Testimonial

Isn’t buy-to-let investment really just for people with big incomes?
- “Absolutely not! The majority of a buy-to-let investment is paid for by the tenant. When you add in one of the tax incentive schemes, this type of investment becomes even more accessible, and well within the reach of people on average incomes.”

Do you have to be homeowner before you can think about making a buy-to-let investment?
- “That’s a total misconception. The rising property prices we’ve seen in recent years have made it very difficult for many young people to get on the property ladder and buy their own home. Buy-to-let can be a real springboard for them, because the rental income pays the majority of their monthly mortgage repayments. This way, a young couple can easily buy their first property, and when they sell it a few years later, the equity they have built up should enable them to fund the purchase of their own home.
Of course, some buy-to-let investors are already homeowners, and are often older couples whose children have grown up and left home, and who own their own homes outright. For this group, a buy-to-let investment is seen as an ideal way of building assets to pass on to their children or a source of additional income in retirement.”

Is everyone eligible for the government’s buy-to-let investment tax incentives (Borloo, Robien, etc)?
- “Definitely! Both schemes can reduce income tax liability substantially. Of course, they do come with some strings attached, especially in terms of rental term and maximum rent caps. Nevertheless, rentals are usually on a par with those normally charged in the local rental market.”

We sometimes hear that buy-to-let focuses on the bottom end of the market…
- “That’s certainly not the case with Bouygues Immobilier, where the most important factor is always quality. Bouygues Immobilier developments are designed to appeal to both buy-to-let investors and owner-occupiers…. and that’s good for investors in two ways. On the one hand, having a majority of owner-occupiers in a building is likely to result in the building being maintained to a higher standard. On the other, the rents charged are much more likely to be in line with the realities of the local market. Both of these benefits bode well for the future resale price. Bouygues Immobilier also offers homes for all types of buyer. Some people prefer to invest in a property they’d be happy to live in themselves, either because they put a lot of emphasis on quality, or because they plan to live there themselves in retirement or let it to their children. Bouygues Immobilier serves this market too.”

Are people taking a major risk by investing in rental property?
- “Over the long term, property has proved to be a safe, stable investment that is largely immune to fluctuations in the economy. There is also a range of rental guarantees available for owners wanting to protect themselves against non-payment of rent. We always recommend first-time investors to appoint a property manager who will manage their investment and can offer them rent guarantees. Property management fees range from 6% to 12% of rental income, depending on the options agreed. Lastly, the Bouygues Immobilier commitment to development quality and location substantially reduces the risk of non-rental.”