Released on = May 17, 2007, 9:38 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = The ever-increasing price of houses is making it more and
more difficult for first-time buyers to get a foot on the property ladder. Added to
this is the fact that the base rate of interest has been increased yet again, making
mortgages more expensive and placing that first purchase even further beyond the
reach of newcomers to the housing market.

Press Release Body = The ever-increasing price of houses is making it more and more
difficult for first-time buyers to get a foot on the property ladder. Added to this
is the fact that the base rate of interest has been increased yet again, making
mortgages more expensive and placing that first purchase even further beyond the
reach of newcomers to the housing market.

It is easy to see how many people who do not yet own a home of their own could
become frustrated and pessimistic about their chances of ever doing so. However,
according to one investment adviser, the current climate if anything should be
embraced as an opportunity to both obtain a property and make it work as a source of
income.

A key problem for first-time buyers is raising a deposit to obtain a standard
residential mortgage. James Grantworth, marketing director Of Let Mortgages, advises
such buyers to consider the buy-to-let market instead. It is possible, he says, to
obtain a buy-to-let mortgage without needing to collect capital for a deposit as
long as the investor is willing to shop around and drive a hard bargain.

According to Mr Grantworth, the buyer must first identify properties - whether
existing, new build or off-plan -that interests them. Then, they need to negotiate
with the owner or developer for a discount of around 15 per cent on the market
value. This creates \"instant equity\" and the prospective buyer should hopefully then
be able to find a lender who will advance them the money for a buy-to-let mortgage
without any deposit.

It may take some searching around to be able to put all the components of such a
deal together, he added, but once the various deals are in place, the buyer has \"an
opportunity to invest in the UK property market at zero cost\".

A buy-to-let investment may represent a useful vehicle for buyers looking for a
residential property of their own. By renting a property out for a few years, then
selling on at an increased price, they can both cover the payments on their
buy-to-let mortgage and then use the profit made on the resale to fund a deposit on
a residential mortgage.


Web Site = http://www.assetz.co.uk/

Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA, 0845 400
7000, linkexchangeseo@gmail.com