Q&A with Eddie Hooker: is now the time to invest or divest?

In this video Q&A, Managing Director of HFIS, Eddie Hooker, and property writer and editor of LandlordZONE, Nigel Lewis, chew the fat on one of the most pressing questions facing buy to let investors today – should you be looking to buy or sell?

“Everyone has a different opinion on this question”, says Eddie. “My personal view is that you need to look at why you went into landlording in the first place. For some of the ‘accidental’, or what I call ‘armchair’ landlords – which a lot of us are – it’s about an investment. It’s not necessarily always about the rental income. Because let’s be honest, most landlords don’t make money on the monthly rent but on the capital growth, and that will depend on the type of property you’ve got, where you are in the country and the desirability of the area.”

When it comes to why landlords are exiting the market, Eddie questions the dominant rhetoric in the media that landlords are leaving the sector because they’re not making money, it’s too hard and there is too much legislation.

“When I came into this industry 25 years ago, the average age of a landlord was between 50 and 55. Fast forward to today, and those landlords are now 70-75 and in their retirement. So, a lot of landlords that are exiting are those that are actually cashing in on their original investment.”

But what about those landlords who are struggling with the legislation? Or those who have over-leveraged themselves and aren’t making any money at all? Are the returns still there, or should they offload? And if you are in a position to invest, what sort of properties are likely to see the greatest growth in capital?  Watch the video for the full discussion.

For more on investing in property, read Total Landlord’s article, the ultimate guide to buy to let property investment and listen to this episode of The Property Cast with Richard Donnell of Zoopla, which draws on Zoopla’s rich data and Richard’s expertise to explore the most important trends in the property market and what they mean for landlords looking to invest or divest.