Invest now in a buyer's market, expert says

News Category: Industry News

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Now is a good time to invest in property so long as landlords target homes priced well below market value, it has been suggested.

Simon Zutshi, founder of online advice portal Property Investors Network, said property buyers should give themselves "a buffer" by purchasing lower priced homes for cash flow.

It comes after figures from the latest Rightmove house price index showed that the average asking price for a property last month was down 7.3 per cent on January 2008.

Mr Zutshi believes property prices will eventually level out and rise again once the market recovers, but advised investors to "buy as if prices will never go up again".

He continued: "You are buying a good asset, as it's giving you good cash flow … but if it goes up [in value], which we believe it will, then obviously that's a bonus."

The Association of Residential Letting Agents' annual report, published last month, found that an increasing number of buy-to-let landlords are taking a long-term view on their investments.

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