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Buy to Let Opportunities

September 30, 2009 in Property Investment by Kez

There is now a growing buyt o let opportunity for investors as the percentage of landlords selling their properties has risen in the recent times and at the highest for many years. Despite this, some investors are being more careful about investing into the buy-to-let market due to fluctuating market conditions. The much more selective lending of residential and commercial mortgage products by the banks does not help matters.

My advice in the meantime is to look for private money to help fund your purchases. This is a worthy strategy to any investor’s business plan.

Some financial institutions have even withdrawn their buy to let mortgages while on average, the deposit amount investors are asked to produce is up to 35 percent as compared to only 8 percent back in 2002. Some of these lenders even added a requirement that the rent for the property must be more than 125 percent of the mortgage payment. New landlord instructions, which indicates the buy-to-let activity, also dropped to a low point.

Some buy to let landlords may even hold onto their properties until later this year before considering selling due to these factors. However, just remember, most property investors are in it for the medium to long term. These may seem daunting to new and inexperienced investors but with the proper guidance and help, these are mere hiccups which could easily be resolved.

Many big-time and experienced investors could not care less about predictions of a buy-to-let slowdown caused by interest rates and lending criteria. Some of them are even exploiting this time to expand their portfolio this year while others continue to maintain their portfolio without worrying about property market trends. The smart investors believe in the “buy low, sell high” philosophy and the smart investors have definitely starting to creep out of the woodwork to take a piece of the bargain pie. I have personally noticed a marked increase in the number of investors looking to buy and capitalize on the low prices. After all, we all know that if historical indicators are anything to go buy, anyone buying property at such times look to gain significant profits on the long term.

So for anyone fretting from the mad panic created by the media, just learn from the smart buyers who bought at the slumps of the 1980’s and the 1990’s to create massive wealth for themselves.

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