There are some real challenges for property investors and landlords right now. The huge uncertainty caused by the mini-budget and now the resignation of the Prime Minister has caused interest rates to rise and they will likely continue to rise into next year. It is anticipated the will peak at 5.5% by summer next year. This makes it more expensive in obtaining mortgages and other forms of lending.
We have started to see the amount of properties for sale declining as well as the increase in sales falling through as people are concerned by the cost of living increases and affordability becoming an issue for mortgages.
WHAT CAN YOU DO RIGHT NOW?
I am taking a 3-Step approach to these economic challenges to Review, Prepare and Profit
Step 1. REVIEW If you are an existing leveraged landlord you need to be looking at your current mortgages right now. Understand when your rate changes and the risks if they change.
Step 2. PREPARE Can you improve rental yield? Can your tenant afford an increase in rent? If not what work needs to be done to the property so it’s ready for a new tenant. Is it suitable for SA? Can you rent by the room? Is it best to sell and re-invest.
Step 3. PROFIT Once you have reviewed and prepared make the changes to profit. Also, Identify opportunities. Adversity creates opportunities. Entrepreneurs and problem solvers thrive in difficult times as they can spot an opportunity.
We are about to face a massive shortage of rental properties across the board. It’s been happening for years but with some landlords now offloading their properties there is going to be substantially less supply and a surge in demand for affordable accommodation.
As property professionals we should always understand the markets and be decisive in manoeuvring through challenging times and be ready for the opportunities this may bring.
If you are interested in investing in property then why not contact us on 0141 732 1156 or email contact@fftbravepropertyinvestments.com