What the hell am I talking about!  I am talking about positive cashflows like no landlord could ever imagine.  1% rates heading towards zero quick time.  This means any properties bought before June 2008 on even rubbish rates will be paying 3%.  Landlords on good rates will be paying sub 2% and even 1%.

So with rents coming in at the same rate and borrowing costs at near zero it means that 2008 till the near future will be the lovely healthy cashflow era or more like laid back funky house!

So what is after the after party.  I hazard a guess here but it will be inflation.  Another party for us landlords.  We will come out of our high cashflow era into high capital growth due to inflation.  We will lose our cashflow but gain in capital.  Either way I do not mind.

This is because they are going to print money.  If they double the money supply expect property prices to double.  There is no simpler calculation than that.  The strategy you should have is to:

Buy as much appreciating assets you can lay your hands on.  If you are one of the lucky ones who can get a buy to let mortgage then you would be crazy to let this opportunity pass you buy.

Lenders are favouring less geared individuals compared to highly geared individuals like me.

So just imagine buying £1m worth of property no money down today, the doubling of the money supply over 2 years and selling out for £2m.  That would be making £1m out of nothing.

So, are you the next slumdog millionaire?  Talk to us and we will help you decide!

Ajay

 

 

Posted on: 13th Feb 2009

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