Buy to let market: Seeing an opportunity in times of adversity

Posted under General by Michael

There are both winners as well as losers in any given buy to let market, but certain market conditions and forces have impact on all. For example, the credit crunch has resulted in many buy to let mortgage products being taken off the market. Those still available remain need much bigger mortgage rental cover than say a year ago.

This scenario makes it much tougher for new landlords to secure a mortgage. This also makes it difficult for many of existing landlords to remortgage to a better deal. Individual responses to such challenging situations will largely decide who will survive and come out unscathed. According to a recent report released by the Association of Residential Letting Agents, almost 46 per cent of landlords intend to buy more property in the next year or so, while 18 per cent plan to sell some.

You can build a case to state that if the credit crunch does not ease, landlords could suffer. Yet, many landlords, as the survey indicates, are going ahead with their plans to buy property. Whether they are right or wrong, only time can tell, but at least, they are not panicking and seeing an opportunity in the times of adversity.

More