UK Property Investment Blog

Fancy A Chinese Mortgage?

If you are fed up with the growing number of limited deals in the UK, then you’ll be pleased to learn that you can now add the Bank of China to your list of lenders.

Branching out towards the UK market, the Bank of China is offering incredibly competitive rates that will soon have UK banks changing their lending criteria. Read more…

Homeowners turning their homes into a buy-to-let properties appears to be the latest craze to hit the property market during the last 8 months.

According to a report published by the National Landlords Association (NLA), the number of ‘accidental landlords’ who have come onto the property market during 2008 has risen by 25%.

And who can blame them.

With property sales still down at 60,000 last month, choosing to take your property off the market and transform it into a rental property has proven to be a profitable avenue for many homeowners.

‘Accidental Landlords’ – what are they?

Accidental landlords are essentially homeowners who have: recognised the rate at which property prices are falling; have chosen to keep a hold of their homes and have instead chosen to turn them into rental accommodation, whilst becoming a tenants themselves.

Through renting out their own properties, the positive cash flow they generate helps them to pay their own rental costs, but more importantly enables them to move home.

Surely it is not that simple?

Whilst the buy-to-let market has flourished during the last 12 months, entering into the property market unprepared has resulted in some ‘accidental landlords’ witnessing rental reductions of 20-30% per week.* A cut that has left many struggling to cover their costs.

*Knight Frank

Yet it doesn’t have to be this way.

What if we were to tell you that the media has got the buy-to-let market all wrong? That all their predictions that it is slowing down and failing is a lie? Would you be interested in finding out why? Well you can!

According to the Residential Landlord’s Association, professional landlords are experiencing the same level of profits as they did during the 2007 property boom.

In fact of the 75% of professional landlords who are experiencing profits, their income has risen by a further 5% in the last few months. Yes 5% on top of the 20% increase rental yields have already had in the last 12 months!

Now before you start wondering about the other 25%, who are not making profits, there is something you need to remember. And it is an important one too.

The reason why these investors are not making consistent positive cash flows is all down to lack of knowledge and training.

You see, they have witnessed the potential of the property market, have liked what they saw and have invested without thinking it out.

And their attraction to property investment cannot be denied. Offering low property prices, interest rates and monthly repayments, when you add this information to the fact that rental yields have risen by over 20% in the last year, investing in property has never been more lucrative.

So forget about the media. Forget it all. And offer yourself a future that will keep on benefiting you for many years to come: buy-to-let.