Inflation Is Coming- One of the Best Inflation Fighters is UK Property
“We are seeing substantial inflation,” announced Warren Buffett at his company’s recent annual shareholder’s meeting. “We are raising prices. People are raising prices to us, and it’s being accepted.”
All of us in the UK property market are seeing prices reach new heights. For those of us doing refurbishment projects we see more price increases. Look at Lumber for instance. Wow!!!
Inflation or not, sophisticated & smart investors never wait around without a plan. They’re prepared for inflation in 2021. Smart investors know the safest way to protect ones net worth is through property. We personally feel we protect and grow our net worth through property ( more specifically social housing as well there will be always be a need).
We take a long term approach and hold social housing properties with long term contracts without voids or managment. Investing for income long-term instead of thinking short-term with fix-and-flips ensures consistent, reliable income independent of the underlying value of the property. Whilst the housing market is currently experiencing unprecedented demand, this may cool with inflation as well—along with a slowing economy and stock market. Interest might start increasing and property values might even fall. However as we are long term holders of these social housing properties on 5 to 10 year govt backed contracts our time frame is much different than many short term property investors.
We feel that social housing insulates to some degree any eventualities in the UK property market. Now is the time to lock in longterm rates and prepare for any eventualities.