Are buy to let yields and incomes set to go up?
A new report out from Mortgage Express says that nine out of 10 landlords plan to either increase their portfolio or leave it untouched in 2008 and about 95 per cent think gross rental yields - which are at 5.7 per cent - will stay the same or increase.
Meanwhile, the Council of Mortgage lenders latest set of stats shows that 20.6% of first time buyers income is going on interest payments on property – which is quite high and certainly well above the nadir of 1994 when it was about 11.3% (and property as we now know was as “cheap as chips”)
However, today’s figure is well below the 1990 peak of 27.3% - the last time house prices fell a lot.
For these reasons I don’t really see a property crash coming – though I do see a choppy time for house prices - which is a situation which will be taken advantage of by clever experienced landlords who will be adding to their holdings now by buying property from financially overstretched sellers.
These smart investors also know that first time buyers, many of whom have been spooked by the headlines of a property slowdown will be renting instead – which is one reason why these landlords know that rental incomes and yields will increase.
If you need more advice on investing in property or buy to let in general please ask me. I’m David Lawrenson from landlord advisors firm www.lettingfocus.com
I’m the author of the buy to let bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing and a well known property writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service.
Check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my buy to let blog and details of my networking, advice, property networking programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
Meanwhile, the Council of Mortgage lenders latest set of stats shows that 20.6% of first time buyers income is going on interest payments on property – which is quite high and certainly well above the nadir of 1994 when it was about 11.3% (and property as we now know was as “cheap as chips”)
However, today’s figure is well below the 1990 peak of 27.3% - the last time house prices fell a lot.
For these reasons I don’t really see a property crash coming – though I do see a choppy time for house prices - which is a situation which will be taken advantage of by clever experienced landlords who will be adding to their holdings now by buying property from financially overstretched sellers.
These smart investors also know that first time buyers, many of whom have been spooked by the headlines of a property slowdown will be renting instead – which is one reason why these landlords know that rental incomes and yields will increase.
If you need more advice on investing in property or buy to let in general please ask me. I’m David Lawrenson from landlord advisors firm www.lettingfocus.com
I’m the author of the buy to let bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing and a well known property writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service.
Check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my buy to let blog and details of my networking, advice, property networking programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
This entry was posted by lettingfocus, on
Wednesday, December 12, 2007.
