Property exit advised

INVESTORS will be advised this week that now is the time to exit buy-to-let properties and switch to investment funds.

According to Hibernian Investment Managers, there is an increasing risk of lower returns from buy-to-let properties because of rising mortgage interest rates, falling rental incomes and significant entry costs such as stamp duty and management charges

HIM added that there were significant increases in supply with more than 80,000 new homes expected to be built in 2004, a 16% increase on last year, which is likely to put pressure on capital values.