Is it key to plan before you proceed?
Based on research in the UK, it is recorded that around nine out of ten buy-to-let property investors fail to provide a five year plan prior to starting investments. Platinum Property Partners, a buy-to-let specialist provided a report that displayed that only half the overall numbers of investors have proceeded to produce a written business plan despite one of the only reasons people invest being the anticipation of securing an income once retired from the workplace.
A colossal figure of £1.25 trillion is now known to be the value of numerous private rental properties across the UK along with private property investors worth over 1.9 million holding a portfolio value on average of around £657,726. One in five property investors stated that they had obtained an extortionate amount of research before resuming in comparison to one in ten investors who claimed that they wanted to tempt fate and jump straight into the buy-to-let sector having done little or no research to begin with.
Founder Chairman of Platinum Property Partners, Steve Bolton specified;
“Buy-to-let is the biggest single investment most people make other than their family home, yet people are not actively managing it, When the scale of the sector is considered, the lack of financial understanding and planning is staggering. There are few other investments you’d be comfortable making without at least an idea of how it was going to work for you so the fact so many property investors are leaving their investment to chance is remarkable”.
Based upon research, only 3 out of every 10 buy-to-let investors purposely embark on acquiring a home however, the majority of investors could become “accidental landlords” leaving the remaining minority to the explanation that they have a property they could just easily afford to rent out! 54% of property investors tend to have family sized homes as they are usually the most popular. Never the less, this is followed by 33% owning a two bedroomed flat/apartment and a miniscule 4% owning houses of multiple occupation/tenancy.
Should property investors research their potential business before diving in at the deep end?
Nicole Cran, Pali Ltd(0) Comments
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