Money to be made in buy-to-let

Posted: 12 Dec 2007 17:45:44 GMT

There is still money to be made in the buy-to-let property market, according to the Building Societies Association (BSA).

There is still money to be made in the buy-to-let property market, according to the Building Societies Association (BSA).

However, the organisation warns that those considering making an investment must do their research first.

Neil Johnson, PR and policy manager at the BSA, said it is important for investors to calculate more than just their mortgage payments.

"People should make sure before they go out and buy that they have done their sums and they know that what they are buying makes sense. There is still a market out there for it, but clearly if you are not careful you are going to get your fingers burnt," he said.

"The main thing to do is to get an independent idea of what the property is worth and what kind of rental value you would get. Then you do the sums and make sure it makes financial sense.

"The important thing to do is to take account of all the other costs too, rather than just looking at the mortgage coming out," added Mr Johnson.

Landlords received a boost in December when the Bank of England cut the base rate of interest from 5.75 per cent to 5.5 per cent.

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