Money Talks: It's never too late to invest

Anne Frances is a property investor. She didn’t get started in property until she turned 52, when she wanted to subsidise her pension. Let this be an inspiration to anyone thinking it’s too late to get started - it’s not! This is her story...

Tell me a little bit about yourself. When and why did you decide to invest in property?

Hello! I’m 59 years old. I currently look after my mum, who has dementia and I got into the property game relatively late. I was 52 when I purchased my first rental flat so I’d like to reassure anyone reading this that it’s never too late. You can take the plunge into buy-to-let at any age.

So, what got you into property investment?

A few years ago a friend (who had his own properties) suggested buy-to-let was a good investment to subsidise my pension. I only have a very small work pension. As much as it sounded good, it felt a bit daunting - property does sound daunting when you’re first starting out. I looked at mortgage rates, and then went to see the lettings team at Slater Hogg and discussed it with them - what was involved, lettings fees, the rental process etc. And that was the trigger that started my landlord journey. Shortly after, I bought my first flat. I loved it! There’s nothing like the excitement when you open that front door and step into that flat that’s actually yours. And the feeling of driving by and seeing a piece of the city that you own. 8 months later, I went to find flat number two. I just love being a landlord, it’s a journey of ups and downs, but I find it exciting. There’s nothing like it - I now have 5 flats.

Tell us a little bit more about your first deal?

My first deal was an exciting one. It was a little one bedroom flat in Merchant city - which is in Glasgow city centre. I bought it 7 years ago. I was a little nervous and I must say that I couldn’t do it without the guys at Slater Hogg. They did all the referencing and found me the very best tenants. I trusted them completely. Even now, if I have a thought or a worry, I know that I can just run things by them. I try to be a really good landlord too and I think building a good rapport is the key to a smooth tenancy. I do little things like get fresh flowers for tenants when they move in and I action problems straight away.

Which locations do you think a first-time landlord should invest in?

Hmm, this really depends on what you are looking for. I chose Glasgow city centre because I know the area relatively well. I weighed up the pros and cons for me personally and I’d advise other landlords to do the same. I thought, in a city centre, the properties are a little more expensive, but they are more likely to hold their price in the longer term and you will get a larger rent in the short term.

Why did you choose a flat over a house?

I always chose flats rather than a house. Being honest, there are pros and cons for both and I know that a lot of landlords prefer houses. For me personally, a house may have a garage, a garden which takes more maintenance. With a flat, you don't have to worry about that - you pay a service fee and everything is looked after for you. For me, it was worth it. Something every landlord has to think about and decide for themselves.

How did you raise the finance for buying your first property?

All my properties are mortgaged. When I started out the mortgage rates were really affordable. If you are offered a good rate, I often take a fixed rate because then I don’t need to worry about changes or fluctuations. I’ve also had friends release equity from another property to fund their buy-to-let purchase.

Tell us how you scaled up to where you are now?

As I said - I just really got the landlord bug and love having my flats. It’s exciting making the monthly income! I started small, and monitored the performance of each property before expanding further. If you’ve ever wondered if bricks and mortar are still a concrete investment (yes, pun intended), and you’ve considered dipping your toes into the buy-to-let world, my advice is to just do it! As long as you have a good team behind you like Slater Hogg, you can’t go far wrong.

Are you worried about mortgage rates increasing and what this could mean for landlord profits?

In one word, yes. I think everyone is a little worried. When you have a mortgage, letting agency fees, landlord insurance, the profit margins can be slim. So, changes in mortgage rate can increase borrowing costs month-to-month. But one thing that’s important to remember is that property investment is a long-term plan. Sometimes you have to ride the storm, but that’s part of the journey. Nothing is constant - we live in an ever changing world and storms don’t last forever.