The 2 Biggest Reasons You Need To Invest In Property Now

I feel a bit like a broken record on this.

Back in January, I predicted the UK property market would go up by 8% this year. And I got ridiculed for it.  Fast forward 10 months and it’s not looking so crazy. We just had September number coming in at an annualised rate of 4.6%. So 8% is little toppy maybe, but not a million miles off.  Only a little wait until Santa brings us the real results.

 

So, what are the 2 Biggest Reasons To Invest In Property Right Now?

 

Interest Rates and The Budget

 

And I suppose those could be summed up in one as good old F.U.D.

 

Fear

Uncertainty

and Doubt

 

So why do Interest Rates and The Budget make us fearful enough to give YOU a big opportunity.

 

After a decade of (near) zero interest rates (ZIRP) followed by rampant increases all the way up to 5.5%, people are cautious. And who can blame them?  Now we’ve had a small adjustment down, every man and his dog seem certain rates are coming down further.  So no-one is buying.  Why would you buy now if you can get a cheaper mortgage in a few months time.

But here’s the thing, when interest rates have started to come down and got people back into buying, prices will start to go up.  And they could go up quite quickly.  Get ahead of that and buy now, and for a small extra cost on the interest rate you’re ahead of the curve. Combine that with the fact you can get mortgages at interest rates of 3.xx% or 4.xx% while buying an asset with a gross yield of 7% or 8% or higher, and you can see why now is a good time.

 

In the blink of an eye the budget will be upon us. And don’t we know it.  Without a mini-budget since winning the election, it feels like Labour has starved us of certainty around what they’re doing.  Whilst simultaneously making sure everyone knows there’s a massive black hole in the finances.  Honestly, I can’t keep up with whether it’s £20 billion, £25 billion or £40 billion.  Labour has played this one masterfully.  It’s now also but guaranteed that whatever they do, it’ll feel like we’ve won, we’ve got off lightly, with ‘just’ a few tax hikes.

 

The result of all this?  People sit on their hands when they’re unsure.  They don’t do anything. So there is no-one out there buying property right now.

 

So if you’re someone who has to sell, and you’re on the market, you’ve got to take whatever the market will give you. And right now, there are signs of the occasional gem hidden in plain site.

 

And I’ll give you a bonus 3rd reason why this is happening.  The Renters’ Rights Bill that we’ve spoken about at length at The Property Meetup is scaring off lots of old school investors.  They’ve had enough.  They’ve done 20 years.  They’ve made decent gains and they’re done. They want out. At. Any. Cost.

 

It is really is a great time to buy.

 

“Sell it all. Sell it all today”

Jeremy Irons, Margin Call, 2011

 

“Buy It all. Buy it all today”

Rob King, His lounge, 2024