Property course graduates: why higher interest rates won't kill off BTL
The Sunday Times' "Survivor's guide to buy-to-let" shows property course graduates that landlords can prosper in current conditions
The Sunday Times has offered Britain's landlords some tips that will strike a chord with graduates of a property course looking to make the most of current conditions.
In an article headlined "A survivor's guide to buy-to-let", the weekend broadsheet prompts property owners whose rental income fails to cover their mortgage payments to 'get out now', which will be music to the ears of anyone familiar with the 'below market value' theories of many property courses.
Familiar tips from property courses
The article offers some quick tips that have been maxims of many of the property experts who run property courses for years.
"Consider releasing money from your main home and use it to reduce the mortgage on the buy-to-let," says The Sunday Times, and "go for an interest-only loan". As anyone who has been on a property course will know, this allows investors to maximise the tax breaks on buy-to-let mortgage interest payments and also means mortgage payments will be lower, as the article points out.
Property course graduates know how to avoid negative equity
Of course, common sense advice doesn't sell as many papers as predictions of catastrophe and the spectre of negative equity looms large over much of the article - although the paper does say that, "Advisers recommend that investors who do not need to sell should sit out any property slow-down, especially as there could be a silver lining: rental demand is expected to go up as first-time buyers who are priced out of the market opt to rent instead."
Property course graduates who have learned how to make a purchase at a price below actual market value - meaning they buy properties with as much as 33% equity already in them - will of course be well protected from all but the very worst of the scenarios put forward.
Buyer's market and property courses translate into big profits
But the best news for property course graduates is the quote from Philip Stewardson at Stewardson Developments, a property company in the West Midlands, who said, "If there is no way your rental income will cover your mortgage then my advice is to get out now."
A combination of a flood of desperate sellers coming to the market and the techniques learnt at a successful property course could translate into big future profits for many landlords - and mean that higher interest rates certainly won't kill off the buy-to-let industry any time soon.
The Property Course
The Property Course is run by Glenn Armstrong, a successful property entrepreneur who personally created and developed his system while buying more than 100 properties, using none of his own money.
With a portfolio worth more than £3 million, generating profits greater than £20,000 a month, Glenn can help anyone with the issues that stop people from making serious profits from property developing or buy-to-let schemes.
His method will not turn you into a property millionaire overnight - but will set you on the road to financial freedom in a relatively short period of time.
Call 01908 423701 or email glenn@glennarmstrong.com for more information.