6th July 2007
Hot Property – Stressed Out – Would-be investors reveal their worries
It is no secret that the process of buying property is littered with opportunities for stress. After all, it has long been listed alongside bereavement and divorce in the pantheon of upsetting situations.
Those who are buying as an investment are not immune to these stresses; indeed, in some ways this harder than buying as an owner-occupier.
Now, research from property investment expert Imagine Homes reveals the UK’s top five buy-to-let concerns – and selecting, just right property comes in at number one.
In its survey of over 4000 investors, Imagine Homes found that over one-third (36.3 per cent) of UK investors listed finding the right property as the most stressful aspect of buying to let.
This is potentially an exhausting and time-consuming experience, and Imagine Homes says it is essential that investors get into the mindset of the tenants they are targeting and find a property that fulfils all their needs. What’s more, investing means parting with a substantial sum of money and so the pressure really is on to find the ‘ right ‘ property for your tenant, so it’s no wonder this concern has hit the top spot.
Second in the list of stress-inducers is rental voids, with 16.8 per cent of investment purchasers worried about a property lying empty and not earning. Rental voids have proven to be a prime concern for investors and with the worry of covering mortgage payments, bills and associated charges it’s easy to see why.
Finding tenants is the third most stressful aspect of buy-to-let at 16.3 per cent. Reliable tenants can be hard to come by and it’s imperative that you or a letting agent find someone you can really trust to look after your biggest investment. Relying on a stranger to ensure value is not lost on your property is why this concern has made the top three.
Furnishing the property is another worry – and with 15.8 per cent of investors surveyed finding it stressful, it comes in fourth on the list. Tenants expect new, contemporary, durable furniture and making sure the property is up to a good standard costs both time and money.
Finally the management of the property rounds out the list of top-five anxiety-inducing things about investing at 14.8 per cent. After all, a phone call in the early hours about a burst water pipe is not the way any investor wants to be disturbed from a good night’s sleep.
Worrying about the property is not for the faint hearted. While hefty management fees that some landlords pay to avoid having to deal with the day-to-day running of the property also causes stress.
Imagine Homes offers a two year leaseback scheme by which investors get a guaranteed rental income at 15 per cent of the purchase price, payable monthly in arrears – and this, says CEO Grant Bovey, is one way to avoid anxiety. ‘ At Imagine Homes we understand that investing in property can be a stressful experience and this survey has given us an even greater insight into exactly what factors are causing investors the most concern.’