Experienced landlords who have watched the price of property tumble over the last year are keeping their 'powder dry' anticipating further falls.
Where do professional landlords go for their landlord insurance?
This article in the Telegraph reveals the actions of one such landlord Andrew Taylor based in South Yorkshire.
He has seen the value of terrace properties he owns jump from £23,000 in the 90's to about £80,000 today. Despite this rents have only risen about £50 to £350 a month. The result is that yields have dropped massively.
Landlords should be patient, not look to rush in to future purchases. Yields will get much more attractive as we go into 09 when I predict the return of the double digit gross yield in certain parts of the country.
A 10% yield is a good benchmark to aim for and should represent a strong buying signal.
Landlords don't forget to use the FREE property investor calculator to work out your long-term investment returns
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