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UK Landlords find Off Plan Buy to Let market in peril in 2007
By Masked Investor
Higher UK interest rates and a rapid rise in repossessions are on the cards again for the beginning of 2007. Has the buy to let market for property in the UK peaked?
Not according to industry experts. The actual percentage of buy to let mortgages in the UK is in the region of 8%, a figure out of all proportion to the UK national mortgage rates, mostly due to the press coverage.
New builds are certainly suffering from buy to let over exposure. Huge tracts of houses and flats in the UK are now being built by builders anxious to cash in on the buy to let boom before it fizzles out. THese builders are offering all kinds of incentives to first time buyers, that are really aimed at buy to let investors.
Stamp duty paid, free commuting rail passes, one year mortgage free etc, are all on offer in order to entice the buy to let investor to buy more and more new builds. The huge problem is that there is no sure fire way of valueing these properties, and many mortgage lenders are now exiting the new build buy to let mortgage market. The other massive concern for investors must be the huge amount of competition from other landlords once these developments come to the rental market. Just because you may have a smart financial business plan, it doesn't mean that other landlords are that smart.
What's it got to do with me you may ask? Well, if these not so smart landlords are cutting corners, and asking for reduced rents just to fill void periods, and banking on sharp rises in property values to cover their rental losses, then you will affected big time. The tenants don't care whether as a buy to let property investor you are covering your monthly mortgage costs or not!
This kind of 'investing' is one of the dangers of attending most of the property seminars in the UK. To find out more about how to avoid falling into these traps and generally the secrets of what goes on at these property seminars, you can get a free sample copy of my book from my website http://www.maskedinvestor.com
About the Author
The Masked Investor is the author of Property Seminar Secrets Revealed, which gives away all the secrets that he paid thousands to learn from seminars http://www.maskedinvestor.com
Article Source: http://www.simplysearch4it.com/article/43374.html
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