Buy-to-let investors 'have options' in downturn

The dubious economic climate has not eradicated opportunities for prosperity in the commercial property market, it has been claimed.

Tom Entwistle, editor of Landlordzone.co.uk, argued that different sectors of the market stand to encounter sharply contrasting consequences as a result on the ongoing credit crunch.

Mr Entwistle began by saying how large-scale commercial property investors would feel the pinch as businesses struggle to secure credit that would have funded expansion projects and enable them to expand office space.

At the same time, however, this wider instability can be beneficial to sub-sectors such as residential buy-to-lets, with an uncertain property market deterring many first-time buyers and shoring up demand for rental properties.

And even within the commercial sector, Mr Entwistle said certain smaller markets can expect to experience a boom in activity as the economic bigwigs feel the heat and investors look for more moderate prospects.

He commented: "There are a lot of commercial property investments in the secondary and tertiary markets - the smaller shops and offices that you get in market towns - they are probably still quite good investments."

News posted on 18th March, 2008