Wednesday, 10 May 2006

Royal Institute of Chartered Surveyors forecast good returns for buy to let investors

Many landlords are asking whether buy to let can remain the extremely good investment that it has been over the last ten years. This period has seen a period of sustained economic expansion, rising employment and falling interest rates. It is therefore no surprise that landlords have achieved highly profitable returns.

However, the economy is vulnerable to all sorts of economic shock , both domestically and worldwide. It is no longer just America sneezing, that causes the UK to catch a cold! With this in mind, investors need to be careful to avoid putting all their investment eggs in one property basket.

Recently the Royal Institute of Charterd Surveyors issued a statement proclaiming that it is difficult to believe the UK will continue to record rapid house price rises in the next ten years as the scope for further large interest rate falls do not exist. Nevertheless they still expect moderate house price rises to be sustained at 3 to 5% per annum over the next few years.

For the geared investor, i.e. one who is borrowing to purchase a property, even an environment of modest house price rises will reap good returns on capital invested.

For information on buy to let mortgages go to : http://www.you-can-mortgage.co.uk/ or call 01202 606363.

AddThis Social Bookmark Button

0 Comments:

Post a Comment

<< Home