Any buy-to-let buyer looking up at for sale boards and wondering at what level to pitch their offer at could follow the advice of property expert Simon Zutshi.
Mr Zutshi, founder of Property Investors Network, suggests that landlords should ensure that they purchase well below market value in the current environment.
"The reason being is that values are still falling, so by buying well below market value you give yourself a bit of a buffer," he adds.
Mr Zutshi says that by creating a financial buffer, landlords can cover unexpected events such as "mad tenants or unexpected bills".
He explains that property investors who get themselves into difficulty are the ones that buy beyond their limits and haven't got any substance behind them when times get tough.
In December 2008, nine out of ten landlords were neither selling nor purchasing rental properties, according to the Association of Residential Letting Agents, but seeking the right advice may help confidence return to the market.
Written by Christopher Evans
Published on: February 6, 2009