Rental Property Investment for the Long-Term

Rental property investors in the UK are undaunted by news of a stabilising property market. In fact, they even plan to expand their property portfolio in the midst of a levelling out market. This is because they know that property is at its most profitable as a long term investment – with property prices expected to increase over the long term.

In the face of continued negative stories that abound in the UK property market today, many investors who are into rental property investment seem to be unconcerned. These shrewd investors are giving the credit crunch a nonchalant shrug and continuing to purchase income producing properties. Their dauntless attitude has caused the property market to remain buoyant in many areas across the UK.

If they keep up their investment activity, they are bound to improve the overall movement of the property market and prevent it from declining further, reports Reuters. Meanwhile, Bradford & Bingley states that many investors see a profitable opportunity in the stabilisation of the property market.

Even with the evening out of house prices, landlords continually see a chance to expand their property portfolio. Industry experts point to the mounting demand in the private rented market which has seen significant growth over the recent years and makes up a considerable 12% of new mortgages in the previous year.

Buying below market value

The success of a buy to let investor hinges on buying a property below market value – especially from a motivated seller who is more than willing to negotiate on price in return for a fast hassle free sale. The most common reasons why a seller may be motivated to dispose of his property as fast as he can are:

* Impending repossession
* Divorce and family issues
* Moving to a new home
* Death in the family
* Job matters or emigration
* The property has been on the market for months

Buy to let necessities

Investing in buy to let requires that you invest in major areas of population and not necessarily in the surrounding counties. Investing authority BuyAssociation states that most people look for accommodations in the big centres and employment hubs and rarely in commuter belts.

When choosing a location for properties to rent out, the most important factors to consider are salaries, presence of good schools and life expectancy. Industry experts say that some of the locations that provide quality of life are those that are within close proximity to London.

Property as a long term investment

Sophisticated property investors are aware that property is at its most lucrative as a long-term investment. Even during times when property prices become unstable, smart investors are aware that holding on to their property through uncertain times and waiting till prices go up is considered one of the best buy to let investment strategies. This is because the industry knows that even with a market downturn, prices of properties are expected to increase over the long term, just as they have done for hundreds of years.

Proof that investors are in it for the long term is shown in a recent survey from the Association of Residential Letting Agents which found that nine out of ten investors intend to hold on to their properties for around 17 years.

Delving into a rental property investment poses a long-term opportunity to earn profitable returns and subsequently provide a financially safe and stable retirement. But like all investments, doing your homework before taking the property plunge always pays.