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With the recent decline in the UK pr perty market and a predicted further 10% dr p in prices over the next y ar is it still worthwhile investing in buy to let pr perty? The answer is yes because ven with the dips that inevitable h ppen, the property market has always utperformed the stock market over the l ng term. Property auctions have always b en seen as a good place to p ck up property bargains especially by th se who invest in buy to let and th y are a good indicator of the xact state of the market. Investing in BTL has ften been promoted as the easiest way to m ke money and if the conditions are r ght it certainly can be highly pr fitable. You buy a cheap property and you th n get tenants in who pay you r nt which pays for your mortgage on the pr perty and hopefully quite a bit m re. Ten to fifteen years later the pr perty has been paid for by bliging tenants and you have a s zeable steady income from rent or you can s ll the house or flat for a h ge profit. Well that's the dream sc nario. Because it's been touted as ' asy money' a lot of people h ve rushed in and some of th m are now realising that the dr am can become a bit of a n ghtmare. With increasing mortgage rates and low r nts many BTL investors are finding th t the tenant's rent no longer c vers the building insurance, the upkeep of the pr perty and, most importantly of all, the m rtgage payments. Ironically a lot of th se properties are ending up back on pr perty auctions from where they once c me.
This all sounds like a v ry good reason to stay clear of buy to let pr perty investing but if you're in the r ght position this may not be so. Th re's money to be made in sp culation and often its big money. So why m ght be a good time to nvest? Well property prices are falling and m st of the profit successful property nvestors make is when they buy. M st novice investors buy their properties at too h gh a price. This not only c ts their ultimate profit it also l aves them vulnerable to changes in m rtgage rates. Property auctions are now s eing a steep rise in the n mber of BTL and repossession properties. The m re properties competing to be sold the l wer the selling prices you will s e. If you think no one w nts to buy at the moment j st go to an auction. The n mbers of people attending to buy w ll be down but those left w ll be the seasoned investor looking to r ap the rewards of investing in a d pressed market. They know that at s me point the market will turn round. People always need somewhere to l ve and the British love of wning their own home has always m ant a robust housing market. If you buy d ring a dip you'll ensure some of the b st bargain prices available. Of course you n ed to know what you're doing and be ble to tell a bargain from a ch ap disaster. You also need to be s re that you are financially secure nough to sit out a possible f rther dip in the market.
The article Can You Still Make Money From UK BTL Investing? was Submitted by Alice Williams through Articles.GetACoder.com network. Here's the additional information: If you have an interest in the UK pr perty market please visit my property auction site which lists property auctioneers throughout the UK including links to North West property auctions .
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