So Brexit… bored of it yet? It seems we are in exactly the same position as we were before but the economy is in a downward spiral and the pound is hitting record lows against everything from the Euro through to the Somalian Shilling! So why look at property at a time when everything could go horribly wrong? Here’s 3 reasons why:
1. Property has always increased in value. Well, looking at a long term trend, there may be dips (some quite significant) but it always climbed back and if you are looking at rental yield as opposed to making a quick buck flipping a property, you’ll never go far wrong.
2. Rental Demand (Should) Be On The Up! Thinking this through logically, if we are due to go through a sticky patch, we have historically seen lenders clam up a bit which in turn makes getting a mortgage more difficult. If this is to be the case again, there will more people looking to rent a property in the short term. Given rent increases currently, this will only continue making landlords more money and better returns.
3. Low Interest Rates What a time to have some money. There were whispers of negative interest rates at some point and Mark Carney, Governor of the Bank of England has stated the bank will slash the already ludicrously low interest rate in half again if they need to stimulate the economy further. This would give 0.125% interest rates. Given the banks do not tend to be the most charitable at the best of times, why on earth NOT invest?
Furthermore to all three points, if you are to take the plunge, whether it be your first time of you would like to re-invest, WitLet are always on hand to help from initial purchasing advice, all the way through to tenant find and beyond into management (if necessary). We have 20 + years experience of all property related matters and like nothing more than to talk property in Witham, Essex. Contact us today on 01376502500 for a FREE, no obligation chat!