Tenants exist in good numbers because would be first time buyers cannot get a mortgage so are forced to rent. And there are pockets of opportunities around Gibraltar to buy at keen prices the overall price of debt remains good value. Tenants exist in good numbers because would be first time buyers cannot get a mortgage so are forced to rent. And there are pockets of opportunities around Gibraltar to buy at keen prices. The brave, the wise, the experienced and the adequately resourced, will soon be back on the Gibraltar buy to let trail.” Those who heeded that advice are now in a good position. Gibraltar has all but run out of (open market) apartments available to let and Chesterton has a waiting list of would be tenants longer than ever before. Rents are edging up now, starting at the lower end and this effect will move up through the price brackets over the next few months. Mortgage opportunities are still available at historically low interest rates. return to demand exceeding supSo those who wish to, or need to ply, which tightens the market and rent for tax residency or for close forces prices higher, a key ingredi- proximity to their workplace may ent for the buy to let investor. now have to purchase instead Letting activity continues to of rent. Otherwise, they will be underpin property values. First forced to live in Spain which cretime buyers struggle to achieve the ates tax and administrative chaldeposits required, and sufficient lenges and a different lifestyle. companies in Gibraltar employ In November 2012, Chesterton overseas staff on relatively short closed on a sale of a one bed apartterm contracts, so currently there ment in Ocean Village at £215,000. are seemingly enough tenants to The buyer got cold feet and backed rent these new properties. out. That same apartment has just Meanwhile, vendors have to sold for £238,000. compete for the fewer buyers in Back in July 2010, I suggested the market. Those vendors who investors would have to be brave, can, will hold on or rent. Those wise and experienced to purchase who cannot, and must sell, have a buy to let apartment. Those who to discount a little. Therein lies did, were wise. Prices are rising at the opportunity for the buy to let the lower end, forced up by tenants landlord. unable to find a rental property. For the experienced residential For those adequately resourced, landlord, conditions are arguably opportunities remain in the prime quite good. The low loan to value buy to let sector, but before long, given on mortgages discourage the these opportunities will be lost to amateur landlord from returning others. to the market. Interest rates are It’s a good time to buy. And at historical lows and although Chesterton can of course, provide bank lending margins are high, the buy to let guidance. n Mike Nicholls is a Fellow of the Institute of Chartered Accountants, a member of the Gibraltar Society of Accountants, a member of the Gibraltar Funds and Investment Association and a board member of the Gibraltar Chamber of Commerce. Mike operates the Chesterton estate agency in Gibraltar and runs a real estate investment solutions consultancy. GIBRALTAR MAGAZINE • MAy 2013
Published on Apr 29, 2013
Published on Apr 29, 2013
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