Let to buy – an alternative strategy? By Rolfe East.
What can let to buy offer?
The bottom line is that let to buy can offer an escape from the sometimes drawn-out procedure of selling one home to buy another, including during times when the housing market is weaker or when there are more than the average number of homes for sale on the market.
Let to buy allows for a speedier moving process because the move is no longer so dependent on the sale of your existing property, thereby avoiding lost opportunities to buy that dream house. It also offers the distinct advantage of giving you a regular income from the rented property and an investment for the future should you choose to continue with the arrangement in the longer term. In addition, it is an excellent basis from which to start building a property portfolio to act as a long-term pension plan.
Today, in the UK, the lettings market is strong with young people forming the backbone of the rental sector. On average, first-time buyers are in their thirties but, since most people leave their parental home in their early twenties, there is a decade in which they will want a property to rent before buying. Business people who move when their firms relocate also rent. Good news for those looking to let to buy as what could be better than someone else effectively paying your mortgage for you!