Report Predicts UK Property House Price Rises of 5% a year
I read in the Guardian an article speaking about generation rent. Quoting the Guardian
A report from economists at accountancy firm PwC suggests the number of new homebuyers is set to fall over the next 10 years, as the high cost of raising a deposit locks large segments of society out of the housing market.
It almost sounds too good to be true. Consider we do not make any money by placing our money in the bank, let alone the nightmare of Northern Rock. So all we have to do is buy UK property and we will compound our money 5% a year plus rent? Seems like a sure way to get rich…
The article continued with
The PwC report suggests this trend will continue. By 2025, a quarter of all households will privately rent, they predict, with the biggest increase among those aged between 20 and 39, where “ a clear majority” will be private tenants within 10 years.
So what can go wrong with this “Rosy Picture”? If it were so simple everyone would be doing it…Everyone would be buying Buy to Let UK property. However for those of us in the business know about Universal credit. Those of us know about managing tenants. We also know about voids.
How about if there is an interest rate hike?
What do you think?
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