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Ian Potter FRICS FARLA

Ian Potter FRICS FARLA. Managing Director Association of Residential Letting Agents. Investing in the PRS. The K ey Considerations. Buy to Let : A Brief History. Started 1995 By ARLA with a panel of lenders Mortgage rates nearer domestic rates than commercial Finance 75% LTV

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Ian Potter FRICS FARLA

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  1. Ian Potter FRICS FARLA Managing Director Association of Residential Letting Agents

  2. Investing in the PRS The Key Considerations

  3. Buy to Let : A Brief History • Started 1995 By ARLA with a panel of lenders • Mortgage rates nearer domestic rates than commercial • Finance 75% LTV • Interest cover 1.25 to 1.4 times • Medium to Long Term Investment • Slow start then huge upsurge buying off plan speculation

  4. Demand • Supply • Price • Location • Available Finance • Legislative Changes in the future • Other threats

  5. Demand • How do you establish strength? • National Trends • Localised Reports • Local Knowledge

  6. Supply Local Agents Stock Check Portals : Rightmove , Zoopla etc Remember stock advertised may be what is not in demand Who holds the actual data for an area?

  7. Price • What impacts on price? • Owner Occupier Demand • Available Finance • Landlords Competing • Buy to Let Trends do not follow Owner Occupier Trends • Does it give potential for capital growth?

  8. Location • Location is key to demand • One side of a street can make all the difference • One end of a street can make all the difference • Competition in area

  9. Available Finance • Own Funds Available • Mortgage Funds Available • Length of Borrowing Term • Rates not following Base Rate • When do you need liquidity?

  10. Legislative Changes • Landlords Register • Minimum Standards Changing in Law • Local Licensing Schemes • Regulation of BTL Finance • Tax Changes

  11. Other Threats • Institutional Investment • Build to Rent • New Student Accommodation • New Retirement Accommodation • Large Developments Planned • Local Employment Changes

  12. Who Can Help? • Good Financial Adviser (Tax Advice) • Good Conveyancer • Experience Local Agent

  13. Thank You

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