Buy to Let - still a valid option?

Already many buy to let investors that offer houses for rent in London have seen a downfall in capital value of their property. The question now remains whether they should continue to let or look for a quick sell?

The UK economy has suffered a serious blow due to the current financial crisis. One particular sector that has suffered drastically from the current issue is the housing and letting industry. Already many buy to let investors that offer houses for rent in London have seen a downfall in capital value of their property. The question now remains whether they should continue to let or look for a quick sell?

The tenant demand for houses for rent in London is not likely to get affected. Regardless of the credit crunch, people will still need a place to live and with soaring mortgage prices, purchasing a house is out of the question. This leaves a strong market to remain in the letting sector. London has always been a key attractor for employment to commonwealth countries that include Australia and New Zealand. Regardless of statistics showing that some Europeans have decided to return to their home countries due to the shortage of jobs, the majority are here to stay.

Investors that have already contributed capital towards a "buy to let" investment, or are planning to do so in the near future, do have a diverse market to work towards. There are a key number of factors however that need to be considered to make your investments as profitable as possible.

In the current UK economy, it is fair to say that no average person has such income to dispose that they could afford a luxury penthouse apartment in an area such as Knightsbridge. Your aim should be to choose an area that is high in demand for flats, but are able to offer rooms at a reasonable and affordable price. To increase maximum profits, you could purchase an unfurnished house for rent in London. This will allow you to inject minimum capital in the renovation by simply including the mere necessitates and no fancy extras.

What the letting market is really after are simple but practical one or two bed room flats that are in good working condition. By purchasing a house for rent in London, you will be able to maximise your returns by renovating an unfurnished house into as many rooms as possible. Converting a standard four bed room terraced house into a seven bed room terraced house is guaranteed to assure a higher return. This can be achieved in many ways. Converting the downstairs living and dining room in to separate single or double bedrooms could be a start.

Potential landlords should contact Black Katz for tips and advice.