by Shazan Qureshi
After floating four companies over the last three years and acknowledged my childhood passion for the
stock market, I’ve found a lot of economic talk is heavily theoretical and needs translating into a real life
business context. By providing expert advice with guest columnists, as well as sharing experience and
insight my aim is to help you make your enterprises asset rich and ultimately give you the freedom of
choice in how you wish to exit or retain your business.
WHERE NEXT FOR BUY
-
TO
-
LET?
But they would be well advised to take a
longer-term view, taking into account
Returns are on the up in unexpected But the injunction to mimic these potential growth in capital value which is
locations and rents are on the rise...why professionals by analysing yields can likely to be strongest and come sooner for
then are lenders turning their back on obscure the truth that yields rise when houses, which are now showing subdued
buy-to-let investors now? property values fall. An investor who rental yields.
chases high yields may risk buying
Where do you think an investor would properties with depressed prices that have The buy-to-let boom was built on debt.
make the best rental returns in this no chance of recovering quickly, while Remember the savvy landlords who
market? Most observers would not think overlooking homes that are likely to boasted, as house prices soared, of
a tiny new-build flat in a city centre undergo a sustained increase in value. building up portfolios by mortgaging and
oversupplied with similar homes would be then remortgaging to release the funds for
a candidate for such a prize. Aspiring investors who would prefer to ever more homes?
focus on potential capital gains over the
But exclusive analysis for The Times long term are being thwarted by banks But just as banks are easing restrictions
shows how the decline in house prices and building societies, who refuse to lend on some particularly solvent owner-
since 2007 has driven up the headline unless applicants can show a rent that is occupiers, they are increasingly tight-
yields in some areas, such as Nottingham, large in comparison to the property’s fisted when buy-to-let investors apply for
Merseyside and Manchester, while fast- value and will generously cover mortgage funds. Lenders’ suspicion about buy-to-
recovering prices have driven them down payments, even if the landlord suffers a let prospects come just as agents predict
in Bristol, Edinburgh and Bournemouth. long “void” period with no tenant. that the departure of the “accidental
Amateur buy-to-let investors are landlord” or the homeowners who rented
commonly instructed to check the yield of Few lenders are much minded to bet on their property out because they could not
an investment before committing to buy. capital growth after the sudden slowdown sell will bolster the market and help to
in the housing market that began in 2007. boost rents, especially in the latter part
The yield is the proportion of the of the year.
property’s value that the owner makes But these lenders and buyers who take
back each year in rent, a higher yield their advice risk overlooking the new two- Yet despite these conditions, it’s not
implying a better return on the tier market in which sought-after homes amateurs who are suffering, even
investment. The analysis of data shows in key areas have recovered to boom time longstanding landlords with carefully
how the yield is, on average, as high as highs and will continue to perform well. managed portfolios and an impeccable
6.04% for a one-bedroom flat and as low Elsewhere, values are languishing. financial record are finding lenders almost
as 3.87% for a four-bedroom house. closed for business.
Those hoping to join the ranks of the buy-
Amateur investors with access to cash are to-let investors might be tempted to buy For now, the investment market, like the
enjoying a window of opportunity as into those markets with low-cost homes mainstream, is one in which those with
professional rivals struggle to get credit and a ready army of frustrated buyers cash (not necessarily expertise or an eye
from risk-averse lenders. forced to stay in the rental market. for a property bargain) are king.
14 - WORK
For further professional advice and a confidential one-to-one please email
shazan@rejuvenateonline.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74