Property Prices During and After the Lockdown Pandemic
Everyone seems to want a prediction on property prices. However I do not have a crystal ball however as we are always trying to buy properties to transform into social housing properties on long govt backed contracts….there is very little on the market at this point.
The old rules of supply and demand.
Low supply and yes high demand.
There is a housing shortage before Covid and will be probably much worse. We are seeing our yields go down and the prices we need to charge investors go up. However, when one considers social housing, no voids…no management and maintenanced covered up to 5,000 other than structural. Who would ever want working tenants who might be working now due to Covid and obviously not paying their rents. You can not evict them, whilst you still have a mortgage accruing. Scary mix of financial problems.
Our tenant is backed by the Govt and we get paid like clock work. Can you imagine a 7 year contract of steady and reliable rental payments for your social housing? We have been doing this since 2014 with over 130 properties. We have had contracts renewed for additional periods.
What do you think about property prices?