The good and bad of buy to let properties
While there are both positives and negatives to the buy to let scheme, there are overall positive effects.
06:13 03 February 2014
The newer concept of buy to let properties has taken the UK by storm. There are both positive as well as negative aspects to the buy to let schemes. Time will tell what the overall impact of such a scheme will be, but here a few of the positives and negatives to consider. Here are a few of the effects for this housing:
- Housing shortages have caused issues for many people who just need a place to live. Buy to let properties allow those who might not be able to purchase their own homes, to have a place they can call home.
- Difficult economies can cause financial stress. Those who are able to invest in properties are able to earn some extra income off the tenants, and they will have the ability to gain on their initial investment if they decide at some point to sell off the property assuming they were able to maintain or improve the property.
- Due to the housing shortage, the buy to let properties might actually make it difficult for first time home buyers to find a suitable property to purchase. Families may be forced into buy to let properties in order to have a home.
- Housing is one of the most important aspects of an economy. If people do not have access to affordable there are a number of detrimental side effects. The buy to let properties are helping investors as well as people who cannot afford to purchase their own housing.
- The buy to let properties are providing housing, and in conjunction with new measure to ensure that investors are not simply sitting on property waiting for the value to increase, the positive effects may increase. A number of people who don’t have many housing options may find more options and areas for housing.