Over the last 20 months, the UK has seen interest rates rise, and it has had a tremendous effect on the property market: it made buying a home difficult and drove up demand for rental properties. In turn, landlords have increased rents whenever possible to deal with the rising costs of borrowing, while sellers have also adjusted their asking prices.
This situation is quite peculiar, especially for us landlords – if we’re selling property, rarely would potential buyers be able to afford owning a home – if we’re renting out, we have to strike a balance between profitability and affordability; inasmuch as we have to raise rent we also need to consider if tenants would be able to afford paying for it.
All things considered, though we have little to no control over these circumstances, as property investors we can do something to cope:
(1) Aesthetic improvements enhance a property’s appeal: as we have shared in a previous post, consider doing cost-effective improvements in your property. Simple cosmetic changes on the inside as well as the outside would make it more appealing and give potential buyers or tenants a sense that they’re getting their hard-earned money’s worth.
In this tight market, it’s up to us to help them decide that we’re the best partner they can have (whether as seller or landlord), and that what we’re offering them is a great deal.
(2) Market research: exercise due diligence when it comes to setting prices and in looking for buyers and tenants, among others.
Consider the going rate for properties within your area, in terms of their prices vis-a-vis amenities. You have greater chances of getting a buyer or tenant when you offer competitive rates than the others.
If you’re into promoting your properties especially on social media, consider well-placed ads that will reach your target audience. Make good use of SEO with your content; join groups for those looking to rent or even buy properties; carefully select the filters for your intended audience if you’re going to place ads.
These are just some of the ways we can cope with this fluctuation, and make the most out of each and every opportunity.
If you have any questions about investing in property even in this time of high interest rates, or if you’re looking for a place to rent, do drop me a line at info@ukpropertytastic.co.uk so I can help.
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