Is buy-to-let the key to easy UK riches once again?
If the banks and mortgage providers could be relied upon to make good judgement calls with regards to lending – then yes. However, as we have seen in the past, the banks have got it wrong with excessive over lending leaving many in negative equity and facing repossession.
If you are a cash buyer, buy to let is a feasable way to invest. If on the other hand you are mortgage reliant, consider what could happen to interest rates over the next year or two – think carefully about whether you can afford it long term if you have any problems renting out the property – Buy to let might seem like an easy option, but it has it’s difficult areas just the same as any other investment.
Rosie Murray-West – Telegraph – 3rd December 2010 Rents are rising and so is demand. It sounds like an easy way to make money. Despite this week’s gloomy governmental house price predictions, there is one group of property investors that is doing very nicely, thank you. Britain’s army of buy-to-let landlords, if they have chosen their properties wisely, are now benefiting from record rents, high demand, shrinking void periods, and often very low interest rates on their mortgages. The market is beginning to open up for new entrants too, with specialist lending companies such as Paragon wanting to take on new business, and larger groups, such as Santander’s buy-to-let arm, showing an interest in lending to more small landlords next year. Is the buy-to-let bandwagon on the run again, and if so, should you jump on? Many will be surprised to hear the health of the buy-to-let industry described as anything but sickly. After all, this is the industry that sank Bradford & Bingley, and left tho
