Buy-To-Let – Should Investors Stick or Twist?

8 September 2014

CKD Galbraith advises investors during the buy-to-let mortgage boom

Professional landlords have long existed but alongside the ‘professionals’ there are those who own second homes, holiday homes or who have inherited property they are keen to hold on to. Additionally, demand for rented accommodation has increased steadily over recent years and has encouraged more people to invest in property for rental purposes.

A recent members report from the Association of Residential Letting Agents (ARLA) suggest that landlord optimism is now at a high with 26% of existing landlords expecting to acquire further property to let during the next year.

Shirley Kenyon, Head of letting at CKD Galbraith, offers some salient advice to those considering investing further or those investing in property for the first time;

“For those considering a buy-to-let mortgage or looking for further property in which to invest should consider a number of points; where are Scotland’s residential ‘hot-spots.’ Cities such as Aberdeen and Inverness are offering attractive opportunities and shouldn’t necessarily be written off in favour of the capital or properties closer to a landlord’s own area of residence. A good agency will manage the let from a localized office for you.

“Secondly, although bricks and mortar do represent a safe investment you are still effectively borrowing to invest so do not over borrow. The mortgage still has to be affordable if your income took a hit, you suffered an illness or there were periods when tenants hadn’t been replaced.”

Bill Madigan is an experienced landlord with a large portfolio of properties let through CKD Galbraith. He began investing in property over 40 years ago and having ridden out the many ups and downs of the UK mortgage market had this to say;

“For me buy-to-let mortgages offer a flexible and yet secure way of saving with property acting as a relatively stable form of investment. Generally my investments have provided a healthy return and I believe that having the support and advice of a good agency like CKD Galbraith is invaluable.

“The company have always kept me abreast on legislation, market changes and importantly have ensured that my properties are occupied! Buy-to-let investments also offered me the means of funding a retirement income that wasn’t locked up inside a pension scheme.”

CKD Galbraith currently has a number of properties on the market in Scotland’s most sought-after locations and ideal for buy-to-let purposes, including:

Lauderdale is a detached two-bedroom bungalow within walking distance of the pretty highland town of Pitlochry, Perth. It has fantastic income potential and has been successfully let in recent years achieving a rental income in the region of £550pcm.

Lauderdale has a guide price of £155,000.

10 Greenan Park is an excellent semi-detached house well located in the heart of Doonfoot on a quiet residential street, about two miles from the centre of Ayr town. Alloway Village, most famously known as the birthplace of Robert Burns (one mile) has local amenities including a shop, post office, doctors and primary school.

10 Greenan Park is available for offers over £115,000.

5B Union Street is an attractive top floor flat in an excellent location in the centre of Kelso, one of the most popular towns in the Borders. This flat enjoys excellent outlooks across Union Street and the neighbouring roof tops. The property has an achievable rent of around £400 pcm.

5B Union Street has a guide price of £82,000.

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