Investing in UK Buy To Let Property

By: Kaz Williams

There's been a lot in the papers and on the television about the state of the UK property market. It can seem like a bad time to invest in buy to let property with the predicted doom and gloom. So is this a good time to spend your money? Well maybe. The property market has always gone up and occasionally down but overall property is a good way to make money over the long term.

With BTL you buy a cheap property and then get tenants in who pay you rent which pays for your mortgage on the property and hopefully quite a bit more. Ten to fifteen years later the property has been paid for by obliging tenants and you can have a sizeable steady income from rent or you can sell the house or flat for a huge profit. Well that's the dream scenario.

Of course, because of the potential to make large sums of money a lot of people have joined the ranks of BTL investors. Now that the market has lost its buoyancy some of them are facing a less than rosy future. High interest rates mean higher mortgages. Rents however are not rising at the same rate and so now some tenants' rents are not fully covering all the expenses needed to pay for and maintain a property.

This probably all sounds like a very good reason to stay clear of buy to let property investing but if you're in the right position this may not be so. There's money to be made in speculation and often its big money.

So why might now be a good time to invest? Well property prices are falling and most of the profit successful property investors make is when they buy. Most novice investors buy their properties at too high a price. This not only cuts their ultimate profit it also leaves them vulnerable to changes in mortgage rates.

Property auctions all over the country are filling up with unwanted BTL properties along with repossessions. As the number of properties coming on to the market increases the more the prices will drop especially at auctions as fewer people are prepared to buy. But there are still people buying and these are often savvy investors taking advantage of the lowering prices.

They know that at some point the market will turn around. People always need somewhere to live and the British love of owning their own home has always meant a robust housing market. If you buy during a dip you'll ensure some of the best bargain prices available.

Of course you need to know what you're doing and be able to tell a bargain from a cheap disaster. You also need to be sure that you are financially secure enough to sit out a possible further dip in the market.

Article Source: http://www.retirementlivingarticledirectory.com

If you have an interest in the UK property market please visit my property auction site which lists property auction houses throughout the UK including links to North West property auctions.

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