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Landlords lose out over lack of advice

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Written by: Your Mortgage
04/08/2014
Buy-to-let landlords are failing to realise the maximum return from their property investments by not seeking advice or carrying out research ahead of their purchases.

Research from specialist buy-to-let firm Platinum Property Partners revealed that a quarter of investors had received no advice while less than one-in-five investors carried out a lot of research before buying a property.

Steve Bolton, founder and chairman of Platinum Property Partners, said: “As with any investment, extensive research and planning for buy-to-let investors is paramount.

“It is astounding how little thought and preparation many investors are giving before diving in and making such a substantial investment decision.”

Figures released by the Office of National Statistics stated the average buy-to-let investor in the UK currently has a property portfolio of £650,000.

PPP’s research showed investors achieve an average gross yield of 5.6%.

It said if £650,000 was invested in property today and a consistent yield of 5.6% was achieved over 15 years the investment would be worth in excess of £1.63m by 2029.

The firm calculated that if the average investor increased their yield by 1% the value of their investment would increase by £80,340 in the same 15-year period through both income and capital growth.

PPP said the 1% uplift in yield could be achieved by conducting research on property location, seeking advice on income potential and reducing costs,

Bolton added: “Of course buy-to-let properties are not one-size fits all products. Property types, location and tenants all play a crucial role in determining the potential returns on offer and this is not to be understated.

“In fact this is precisely why research and advice is so key to unlocking the full investment potential for each property.”

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