Buy-to-let investors 'need to exercise caution'
Date posted: 29 May 2010
Caution should be exercised by those thinking about making investments in the buy-to-let sector, an expert believes.
Published by Tim Hill.
People will need to adopt a cautious approach when considering buy-to-let investments in the near future, it has been suggested.
LandlordZONE.co.uk director Tom Entwistle has warned landlords that the interest rates that apply to buy-to-let mortgages could potentially go up in the coming months.
He stated: "Caution is needed by those who can obtain mortgages because interest rates could easily rise.
"My advice would be to buy only if you can get outstanding yields and don't over-gear."
However, while noting that there is currently a lack of certainty in the rental property sector, Mr Entwistle added the long-term picture is much more positive.
The crisis that is affecting the euro is a key source of concern at the present time, he went on to suggest.
Last month, 30 per cent more of the surveyors polled in a study by the Royal Institution of Chartered Surveyors saw rents increase, rather than decline, it was recently revealed.
Please contact Michaela Henson, Head of Property for further information or call 01223 225178
Click here to email or call on 0207 382 8060.
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