Expert: Now is a good time to invest in property
by Sarah Ashcroft
Landlords who are wary about joining the buy-to-let market in the current economic climate may enjoy peace of mind by seeking a fixed-rate mortgage deal to ensure their payments will not rise in the future.
This is according to Nick Marr, director at the Little House Company, who said finding the right type of product is vital for proprietors as it gives them more confidence when it comes to expanding their property portfolios
Mr Marr, whose company is an online direct advertising space for private property sellers, noted that now may be a good time for would-be landlords to engage with the market due to dwindling prices and increased rental demand.
However, the expert warned investors to approach the market with caution and to think carefully about the commitment they are entering into, stating that it is important to think about security and to know that their financial future is taken care of.
He explained: "If you have secured something, say, for a five-year deal, you can start gaining a little bit more confidence about how you feel about your outgoings.
"Acquiring a mortgage at a fixed rate and a fixed deal gives you that little bit more confidence to buy a property."
The importance of securing protection against losing out on money during economic uncertainty was highlighted in an article published in This Is Money earlier this month, which noted that some landlords are at risk of falling into debt because tenants are unable to pay their monthly bills.
For this reason, proprietors are urged to check the insurance policy they have in place to ensure they are protected against falling into arrears.
In many instances, this type of cover will only reimburse landlords for lost earnings when a home is uninhabitable due to another insured event such as a fire, which will not cover property owners for backdated rents.
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Published on: December 27, 2012
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