Buy to Rent

Cebu is a buzzing, metropolitan area with over 4 million residents, of which almost 40% rent a property either privately or socially.

Investing in real estate has been a long-held tradition, and for very good reason. With low bank rates and stock markets in constant fluctuation, buy-to-rent properties are an attractive option for those looking to invest. Here’s why:

Rental yield:

  • This is the income received from tenants in rent payments.
  • Rental yield is used to indicate the value of properties as an investment – the higher the yield, the greater the return.
  • As rental market conditions improve over time (e.g. investment in new transport links), rental yields can be increased by raising rent.

 

Capital growth:

  • This is the amount by which a property’s value increases over time;
  • Capital growth can be triggered by a variety of factors, including redevelopment plans, interest rates and the housing market itself

 

Why invest in a buy to rent property?

Whilst bank rates fluctuate and inflation continues to increase, traditional saving accounts are no longer a viable way to save money, whereas property investment can be both lucrative and a safe means of planning for your future. This is where buying to let comes into its own:

  • Monthly rent provides tangible returns on investment;
  • Potential for longer-term capital growth;
  • As housing prices fluctuate, tenants are committed to renting properties. With an increase in demand, the rental yield is potentially higher; and
  • Increase in rental demand means void periods of lettings are highly unlikely.

In practice, finding an affordable buy to let that rewards landlords with all of the above can be tricky. But that’s where we come in. Our buying team will help you find a property in a good location, that suits your requirements as a landlord. We can also help you ensure your property is compliant and tenant-ready, and guide you on applying for a buy to let mortgage.

Once your property is ready to let, we can help you find and manage reliable, long-term tenants who will respect and enjoy living in your property. Our aim? To ensure both tenant and landlord are happy, secure, and benefiting from each other.

For more information on our lettings service, head over to our landlords guide. If you’re interested in letting to corporate tenants, read more on our corporate services.

 

What’s involved in buying to rent?

It’s important to note that when you become a landlord, you’re essentially running your own business. As a form of investment, buy to let allows you to invest your money, while remaining totally in control of your monthly output.

Of course there are risks involved in becoming a landlord, along with strict compliances that both you and your property must adhere to. It’s important to note that if your tenants leave and there is a gap between finding new tenants, you will still have to pay your mortgage repayments and monthly bills.

This is why, in our experience, many landlords find it easier to work with an agent who can manage the legal and day-to-day running of a buy-to-let property.

Finding a buy-to-let property is the first step, but here’s what else you’ll need to consider:

  1. Securing your buy to rent mortgage
  2. Completion, including Stamp Duty costs
  3. Obtaining landlord, building and contents insurance
  4. Getting your property tenant-ready, furnishing if necessary
  5. Investing in professional property management

Whilst this may sound daunting, it shouldn’t be. Here at Cebu Grand Realty, we’ve been supporting investors with their buy-to-rent purchases and subsequent management. We pride ourselves on our unrivalled knowledge, and are confident that we will find you the most suitable property at the most fitting time. We’ve been doing it successfully for 10 years, and we do not intend to stop.

Get in touch today to discuss your requirements.