BTL - Good or bad idea?

The latest so called industry research seems to be pouring cold water on BTL as a valid way of looking at alternate investment strategies for individuals with "The Model Works" claiming most people who bought BTL properties within the last 5 years will have potentially lost all their original capital outlay.

As most of you will be aware the last 5 years has seen the most dramatic impact on the UK housing market in the last 20 years with property prices falling signifcantly in the UK as whole (with the possible expection of London).

This fall though has also brought about the greatest opportunity for buying property.  Negotiation on property is now such that people are more "clued up" due to the press negativity and therefore are prepared to bargain harder for the properties they want.  None more so than those who are looking to invest in property.

This is perhaps where the Brian Hall's "The Model Works" theory falls over to some extent.  His research paints a bleak picture for those who have bought within the last 5 years however I would argue that as long as someone is looking at property as a long term aspiration for capital growth and income then anyone who has bought in this period will reap the rewards as long as they hang on in there.

That being said there is merit in what Brian Hall states in that those with only 1 property, who were perhaps accidental landlords (i.e. those people who couldn't sell a residential property but wanted to move anyway), are most at risk when it comes to maintenance costs and rental voids.  The right advice needs to be sought at the outset when considering these options.  People need to be made aware that the liability still exists and in "lean" months they need to be able to cover these costs from income or savings.

I still believe that BTL is a valid and ultimately profitable way forward for people looking for a diverse range of income streams and investments but care needs to be applied when looking at property in terms of location, cost, rent, demand, funding and above all else what happens if??

My advice is get the information regarding the above before committing and if you don't know where to find it or who to ask get in touch with me and I'll give you some pointers gratis!!