Buy-to-let investments 'need to be carefully considered'
Landlords have been advised to take a cautious approach when looking to invest in new property.
With buy-to-let purchases on the rise, the Landlord Syndicate has warned individuals to carefully consider location, affordability and commitment in order to avoid making the same mistakes as last time.
Simon Thompson, chairman of the organisation, stated: "For the foreseeable future, capital growth will be negligible and hence rental yields are crucial, demonstrated by the fact that lenders view rental yields more critically than in the past."
It was noted that location is the key to a good return, with landlords advised to focus on areas with high owner-occupier status, safety, decent transport links, good schools and family orientated communities.
Member of the Landlord Syndicate Nick Lyons explained this is the best strategy for long-term growth.
The comments follow recent remarks from director at Landlord Mortgages Lee Grandin, who explained the buy-to-let market remains a profitable option.
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