Buy-to-let properties are a 'passing phase'
house hunters in London have been advised to look at property as a home, rather than an investment by an industry expert.
Paul Holmes, chief executive of Firstrung, has warned that buy-to-let properties are a risky venture in the current economic climate, and that those house buyers should consider renting.
Mr Holmes said: "With a buy-to-let property you're going to have to come up with a 25 per cent deposit and that's' £50,000 on an average property - not many people can do that to play property."
"People have to stop thinking of property as a sexy investment where they can make money by doing nothing and start to think of it as somewhere to live."
Mr Holmes also stated that the buy-to-let phenomenon, particularly in the capital was relatively new, and that any profits made can quickly disappear.
Research published yesterday (August 26th) revealed that the average rent in the UK stood at £588 for this month, down from £762 for August last year.
Published 27th August, 2008
© 2008 Estates IT Limited
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House hunters in London have been advised to look at property as a home, rather than an investment by an industry expert.