Buy-to-let - The key to easy riches? | Property Mentor

Buy-to-let - The key to easy riches? | Property Mentor

Despite the governments gloomy house price predictions there is still one group of property investors that are doing quite nicely thank you very much.

If they have chosen their properties wisely, Britains buy to let landlords are now benefiting from high demand, record rents and often low interest rates on their mortgage.

For those investors who kept their portfolios, the picture is looking rosey, even though the Office for Budget Responsibility is predicting that property values will be worth nearly 3pc less at the end of April 2012.

Landlords are the main beneficiaries of the current mortgage market, as those who can't buy a home still need somewhere to live.

The demand for rented property is increasing at its fastest rate since the fourth quarter of 2008, Figures from the Royal Institution of Chartered Surveyors this week showed. A third more of the Institution's members reported a rise in demand than a fall, with rents also expected to pick up.

Research from Rightmove showed that the return on investment for buy-to-let homes is now more than 6pc, while the amount of rental stock available has fallen 23pc since last year, meaning rents are likely to rise further.

Meanwhile, LSL Property Services, a letting specialist, says that landlords are getting healthy returns of 4.5pc, and for those renting to students the rate could be far higher – estate agents Knight Frank said that they are getting returns of more than 13pc.

The main barrier to overcome for many would-be landlords is the increasing requirement for a large deposit and difficulty in finding mortgages.

Having access to negotiation advice and tools means that you are able to source and purchase the right properties at the right price and be confident that you will continue to generate a postive cash flow month on month.