Mortgage and Property

So the latest news is that the market is moving and anyone looking for a mortgage and property should stand a better chance now than at any time in the last five years. Of course you still have to have all the necessities to get a mortgage and property and meeting the criteria won’t be any simple task that’s for sure.

Whether you’re a seasoned investor, a novice or even looking for your own residence, finding a mortgage and property will be a stressful experience. We’d certainly advise finding the mortgage first as houses are everywhere and distraught vendors easy to recognise. The problem occurs when we find a property we want and then can’t get the mortgage for it because the criteria have changed or the offer has been revoked. It’s marginally easier for residential properties to get first time buyer mortgages but landlords still have a bad reputation which is crazy especially when you consider what they do for the economy and often at the lower end of the housing chain.

Until such times as landlords are revered more and appreciated by councils it’s unlikely that their reputation will improve even though their responsibilities keep increasing. Managing properties is a tough call and few letting agents are capable of doing a good job. When landlords self manage they make more money and should theoretically be able to create better space for their tenants to live in. Problems often occur when the houses are too expensive so that the landlord has no margin between rents and mortgage payments to work with.

Few properties make money from three tenants, five is more the number required for it to be worthwhile and then you’re into HMO territory with all the new licensing regulations and strict property requirements costing more to get and keep the property in the right condition. Of course there are rogue landlords just as there are rogue bankers and solicitors but the majority are hardworking people who want to make their life better via the best investment vehicle available.

Prices may never be so low again, especially if what the press says is correct and indeed mortgages are becoming easier to get. Anyone procrastinating now will be regretting it later in life. A mortgage and property are no small venture in any young person’s life and when the increasing rents are outweighing the cost of borrowing it has to be buyer’s market in the true sense of the word.

With good solid refurbished houses available at under £30K this week we’ll be suggesting yet again our clients forget the dizzy heights of the London market and get involved in the North. Buying at the right price especially when renting at the lower end of the market has to be sensible as the property yield is in double digits from the very same tenant market. Capital increases can come with smaller properties just as much as the high end especially when less accommodation is being built and they sell much easier too.

You don’t exactly have to be a savvy investor to know that cashflow is what pays the bills and keeps you from going bust. There is still no reliance on capital growth away from the South and is unlikely to be that way for a considerable time yet.

There are more and more opportunities to become a landlord, or more importantly to become financially free, as the internet has opened up a whole new way of doing everything. Finding tenants has never been cheaper or easier and the transient work market has added to the mix. Now even many high earners need to be able to move quickly without the restraints of property ownership. So is this the time for more people to get a mortgage and property?

The chances are the same people who always take advantage of situations will again do so now, and those who just dream will carry on dreaming. Unless you have the right attitude to money and building wealth it just won’t happen. Property is renowned as the best vehicle for making more people independently secure than any other means and it really isn’t as hard as lots ofother businesses to get into. Many people think to get started in property you actually need a mortgage and property but there are so many angles these days that money can be made without either, if you only have the time and energy we can give you a little know how to get you started so just ask us.

It’s the traditional buyers who still need to get a mortgage and property and there is nothing wrong with that, but modern landlords use other people’s mortgage and property. That way they don’t have to pay up front for something that brings in the cash to buy the houses, they generally have fixed price purchase options and schedules so they can make even more money down the line.

Always look to make money the cheapest way.

Want more Property Advice speak to Lionel

Comments are closed.