ISAs on the decline - property investment on the up

Posted: 15/11/2020

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There's a staggering £584bm held in adult ISAs but their popularity has been in decline in recent years. With interest rates heading south, it's not hard to see why. Conversely, although tax changes have caused (and are still causing) a significant percentage of landlords to sell up, there is increased interest in buy-to-let. So what should property investors look for in terms of returns? The golden figure is 7% - that is 7% gross annual return against the value of the property. So, if the property price is £100,000 you should be looking for about £7,000 rent pa. Of course, that is gross, not net, and expenses including loan interest, rates, repairs, service charges, etc have to be deducted to arrive at the net return. But if you buy right, let right and manage right, you should still expect to see a healthier return than from a bank at the moment. And don't forget about capital appreciation - you will want to try and buy something that will appreciate under the right conditions, and, that will sell easily for you in the future. At Key One Property we frequently deal with landlord to landlord sales, and then continue to support landlords by providing professional letting and management services, ensuring the property is "let right and managed right". Where we are not marketing the property, we also offer impartial buy-to-let viability reports on properties – free of charge if you become our client. All our services are VAT free. 

Property values can do down as well as up. You should consider speaking to a financial advisor before making a property purchase.

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