Property investment in general is looking like a good bet right now, notwithstanding the market adjustment that is being predicted. Mortgage applications continue to recover, rental demand is increasing and there is still a shortage of housing in the UK.
If you look at interest rates on your savings and the jittery stock market, an investment plan that deliver mid to high single digit returns plus the promise of capital growth has to be considered an option to be seriously considered. The plethora of new first time landlord applications for buy to let mortgages bears this out. With rates as low as 1.90 % for "newbies" why not jump in and secure an asset ?
At the same time, many experienced landords are looking to acquire stock leveraging the expected market adjustment as they know over that over time quality investments in property will deliver high returns. Northern England still offers relatively high yields and quality assets.
Interestingly there are signs that others are taking a different approach and moving into property development where the returns are higher and thus creating a diversified business model.
A third group is waiting out the storm and using this lull to prune their portfolio, divesting poor performing properties and re-visiting all their cost base, particularly mortgage costs within their portfolio as there is strong lender appetite. This is not 2008, yet lenders will undoubtedly start to tighten lending criteria in late 2020 and 2021. Reviewing mortgage costs now is a no-regrets move in today's climate.
The bottom line, whether you are an experienced investor or a first timer, is to consider the different options, select the one that works best for you right now and stick with it looking for solid evidence it is working, If you don't, have the courage to pivot and change approach - most battle plans don't survive the first engagement with the enemy. Whatever you decide, doing nothing is not an option in these times...
I am a commercial finance broker who understands the need to act with agility to deliver the best…
