Friday, February 20, 2009

As Savings Rates Fall, Rental Yields become More Attractive to Landlords and Property Investors

There's no returns from savings anymore and this is starting to tip investment sentiment back to Buy-to-Let, especially as property price falls start to skirt with the bottom of the market.

The Times reports on Agents recording increased interest from Buy-to-Let investors, as savings increasingly earn pretty much nothing.

With three quarters of agents reporting rental yields of 4 per cent or more in the last ARLA survey the differential in return between cash in savings and residential property investment returns continues to return.

My advice to landlords and property investors is watch this space but be cautious, we can't see a big bounce occurring once confidence returns to the property market so why catch a falling knife?

Warmth to landlords as the snow melts and the sunshine returns,

Your darling Margo


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