Will 2010 Be The Year Of Professional Landlord?
I am officially in love with Rightmove. A bold statement I know, but I can’t help it since they announced that 2010 will be the ‘Year of the Professional Landlord’.
I was reading an article on HomeMove the other day, and essentially Rightmove have predicted that due to property prices becoming static over the last 2 months (dropping by 2.2%), properties put up for sale will almost halve in amount during 2010 compared to those put up for sale in 2007.
In fact, they believe because of the upcoming General Election – and the impact it will have on the economy and taxes – there will be less forbearance shown by lenders on those who have gone into arrears. Meaning there will be more forced sales and even more opportunities for property investors to invest.
Now you’re probably wondering how any of the information I have just revealed can help to make 2010 the year that professional landlords come into their own, but here are some other interesting facts that Rightmove let slip which might change your mind:
- These forced sales will be concentrated in lower income areas where demand from first time buyers has dissipated – due to their locations these properties will be priced at affordable, investable levels which will make their rental yields more attractive to property investors like you and me.
- Number of properties advertised for rent has fallen 15% in the last 6 months – now before you get worried, this drop in property advertisements has actually put existing landlords in an increasingly privileged position as new landlords have been frozen out. Why? Because they have not got the strategies or the contacts to access the limited number of buy-to-let mortgages.
- Properties bought by accidental landlords during 2009 have now been purchased – giving professional landlords a clear run with limited rental competition
It is true that 2009 was definitely the ‘Year of the Deal’ where if you had the right investments strategies you could easily invest and take advantage of 20%-30% discounts off property prices.
However, if we are to take seriously what Rightmove are suggesting then this drop in properties for sale combined with the reduction of property landlords means if you have got the know-how, the cash and the property portfolio, you can really wipe the floor in terms of profitability.
If you are interested, here is the article I found: http://www.homemove.co.uk/news/15-12-2009/year-of-the-professional-landlord-approaches.html
