Large discounts available "on some properties"

Posted: 30 May 2008 13:10:33 GMT


            Property News - Large discounts available "on some properties"

As house prices fall, buy-to-let investors need to be cautious of the discount they are getting on properties, an industry expert has advised.

As house prices fall, buy-to-let investors need to be cautious of the discount they are getting on properties, an industry expert has advised.

Landlord Mortgages, a specialist broker for buy-to-let mortgages, has warned that in the current market landlords should take care that the value of their investment will not decrease further.

When asked whether it was a good time to buy Lee Grandin, managing director at Landlord Mortgages, said: "It depends on what kind of discount you are getting at this moment in time and I would say that a 15 to 20 per cent discount is not enough."

Mr Grandin said that investors need to be aiming for a 40 per cent discount which is available "at the moment on some property".

Amateur landlords that wanted to get into the buy-to-let market would, according to Mr Grandin, need at least a 25 per cent deposit to secure a mortgage.

The good news for first-time buyers is that the average house cost is down one per cent from the same point last year to £178,555.

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