Buy-to-let is still undoubtedly the most popular form of property investing. And while the stock market and even cryptocurrency sound like great opportunities, all market data still circles back to buy-to-let being potentially one of your best long-term investment strategies. Current predictions from Savills are that property prices in the UK are set to rise by 21.5% by 2025, making now an ideal time to invest.
We totally agree; property is a great investment. But let’s face it: buy-to-let is not without its issues. No matter how experienced or knowledgeable you are, this type of investment comes with its own specific challenges.
Finding and funding properties.
Buying a buy-to-let property can be harder than buying a home to live in. It requires finding a property that you can make money on whilst not spending too much time fixing up. How you purchase that property will greatly impact your return. Let’s face it, buying a house upfront is out of reach for the majority of the population, and interest rates on loans are also rising.
And don’t forget the removal of Mortgage Interest Tax Relief. The section 24 tax changes state that mortgage interest payments on buy-to-lets will no longer enjoy tax relief. So if you’ve managed to save up for the 40% deposit to get a buy-to-let mortgage, you can still find yourself with dwindling returns.
Finding great tenants.
Data from property portal Zoopla shows finding reliable tenants worried 56% of landlords – a shade ahead of the 55% who struggle to find tenants who care for their rented homes. Finding responsible tenants who don’t abuse the property or don’t overstay their welcome and leave you with costly and time-consuming eviction processes is harder than it sounds.
Managing properties.
Even if you find great tenants, your property can come with many challenges. Broken pipes, backed-up toilets, roommates or even pets can all create time-consuming and budget-eating damage. Of course, having someone manage the property for you can help. Still, if you don’t have people renting who particularly care about maintaining the property and you are the sole owner, the responsibility ultimately lands on you to get these things sorted.
Ensuring you get paid.
It doesn’t matter if rent is at a record high if your tenant isn’t paying you, or if you have a void period. No great traditional agent can commit to that not happening. Landlords often forget the void period when working out their budgets. It’s safe to expect that your property, if you are on a year lease, will be vacant at least one month a year.
Is it worth it? Only you can decide. At Allbricks, we have decided that it’s time to make being a property investor a heck of a lot easier and less risky all around.
Now, imagine a world where –
- You didn’t need to look for excellent properties; they found you. And what if you could invest in a property for as little as £2,000? Every time you get a bonus or extra savings, you could simply invest into property one brick at a time.
- Properties came with fabulous owner-tenants who took care of your investment. Homeowners are more likely to take pride and care in their homes because they are also investors. Plus, Allbricks has a fantastic property management promise that takes care of the basics for you!
- You could diversify your portfolio and spread the money you’ve set aside for investment into multiple properties instead of one. This approach reduces your risks while still getting the same monthly return.
You could meet your ESG goals with a more ethical investment focused on building communities, helping people find homes and feeling good about your investment.
Welcome to Allbricks.
At Allbricks we unitised residential property. This means we’ve broken the property down into units we call bricks. When you invest in a property, you buy and own the bricks you have purchased. So, to be a property investor, you no longer have to buy all the bricks (like a cash buyer) or buy all the bricks with cash and mortgage, sharing it with the bank yet paying all of the expenses such as stamp duty and any repairs. Now you can invest in buying and owning a part of a house with the home buyer and other investors. You still own the bricks but without all the hassle.
To get started, register your account here