Invest now or wait for the crash?Make Text Bigger
This is a hot topic on Social Media, especially for “gurus”.
My long held view, having been in property finance and tax law and a portfolio landlord for over 30 years, is that the best time to buy is when the general consensus is that property values will crash, not when the crash happens.
The reason I say this is because “the crash” is rarely as bad as people expect it to be.
The stats during a crash are always rubbish anyway.
When property market crash statistics begin to appear in the media, the market has usually slowed to such an extent that the number of deals done are virtually none existent. Funding has often dried up by that time so the few deals that are done are completed with cash. On that basis the statistics are relatively meaningless.
The best time to invest, in my opinion, is when the people who are selling are worried. That time is right now!
I would start a negotiation today by asking a vendor what they think their property will be worth by the end of this year. They will then give you a whole load of waffle which they will not believe any more than the journalists writing all the scary headlines. Therefore, when you say you are buying as an investment and cannot afford to take the risk of overpaying, they are far more likely to consider your ‘low ball’ offer than at any other time. If they accept, you will still stand a decent chance of being able to arrange finance too.
If you are in the market to take advantage of this phenomenon, please, Please, PLEASE make sure you pay more attention to the ownership structure you use to buy your properties. This is more important now than ever before, for the reasons I explain in this video interview with Ranjan Bhattacharya.
Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).Show Form To Book A Tax Planning Consultation
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