At our property investment seminars, we often get asked about timing; and when is the best time of year to purchase a buy-to-let property for sale.
Whilst it’s true that spring and summer see the greatest influx of properties to the market, there are several advantages to purchasing in winter, particularly in December. Here’s further information.
The Benefits of Purchasing a Buy-to-Let Property for Sale in Winter
- Sellers are seriously motivated. There’s a stigma to being left on the market at the end of the year. It implies that no-one likes your property, and as a result, sellers are keen to drum up interest by any means possible. In December, it’s not uncommon to see property prices drop, particularly with houses that have been on the market for a long period of time. Savvy property investors cash in on this opportunity, and purchase while prices are lower.
- The process is often smoother. Things are often less hectic in the winter months. There are fewer interested buyers, so it’s less likely that you’ll be gazumped. Solicitors, mortgage lenders and even removals companies are less busy, so you’ll be able to book their services with greater ease, which speeds the process up.
- You’ve got tenant interest in the New Year. Often, tenant interest picks up in the New Year – there’s something about January that often inspires renters to look for new, more appealing accommodation. If you can complete the sale and have the property market-ready by January, you’re likely to get plenty of interest.
- If you’re buying a new-build, you might get it for cheaper. If you’re thinking of purchasing a new-build or off-plan property, you should be able to haggle for a greater discount in December. Developers usually want to shift properties at the end of the year, in order to meet their quota of sales – and as such, they’ll be willing to knock a little off the price in order to seal the deal.
- You’re more likely to ‘see the problems’. Houses are more likely to display their faults in the winter months – e.g. damp, problematic boilers, leaking pipes and poor insultation. This is extremely useful when you’re viewing properties, as it’s harder for sellers to hide the problems, and you’ll know exactly what you’re purchasing (and what you can expect to pay in improvements).
- You can cash in on January sales. If you manage to complete the purchase by the end of the year, you can make the most of the New Year sales to bring the property to standard; saving plenty of money on fixtures and fittings, DIY materials, and furniture (if you’re planning to rent your property as fully- or part-furnished). This is a great way to make your budget go further and extend your ROI.
The Buy2Let Shop
If you’d like to find out more about property investment in the UK, attend one of The Buy2Let Shop’s property seminars in London – designed to support your investment decisions and help you to generate maximum ROI. To learn more, simply visit our website today.