The financial crisis which has been dogging us all for this past two years has had a massive effect on the property market. In short, the bubble, if it has not burst, is seriously deflated. Many people are left living in homes that are now worth less than they were when they purchased them.
However, as in any situation, there are winners as well as losers. Canny investors, especially cash rich investors, have spotted an opening in letting houses to tenants either as a complete house, or by the room.
There are, of course, many things to consider, such as landlord insurance , finding tenants for the property and more besides. However, if a property is bought in the right area, it makes for a great mid to long term business investment.
The reason for this, is that more people are renting due to mortgage companies being unwilling to lend without a much larger deposit than most people have become accustomed to. So, it only makes good business sense to cater for this growing group of people who are held somewhat in limbo.
Another reason that a business plan involving renting out properties is an attractive one, is that houses prices will eventually rise again, if not sooner then certainly later. For cash rich investors this is far more appealing than money left sitting in a bank with the current low rates of interest barely outstripping inflation.