Amateur landlords are doing just fine.
Yes you did read right and no I have not been drinking!
Take a landlord who believed the hype and thought property investing was ALL about capital growth. If he was half sensible he would have bought a property that would “wash its face” i.e. the rent would cover the mortgage.
His monthly profit and loss would look a little bit like this:
Now with the recent reduction in interest rates has resulted in the mortgage cost dropping to £250. This means the profit has jumped by £250 i.e. 10 times i.e. 1000%
This is an amateur landlord! Just imagine what the professional landlord is experiencing. The professional landlord will have more properties and will be experiencing higher absolute profits.
Okay the asset value has gone down by 15% but so what! These professional landlords are not selling. If anything they are buying! No joke. I am, my collegues are, my clients are and so are all those professional landlords are packed in the auction halls, researching Rightmove and prowling the streets.
Its such a great time to buy. It is the time to buy big time so do not miss out!