The number of landlords looking to invest in buy to let properties is set to rise again this year, which means there is increasing pressure on the existing housing stock in the UK. Consequently it is much harder to find attractive properties in good condition at the right price, so more and more landlords are being forced to consider older properties that require work before they are suitable for letting.
Should you be wary of older properties?
It is very easy to be seduced by a cheaper older property. Years of DIY property development programmes have convinced lots of us that doing up an older house is a fast track way to make a fortune, but unless you have the knowledge and available funds to fix the potential problems you might encounter, you could find yourself seriously out of pocket with a house that needs so much work it is likely to be uninhabitable for months.
The RICS has recently issued a warning to landlords about the potential dangers in investing in older properties. Issues such as dry rot, fractured support beams, subsidence, rising damp, and a host of other problems common in older properties can cost tens of thousands of pounds to put right—and that’s before you have even thought about adding a modern new kitchen or bathroom!
Personally I love older properties—they have a lot more character than a modern estate house—but if you are considering investing in an older house in need of modernisation, make sure you pay out for a buildings survey before you buy. It will cost you money up front, but it could save you thousands in the long run.
