Being a landlord in 2024 isn’t as easy as it once was. There are several challenges facing property investors today. Here are five reasons why being a landlord just isn’t what it used to be:
- Difficulty Getting Started: The barrier to entry is sky-high. Back in the day, buying a house for £100,000 with a £20,000 deposit was feasible. But now, with average house prices around £300,000, it’s a different story. Unless you’re rolling in money or already established, breaking into the market is tough.
- Interest Rates: Let’s talk numbers. With a mortgage of around £225,000 on a £300,000 property, even with minimum interest payments, you’re looking at around £1,000 a month. If your rent matches that, you’re not making a penny. With interest rates rising, many landlords are finding themselves in the red.
- Rising Costs, Stagnant Wages: Everything’s going up—housing, food, travel—but wages? Not so much. With the average UK salary hovering around £30,000 a year, there’s little left over for investing after covering essentials.
- Tenant Troubles: What happens when your tenant stops paying rent? With the removal of section 21 notices, evicting problem tenants has become a bureaucratic nightmare. Landlords are left high and dry, struggling to cover mortgages without rental income.
- Taxation Woes: Tax changes have hit landlords hard. Even if your property breaks even, you’re still taxed on rental income. Some landlords are barely scraping by, resorting to food banks to make ends meet.
In light of these challenges, many investors are diverting their attention away from traditional buy-to-let properties and exploring alternative avenues such as Assisted Living Investments. These fully managed investments proffer stable returns devoid of the headaches associated with traditional landlordship. With housing associations assuming responsibility for property maintenance and rent collections, investors stand to gain hassle-free returns of up to 10% NET.
Accessible to individual investors, Assisted Living Investments present an enticing opportunity to capitalize on the burgeoning demand for assisted living accommodations. Amidst a backdrop of escalating housing demands, there has never been a more opportune moment to venture into this lucrative investment sector.
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