Monday, Oct 27, 2008
Comedy club chief coins phrase "cash-negative units"
mortgagestrategy: Student and holiday rentals shine through market gloom, says Assetz
Student accommodation, hotel rooms and UK holiday homes are proving increasingly popular with buy-to-let investors in light of falling rental incomes, says Assetz. Stuart Law, chief executive of Assetz, says that rising mortgage costs are forcing property investors to readdress the balance of their property portfolio. "re-balance or face the less attractive alternative of selling cash-negative units in their portfolio" - this must be a misprint - surely house prices can only go up
Posted by jack c @ 01:37 PM (326 views) Add Comment
5 Comments
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1. harold said...
Only "cash-negative units"?
Thank God, for a moment I thought people had actually lost money. But no, only cash-negative units!
2. Whostolemyendowment said...
Good point.....BUT.....these are rental investments that normally require high management time and costs, stricter fire and safety regs (ie multi-occupancy student lets with individual letting rooms).....and a constant / high turnover of tenants. If that is what you can deal with - then OK, but if you wanted a buy-it-forget-it-sell-it-later project - then think carefully.
3. renting2 said...
The only way they can make it work now is to cram as many tenants into a property as possible.
4. little professor said...
LOL, Ztuart is priceless.
5. quiet guy said...
"Law adds: “Over the last six months, the demand for student property and hotel rooms in particular has been high. They provide one of the most secure investments for high returns, with strong rental yields in the region of 8%. UK holiday lets are also proving very robust, with low entry costs and high gross yields.”
It must be true because the Law says so.