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Buy to let landlords profit from property with first time buyer crisisFeatured PR

The Royal Institution of Chartered Surveyors (RICS) has reported that rents will rise by 3.9% over the next 12 months enabling landlords to profit from property
Dartford, Kent, United Kingdom (prbd.net) 03/09/2012
The Royal Institution of Chartered Surveyors (RICS) has reported that rents will rise by 3.9% over the next 12 months enabling landlords to profit from property.

First time buyers are finding it increasingly difficult to get their foot on the property ladder, banks currently have strict lending criteria and many buyers require at least 20% deposit. This coupled with a shortage of high quality properties for tenants to choose from has led to a rise in rents and an opportunity for landlords to further profit from property.

Between March and July 2012, the amount of new properties coming on to the rental market remains unchanged, but demand is growing.

There are regional variations with rents in Wales remaining the same whilst rents in the North West have increased by nearly 7%.

Paul Ribbons is a property trader and runs the Ribbons Partnership. He says:

"What a great time to be a landlord. Falling interest rates and increasing rents are causing the buy to let market to heat up and create more demand and as the credit crisis heightens across Europe this will get better for landlords. But there is a word of warning…

"This is the most artificial market I have ever seen. And caution is necessary.

The only reason rents are rising is because of demand from the public who would normally buy a house if funding was not so punitive. It is the deposit not the payment that is unaffordable. So when lending gets back to some sort of stability then these people will be buying in droves. So make hay while the sun shines.

"The reason why this is short term is because people have no rights to tenure as tenants and things will revert back in the near future. If you think about it what is the longest a landlord will grant a tenancy for? 1 year, so tenants have no security long term.

"Once the banks get back to sensible lending, rents will tumble and rates will rise and we will be in a different market. I think a lot of people think rates will remain low for decades. I have a different view.

"But what a great position to be, in just make sure you pay the mortgage down and budget for the above and all will be sound."

Paul Ribbons runs the Ribbons Partnership and has a unique and very lucrative strategy that has helped him, and his delegates, in making money from property. He has been involved in over 500 below market value (BMV) deals. and has a simple and effective strategy of buying property from the open market, distressing them and reselling them at auction for profit. Everyone can do it, and in his book and via his courses, he tells the story of how he came across his simple formula of making money from property.

For more details visit: http://www.propertytradingadvice.co.uk/

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About

Paul Ribbons runs the Ribbons Partnership and has a unique and very lucrative strategy that has helped him, and his delegates, in making money from property. He has been involved in over 500 below market value (BMV) deals.

Contact

Paul Ribbons

Regus House, Victory Way
Zipcode : DA2 6QD
01322305442
propetyt@gmail.com
http://www.propertytradingadvice.co.uk/