Should You Be Investing in Selby Buy to Let?
With 2,882 people in Private Rented Properties in Selby - Should you still be investing in Selby Buy To Let?
Over the last 12 months, the HM Treasury's tax changes have bruised the wallets of those in the buy to let market. In addition, Brexit has caused a tempering of the Selby property market with property prices not increasing by the levels we have seen in the last few years.
I think we might even see a very slight drop in property prices this year and, if Selby property prices do drop, then first time buyers could be attracted back into the Selby property market; potentially meaning less demand for renting. Yet, before we all run for the hills, all these things could be serendipitous to every Selby landlord, almost a blessing in disguise.
Selby has a population of 17,295, so when I looked at the number of people who lived in private rented accommodation, the numbers make for interesting reading …
Yields will rise if Selby property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down, that could help landlords add to their portfolio. Rental demand in Selby is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Selby landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.
Recent trends have found that a lot of couples in their mid-to-late 20s, across the UK, are planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. So why this change in perspective? Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs.
So, as 16.7% of Selby people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Selby – because what else are you going to invest in? At least with property it’s something you can touch - there is nothing like bricks and mortar!
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