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Markets bouncing around in the trading range from the beginning of this week. I reckon they'll be staying there for a while. The most likely scenario is a break out on the upside, probably sometime in September.
If they go down further just more buying opportunities.
Getting hard to get 5-6% returns on BTLS down in the South now. They feel at a peek. Meanwhile, dividend payments getting closer to 4-5%, but the market feels at a peek. Zopa at 5%. Isas at 1.5%
Fooked if I know.
High rents mean that you can still get decent returns on a leveraged BTL, though with the tax changes proposed in the budget I would not personally look to have large BTL mortgages any more.
The yield across my portfolio (also in the South East), based on initial investment and using net profit (after costs & mortgage) is 12%. All single lets, no HMOs.
Based on current values (price achievable if we were to sell up today), the net yield is lower but there is no better alternative (relatively stable) place to invest. And I'm not in the game for a quick buck...this is more of a lifestyle changer and a semi-retirement plan.
Data today showed gross domestic product rose at a 3.7 percent annualized rate, exceeding all estimates of economists surveyed by Bloomberg, and up from the 2.3 percent reported last month. Bigger gains in consumer and business spending showed the U.S. expansion getting back on track. A separate report showed filings for jobless benefits declined to a three-week low.
You don't get crashes when GDP is growing at 3.7 %
They just don't happen.
This is setting up for an excellent rallly that will probably see us topping new highs. The backdrop is low inflation, low commodity prices and a booming consumer sector.
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