Now is the perfect time to become a landlord

By Ros Burton (Principal – The Real Estate People)

Every day, we hear how difficult renting has become due to a lack of accommodation options. 

It must be so disheartening for people trying to find a place to live; and I can only hope the government and local councils can work together to free up land and create more housing opportunities (not just here on the Downs, but right across the country). 

Just a few years ago, the rental market was considered to be a little flat with plenty of housing to go around; so much so, a number of agencies found themselves struggling to find tenants for the many properties available. 

On occasion, landlords would even drop their rent expectations to secure a tenant. 

The logic was simple: “I’d much rather have somebody living in my property at a reduced rate than stick to an unreasonable rental figure and have nobody in it for an extended period of time.” 

Not so today. 

Landlords are being inundated with applications and can pick and choose who they want to rent to, so owning an investment property has plenty of appeal in the current climate. 

Even with interest rates on the rise, owning a home or investment property is still very affordable. 

If you don’t think so, then ask anyone who was paying 18% or 19% back in the ‘80s. 

Buying your first investment property (or adding another to your portfolio) makes total sense at the moment as rents are rising, rental markets are incredibly tight and, unfortunately for renters, there doesn’t look to be any relief (with more housing availability) in the foreseeable future. 

Add to this the multitude of infrastructure projects and major business developments that are slated for the area and our population is going to rise considerably. 

These workers (and families) have to live somewhere, so houses and units will be in even greater demand. 

Ironically, buying an investment property actually alleviates some of the pressure on the renting front because you’re adding another property to the rental pool. 

In doing so, you help an individual or family maintain their independence and also set yourself up for a host of tax advantages and a very healthy retirement nest egg. 

If you’re unsure where to start, feel free to give our expert staff at The Real Estate People a call – we’d love to help you secure your financial future.