be used to cover mortgage payments, reducing your financial burden, and potentially creating positive cash flow. This dual benefit of property appreciation and annual rental income ensures that your investment contributes to both short-term affordability and long-term financial growth.
Are there tax advantages for rental property owners?
Yes, rental property owners may enjoy tax advantages such as deductions on mortgage interest payments, property maintenance costs, and depreciation. Understanding these tax benefits can significantly impact your overall return on investment and provide additional incentives for individuals considering the purchase of rental properties.
How do rental properties help mitigate capital gains tax?
Owning rental properties allows for potential tax advantages when selling. Rental property owners can defer capital gains taxes by reinvesting the proceeds from the sale into another qualifying property. This flexibility in managing capital gains tax makes rental properties an attractive option for investors seeking to optimize their financial portfolios.
Need Help Getting Started?
For no-obligation advice on buying a rental property in Grantham please contact our local expert property team at Secure My Sale Estate Agents on 01476 825258. We are here to help YOU and help and assist with any questions that you may have or click HERE to book an appointment
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