New landlords 'can still make a profit with research'
Property professionals
16th June 2009
Researching carefully before investing in rental properties means that new landlords can still make a profit, an expert has claimed.
According to Chris Horne, editor of Property Hawk, success in the current market is "all about research" and investors should look carefully at location, levels of rental demand, the type of home, appropriate returns and competition in the area before making a purchase.
Mr Horne also recommended renovating older properties rather than purchasing new-build houses to let, a suggestion that may interest insurance for buildings customers.
He explained that, in the past few years, "a lot of new, inexperienced landlords have bought brand new properties in large blocks where they were going to face a lot of competition".
Mr Horne's comments follow a study by Unbiased.co.uk, which suggested that 28 per cent of respondents believed that those investing in property with a view to renting it out risked losing money.
However, ten per cent of those polled between the ages of 18 and 24 stated that becoming a landlord was still potentially a good way to make money.
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