Buy To Let Still Seen as Good Long Term Investment

The property market is currently experiencing a hard time due the current economic climate. Some Landlords may now be thinking that now would be a good time to sell up and cut their losses.

However a recent statement by the Association of Residential Letting saying that they think that now is not the time for landlords to consider selling up. As people will always need a place to live and with property value at a low it would not be sensible to sell now. The largest problem facing landlords in 2009 is rent areas with some people being unable to make their rent payments due to the recession. One of the reasons that people would be unable to pay their rent is the threat of redundancy. One solution to this problem is for landlords to take out rental protection insurance to combat the risk of tenants who go into arrears. The insurance can only be taken out if the tenant is not already into arrears so taking the insurance out at the start can be a good strategy although the insurance can be taken out in the middle of an agreement, again as long as the tenant isn’t in arrears.

The residential letting association went on to say the buy-to-let mortgage market will be for the most part unchanged in 2009 which may come as a relieve to some landlords who were thinking that the market would get worse in 2009. However landlords may have trouble get new mortgages if their equity is low and may face higher interest rates.

It is estimated on average house prices will fall in 2009 by 15% although this fall will not be consistent throughout the UK, London is expected to take the biggest fall. There may be some more reduction in rental cost throughout 2009, however there is expected to be some increases as well.

If you are looking to advertise your property to rent Grant Management is an excellent place to start they have houses to rent in Birmingham and another area they cover is houses to rent in Manchester.

As we can see that it is not all good news and things are not expect to improve much this year so it is a matter of doing the best thing that is right for you. If you want to cut your losses and run then I would say that now is not the time to do it, however that may be the only option available to you at this time.

Article Source: http://www.realestatepropertyarticles.com.

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