Over two million people in the UK now own a second home, with one million of these being buy- to- let landlords looking to secure their financial future. In light of this, journalist Tina Clough spoke to Belvoir Sheffield, the leading letting agent in Sheffield, to discover if second homes really are the cash spinners they appear to be, or a lost profit waiting to happen.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said, “There are two main ways to make money from your second home, which include either purchasing an additional property as a long term investment, or purchasing one as a renovation project to sell on at a later date.”
“Second homes can certainly be cash spinners, but the success of the venture will partly depend on your choice of letting agent and which option you decide to go for. One of the most popular financial ways of looking at a second home is to purchase it as an investment, renting it out and keeping hold of it for a considerable length of time. Whatever you do talk to an independent agent like Belvoir Sheffield BEFORE you buy.”
“This method means that you would usually gain through capital growth as the price of your property increases, yet your mortgage should remain at a fairly stable rate. In this situation, it is also possible to make money from the rent itself, but this can depend on your initial outlay, the potential for rental increases,plus finding a reputable letting agent who can provide you with both the expert knowledge and support.”
One tenant, 32-year-old Robert, knows more than most, the benefits of renting out a second home as an income booster, he said, “When I moved away from my home town three years ago, I decided to keep my house and let it out. As I was moving I didn’t want the hassle of finding a tenant and managing the property myself.”
“The property was only empty for a week and my tenant has been there ever since. The whole transition was very smooth, and they take care of everything for me.”
Rick, from Belvoir Sheffield, who specialise in letting out properties for landlords in Sheffield, added, “Now is a great time to invest in a buy-to-let property because tenant demand is far outstripping supply, which means rents are starting to increase and also properties are renting quicker.”
Also increasing in popularity over the last few months is undoubtedly the ‘fixer-upper’. Renovation projects can create a tidy profit, providing that you have the time to carry on the necessary work and have great contacts within the trade industries. This method can also be slightly more risky, as changes selling the property onwards within the required time-frame, and at a profitable price can be tough especially whilst mortgage monies remain scarce.
Rick added, “Whilst renovation projects can be lucrative, it is not the easiest market in which to sell. Here at Belvoir Sheffield, we provide a fully rounded service for those looking to do up and sell on a property. If this is your goal, do not be put off if you lack the contacts as we can help.”
Belvoir Lettings Agents Sheffield are the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances
Whatever way you decide to do call us before you buy!!!
