Obviously with the significant property price falls over the last few years, Its become more plausable and potentially more profitable to invest in property to rent.
For the price of 3-4 properties not so long ago, 6-7 could be had now.
Now there's the obvious rule of no speculation on house prices so let's respect that. As far as I can see It doesn't matter if prices go up, or go down in the near future if you are renting the property long term. It's really only the rental income you are interested in comparing to the fixed price you payed for the property. This is especially true if its a 'always to rent' property.
I'd like to ask a couple of questions to people regards this.
It's obviously written everywhere that banks are not giving out mortgages easily to many now. For investment to resell, or homes(given job security), I can understand this partially. I'm sure they are also well aware prices may continue to fall. However in the near future, Would I be correct in thinking these restrictions would ease up as the banks have to start lending at some time?
Would I be correct in thinking that obviously a good time to buy is when house prices are low(no speculation on prices!) for renting as the profitable outcomes are greatly enhanced.
I will spend the rest of the night looking for figures and graphs trying to show the rental rates going at the moment, in comparison to property prices(where they stand now). I'm expecting to see a much shorter pay back time in comparison to a few years ago, and even without comparison, it should be a relatively attractive time frame.
I guess my main question is Q:Is there any negative reasons to not buy property to rent in the current downspiral OTHER than 1: they may continue to drop + 2: the usual hassle/work/risks with renting a property out. Is there any recession downturn bubble bursting specfic reasons per say?(other than previous 2)
Ill post up my rent/timeframe to pay data as soon as i find and build it!
I could be missing something insanely obvious so please feel free to have a go!
Also, what do people think regards any additional factors that may be influencing the rental market.
I can see a few bubble/recession factors which may affect it.
1: There was alot more property built in the boom, which led to an increase in rental property available, which obviously leads to lower rents(in theory).
2: Job security/income is not as good as previously so people are not willing to pay out as much money as they are taking a more conservative approach to finances.
However there would be a fair number of positive factors happening too.
No more property is being built so the unit# number should stay stagnant for the time being. This means any changes to rental incomes should slow (regardless of direction of change) as it nears its eventual equilbrium point. Imo.
Rent prices have always dragged regards going down in my experience, so they tend to remain good(for landlords).
Lots of people afraid or cant take out mortgages for buying, so would there be an appreciatable increase in rentees coming on stream during this burst/recession? Is there numbers or trend graphs to show number of renters over the years?(ill look about for these too).
Any other points?
For the price of 3-4 properties not so long ago, 6-7 could be had now.
Now there's the obvious rule of no speculation on house prices so let's respect that. As far as I can see It doesn't matter if prices go up, or go down in the near future if you are renting the property long term. It's really only the rental income you are interested in comparing to the fixed price you payed for the property. This is especially true if its a 'always to rent' property.
I'd like to ask a couple of questions to people regards this.
It's obviously written everywhere that banks are not giving out mortgages easily to many now. For investment to resell, or homes(given job security), I can understand this partially. I'm sure they are also well aware prices may continue to fall. However in the near future, Would I be correct in thinking these restrictions would ease up as the banks have to start lending at some time?
Would I be correct in thinking that obviously a good time to buy is when house prices are low(no speculation on prices!) for renting as the profitable outcomes are greatly enhanced.
I will spend the rest of the night looking for figures and graphs trying to show the rental rates going at the moment, in comparison to property prices(where they stand now). I'm expecting to see a much shorter pay back time in comparison to a few years ago, and even without comparison, it should be a relatively attractive time frame.
I guess my main question is Q:Is there any negative reasons to not buy property to rent in the current downspiral OTHER than 1: they may continue to drop + 2: the usual hassle/work/risks with renting a property out. Is there any recession downturn bubble bursting specfic reasons per say?(other than previous 2)
Ill post up my rent/timeframe to pay data as soon as i find and build it!
I could be missing something insanely obvious so please feel free to have a go!
Also, what do people think regards any additional factors that may be influencing the rental market.
I can see a few bubble/recession factors which may affect it.
1: There was alot more property built in the boom, which led to an increase in rental property available, which obviously leads to lower rents(in theory).
2: Job security/income is not as good as previously so people are not willing to pay out as much money as they are taking a more conservative approach to finances.
However there would be a fair number of positive factors happening too.
No more property is being built so the unit# number should stay stagnant for the time being. This means any changes to rental incomes should slow (regardless of direction of change) as it nears its eventual equilbrium point. Imo.
Rent prices have always dragged regards going down in my experience, so they tend to remain good(for landlords).
Lots of people afraid or cant take out mortgages for buying, so would there be an appreciatable increase in rentees coming on stream during this burst/recession? Is there numbers or trend graphs to show number of renters over the years?(ill look about for these too).
Any other points?