New year - new investment in property?

Posted: 31/12/2021


The new year is a time when many people make a change or do something they have been meaning to do for a while. There is a renewed interest in Buy-to-Let and one of the main drivers for that is the historically low interest rates. It makes lending cheap* and saving fairly pointless if you are looking for a decent return. In addition, Covid for some has meant additional funds becoming available. Whatever the reason, a first-time investment in property can be daunting so you should take some advice. At Key One Property we offer an impartial buying advice service, which is free of charge if you use us to let and manage your property**. 

There are four things that we also recommend to BTL investors when looking for a purchase:

1. It should have potential for appreciation (you want capital appreciation in addition to rent profit).

2. It must be easily re-sellable.

3. It should have controllable costs (as far as possible).

4. Rent returns should stack up against cost - the golden figure is 7% gross per annum.

On that last point, this means that you should be looking for at least £7,000 annual gross rent for every £100,000 spent, or to put it another way, if you are buying a house at £100,000, the rent should be £7,000 per year. You will generally find that the more expensive the property, the lower the rental return. An example of that would be a £100k terrace with a £7k a year rent, but a £200k property might only bring you in £12k a year, so only 6%. Of course, there may be other considerations but two £100k terraces would not only increase your rental return but also divide your risk. 

If you would like to chat with us we are happy to hear from you. Drop us an email and we will get back to you as soon as we can: contact

*Interest rates may not remain low. **Subject to t&cs. Buyers should always remember that property values can go down as well as up.

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