Redundancy cash could buoy buy-to-let market
Those facing redundancy could be tempted into investing their payout in buy-to-let properties.
A survey by Propertyearth.net found that 35 per cent of finance professionals would seriously consider putting into housing if they were made redundant.
The average severance payment received by banking, finance and insurance workers is £21,300, which is enough to cover the cost of a 25 per cent deposit on a flat worth £84,208.
Managing director Dominic Toller said: "This research shows that property is still viewed as a strong long-term investment, despite the recent volatility.
"Savvy finance professionals are taking a long-term view and are attracted by the returns currently offered by the buy-to-let market, due to the low prices and high yields of chain-free property in particular."
Another 30 per cent of the 413 asked said they would use the redundancy payout for everyday living costs, while 14.6 per cent said they would put it in a savings account.
A total of 10.7 per cent said they would invest in gold, 7.8 per cent in FTSE stock market shares and 1.5 per cent in oil.
Propertyearth.net ,which is a site for chain-free properties, offers an average rental yield of 6.59 per cent, meaning an investor could earn £14,038 after costs in 10 years.
The group said that in a savings account with an average interest rate of 1.76 per cent, investors would make £3,408 profit in 10 years.
The research also shows 72 per cent of potential investors in housing were aiming to buy as a long-term investment, rather than looking for "get rich quick" schemes.
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I am a landlord and the property market is not as boyant as it used to be.
Whilst properties are being rented out, they remain vacant for longer before a tenant is found. Whilst letting agents do present prospective tenants, though I feel quality tenants are harder to come by.
If people still wish to enter the buy-to-let market, they shoud try to find a property with a tenant already in it, it will save a lot of hassle. In other words by from another landlord.
Investing overseas is also an option. I used to work for one of the major banks in Canary Wharf and swapped my daily grind for a new life here on the Silver Coast of Portugal.
We sold our tiny terraced house in Stratford and bought an old farmhouse with outbuildings and 2 acres of good land for about a third of the price!
The lifestyle here is relaxed but with Lisbon just up the road we never feel cut off from the real world.
Property here is tipped as a very good investment as the area has yet to take off in a big way, but really has so much to offer that it can't fail. Our property has increased significantly in value in the 3 years since we bought it.
I now work for a real estate agent here and would thoroughly recommend anyone to consider investing in the area.