A landlord with 11 homes and a property portfolio worth £750,000 has responded to new property market findings – and says now is the best time to invest for less.
New statistics from This is Money’s six-part series on the mortgage crisis, published on Tuesday (16 April) found interest rates for buy-to-let mortgages has risen to an average of 5.7% last year – compared to 3.67% the year before.
It’s estimated that due to this, there were 13,570 mortgages of this type in arrears, which is a 123.9% increase from 2022.
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Forty-two-year-old Lisa Best, who is known for sharing her expert investment advice on TikTok, says that despite the bleak figures, now is the time to strike if you want to get more for your money.
“Landlords are facing higher costs due to the increase of rates and changes of things like tax in the budget,” Lisa, from Manchester, told Absolutely Business.
“This has left many struggling to meet their mortgage repayments, who now need to sell off their properties.
“Less rentals will only lead to a shortage of stock and further increases of rent for tenants.
“So don’t let these setbacks in the market act as a reason not to buy – just be more prepared.
“Review your budget, weigh up all costs involved and factor in any potential increases.
“Ensure the rent you will achieve meets the requirements of your mortgage lender, as this is where a lot of landlords have struggled when renewing.
“Research the market, look at any changes and rental demands, as well as potential for capital appreciation and rental yield.
“Finally, take a long-term view – interest rates are high now, but there is the expectation that they will fall later in the year and beyond.
“Buying now for the long-term will help you to secure consistent rental income over time and enjoy capital appreciation to the property.
“But if you wait, then the value of what you can get for your money will diminish.
“Work out what you can afford and what it will cost you – instead of focusing on the current rates.”
Lisa, who posts tips on social media (@nwpropertymum ) but also runs the website Moving House Support And Information | Propertyable, purchased her first home aged 23.
She was eager to put money in her own pocket, rather than someone else’s.
The investor has shared how she was denied a mortgage due to a bizarre law surrounding Japanese knotweed, a fast-growing plant that weakens buildings and structures.
Now, she makes a comfortable monthly income from her selection of rentals.
And she says that while it’s equally as important to snap up a deal, it’s also vital to never overstretch your own budget.
Lisa added: “Be proactive and don’t listen to the noise; focus on your goal.
“I bought a property that fell into negative equity after six months.
“Within five years, it had increased massively in value and I had the rental income alongside this too.
“I feel that not enough information is shared and that property education is something that should be given focus.
“Get educated and learn as much as possible, there’s lots of free information out there.
“When I started, there wasn’t anything available, so I winged it for the first few years and learned as I went.
“I didn’t worry about anybody else and I focused on my own goal, as everyone’s journey is different.
“Also, network with other investors, join local property groups and most importantly, take action.
“It’s better to invest at a slightly higher interest rate for a few years and get a great deal on a property, than wait indefinitely and not get on it at all.”
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