Landlords 'should look for low-cost properties'
by Sarah Ashcroft
Landlords have been advised to consider the importance of price when it comes to expanding their property portfolio
, as this could ensure that they enjoy higher yields in the future.
This is according to Charlie Cunningham, chief executive of property investment and development firm FreshStart Living, who said that there is a common misconception that proprietors make a profit when they sell a building - when it is actually when they buy.
Mr Cunningham noted that by purchasing a property at below the market value, they are able to increase returns by charging less for rent - but also achieve the same yields.
His comments were made after author, investor and professional speaker Dr Rohan Weerasinghe highlighted that the UK's buy-to-let market is becoming one of the most attractive in the world for investors.
Dr Weerasinghe stated that landlords operating in the UK can achieve returns from five per cent in the right areas up to 20 per cent, which could have a positive impact on yields at the end of the month.
This sentiment was echoed by Mr Cunningham, who said London's property market is becoming so popular among prospective investors that many consider it too expensive and are beginning to change their focus to northern cities such as Salford and Manchester.
He argued that many proprietors are experiencing success in these areas because properties are more affordable and they are able to get more for their money compared to the capital, where the entry level is much higher.
"In the past, overseas investors tended to focus on the London property market, but that isn't the case anymore," Mr Cunningham explained.
He added: "This can be put down to the likes of the world-renowned BBC relocating to Salford, which brings credibility and raises awareness of the region that may have been unknown to investors overseas previously."
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Published on: November 2, 2012
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