Buy-to-let investors urged to buy now
Thursday, 1 November 2007 12:00 AM
Current market conditions are ideal for medium-term buy-to-let investors to make a purchase, according to investment specialists Assetz.
Despite fears the housing market is about to enter a phase of slowing growth, or even falling prices, the organisation argues conditions are ideal for investment.
"While the market has been subject to much speculation and turmoil over the last few months, there is significant evidence to suggest that for those taking a medium to long-term perspective, now is an excellent time to invest in buy-to-let property," said Assetz chief executive, Stewart Law.
According to the Royal Institution of Chartered Surveyors (Rics), a record number of first-time buyers are presently opting for rented accommodation, waiting for market turmoil to clear before making a purchase.
This has put pressure on rent prices, forcing them towards record growth rates or something.
This view is supported by the Association of Residential Letting Agents (ARLA) which recently stated: "Demand for rented properties seriously outstripped supply."
These factors have provided a bright future for buy-to-let investors according to Assetz.
"With interest rates predicted to fall imminently, and rents rising, both new and established investors will soon reap the rewards of higher rental yields with positive cash-flow," continued Mr Law.
"Any lower prices offered by the few sellers in the market will be taken advantage of by aggressive buy-to-let investors and combined with rising rents they will see high yields, not experienced for a few years."
However, this view has been questioned by some in the industry.
The Bank of England will make its next interest rate announcement on Thursday November 7th, with many expecting a hold in the base rate.
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