Panorama Programme Highlights Dangers in Buy to Let says Lawrenson of lettingfocus.com
A must see last week was the BBC Panorama investigation ‘Bursting the house price bubble’.
It showed how novice buy-to-let investors, attracted to new city-centre flats, were being stung by developers who were accused in the programme of encouraging mortgage fraud by inflating values. This was often done by using incentives, such as cash-back offers, free holidays or payment of legal fees and stamp duty, as part of the asking price.
It’s clear that the regulations in place have been broken by rogue valuers and solicitors who seemed to be working in the best interests of the rogue elements among developers and property syndicates - rather than their clients’ the property buyers.
How do you avoid getting stung?
Well, it’s quite easy. Firstly, you need to seek independent research into the claimed value of a property and its rental return. So go and look for yourself – look on the net and go and visit the property and the area. Second, make sure that the value of any incentives comes off the inflated price so the true property value can be seen more readily.
Sadly, where lazy, greedy and sometimes gullible and green investors meet cleaver marketing men, there will always be one winner -and it won’t be the investor.
If you need more advice on where to buy investment property ask me. I’m David Lawrenson from independent property investment experts www.lettingfocus.com
I’m the author of the landlords bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property letting and a well known writer on buy to let and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlord and tenant advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my landlord blog and details of my networking, advice, property investors seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property investment mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
It showed how novice buy-to-let investors, attracted to new city-centre flats, were being stung by developers who were accused in the programme of encouraging mortgage fraud by inflating values. This was often done by using incentives, such as cash-back offers, free holidays or payment of legal fees and stamp duty, as part of the asking price.
It’s clear that the regulations in place have been broken by rogue valuers and solicitors who seemed to be working in the best interests of the rogue elements among developers and property syndicates - rather than their clients’ the property buyers.
How do you avoid getting stung?
Well, it’s quite easy. Firstly, you need to seek independent research into the claimed value of a property and its rental return. So go and look for yourself – look on the net and go and visit the property and the area. Second, make sure that the value of any incentives comes off the inflated price so the true property value can be seen more readily.
Sadly, where lazy, greedy and sometimes gullible and green investors meet cleaver marketing men, there will always be one winner -and it won’t be the investor.
If you need more advice on where to buy investment property ask me. I’m David Lawrenson from independent property investment experts www.lettingfocus.com
I’m the author of the landlords bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property letting and a well known writer on buy to let and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlord and tenant advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my landlord blog and details of my networking, advice, property investors seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property investment mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
This entry was posted by lettingfocus, on
Monday, February 11, 2008.
