30th November 2018
In these uncertain political and financial times, it can be difficult to know the best way to invest your money so that you get maximum return with minimal risk. I always advise our landlords that if they have cash in the bank then property is still the best way for them to see some return on that cash.
2018 has been our busiest year in professional lettings as Leeds continues to prove itself as a major city with brilliant career prospects pulling in lots of professionals – and those professionals all need somewhere to live. Our core area of North Leeds continues to thrive as professionals flock to its popular postcodes.
The humble 1 or 2 bed back to back terrace has become a sound purchase for landlords in recent years. Terraces tend to be quite low maintenance and appeal to single professionals, couples, as well as two friends sharing. We recently sold a one bed terrace to a new landlord who is wanting to invest his savings into property long term. He knows he is in it for “the long game” and wants to buy tired properties that need sprucing up as he has the cash to do this. Purchasing for just shy of £105k the landlord took the opportunity to fully refurbish the property so that he could command maximum rental value and attract a top-quality tenant in return (a key strategy to ensure a problem free portfolio). Previously achieving a rental figure of £425pcm the property was launched by Moores following a full refurbishment and a new tenant was secured on the first viewing for a rental figure of £695pcm – an impressive £270pcm increase. Our landlord is now seeing close to a 7% return on his investment and can rest assured that his property and interests remain safeguarded by the Moores Full Management Service. I think it’s safe to say that nobody is making 7% on their cash in the bank!
I can see why people can be a little reluctant initially to invest in property as they assume it is only for big time investors or large companies, however that is far from the truth. I would say a good 70% of our landlord clients own just one or two properties which have been purchased as long term pension plans. We also have landlords that have stumbled into property investment accidently when their lives took them in a different direction away from Leeds, and most of them have generated a great investment plan with the help of Moores Management Service. Once our clients realise the income that they can make from their property they tend to retain it far longer than their original plan. If the numbers work then why would you sell an asset that continues to improve in capital value and make you some money in the meantime? If you have no need for the cash right now then keep it in your property and enjoy the monthly payments.
Have you considered becoming a landlord but unsure of how it all works? Take the first step and give me a call or drop me an email so we can discuss how being a landlord can work for you!
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Phone – 0113 2399750