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ARTICLE > Is The Property Boom Good News Or A Disaster Waiting To Happen?


 


This article is kindly provided by Mike Clarke

mypropertypowerteam.co.uk


As many successful property professionals will tell you, NOW really is a fantastic time to be investing in the UK property market, Buy-To-Let mortgages and alternative finance for property purchases are readily available with more and more lenders entering the market.

There are also plenty of property deals out there just waiting for property investors to snap them up, and on top of these factors, UK property prices are rising! In fact, the way the UK property market is heading at the moment has many people thinking that we may even be on the verge of another property boom!

This could be really good news for property investors and existing landlords as property prices continue to edge upwards and rental yields are pushing towards an all time high! But is there danger just over the horizon?

Unfortunately, the answer isn’t all positive, as the current property boom could soon become disaster for property owners who aren’t prepared for what is sure to happen next. The increase in UK property prices will certainly boost the economy but the rise in property prices will contribute to inflation, which in turn will probably trigger the Bank of England (BoE) to raise interest rates in an attempt to slow down the growth of the nation’s economy, and this could be disastrous news for property investors and existing private rental sector landlords.

The record low Bank of England base rate of 0.5% has been enjoyed for a considerable time, allowing Buy-To-Let mortgage repayment rates to fall to around the 2% to 3% mark, producing excellent yields for property investors and PRS landlords. However, as Bank of England interest rates increase, which will undoubtedly happen, the cash flow currently enjoyed and depended on by many property investors and landlords will reduce, and that could make things very difficult for some investors to cope with, especially if they have to start subsidising some of their property investments.

PRS rents should also go up when inflation rises, but there is the real possibility that increases will not be in line with interest rates rises, so there could be a shortfall to pay for on some of your investment properties. This won’t happen immediately; in fact it may be months until interest rates start to creep up, which means property investors and landlords still have time to do something about it.

Simon Zutshi, founder of the 10 year old Property Investors Network (PIN) and author of best-seller “Property Magic” is highly regarded as one of the UK’s top property educators, and he has realised that the impending property boom may not be such good news for existing property investors and landlords. In fact, Simon will be holding a one-off no cost webinar on Tuesday 29th October 2013 at 7pm (GMT) discussing what to do about this situation and sharing what he is doing right now to make sure he can maintain a high level of cashflow from his investment properties and just 500 people can discover the various options open to them to avoid the danger ahead.

If you would like to join Simon Zutshi on this content packed free webinar all you need to do is Click Here and register your details and we will email you with the webinar joining instructions.

Many property investors and landlords are blissfully unaware of the potential property time bomb they are currently sitting on and they are the ones who will come off worst. Education is the key to success, and when one of the UK’s most successful property investment educators offers free advice, it is always wise to listen! Simon has always endeavoured to provide the best quality training and property investment education in the UK and continues to lead the way, with almost 40 PIN meetings around the UK attracting thousands of landlords and property investors every month and the ultra successful PIN Academy, celebrating its first birthday next month, providing an invaluable network of useful contacts and content rich discussions regarding all aspects of property investment and cashflow generation.

Our places are already booked for the “Property Time Bomb” webinar and we hope that you can join us at 7pm on Tuesday 29th October 2013 Click Here To Register!



Simon Zutshi's pin academy

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"Bringing together the best in on-line and off-line property networking and education in the UK"

 

 

 

About the Author

Mike Clarke

Mike is the director of MyProperty PowerTeam.co.uk. He has been investing since 2004 and owns property across the North West and the North East

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