Landlords offered buy-to-let tips
Landlords hoping to stay on top of movements in the buy-to-let market have been offered some expert advice.
In an article for the Telegraph
newspaper, journalist James Vaughan explained that cuts to housing benefit will have a big impact on the private rented sector.
Indeed, he pointed out that some 1.4 million housing benefit recipients rent property, which means many landlords may be forced to reduce their rents or find new tenants willing to pay more.
To navigate the choppy waters ahead, Mr Vaughan advised landlords to spread their net and consider investing in property outside of their town of residence.
"It is more important to identify an area where there is demand for the kind of property you can afford to buy, and where the kind of rent you can charge will make the project financially viable," he stated.
Speaking directly to local letting agents can help to determine which areas will be mosy profitable and which types of properties are proving popular.
Mr Vaughan also recommended taking a long-term approach and buying a property with a view to selling it eventually. Purchasing a cheap flat in a rundown area is not an efficient long-term investment, he insisted.
Posted by Christopher Evans
- Property News from Lawpack: Find out how landlords can make money from property investment, whatever the economic climate, with Lawpack's Buy to Let Essentials
Published on: September 27, 2010
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