All Landlords should be reflecting at the end of the year and setting plans and goals for the year
Many of us see the end of the year as a time to reflect and think about setting goals. We look at what went well and what didn't in the past year and decide on plans for the year to come. Taking a good look at 2022, ask yourself, "How did it go?"
Many of us see the end of the year as a time to reflect and think about setting goals. We look at what went well and what didn't in the past year and decide on plans for the year to come.
Generally speaking, property investors and landlords are very driven individuals and will have a plan and focus for investments and growth. The end of the year is the perfect time to do this. Take an objective look at what you have achieved this year and formulate a plan for growth in the future.
Taking a good look at 2022, ask yourself, "How did it go?"
The market over the past few years has been tumultuous, to say the least. As property prices have increased, many landlords have opted to sell their investment properties rather than buy more.
Not to mention the many changes in the legislation that affects landlords and the private rented sector that have been introduced over recent years, which could have encouraged landlords that it was the right time to sell up.
This reduction of available properties for rent has resulted in an increase in rental values in general. Tenants that have had to move out of their homes because landlords have decided to sell have had fewer options for available properties. This lack of supply, and increased demand, has resulted in an increase in rental prices.
This is good news for those landlords that have decided to stay in the game. Higher rents equal higher income!
Perhaps this means that you need to review the rent rates for your properties in 2023 and send out notices to the tenants about an increase?
The inflated property prices are difficult to stomach when you can easily remember the lower values of just a few years ago. Higher property prices may mean that you haven't bought any additional properties for the portfolio for a year or two. Perhaps you simply can't justify the investment at the high values we have seen.
Looking forward to the future, banks and economists are predicting a recession. In fact, some say that we may already be in a recession. After all, what goes up must come down, and property prices can't continue to increase when mortgage interest rates and the cost of day-to-day living are rising, but salaries are not following suit. So, the dreaded R word could be upon us in 2023.
The cost of living crisis will undoubtedly cause financial worries for many people. But, as a landlord, the chances are that you are in a solid financial position and can weather the storm.
Perhaps it would be an excellent time to buy more property for your portfolio? Many investors see a recession as an opportunity. There is opportunity in lower purchase prices, so there is a potential to buy more properties for the portfolio at a price that is more palatable than those we've seen recently. And with a constant need for rental properties, there should be no problem finding tenants for those properties at great rental rates.
So what are your plans for 2023? Will you be trying to sell up and reduce your overall mortgage debt? Or will you wait for a price drop so you can go property shopping and increase your portfolio?
It could be a fantastic time to consider investing in the next year. Contact our property experts today if you want guidance on building a portfolio and increasing your overall wealth.
They can talk you through what is involved in buying an investment property and will be able to help with finding a tenant. Agents can also handle the overall portfolio management so that you can continue your life as usual without taking on a huge to-do list of portfolio management too.
For more information, get in touch with our team today.