Is Buy to Let still a good use of your savings?

Is Buy to Let still a good use of your savings?

This past year, in Leeds and elsewhere, property prices have accelerated. The Halifax reports this week that such rises may be cooling, but for first time buyers, mores and investors, property values have been rising quickly in the past year.

Rishi Sunak, the Chancellor and MP for Richmond, not far from Leeds, stimulated the housing market with stamp duty holidays which sent sellers and buyers into something of a frenzy. Now that is over, there are signs of cooling, but property supply remains low and demand is high still.

Other factors too contributed to this property boom – many people wanted to upsize as home-schooling and home-working became new norms. Children may be back in classrooms, but a lot of workers have not returned to the office, as yet, with many London commuter routes, for example, remaining quiet. If you’ve been perched on a kitchen table, a sofa, a desk in a second bedroom juggling Zoom and Team meetings, at home, may have realised that this is not sustainable longer term and have upsized accordingly.

It’s no bending of the truth to say that the biggest property price increases have come with larger homes – those commanding 4, 5 or 6 bedrooms or extended ground floor space, where you can work and be near a kettle.

Capital values increase

Portfolio landlords and single-property landlords have seen capital values increase and void periods all but disappear as tenants are searching for homes with plenty of space and good fibre broadband.

Savings rates are pitifully low too. We know of one teacher who retired with a handsome lump sum. He left the fund in the bank and accrued £85 in interest over one year. Standard really. Since then, he’s asked Stephen Thorpe, our MD, for advice on investing and took the plunge with a 3 bedroomed property that will now attract £6000 per annum in rental profit, after mortgage costs. Much better than £85 a year!

Stephen’s advice was to buy a 3 bedroomed property not 1 or 2 as you get better yields and tenants who stay longer in 3 bedroomed homes.

So what is available in our corner of Leeds that would suit a first time buyer or seasoned investor?

Take a look at this:

https://www.hogans.co/property/2609563/strathmore-view-harehills-ls9/

It has a living room, dining room, kitchen (and cellar) downstairs that would be perfect for families and home-working.

Upstairs are four, yes four, bedrooms.

With double glazing, central heating and an expected rental price of around £900 per month, it could make a great buy or investment in Harehills. It has an asking price too of just £115,000.

In Oulton, LS26, where prices are higher, another attractive property is available for £170,000. This has two bedrooms and would be a great place to live or invest:

https://www.hogans.co/property/2612463/leventhorpe-court-oulton-ls26/

Finally, if you’re struggling to find a buyer quickly for your home or investment, we can help at Hogan’s Fast Sale with a cash offer or a guaranteed fast sale.

Contact us today to find out more.