The FSA is after us.
The EU is after us.
Soon it will be US congress!
Us being buy to let landlords.
FSA are thinking of regulating the buy to let mortgage market.
EU are planning to restrict lending practices to anyone who wishes to buy a home to rent out.
It is complete madness. They are trying to pin the US sub prime fall out on us normal people who simply do not trust pension companies to play with our money to provide an income for the future.
I do not know when or if this will happen but knowing what has happened in the last 18 months it would take a brave government to steer on the side of under regulating than over regulating.
So expect it to get worse in the next 3 years. So what does this mean for us now?
It means get buying ASAP. I do not say this lightly. Once more regulation kicks in lenders will drop out like flies. So now is your chance to build a portfolio while it is easy.
Thinking a lot more sceptical it could be a ploy to make people invest in private pensions and boost investment in to UK businesses. If they make it near impossible to build a property portfolio then you have no choice but to put it in to a private pension.
What is good to see is some really decent reverting rates. A reverting rate is the rate you pay once the initial rate has expired. I have seen 2% rates post 2011.
So think about it. You buy now at 5% rates and in 2 years assuming rates are around the current level you will pay 2%. If you have bought at 10% yield then expect an 8% profit on everything you buy. So at £1m expect to make £80k per year.
I know reverting rates can work out well for someone as I am one of those people! 90% of my mortgages are under £100 and most are around the £50 mark. If you consider the cheapest rent you can get is around £200 (most being at around £350) you can see cashflow just gets better and better.
If you want to get in before the doors start closing then request a callback and one of my team will be in contact.
Posted on: 23rd Mar 2009