As rising inflation forces more savers to look for alternative options for their investments, Platinum Portfolio Builder, specialists in investing in buy-to-let properties, has seen a 20% increase in the number of clients taking advantage of its portfolio building services in the first quarter of 2011 compared to the last quarter of 2010.
Nick Carlile, Founder of Platinum Portfolio Builder, explains why he believes investors are looking beyond the banks.
He said:
“Savers are finding it increasingly difficult to find accounts that protect their funds from inflation erosion with only a reported eight accounts that negate the effects of inflation for basic rate taxpayers, and significantly no such option exists for higher rate taxpayers.
"Many people will see inflation eating into their hard-earned savings faster than it grows, which is to the misery of those approaching retirement that were relying on savings to supplement their income.”
Conversely, low interest rates, high rental demand and improved lending in the buy-to-let sector are making conditions ripe for investor landlords to really make the most of the current market, expand their portfolios and capitalise on the unassailable fact that more Britons have to rent.
Nick continues:
“Investing in property is not a ‘get rich quick’ scheme, and many of the new clients we have seen come to us in the last quarter have little or no experience in property investment, but are looking to learn how it can be done correctly in order to provide a sound investment and profitable return in the long term.
"Despite the Government pledging a £250m package designed to help first time buyers, the fact is tenant demand has already hit a two year high.
"Unless mortgage availability improves, then predictions that one in five households will be in the private rented sector by 2015 will ring true, thus providing sustainable long term opportunities for those looking for somewhere other than the bank, to invest their money, and make the most of the ‘age of renters’ which is now such a vital part of the UK housing market.”
