GRD have recently read a paper regarding buy to let investment. Those of you who may know GRD Financial Services, will know our dedication to delivering great products in the Buy to Let Market, having many clients with property portfolios and clients who are accidental landlords. No matter who the client is, GRD will always go that extra mile to source the best product which meets the needs of the clients.
2016 has seen a decline in the Buy to Let property purchases, however what we are about to share with you, will demonstrate why the savvy investors will see 2017 as a great opportunity. A well known entrepreneur once told me that one persons recession is another persons opportunity. We hope that your fears and apprehensions about the property market will be laid to rest after we have shared this information with you, and look forward to working with you in 2017, building your portfolio and obtaining the best Buy to Let Mortgage for you and your company. Please enjoy, the article is published by Progressive Property.
“Why the media is wrong, what the property elite don’t want you to know and why now is the best time to get into buy to let”
HOW YOU CAN MAKE A FORTUNE FROM PROPERTY IN 2017
“Death of buy-to-let: landlords wake up to Osborne’s 150% tax Buy-to-let investors paying more than 100% of their profits in tax are already sell up!”
Headlines like this (that the Telegraph ran on the 22 August 2015) certainly scare off the uninformed and those people that we all know that will never get into property because the timing is not quite right. By getting your hands on this report you’ve proven that you are determined to be one of the select few that are able to profit in this market uncertainty.
So why is 2016 the best time to get into buy to let? To answer this most succinctly I’d like to quote the most successful investor of all time, Warren Buffet:
“Be fearful when others are greedy and greedy only when others are fearful”
As you know there is a huge amount of fear about property investment right now because of headlines like the one above. So what is the truth that savvy and successful property investors are using right now to make fortunes?
The short answer is that they are doing the opposite to the masses and doubling their efforts to buy as much property now while they can get it cheap. Here’s the detailed reasoning behind that flippant statement:
I have been doing this over 10 years and have noticed that every few years something significant happens to change the landscape. The changes I have witnessed have never been a reason to sell (although I use them as a reason to buy cheap properties from people who think they are).
We know property investment has worked in the UK for the last 1000 years (we have rough data from the days of William the Conqueror). We’ve seen property price changes since 1066 and now the introduction of a tax (albeit not properly thought through) which will be introduced slowly (next 5 years) and which can be avoided by using a ltd company. This tax change is highly unlikely to alter things significantly in the long term.
Much bigger events in recent times were:
The credit crunch/recession of 2008: The amount of doom and gloom; people saying it was the end of property investment (even experienced people). Properties dropped 20-30% for 3-5 years (some places more) depending where you are located. In the vast majority of areas prices have recovered and are now higher than just before the crunch started. Tenant demand increased and rents rose through this time.
Actual RESULT: Landlords who held on and ignored the noise did best. Landlords who used it as a buying opportunity did amazingly well. Much of the stock we bought in this period is now worth (conservatively) 30% more.
Housing benefit was/is being reduced by the conservative government: This means that LHA tenants get less rent and Universal Credit gets introduced. Those landlords who adapted to take more private tenants and stop LHA have found that private rents have since increased anyway.
Actual RESULT: Landlords who adapted to take private tenants and ignored the noise did best.
HOW YOU CAN MAKE A FORTUNE FROM PROPERTY IN 2017
Mortgage Express/other lenders removed the daylight bridge in 2008: Doomsters thought it was the end of being able to buy/control property with reduced funds/deposits. Those investors who adapted and learned new strategies and continued to buy using JVs, lease options and buy-refurbremortgage did best.
Actual RESULT: Landlords who kept on going and ignored the noise did best. Landlords who used it as a buying opportunity did amazingly well, much of the stock we bought in this period is now worth (conservatively) 30% more.
Sale and rent back deals (where a property was purchased and rented back to a homeowner who wanted to release cash/clear their mortgage) were effectively banned (regulated): Many thought it was the end. Those who evolved just changed their strategies to move people out of their homes and into another similar rental property or targeted people who didn’t want to rent back.
Actual RESULT: Landlords who adapted to move these people into other properties in their portfolio and therefore were able to continue to buy their properties cheap, did best.
The last Labour government introduced rules which said that planning permission would be required for all new HMOs (even below 6 tenants): People shouted, moaned and many said it was the end. The new government realised how crazy this was and in 2010 this rule was reversed and planning was no longer required.
Actual RESULT: Landlords who adapted their strategy and ignored the noise did best. Many learned what properties planning could be acquired on and bought HMOs in these areas. In 2010, they reverted to their old strategy as the authorities came to their senses.
Another thing to remember is that the things I have mentioned above ACTUALLY happened.
90% (no exaggeration) of things that people worry about won’t and have not actually happened, some of which are below:
“The EU will force the banning/regulation of buy to let mortgages” the UK treasury got rid of this with an amendment to the interpretation of a professional investor.
“Buy to let mortgages will all but be removed from the market” The Times ran an article with a similar headline to this in 2008. The reality at the time was that buy to let mortgages on offer had reduced but it was clear that there were still many options, those who persevered got borrowing and the market has grown significantly since the recession.
“Properties will drop 50% to 70% during the credit crunch” yes they dropped but not by this margin and this didn’t affect those who held.
“Interest only mortgages are finished, capital repayment will be the only option following the credit crunch” Whilst Owner Occupier mortgages in the main became capital repayment, the buy to let mortgage market remained almost exclusively interest only.