The UK rental market has never been more buoyant. For investors that means rich pickings. Reducing house prices and falling interest rates is good news for you.
Now if you are excited about the possible 1% interest rate cut by the Bank of England, well you’d be right to be. This interest rate cut can only mean one thing for you as an investor… additional positive cash flow. In other words – a pay rise!
The interest rate fall will have an impact upon your mortgage repayments. Whether it is 0.5% or 1% it all means the same thing – a decrease in monthly repayments. If your repayments are smaller any new investment ventures you enter into could now potentially be even more affordable.
Rental yields are predicted to rise by 15% in the next few years and you could be reaping the rewards of a low interest rate mortgage with a tenancy agreement of over £500-£1,000 every single month.
And it gets better. High or low, if your properties can generate a positive cash flow of £300+ every single month, your interest rates won’t even make a difference. All they will determine is how much extra cash flow you will earn.
Why is this fantastic news for you? Why, because it will not be you who will be paying these repayments. Your tenants will be paying for it all. Every single bit of it.
Either way you are on a winner!
The UK’s second largest lettings agent, Your Move, reported a 50% increase in rental demand in the year from September 2007 to 2008. In September leases increased by 4.34 %, since August which clearly indicates that people are more inclined to rent now due to the lack of mortgages. Lack of mortgages, sky high prices and job insecurity forces young working couples in to renting rather than owing their own house..
This is great news for property owners who are in the position to own an investment property. Figures indicate that more than 25% of young working households are unable to climb or even put their first foot on the property ladder because of the current market situation.
By taking advantage of these falling interest rates, you can now potentially invest in properties at 80% of their value and earn more positive cash flow than you were a month ago.
It’s an opportunity just too good to miss.
Attending a local, 2 hour investment property course will prove to you why with the right interest rate and property, you too could soon be earning an easy £500+ every single month. Property Mentor runs a investment property course near you so just look up the date and book yourself in … its FREE!
Filed under UK Property Investments | by Overseas Property Investor




