For some people, buy-to-let is a gamble; for some others, it’s a long term investment portfolio. It could be a gamble when you are planning to make profit from the rising cost of houses foreseeable in the near future; this could however be very dangerous as seen in the last few years after the bubble burst in the continuous rise in prices.
Buying-to-let as a medium for earning regular income yearly is however seen as a good business strategy considering the fact that the number of houses available are not increasing in response to the demand from would-be tenants.
Kate Faulkner of advice site: www.designsonproperty.co.uk says: ‘This will be a good year to become a landlord. However, with regional variations on house prices you must choose property carefully; it’s important to talk to letting agents about the area and what types of property tenants want’ This point is very crucial as you would not want to buy properties that are not very high in demand in certain areas.
Following the recent slump in the prices of houses, 2011 seem to be a perfect time to put in that deposit and seek for mortgage facilities. Furthermore, with the increased competition in the buy-to-let mortgage market, most banks have reduced their fees and rates making funds more accessible.
The U.K economy is picking up very rapidly after the recession and many more people are seeking spaces for rent. Whether you are buying for profit from the price in a few years or as a constant stream of income, this is certainly a good time to buy.
Like I always advice, make sure you secure the services of an expert in real estate matters to see you through the process. Being a first-time buyer can be fun but can hurt you too. So heed my advice!
