Is the Buy To Let Market Dead?
Darren Shaughnessy, Director Kings Residential, Estate Agents in Manchester and Letting Agents in Manchester writes:
I have heard many people say recently that the buy to let property (BTL) market is dead. I don’t believe that this is true. In a nervous market where lenders are less willing to offer credit the industry needs to be realistic. Realistic prices need to be demanded by the developers, realistic rents need to be expected, and the investors need to be realistic and consider a BTL investment as a long term investment. There are few quick and easy gains to be had and the adverts promising to make you a property millionaire overnight are a little exaggerated!
Property is and always will be a good long-term investment. In the long-term property prices have always increased. In difficult times you just need to hang in there and wait for prices to rise again. Those that rode out the crash in the 1980′s saw huge profits. This is a relatively minor lull by comparison.
Landlords who have done their research and are subsidising their mortgages by topping up their rental income and have budgetted for this subsidy are likely to see good gains in the long run. Those that have not budgetted and cannot cope with the shortfall may become another reposession statistic.
The buy to let market is not dead, but a few in the indutry are sleeping!
