The first step is often the hardest… I became a landlord in 2006, which is over 15 years ago but you know what I...
The first step is often the hardest…
I became a landlord in 2006, which is over 15 years ago but you know what I spent 5 years before that thinking about it, wanting to get involved but never taking action – WHY?
Sometimes I think you can get a little daunted when taking a large decision – am I capable of making it work, is it going to turn into a big mistake?
Also there’s the financial issue, how am I going to raise a 25% deposit to buy a property?
One of the biggest opportunities to first dip your toes into property is when you move home. You could decide to rent your current home and also purchase a new one. With house prices rising quickly this could also be a great opportunity. You also know your local area better than anyone else and so will know if it’s a great place to rent.
To do this you’d firstly approach your current lender to convert your mortgage to a “Let to Buy”, informing them you wish to rent out your home. This is far easier than getting a new buy to let mortgage since you’ll be dealing with your current lender versus a new one, so the underwriting process is far easier. You still need to leave some equity in your current home and there’s still affordability criteria to meet but it might be a great way to start…
As I said the first step is often the hardest and you don’t know where that journey will lead once you begin it. For me property is still a great way to provide a better future for yourself and your family, especially with inflation on the loose again. Inflation is a property investors friend, your mortgage debt will never get bigger whereas inflation – inflates the price of your asset (a property) and your income (the rent) – making your overall investment increase in value on a capital and income basis.
My prediction for the next 10 years is inflation will continue to be higher than interest rates and the relative changes will be higher, so you should continue to see rentals and prices outstripping any increases in mortgage costs. Still making it a great time to BUY!
I’ve prepared a video below on LET TO BUY, with our mortgage broker Gary Boyack, which you might find informative if you’re looking to rent out your current home.
I hope for anyone whose thinking of getting into property, this helps you make that first small step!
Remember – It’s our job to maximise your wealth from property.
For any sales, lettings or refurb help:
- Contact us today by phone or email to move your property to us.
- We’ll contact your letting agent to ensure a seamless tenant transfer, including the deposit, keys and all paperwork.
- We’ll contact your tenant to resolve any rent, maintenance or refurbishment issues you have, arranging a property visit if required.
- We’ll begin the process of maximising your income and wealth.