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Buy to Let Investors Keep Market Afloat

By Parmdeep Vadesha

Republish: EasyPublish™ Published: 18Jul2008 Word count: 510 Viewed: 201 time(s) Get Free Content For Your Site

Despite the steady stream of reports that the UK property market is feeling the impact of the credit crunch, many buy to let investors seem to be unfazed. As the negative news continues pouring in, these intrepid investors are giving the credit crunch the cold shoulder and snapping up properties. Due to their dauntless activity, the UK's property market remains a buoyant one.

A recent Reuters report said that if landlords keep up their investment activity, they may be able to improve the overall property market and keep it from going into a deeper decline. According to Jeremy Law, Bradford & Bingley, many investors are seeing a lucrative opportunity in the slump that the housing market is currently going through.

Landlords continue to see the existing housing slowdown as a chance to either continue expanding their portfolio or to start increasing them again. Industry experts point to the growing demand in the private rented sector, which has grown successfully over the past few years and accounted for a significant 12 per cent of new mortgages last year.

Many field experts recommend that for buy to let investors to be successful in their endeavour, they need to buy below market value, goad the seller hard enough to strike a good deal, and ensure that the rental property investment revenue will be adequate to cover all expenses. Industry professionals also state that the property is a long-term investment, making it an unwise choice for those who are seeking to lay their hands on a get-rich-quick scheme.

Since prices are going to be unstable for the next few years, investors are going to have to hold on to it for a while and wait till property prices go up. This is considered one of the best buy to let investment tactics, as prices are expected to shoot up in the next few years, even though they might be shaky at certain times. Evidence that property investors are in it for the long haul comes from a new survey from the Association of Residential Letting Agents, which showed that nine out of ten investors plan to hold on to their properties for approximately 17 years.

If you have yet to step into the buy to let realm, experts advise that you should invest in major areas of population and not the surrounding counties. Investor authority BuyAssociation states that commuters belts are not the type of areas that people looking for buy to let accommodations are drawn to. So, moving away from the big centres and employment hubs is considered a risky strategy.

Quality of life, which is defined in terms of factors like wages, school results and life expectancy, should be considered first and foremost when choosing a location. According to experts, some of the places that provide quality of life are those that are within commuting distance of London.

What makes the investment superbly appealing to many people is not only the long-term opportunity to make profitable returns. It is also a way of securing retirement plans and the future.

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