About 4 days ago I stated that it was not out of the realms of possibility that rates would be cut by 0.5% rather than the customary 0.25%.  I did not think that it would happen but it actually did!

These experts are now talking about another 0.5% cut in the near future, before the new year.  Can you believe it?

If this happens then 2 things will be good for property investors:

1. inflation ? it devalues our debt
2. low costs ? our mortgage costs will reduce massively again

I love being in debt and being a property investor.  You know when someone tells you about a property they bought 30 years ago for £1,000 and is now worth £300,000 you know that there were 2 periods of massive inflation which boosts property values.

We have had 10 years of property price increases due to supply and demand.  Now we will have massive property price increases due to simply wages increasing with the rate of inflation which is currently 5% per year (I reckon it is 10%+ but I am just a bit of an old skeptic!).

If you are heavily indebted can I raise my glass to you.  If you are not then get yourself leveraged up!  Request a callback.

Posted on: 14th Oct 2008