We were asked this question recently, and guess what our answer was… it depends! We all know what is happening in the media interest hikes, more legislation aroundthe private rented sector, etc.
We always ask what people want from properties, what they are hoping to achieve. Property can be a great step towards financial independence. So even though things look a bit bleak now, good properties are still available. If you look at property as a long term plan, this would be much wiser in the current economic uncertainty. No one knows if the markets will crash.
And if you are risk-averse like us, then run your numbers with different interest rates. Budget in things like maintenance/ repairs, tax bills, and unexpected costs just to be on the safe side. And remember, property is a massive money drainer, especially at the start. So don’t just factor in deposit, fees, stamp duty but add some extra headings such as first mortgage (which is always the highest), renovation etc. If your numbers still stack, then find out more about the area, what the rental demand is like, what tenants are like, and who are your local letting agents.
We are major advocates for repayment mortgages, yes we understand they are generally more expensive and won’t make anyone rich immediately, but they are great for long term planning. So whether you decide to sell in the future or clear the debt, then you will be quid’s in.
We definitely are not short term quick fix players, and we sure hate over leveraging ourselves. So if you’re looking to do property but play it safe, then let’s have a chat.
Did you know we can help you find your ideal property? We can take care of initial renovations if needed, source and manage tenants. This will allow you to have a hands-off approach.