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Buy-to-let investment property owners 'more active'
Those who have purchased investment properties in recent years may be looking to further expand their portfolios.
That is because buy-to-let investors are becoming increasingly active, according to Malcolm Harrison, property industry expert.
Such comments may be of interest to those who have purchased residential property with a view to renting the building, or perhaps those with premises such as office or retail space.
Mr Harrison says: "It is fair to say that buy-to-let investors are becoming more active for a whole variety of reasons."
One of the key explanations is a growth in the private rented sector, which has been larger than people predicted a number of years ago.
So-called investment landlords will look at the situation and predict where the market might be in a number of years ahead to see whether it is worth spending money now.
"In another five or ten years, everything points to the number of tenants continuing to increase," the expert explains.
He continues: "The nub of what makes investment in rental property interesting is, is there a market out there? The answer to that is yes, there very much is."
The comments come as research from LSL Property Services revealed confidence in rental property is still strong, but has fallen in the last three months.
Some 42% of landlords think it is a good time for them to make an investment, whereas 48% believed this to be true during the first quarter of the year.
The drop in confidence may be partly due to the higher capital gains tax recently introduced by the government, LSL Property Services discovered.
Mr Harrison notes there are still many signs to suggest the sector is growing more than was predicted a number of years ago.
And this is why people continue to purchase investment property, because they are confident about the returns they will eventually see, he adds.
Posted by Tom Baker
That is because buy-to-let investors are becoming increasingly active, according to Malcolm Harrison, property industry expert.
Such comments may be of interest to those who have purchased residential property with a view to renting the building, or perhaps those with premises such as office or retail space.
Mr Harrison says: "It is fair to say that buy-to-let investors are becoming more active for a whole variety of reasons."
One of the key explanations is a growth in the private rented sector, which has been larger than people predicted a number of years ago.
So-called investment landlords will look at the situation and predict where the market might be in a number of years ahead to see whether it is worth spending money now.
"In another five or ten years, everything points to the number of tenants continuing to increase," the expert explains.
He continues: "The nub of what makes investment in rental property interesting is, is there a market out there? The answer to that is yes, there very much is."
The comments come as research from LSL Property Services revealed confidence in rental property is still strong, but has fallen in the last three months.
Some 42% of landlords think it is a good time for them to make an investment, whereas 48% believed this to be true during the first quarter of the year.
The drop in confidence may be partly due to the higher capital gains tax recently introduced by the government, LSL Property Services discovered.
Mr Harrison notes there are still many signs to suggest the sector is growing more than was predicted a number of years ago.
And this is why people continue to purchase investment property, because they are confident about the returns they will eventually see, he adds.
Posted by Tom Baker
Thu, 26th Aug 2010