The Crewe buy to let market is brisk, this property was listed on the market on Monday and an offer secured and wrapped up on Tuesday.
Even though the tax laws are changing for buy-to-let landlords from April, this isn’t stopping the market popularity. Many investors prefer their money to be in bricks and mortar than stuck in a bank account earning little or no interest.
From April mortgage interest isn’t going to be allowed to be deducted from the rent income generated on a property, so this is going to increase the tax burden for many landlords, this will push many landlords who have day jobs into a higher tax brackets and for some which are heavily mortgaged on their portfolio into a negative income situation. However, those landlords with low or no mortgages, it still works out as a solid investment, and those investors with capital saved or pension lump sums are happily placing their savings into the property market.
The rule of thumb for a good buy to let investment is;
- Location location location – near good schools, transport and shopping
- No big repairs required, and in an immediate move in condition (or already with a tenant)
- Have the ability to produce a 5-10% annual income on investment (eg Purchase price £100,000 produces and income of between £5,000 and £10,000)
Crewe is currently a buy to let hotspot, Nick Cliffe of Whitegates recently commented that “As soon as a realistically priced family home hits the market, the phones ring red hot with anxious buyers queuing up to put offers in.” He also added, “The sweet price range is between £100-£150k, as many soon to retire buyers have their cash final pension settlement to invest. For sellers it’s normally a cash purchase, so a swift and quick process.”
So, if you have a property to sell that fits into these parameters give Nick a call on 01270 230 043