Buy-To-Let Investors Pour Back Into Real Estate Market

Despite the home loan and mortgage crisis, the “Buy-To-Let Take-Ups” are at record levels in the housing market.

Investors are returning because of a general rise in rents. This has happened as property is becoming too expensive for first time buyers, giving them no option but to rent a property until they can afford to buy real estate of their own.

Therefore there is an increased demand for rental properties, which is pushing up rental prices, which has attracted more investors to the buy to let market.

However market analyst Sam Kirtley of The Gold Prices Newsletter thinks that despite the optimism, the housing market is still in for a crash, “The real estate bubble has truly been overinflated by cheap credit and it is going to come crashing down. The Fed and other central banks will attempt to stop this by lowering interest rates, but that won’t stop the crash coming. When interest rates drop, the US dollar will plunge even further downwards, sending gold and gold stocks to new highs.”

Do you think the real estate market will continue to prosper?

Or will the sub prime mortgage and home loan crisis cause the housing market to crash?

What do you think?

Source

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