For many people buy to let is becoming a mainstream alternative to traditional investments such as pensions and the stock market. Mintel reports that 3% of homeowners are considering buying another property to let by 2010, doubling the number of current landlords.
Despite the tax relief benefits of traditional pensions, many people today are exchanging their pension for property as a long term wealth strategy. With pensions not offering their previous returns and the real cost of living accelerating at an alarming rate, property investment continues to grow in popularity as an alternative investment vehicle which produces solid returns.
In the UK in 2006, buy to let accounted for 11% of all mortgage lending figures and the Council of Mortgage lenders (CML) revealed the buy-to-let sector turnover amounted to £38.4 billion of all mortgages processed. Mortgage lenders have grown more confident in the buy-to-let sector in the UK and abroad, and they are currently offering more attractive buy-to-let mortgage deals than ever.
Many investors are seeing the benefits of investing in bricks and mortar and good returns in the buy-to-let market continue to be achieved by the astute investor, as long as you manage your risks, and conduct thorough due diligence.
