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Are we crazy to start a property portfolio now?

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My husband and I have a plan to have 2 properties on buy to let within the next 3 years to be held as long term investments. We have been planning since December with a view to start purchasing properties this spring/ summer.

The upcoming announcement expected in the Budget next week, of only needing 5% deposits for first time buyers, budget mortgages etc has created a confidence crisis with our plan.

Are we crazy to start now?

We fear after years of saving we have now missed the boat.... Will anyone still want to rent a property is they can finally afford to buy a property?

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On 2/28/2021 at 6:56 PM, katveena said:

only needing 5% deposits for first time buyers, budget mortgages etc has created a confidence crisis with our plan.

Are we crazy to start now?

Quite the contrary I think this could be an excellent time to buy. Making mortgage finance more accessible to the masses can only be good for the value of houses over time in my opinion. I doubt you will regret buying two houses in 10 years time.

There will still be strong demand for rental stock as even with 5% deposit will be out of reach for many renters or they will be unable to meet the full requirements of lenders, even with the deposit. Remember that many people choose to rent as part of a lifestyle decision as Julia points out.

I think it always comes back to fundamentals of the area you are looking to invest in to ensure that there will be a demand for quality rental stock.

14 hours ago, julia urquhart said:

Top Tip: Don't buy anything that you can't get to an EPC C easily :)

That is good advice Julia although I would edit slightly to say ensure you factor into the price you pay for property if it is likely to need EPC improvements in the near future.

David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk



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The whole lockdown thing as driven people a bit crazy so many have or are looking to move. For example 3 of my tenants have bought houses.  The good news is that I have found rental demand has been higher.  So if you are investing in a location with the fundamentals I would expect there to be continued demand.

The 5% deposit scheme will generate some new demand which will inevitable lead to pushing prices up. So if you are in the market early this could be a positive.

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Everybody thinks 'they have missed the boat.' You need to get beyond that thought and start investing

People will always need somewhere to live


Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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