Ways to Make BTL Opportunities Profitable.
In recent years, the buy-to-let (BTL) sector has encountered a series of challenges, ranging from regulatory changes to shifting market dynamics. Despite these hurdles, however, significant opportunities for growth and investment remain in this arena.
One promising approach is to focus on Below-Market Value (BMV) properties, which can be acquired at a lower price than their market value. This strategy allows investors to build equity quickly, potentially resulting in substantial returns when renting the property.
Additionally, the demand for student accommodations continues to rise, particularly in university towns where demand often outstrips supply. Investing in purpose-built student housing can yield attractive rental yields, especially during the academic year.
Exploring holiday lets is another viable option. With the growing trend of short-term rentals, particularly in popular tourist destinations, property owners can take advantage of higher rental rates compared to traditional long-term tenancies, especially during peak seasons.
Investing in property outside the Southeast and Greater London can offer more favourable opportunities. These areas typically have lower property prices, reducing landlord loan requirements.
Lastly, houses of multiple occupancy (HMOs) allow landlords to increase rental income by renting to several tenants simultaneously. Given the housing crisis and the growing need for affordable rental options, HMOs can generate a steady income stream while meeting the local housing market’s demands. Larger properties can be refurbished
By strategically targeting these segments, investors can better navigate the complexities of the BTL sector and capitalise on emerging growth opportunities.
Inflow Finance provides bridging loans specifically for BTL properties purchased at auction. They also offer development finance for property refurbishment and funding for loan exit strategies.