Local knowledge 'an advantage for buy-to-let investors'

Posted: 26 Jun 2009 11:56:48 GMT

It is a "distinct advantage" for landlords to buy property in an area they know well, according to the editor of Property Investor News.

Richard Bowser said that a number of "naive investors" who joined the buy-to-let boom period earlier this decade made the mistake of purchasing bricks and mortar outside their own locality.

Their focus was on supply rather than demand, he explained, and this got some of them into difficulties later down the line.

Mr Bowser suggested that they purchased homes without doing thorough research or having suitable knowledge of the local market.

"As a consequence, [they were] sometimes relying on portfolio building companies who were only interested in serving their own ends and not fundamentally interested in the client once the property had been sold," he remarked.

Timothy Lambert, head of consulting at property investment consultancy Ducalian, and Property Hawk website editor Chris Horne have both recently stressed the importance of conducting extensive research into the market before joining the buy-to-let game.


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