For many investors, purchasing a buy-to-let property in a foreign market remains primarily for short term letting. The option of renting the property long term holds a variety of advantages, equally in the owner’s domestic surrounds, as in foreign markets. Areas with strong influxes of ex-pat residents, city centres and year-round resort town areas tend to be the most beneficial for strong long term letting returns.
In the current state of most real estate markets, the mortgage sector has become increasingly difficult for potential buyers to access, leading to increasing demands for long term lettings. Although property prices are dropping considerably in many areas, the ability to access the market is more difficult in comparison to previous years, leading to increasing numbers of potential buyers looking into the long term letting market.
Many buy-to-let investors are considering the option of letting their properties for the long term outside the peak season, enabling a steady financial return without leaving the property vacant. Providing an income during the low seasons, owners are becoming increasingly adept to consider long term contracts especially when the high seasons have not been as gainful as expected, or as in previous years.
Many owners have opted to place their properties onto the rental market while prices have been in decline over the past 18 months. Waiting for the market to improve before attempting to sell, owners understand that they can make some returns on their property rather than losses from selling in the current market conditions.
The benefits of a guaranteed income for the duration of the long term contract can assist owners to calculate realistic returns from their investment. As the majority of long term contracts are for the duration of around 12 months, maintenance on the property in minimal, without the need to arrange cleaners on a weekly basis between clients.
When purchasing or placing a property onto the long term rental market in a foreign country, it is recommended to contract a reliable property management company. Having a professional management company taking care of the property and assisting to resolve any emerging issues, can provide extensive ease of mind. Sourcing a suitable management company can be tiresome, yet can make a huge difference in the long term. Avoiding the use of a management company can save time and costs, yet is only suitable if the property can be easily accessed by the owners to resolve any issues.
When considering the purchase of a buy-to-let property for the long term market, the location is highly important to ensure strong returns and high demand from clients. Looking into the local market to gain a stronger understanding of the immediate surrounds is advisable. It is also important to become familiar with the legal implication of the country where the property is located, ensuring that both owner and tenant rights are fully understood.
The option to place a buy-to-let investment on the long term letting market continues to gain appeal. Changes in the real estate sector over the past two years have lead to variations of tactics and considerations for obtaining steady returns on investments in current market conditions.