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Are property investors being teased?

Landlord’s heads are spinning more than an owl’s head on a fairground ride, with mixed media messages about the positives and negatives surrounding their investments and businesses. Just which way do they look with so much contradicting information?

Warning, this blog contains NEGATIVITY!

National Landlords Association (NLA) Landlord Panel Survey Q2 2019 recently concluded that landlord confidence in their own letting business has declined to 29%, reaching a lowest point.

Only 29% had positive expectations regarding their business for the next three months with most seeming to have lost hope. The report suggests that this drastic downfall could be because of George Osborne’s changes to landlord taxation.

(That's the negative bit done.)

Meanwhile, however, online research conducted by Precise Mortgages showed that more than half of landlords intend to make use of limited companies for their purchases as opposed to buying as an individual.

The NLA asked its members regarding their buying strategies for the future. Previously, only investors with 11 or more properties were considering using companies as a vehicle to grow their portfolio. Now 51% of those with fewer than 10 properties are considering using a company to buy their next investment. This highlights that investors’ appetite for growing their investments is happening, just in a slightly new way.

Nearly 69% landlords are also planning to fund their next portfolio purchase with a traditional buy-to-let mortgage compared with just over 62% in Q4 2018.

Lets not forget, the media plays no attempt to understand the multitude of various property deals and transaction types that are out there- flipping, HMO & rent to rent, income only via interest only, repayment with capital growth.. the list is endless…

The fact that landlords are eager to make more purchases and considering various options to increase their portfolio shows that amidst the changes issued by the government, they remain optimistic.

Property investment is about strategy, playing the right game, with the right property and with the correct objective to suit the investor's needs, because investors will always find a way to invest.

If you can sing then sing along, The Clash said it best:

It's always tease, tease, tease

You're happy when I'm on my knees

One day it's fine and next it's black

So if you want me off your back

Well, come on and let me know

Should I stay or should I go?

Should I stay or should I go now?

Should I stay or should I go now?

If I go, there will be trouble

And if I stay it will be double

So come on and let me know

Should I stay or should I go


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