Is it time to buy rental properties?

Is it time to buy rental properties?

9:23 AM, 21st November 2023, About 3 months ago 13

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Hi. I was looking at buying another two properties to add to the 3 I already have.

The latest mortgage quotes I received mean that even if I go ahead and buy two more properties, I will be worse off with 5 properties due to the current interest rates.

I’ve decided to use the savings I have to pay off the other 3 flats and free myself from the mortgage debts.

Can I ask what other peoples ideas are on this strategy?

Many thanks,

Bryan


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Comments

GlanACC

15:48 PM, 22nd November 2023, About 3 months ago

I looked at flats but abandoned the idea because of maintenance charges and there are too many potential problems of (very) close neighbours causing a nuisance.

Lisa008

12:16 PM, 25th November 2023, About 3 months ago

In the era of low interest rates... a deal may have made sense... but you have to factor in everything now... and if no capital appreciation is on the horizon for a bit, when all is said and done... for the effort, putting your cash in the bank and earning the 5-8% rates I've seen advertised... (no risk, no worry)... it may be the thing to do for the time being. There are other investment opportunities which require less stress and less investment.

Jessie Jones

16:27 PM, 25th November 2023, About 3 months ago

Reply to the comment left by Tom C at 21/11/2023 - 20:15
You think that property prices will fall for the next 2 years or so?
Government have just relaxed Local Housing Allowances, which will improve the profitability of the lower end of the market over the next 12 months, as tenancy agreements are refreshed. Over 700,000 increase in net migration for the last 2 years running, meaning that securing a property to rent is becoming very competitive. Average earnings up over 8% this year.
In the Derby / Nottingham area house prices at the lower end of the market have not fallen in the last 12 months, and are perhaps already starting to inch upwards again.
Just my personal view, but I don't believe the scaremongering in the press about house prices falling.

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