Buy to Let?

Rather than placing your money in a pension fund, as interest rates are so low, it is best to invest this into bricks and mortar.

One of our client Mr Kalyan, 36, isn’t new to buy-to-let. Having moved from Hertfordshire to Buckinghamshire to run the family engineering business, he now rents his Hertfordshire property. ‘It’s a Victorian terrace and I’ve never had a problem renting it out but last year I did have to spend quite a lot of money on some little niggles there,’ he says.

This time, Mr Kalyan wanted a brand new, maintenance-free apartment. When a friend who lives in Cambridge told her about the city’s rising property prices, she researched the market and decided buying there made sense.

‘It’s easy for me to get to and there’s a captive rentals market,’ he says, ‘because many companies, such as biopharmaceutical company AstraZeneca, are now based there. I could have bought an apartment in London or Hertfordshire and made more in rent but it’s the growth I’m more interested in.’

Cambridge prices are predicted to rise by around 23 per cent in the next five years, according to a recent report by estate agency Savills. Mr Kalyan took out a mortgage and paid £315,000 for a two-bedroom apartment at Kaleidoscope, the new Crest Nicholson development in the city.

‘It’s well located, an easy walk to the station and I think today’s tenants expect a certain standard and prefer to live in a brand-new property,’ he says, adding that he likes the development’s ‘feel’. ‘It’s right in the heart of the city yet it’s got a certain tranquillity, which I thought tenants would appreciate. This, plus the apartment’s high-spec finish, helped me make my mind up.’ are risks involved? ‘Hopefully not,’ he says, ‘but I can always sell if things go wrong. The hard thing with buy-to-let is finding the right property – but I think I’ve done that.’


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