If you are a landlord in Chelmsford and own one or more investment properties you have probably benefitted from some strong capital growth in the last few years and therefore might be sitting on equity that you now might wish to have in your account or to spend in different ways.
Rents have risen significantly in recent years and currently (Nov 22) continue to head upwards on all rental properties in Chelmsford. This is great from a landlords point of view but ultimatley a negative position for tenants. With a possible squeeze on incomes through increased costs of living there is a debate about how far rent increases can go before it becomes totally unaffordable.
If you also have a Buy to Let mortgage on your property you will be well aware of mortgage rates and the potential to be paying much higher rates when current fixed term rates end in the next couple of years. This could have a dramtic impact on the month to month profit that a landlord can make and may well make the investment property become cash negative particularly if you take into account Section 24 Mortgage Interest Relief changes which limit the amount of mortgage interest you can claim against your tax bills.
Despite benefitting from capital growth in recent years predictions are that values will fall and with no monthly rental profit if mortgage rates have risen it is expected that many landlords will look to sell their property and ultimately be forced to ask their tenants to leave which also then reduces the pool of available properties for tenants to rent. This ulitmately will further drive up rental values.
Should you be considering selling your property it is possible that you will need to spend some money on the property to make it look as good as possible and whilst it is for sale you will not be getting any rental income from the property.
If you are thinking of selling your rental property in Chelmsford in the next 12 months please come and talk to us to discuss your own personal circumstances and to work out what will be th best plan for yourself. We can talk to you from many years experience of selling properties in Chelmsford but also as the owner of rental properties in Chelmsford and having a full understanding of the ups and downs of owning investment properties and the financial decisions that need to be made to make an informd choice of how best to maximise your own position as well.