For a time there people saw the buy to let market as an easy way to get rich, almost a license to print money. There were even ludicrous claims flying about that once you had established your portfolio you would have to work less than four hours a week and still you would be raking it in.
For the record these kinds of claims were always madness and anyone with any experience knows it was never that easy. Having said that making money in this industry required less finesse a few years ago than it does now.
It is always easy to make money in a market that is booming!
The recession has put us firmly back in reality and I agree with personal finance expert Andrew Hagger of Moneynet.co.uk when he says “Too many people got carried away with hearing how others were raking in the monthly rental income but without appreciating the potential pitfalls or having the financial back up to cope when things didn’t go according to plan.”
With lenders proving that they have no appetite for this sector at the moment and the government introducing legislation that seems destined to make things much harder on landlords, this sector is definitely no longer a place for the faint of heart. If indeed it ever was.
