A full time profitable income can still and indeed is made by many buy to let landlords. The key to success according to a recent survey by market researchers BDRC Continental is owning a large number of properties. A staggering 72% of those landlords with more than twenty properties were making a comfortable, profitable living from renting out their portfolio. It was surprising how few landlords were aware of the huge number of buy to let rates available on the market with many believing there was no real difference between the hugely different products on the market.
Buy To Let Rates Available
BDRC reported that forty percent of landlords were unable to discern any worthwhile differences between products available on the market. In fact they had this to say:
Buy to let mortgage borrowing remains important for the majority of private landlords and our research suggests that there is still room in the market for providers to listen to their customers and provide a product suite better suited to their needs.
Mark Long, Director BDRC Continental Talking to LandlordZONE
Surprisingly the opposite is often found by specialist brokers with specialist processor TBMC recently reporting a significant doubling in the number of available products in the buy to let marketplace. The main reason landlords are unable to always fully comprehend the difference is that there are a huge number of buy to let rates available and many are only available through specialist buy to let mortgage brokers, and many more are available through all brokers. A snapshot of products available on any high street is likely to be much shorter and offer this limited choice that many landlords perceive to exist which simply illustrates the importance of shopping around for products with a broker.
Tenant Demand Spurs Landlords to Increase Portfolios
The report also showed that average portfolio sizes have increased in 2012 to just over 10 and one in five landlords plan to add further units to their portfolio. Many are turning to bridging loans to snap up properties at auction. Significant value can still be found by savvy buyers at auction and moving quickly using a specialist finance provider is essential. With tenant demand proving persistently strong, however, it is unlikely the addition of properties to portfolios in 2012 will come anywhere close to satisfying that demand. This means that opportunities to acquire profitable properties could continue well into 2013 for landlords. With the report indicating that a high number of landlords already believe investing in buy to let is more profitable than other types of investment it’s clear there is a high probability they will be proved right despite the overall tough economic conditions in Europe.