Is it now good time to invest cash in Property?

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    Is it now good time to invest cash in Property?

    Hi,

    Is it now good time to invest in Buy To Let property in South Yorkshire?

    Areas: Barnsley, Doncaster, Wakefield, Pontefract, Rotherham.

    Budget: 60k cash.

    Property Type: 2/3 bed terraced or semi

    Any ideas? Any thoughts on areas?

    Thanks


    #2
    The trouble with Crystal Ball gazing is it's never crystal but mainly ba*lls.

    In answer to this question, in any circumstances, any location, any time - I will be able to advise you if it was a good time in 8-15 years times.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Probably not. But one never knows what will happen. Corbyn or a similar Marxist and friend of despots might not be elected now or in the future. We might have sensible government and freedom to interact with and contract with other people at some point in the future. The UK might start making stuff instead of sitting at home getting benefits while Poles do jobs our kids don't want to do. Who can tell?

      But overall, I think not.

      Comment


        #4
        Many years ago, these towns were very prosperous from the textile business and coal mining industry. And so was Blackpool for factory workers taking summer holidays many years ago. All that buzz has gone, textile factories closed , coal mines shut . Any new high speed train factories coming to Doncaster ?

        Comment


          #5
          I have started the process for remortgaging my London BTL and will be releasing equity. This property is my only btl and i have significant stock investments (mid-high 6 figures) so i am thinking of deploying this cash i am releasing into buy to lets in areas that i think will do well in the coming decades (i am in my mid-30s). My views are as follows:

          - We have had massive trends over the last 4 decades of falling interest rates, exportation of capital to cheap labour countries, worsening wealth and income inequality within western countries whilst more equality between western and developing/emerging countries, all financial assets rising at levels driven by the aforementioned trends.

          - We are in the very early stages of all this reversing - evidence being the political events in recent years, greater resentment within western countries due to the wealth and income inequality, baby boomers (the greatest cohort of workers) retiring along with lower birth rates and effects of China's one child policy all causing the coming trend of there being much less workers and more dependents (old people and to a lesser extent very young people) that will cause huge labour shortages, and all this will result in inflation rising gradually, real rates rising, wages of lower income groups rising due to labour shortages and inequaity falling. Technology will help dampen this new trend but it will not prevent it as we are miles away from robots that can replace most of labour intensive work.

          This can only mean that property prices in city centres and surrounding areas particularly in cities that have underperformed (pretty much anywhere outside of SE England) will rise over the next few decades, outperforming stocks, bonds etc due to rising rates and rising labour costs. So i think if you have a long term investment horizon (few decades), one can benefit from this new trend that is emerging and in the very early stages. I would personally look at higher yielding areas with low income people as these will be the areas that has the most upside and least downside (as prices are cheap - of course for good reason, but once labour demand and wages increase, these areas will be very well supported).

          I can also see in the near term (within 5-7 years i think) politics moving in such a way that there is no option but to hand out money (significantly more than current benefits) for free to those least well off and with no or low income jobs, in order to reduce the inequality and boost the economy. So landlords in these areas can benefit from this as well.

          Comment


            #6
            Originally posted by tomx2 View Post
            Hi,

            ...property in South Yorkshire?
            make sure it's got good flood defences

            Comment


              #7
              yes , make sure its on high ground , and I don't mean on the second floor .

              Comment


                #8
                leasee123 your thesis relies on assumptions that labour demand increase and wages increase. What if they don't?

                Comment


                  #9
                  Then i am wrong but i still have high yielding properties making me a return that should at least match inflation and be boosted by leverage.

                  As mentioned in my previous post, there are huge demographic changes underway that will mean labour shortages not to mention changes in the political landscape in the near term that are planting the seeds to be a pro labour-rights economy in the longer term. "Capitalism" will indeed be seen as being overturn by labour.

                  In this environment i would favour property rather than stocks in general as property does well with rising wages whereas stocks dont due to margin pressure. I also do see interest rates rising faster than inflation as the savings glut gets depleted over time (old people need to spend a lot on healthcare etc). But rising rents and property prices driven by rising wages will more than offset the rising cost of servicing the mortgage.

                  Comment

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