Monday, October 15, 2012

Landlords top up and hold

Research carried out by ARLA the Association of Residential Letting Agents reveals that almost a quarter of landlords are looking to increase their total number of investments of buy-to-let property (the figure stands at 22% up from 21% in the previous quarter).

Interestingly, there has been a sharp drop in the number of landlords who are actively reducing their investment levels (down from 17% to 12% in the quarter).  This is understandable given the lack of safe alternative investment opportunities.  I've been speaking to friends recently who were looking at disposing of their residential property and have then changed their mind.  The problem for them is where do they place their cash and obtain a reasonable return?  There are not many options if you want to obtain a net return above 5% unless you are prepared to take on significant risk of a capital loss.  Faced with exactly this dilemma it appears that many landlords are happy to stay invested and wait for interest rates on money deposits to rise before cashing in their 'property chips'.

Landlord insurance - expert brokers
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