One of Britain?s largest buy to let mortgage providers, BM Solutions, commissioned the survey to discover the borrowing attitudes of property investors.
According to the results, the average landlord '
- Earns nearly £60,000 a year – more than twice the annual average salary of £27,174
- Owns a property portfolio of eight or nine homes worth around £1.2 million
- Have no business structure in place for exiting the market, managing finances or increasing their holdings
- 66% rely on buy to let mortgages for financing their business
- Earns an average return on investment of between 6.2% and 6.7%
- Has a positive outlook on the buy to let sector continuing to prosper
Phil Rickards, head of BM Solutions, said: “It’s easy to see why people are attracted to the buy-to-let market; it offers a tangible investment which can provide the long-term returns that some other assets won’t.
“For those people considering the opportunities that this market presents it is however important to understand the financial and legal commitments being a landlord brings and to ensure that you undertake the right level of research and due diligence to increase your chances of success.”
Meanwhile, another landlord survey by Paragon Mortgages suggests landlords intend to purchase new buy to let properties in a neighbourhood they know well.
Around two-thirds take tenant demand into consideration when buying a home to let, and a similar number look for homes in areas that command high rents.
Other key points for landlords purchasing new buy to lets include how much house prices will increase, local public transport and plans to develop the area.
John Heron, managing director of Paragon Mortgages, said: 'While the factors landlords have selected are not surprising, their feedback is important. What this research shows is that the majority of landlords view the running of their portfolios as a business. They buy property only after careful consideration, and have a strong preference for investing in their own local communities.?
Article courtesy of LandlordZONE