This article in the Times continues to paint a bleak future for property prices. Landlords looking to invest in property at this point of the market should be very cautious.
There are lots of seemingly great buys out there at the moment but many indicators show that prices could fall much further over the coming 12 - 24 months.
Experienced property investors and landlords with large existing portfolios might find some real opportunities but as the market continues to fall, most landlords should wait before rushing in for a bargain.
Decent mortgage deals will continue to be restricted to those with a below 75% loan to value for traditional residential mortgage which will mean that many home owners who have borrowed above the 75% LTV will be forced onto standard variable rates. Meaning that as many as 2.5m — or one in five of all borrowers — would be in the remortgage danger zone, that would leave them on high SVR's.
This could continue to fuel issues of negative equity and further property price falls.
Bringing landlords advice and warmth in the cold weather,
Your darling Margo
Struggling landlords need to cut down on costs like BTL mortgage payments and landlord insurance.
No comments:
Post a Comment