Renting property to let out with Buy To Let (BTL) has been a staple for investors since the end of the last century. As interest rates fell, our enthusiasm grew to not only buy a larger house for ourselves, but to invest in what seemed like a never-ending property boom.
In Cardiff in 2001 I remember an estate agent telling me that the house I bought 6 months earlier had increases in price by 30% in that period. ‘Would you like to sell’ he asked with a willing grin. I’ve only just moved in I told him. He didn’t seem to understand that I had bought it to live in. The following year it had grown in worth to nearly 3 times what I had paid for it. Could this continue? No, it did not.
Fast forward to 2016 and we are back in full swing again having survived financial meltdown in 2008. City centre apartments are back in vogue again after being the first sector of the property market to suffer falls in value.
How to survive such a crash if and when it happens again
The best way of thinking about property is of a tool to supply you with an income now. With this in mind do not panic and sell the property. Instead invest into doing shorter term lets such as serviced holiday apartments
Yes, the work is a lot more but the advantages speak for themselves;
– Earn triple what you swould from just rent alone
– Easy access to your property with no rights for the guests staying there. (No more squatters and no more giving 24 hours notice to turn up to inspect the property.)
– Build a business with a real future in a growing market.
By increasing your income in this new market you can avoid rent falls, not worry about falls in property prices and make the business work for you rather than being a slave to interest rates and the other usual jargon involved with BTL.