Frustrated at Buy-to-Let Yields? The Time May be Right to Sell

Frustrated at Buy-to-Let Yields? The Time May be Right to Sell

“Buy to let less secure than ISA or pension.” That was the headline in The Herald newspaper recently.

It sat above an article which was part of an advertising feature about financial advice.

The writer described two common financial misconceptions: that you can’t lose if you invest in property over the long term and that, somehow, pensions aren’t a good idea.

The article was written on behalf of Campbell Thomson and in part explained their reasoning by stating that according to the Nationwide House Index the average house price in Scotland is still below the 2007 peak.

If you are a buy to let investor that adds up, on average, to nine years of poor returns on your investment.

The question now facing you is: how long do you wait for things to change?

Will it be two years? Five years? Or another nine long years?

And when that change takes place will it be for the good?

If you are asking yourself these questions and you don’t see a straightforward answer then perhaps now is the time for a change of direction.

Especially if you’re thinking it’s time to get out of the buy to let business and start looking for a bigger and better return on your investment.

R&T Property Solutions are currently looking to purchase all types of property, including buy to let portfolios. It doesn’t matter if you own just one flat or several. We’d be interested in hearing from you.

And we don’t always require a Home Report.

Our head office is in Glasgow but we conduct business all over Scotland and the UK.

We’re on the lookout for flats and other residential properties like houses, commercial properties like shops and even land in all parts of Scotland.

Of course, the non-profitable investment scenario is one reason for selling your property.

According to the article, however, there are other negative aspects which impact on your ability to profit from renting out property.

The writer highlights legal and property management fees along with potential income and capital gains tax.

The dreaded changes made in the 2015 Autumn Statement also get a mention. As does the Land and Buildings Transaction Tax (LBTT). This kicks in on the purchase of second homes and has increased markedly for purchases of £40,000 or more.

And the issue of extra taxation also rears its ugly head in the article, which talks about new rules coming into effect next year which will impact negatively on landlords who are higher rate taxpayers.

Campbell Thomson, who are Glasgow-based Independent Financial Advisors, and who commissioned the article, are keen to highlight the alternatives to buy to let.

They extol the tax efficiencies which can be had from investing in pensions and ISAs. And they ask: “Why wouldn’t you want 40%, even 45% tax relief?”

Why indeed?

They also point out that investing in a portfolio of funds, as opposed to a portfolio of flats, would have resulted in a return of 34% over the past three years.

The compare the ease of access to the two different investments. The funds can be got at any time, while property, they say, can often take months to sell.

That last bit isn’t strictly true, if you sell to us.

We have a reputation for doing quick deals and if you want cash in a hurry we can often accommodate you.

Typically, we can conclude the purchase anytime between seven and 28 days after we view the property.

And if the property is occupied we will carry out all the necessary paperwork without disturbing the tenant.

In fact, we are known specialists in the business of buying properties which are the subject of regulated tenancies agreements.

We provide a fast, discreet, hassle-free service for both landlord and tenant.

Our code of ethics means that we will not disturb your tenants by demanding internal surveys and we will respect any tenancy agreements they may have.

And don’t despair if your property suffers from structural defects or is in need of major repairs which could lie beyond your budget.

It may be proving difficult to sell but our team of professionals will be able to make you a quick offer, without the need for a Home Report

We are also looking to hear from landlords in Glasgow or elsewhere in Scotland who have a slightly more delicate reason for selling.

We are experienced enough to understand that there could be a wide variety of causes which may lead to such a situation arising.

We also know that sometimes these issues are personal and you can rest assured that we do not need to pry too deeply into these circumstances.

So, if you are fed up with poor returns on your property investment, or you want to dispose of your assets for any other reason, then don’t delay.

Call R&T Property Solutions today.