Invest in properties now or wait?

[fullyautomatix]

I can confidently predict that the market might go up or might go down.

[ChimpMaster]

I can confidently predict that the market might go up or might go down.

You could be wrong - it might stay the same.

[ChimpMaster]

I've good warchest currently , thinking of buying 2x BTL in North West. Was thinking if, maybe, anyone got some insights on where the market is heading, or have an interesting article to read on the topic (recent).
I know brexit is coming and theres ongoing pandemic and T3 lockdown so was thinking to lowball on some properties perhaps , however the prices seem quite stable.
Also buy when everyone is fearful..

Buy if you get a good deal and if the numbers work for you.

Prices could well come down, but what if they don't? And so what if they do? So long as your money is working for you and earning a return - that is what counts.

I bought a property in 2007 for £165k. Its value fell to a low of £120k in 2011, but I couldn't have predicted that. In any case, the price fall didn't impact me. The house was rented out at £9k a year so over those 4 years it had returned £36k back to me anyway. Now that same house is worth £250k and is earning me £11k a year. If I had tried to time the market then I might not have bought at all, and would have missed out on all those years of income.

Having said that, I am in a position that I have a reasonably healthy portfolio and I am personally not in any rush to buy any more. I will be waiting, unless I see a great deal. I saw one such deal 2 months ago but Paragon wouldn't lend on it (the fools), so I let it go. I do see the market cooling off next year - but predictions rarely come true when everyone is expecting the same thing.

[GitMaster69]

Buy if you get a good deal and if the numbers work for you.

Prices could well come down, but what if they don't? And so what if they do? So long as your money is working for you and earning a return - that is what counts.

I bought a property in 2007 for £165k. Its value fell to a low of £120k in 2011, but I couldn't have predicted that. In any case, the price fall didn't impact me. The house was rented out at £9k a year so over those 4 years it had returned £36k back to me anyway. Now that same house is worth £250k and is earning me £11k a year. If I had tried to time the market then I might not have bought at all, and would have missed out on all those years of income.

Having said that, I am in a position that I have a reasonably healthy portfolio and I am personally not in any rush to buy any more. I will be waiting, unless I see a great deal. I saw one such deal 2 months ago but Paragon wouldn't lend on it (the fools), so I let it go. I do see the market cooling off next year - but predictions rarely come true when everyone is expecting the same thing.

Do you have interest only or repayment ?

[NowPermOutsideUK]

Do you have interest only or repayment ?

What difference would that make to the discussion? Its all about price paid and yield you can obtain. I personally always use unencumbered properties to borrow against and then buy in cash and then repay the mortgage quickly but thats not part of the discussion.

[eek]

What difference would that make to the discussion? Its all about price paid and yield you can obtain. I personally always use unencumbered properties to borrow against and then buy in cash and then repay the mortgage quickly but thats not part of the discussion.

I suspect it does because it's getting harder to find Interest only BTL mortgages (because frankly the risk is incorrectly priced in those circumstances).

[ChimpMaster]

What difference would that make to the discussion? Its all about price paid and yield you can obtain. I personally always use unencumbered properties to borrow against and then buy in cash and then repay the mortgage quickly but thats not part of the discussion.

True. It shows he has no appreciation of what is going on here and the time it takes to post all this info.

I'm out.

[NotAllThere]

Timing the market is a mug's game.

[eek]

Timing the market is a mug's game.

True but you still have to look at fundamentals:-

1) is there much chance of capital appreciation (Nope)
2) is the annual return before appreciation worthwhile (Nope)

[GitMaster69]

True. It shows he has no appreciation of what is going on here and the time it takes to post all this info.

I'm out.

I read all your posts.
You have portfolio of properties.
What’s your take on interest only vs repayment BTL mortgages ?

There’s good supply of properties in the area I’m watching at the moment (with none for sale 6 months ago). They didn’t seem to sell during stamp duty holidays. At the same time I don’t want to miss the boat when it will turn out the sun still comes after Brexit and it’s not as bad as everyone thought . So right now observing and weighting my options, collecting opinions, doing market research etc