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Buy-to-let investors told to hold back
Published: 26/09/2007 |
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People seeking to invest in buy-to-let mortgages have been urged to hold off on purchases in light of the recent cooling of house prices. Independent mortgage adviser John Charcol encouraged potential buy-to-let investors to compare mortgage deals and research the area they are looking to enter, rather than snap up properties in the current climate. "If the market is strong, then there is no reason to hold back but, in the market we've got now, there is no need to rush in," said John Charcol spokesperson Ray Boulger. He added that because of over-hasty decisions to take out buy-to-let mortgages "we have seen some investors buying off-plan and, partly because there have been a lot of other investors who have bought in the same development, they can't quite sell it". With as many as 54 per cent of landlords surveyed during August 2007 by the Association of Residential Letting Agents now expecting to make further buy-to-let investments over the coming year, advisors like John Charcol are urging a more cautious approach. The health of the buy-to let market is widely linked to the health of the property market at large, which makes short-term prospects for buy-to-let proceeds as low as any other. Reflecting on overall trends, Mr Boulger said: "We are quite clearly seeing a slow down at the moment. From the point of view of buy-to-let investors, I would not recommend anyone enter that market with a short-term view."  © Adfero Ltd |
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