| |
|
 |
ADDED
24/07/09 |
First time buy to let investors are 'seizing the opportunity' to start portfolio |
|
East Midlands housebuilder David Wilson has seen a rise in buy to let investors enquiring about its homes in a bid to make the most of once in a generation prices.
According to the developer it is not just seasoned investors seizing the opportunity but more significantly an emerging group of first-time buy to let investors using the downturn as a chance to start a professional property portfolio.
Sales director Philip Lacey said, “New build property has always appealed to investors due to its low maintenance and because of housebuilders’ experience in dealing with bulk purchases.
“However, the economic downturn and uncertainty in the housing market over the past 12 months has meant we’ve seen a definite reduction in the numbers of customers coming to us for buy to let.
“Until now that is. In March alone we received a number of significant volume deals, interestingly from individuals brand new to property investment.”
The buy to let sales have been spread across a number of David Wilson’s East Midlands’ developments and in varying volumes from two to 24 plots.
David Wilson East Midlands says its observations are backed up by a recent report from the Association of Residential Letting Agents (ARLA), which states that buy to let property sales had doubled during the first quarter of the year.
One new investor, 59 year old Iqbal Gelu from Surrey, who spent 35 years working in insurance, he has turned his attentions to property investment. He has bought three one-bedroom houses at the Scholar’s Grange development in Scraptoft and is currently working with David Wilson East Midlands on a deal for a further seven.
He said: “Despite this being my first foray in to buy to let I’m confident that now is an excellent time to invest, particularly in Leicester.
“In some locations there is an over supply of rental property but in light of Leicester’s recent improvements and the programme for further regeneration I can see demand here remaining strong.”
Iqbal’s investment will give him around a 7 percent yield which he says is good for the long term and will likely improve over the next few years.
He said: “Whilst the price was very attractive this is still a long term investment. I’ve spoken to a number of letting agents in the city and am confident the houses will let for between £400 and £445 per month. And by buying now I expect to achieve capital gain by the time I sell in approximately five years time.”
|
|
|
|
|
