Rental investors 'should look to the future'

Investors in buy-to-let accommodation have been encouraged to think about how the market is likely to develop.

The Sun stated that overseas property buyers need to consider what may take place in their chosen location in the next few years.

According to the newspaper, the level of supply and demand in a certain place could determine the overall success of any investment.

For example, it said that a rental property is less likely to appreciate in value if it is located in a place with a large number of available residences.

By contrast, a house in an area with limited supply would be far more likely to become highly sought-after.

The Sun commented: "Many buy successfully, but only because they follow the golden rules."

This comes after BuyAssociation recommended that short-term investors come up with an exit strategy if they wish to make money from their property.

According to the website, people are less likely to make a profit if there is not a sizeable resale market in their chosen location.

Like this? Then share with your friends and colleagues!