You may ask, “Why buy an investment property in Durham?” Especially now, when the global situation is so precarious, with new developments unfolding almost every week.
Nevertheless, the evidence indicates that the present is an opportune time to invest in rental property and reap the financial rewards associated with being a landlord.
Are you considering investing in a buy-to-let property?
9 Reasons Why You Should Consider an Investment Property
There are many benefits to owning property. Whether you’re just toying with the idea of becoming a landlord or completely sold on the idea, here are nine good reasons to invest in a rental property right now.
1. It’s a tangible investment
It’s never too early (or late) to invest in the future. Rental property in Durham is appealing to many since it’s a tangible investment and one that’s relatively familiar and easy to understand. For many, it’s also a far more accessible investment compared to bonds, stocks or shares that require some market skill and know-how for capital growth.
2. The market for renting
From students to relocated workers and families to couples, the rental market in Durham is vast and varied. An English Housing Survey revealed that one in five households in the UK is a rented home. With this in mind, you will always find demand for your buy-to-let property, given property prices for purchasing a home are not attainable (or appealing) for many.
3. An annual income
Of course, one of the benefits of being a landlord in Durham is the potential annual income that comes with it. This varies depending on the size, condition, and location of your property. However, there’s much appeal! Latest data from the Landlord’s Guild states that the average median annual income is £17,200 a year in rent before tax and deductions. For some, this could make the difference of being able to go part-time in their job or retire early. For others, it is an excellent way to top up their salary.
4. A guaranteed income
There’s no denying that there are certain stresses that come with owning a rental property. However, many will agree that the benefits of being a landlord far outweigh this. One of these benefits is some guarantee of a regular income.
Most rental contracts are for 12 months in duration. This offers landlords some peace of mind in terms of a regular monthly payment. Some might say, even more security than a full-time job offers.
5. Grow your investment property portfolio
Many individuals who start with just one buy-to-rent property in Durham find that it’s a viable business. This offers a foray into the property industry, growing your portfolio as you acquire more properties. This can be a great career choice, especially for those with an interest in the property market and business investments.
6. A second home
Some private landlords invest in buy-to-let property as a future nest egg for themselves that covers the mortgage rates until they are ready to move in.
This is not just in terms of financial gain, but also as a retirement home. As part of a long-term strategy, you may decide to invest in a second home to rent now, which you will later take off the market to live in yourself.
You’ll also have the added benefit of knowing the property has been in good hands in an area you’re already familiar with before moving in.
7. There’s lots of support
Even if you’re new to the buy-to-let market, there’s plenty of support in the industry. This includes the Residential Landlords Association who represent and assist its members.
8. Support your family
One of the benefits of owning property is the opportunity to provide security for your family. If you have children at university, this will be an all-too-familiar scenario! Many families turn to buy-to-let properties to ensure their children have a stable residence during their higher education. This can still be rented out beyond their tenancy, making it a handy side hustle later on.
9. Expand your knowledge of investment properties
Whether you already own a property or you’re looking for a buy-to-let for the first time, you will undoubtedly expand your knowledge along the way. From learning the lingo to understanding lending rates and regulations around being a responsible landlord. It’s a great chance to grow in ways you might not have previously considered.
We understand there’s a lot to consider when buying a rental property, so we’ve answered your most common questions here.
Frequently Asked Questions About Why You Should Buy an Investment Property in Durham
Why should I consider purchasing investment properties?
Investing in rental properties can provide a steady stream of rental income, allowing you to build wealth over time. The annual rental income generated can not only cover mortgage payments but also offer potential profits, making it a lucrative long-term investment.
How do rental properties help with mortgage payments?
Rental income from your property can be used to cover mortgage payments, reducing your financial burden and potentially creating positive cash flow. This dual benefit of property appreciation and annual rental income ensures that your investment contributes to both short-term affordability and long-term financial growth.
Are there tax advantages for rental property owners?
Yes, rental property owners may enjoy tax advantages such as property maintenance costs, and depreciation. Understanding these tax benefits can significantly impact your overall return on investment and provide additional incentives for individuals considering the purchase of rental properties.
Need Help Getting Started? For no-obligation advice on buying a rental property in Durham please contact our expert property team at PIIM at info@piim.co.uk