18th
Jan 2016
It is claimed that 10% of the 55 plus age group already own buy-to-let properties and the market is set to welcome many more “golden years” investors.
According to a recent landlord insurance survey many over 50s are making excellent returns from their buy-to-let properties and increasing their pension income, with average monthly profits up to £700 per month.
The number of landlords has increased since 2009 by almost a third. The survey claims that one in fourteen have bought the ‘home’ for a grandchild or child, whilst as many as one in seven has had the property handed down to them.
One of the most sought after areas to invest in buy-to-let is Manchester as it can provide an average 12% total cash yield, (includes a 7 per cent capital appreciation) and a minimum of 5% cash rental yield.
Peter Armistead of a property investment company said, in relation to older investors entering the market: “The buy-to-let market conditions are very good at the moment with rising rents, a shortage of properties and increased tenant demand. Add to this capital asset growth as property prices continue to soar in many parts of the UK, it is easy to see why buy-to-let is so attractive.”
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