Why should you buy to let in 2023?
It is no secret that for the last ten to fifteen years, the government have been landlord bashing and the reason I know this is because I’m a landlord myself and the state of the market has even forced me to sell a few properties.
Interest rates have gone up and for a lot of us landlords who have mortgages, our income return is being squeezed and this hasn’t been helped by agents who refuse to help their landlords by putting up rents and spend far too much of their landlord’s money on repairs.
Finding the right property in London
Here at Rocket, we recognise that the rental market can be made very simple and we act as a one-stop shop for landlords looking at buy to let right from the beginning of the process to making an 8% or better return on your property.
The keys is finding the right property. Landlords should not be buying one or two bedroom flats in London at the moment.
Instead, buying three or four bedroom sharer properties can be much more profitable. We can still arrange sharer properties without needing an HMO license but even where this is required we make sure all the requirements are covered.
The numbers
The cash amount required is about £175,000-£200,000 then, if you get 75% buy to let finance at around a 6% interest rate, we can find properties to get an 8% or better return.
Take our recent three bed property we bought in Wandsworth for example. We bought a property for £420,000, we’re refurbishing for £35,000 and should achieve a rental income of £3,500 per month yielding a 9% gross return.
Our approach
We’re not a huge company and so we offer a bespoke service to landlords. If you want to buy a new property, we’ll find the right property, buy it at the right price, make it lettable and achieve a high rent with quality tenants.
We want to change the mindset of landlords from wanting to sell to realising that in fact their properties are valuable investments and are worth hanging onto or even buying more.
We prioritise our tenants’ well-being since their rent constitutes our primary source of income. Regarding tenants, it’s understandable if you’re concerned about rising rents. However, it’s important to note that the real estate industry operates on the principles of supply and demand.
So, if landlords start holding onto their properties and even buy more, as is our aim here at Rocket, then rest assured it won’t be long before you see rental increases slowing down.
