Newspaper article The Journal (Newcastle, England)

More Faith in Bricks and Mortar Than Funds

Newspaper article The Journal (Newcastle, England)

More Faith in Bricks and Mortar Than Funds

Article excerpt

A new trend has been identified in the buy-to-let market whereby investors put down a high deposit hoping for a long-term capital gain.

The phenomenon ( dubbed "nest egging" by Robert Jordan, president of the Association of Residential Letting Agents (Arla) ( is a far cry from the traditional method of looking to maximise rental income and enjoy a capital gain.

Mr Jordan said: "Their expectation is to cover costs or even to live from time to time with a negative return. This is not a concern as the objective is to save with the help of rental income and make a long-term capital gain."

He also told delegates at Property Investor North in Manchester it would be difficult for the buy-to-let bubble to burst. "This is due to the constantly evolving and increasing segment-ation of the market and the consumer approach to protection for tenants."

Mr Jordan highlighted the various applications for buy to let. "There is the traditional buy-to-let property bought for letti-ng to a private rented-sector tenant. …

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