He points out that the current situation for landlords who invested three years ago is a positive one.
“For existing professional landlords, it has never been better because interest rates are at an all-time low so with the property you bought a while ago, the cash flow is looking really good.” He says.
He does have some bad news though for those that jumped on the bandwagon a little late and a little short. If you bough within the last three years and did not have the capital to fund your investment he predicts that you are now likely to be experiencing desperate problems.
He also address the issue of tenant default and the fact that high unemployment is likely to make this problem even worse in the near future, his recommendation is that landlords take out full insurance policies that protect them against void periods.
It is clearly the sensible solution though it can be hard to be sensible when the idea of another monthly cost fills you with dread as you are barely making the payments as it is. The best advice i can give is to try and take out this kind of insurance if there is anyway you an afford it. It is a very good step towards a more stable future.
