How Can Property Investors And Landlords
Avoid The Property Time Bomb?
As we keep telling you, NOW really is a fantastic time to be investing in UK property, finance is more available, there are plenty of property deals out there and property prices are rising! Many people are beginning to think that we may even be entering a new property boom!
However, is this really good news for existing landlords?
You see, this situation could cause a really BIG problem for any existing landlords and property investors who own rental properties.
Rising property prices will contribute to inflation, which in turn will probably trigger the Bank of England (BoE) to raise interest rates to slow down the economy and this is the potential time bomb if you currently have investment properties.
The issue is that most property investors have become very used to the low Bank of England base rate of 0.5% which, means the repayment rate for many Buy-To-Let mortgages has been around the 2% to 3% mark.
This means that for the last few years many property investors and landlords have enjoyed fantastic cash flow. Nothing wrong with that, but some property investors have become so used to having that cash flow that they have become dependent on it.
As Bank of England interest rates go up, the cash flow enjoyed by property investors will come down and that will be very difficult for some, especially if they have to start subsidising some of their properties.
When inflation rises, rents should have also gone up, but possibly not be in line with interest rates rises, so there could be a shortfall to pay for, on some of your investment properties.
The good news is that this won’t happen immediately; in fact it may be 12 months until interest rates start to creep up, which means you still have time to do something about it.
Many property investors and landlords are blissfully ignorant of the potential property time bomb they are sitting on, so when we heard that Simon Zutshi is running a no cost webinar tomorrow night (Tuesday 29th October 2013) at 7pm, all about what to do about this situation, we thought we really should let you know so that you have the opportunity to listen in to find out what Simon is doing right now to his portfolio to ensure that he maintains his high level of cash flow, and discover the various options open to you as property investors and landlords.
If you would like to join Simon Zutshi on this webinar all you need to do is Click Here and register your details and you will be emailed with the webinar joining instructions:
There are only 500 spaces available on this webinar so we recommend you secure your place now to find out how you can protect your cash flow.
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