Uk Buy To Let Property-why Now Is A Good Time To Invest
It is predicted that by the end of this year housing prices will be 2% higher than
at the beginning of the year, even though due to the crisis it had been predicted that they would be lower by 11%. One of the important factors in this is that supply is not meeting demand. For many months now buyers have been competing for a small number of homes on the market. Cash or equity rich buy to let investors currently hold the advantage.
From the perspective of a cash or equity rich buy to let property investor, there is a good time to be had. With low rates on saving accounts those looking for returns are opting for this route. What is more is that the rents are rising at a rate of 13% per year and it looks like this will continue. The buy to let property opportunity for the cash rich investor looks set to continue also as many first time buyers continue to be frozen out of the market.
Many landlords are enjoying excellent rental returns out of which they have costs such as the buy to let landlord insurance and taxes. The banks are also adding to the demand for rental homes further as they are not lending so much now to buy to let investors, therefore heightening the situation.
What else is affecting the market? Researchers say that they do not expect true recovery until 2012, with the possibilities of price falls of around 3% in 2010. Unemployment added to wage freezes, tax rises and the Centre for Economics and Business Research said it expects that base interest rates should stay at 0.5% into 2011, and below 2% up to 2014.
For those of you who can invest in buy to let property or have already done so, one of the important considerations is finding thorough and cheap landlord insurance. This type of insurance is there to protect your asset as well as issues such as rent guarantee insurance and property owners liability insurance.
There are two main types of policies available for insurance for landlords; one being based on a standard building insurance with perils covered and the other a comprehensive insurance, which although more expensive can be worthwhile. The comprehensive type covers all categories of tenants, as well as a property owners liability insurance which can be for 5 million pounds.
The comprehensive landlord insurance covers many different and important situations, such as full accidental damage and even terrorism cover. As mentioned previously it does include the highly important landlord liability insurance, which means that you are protected against any possible lawsuits if an individual were to be injured on your property. It is important to understand the implications and shop around online.
Being in a fortunate cash or equity rich situation means that you can build your assets further during this time, and with such rich rental returns it is a win-win situation. The important thing is just to make sure that you protect your assets properly with the best landlord insurance which is available.
by: Jackie De Burca
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