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Adam

Money Morning Article

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Why can't the general media write more stuff like this, instead of the drivel we endure?

Typically, monthly rental income is expected to come in at 130% of the mortgage

interest. That is sensible, because of course, being a landlord involves more costs

than just the monthly mortgage interest. There are void periods and repair bills to

worry about – not to mention the shortfall if you don’t get as much rent as you

expect.

And remember, this is an interest-only mortgage. You aren’t paying off any of the

capital. And if you aren’t paying off the capital, what does that mean you’re relying

on? That’s right – rising house prices.

But house prices aren’t rising anymore. So you have to ask yourself, what type of

person would buy into a high-risk investment where, in a best-case scenario, their

monthly income is eaten up entirely by their monthly outgoings, and their initial

capital will be lucky to grow in line with inflation?

That’s right – a daft one.

Great article.

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Why can't the general media write more stuff like this, instead of the drivel we endure?

Great article.

Money Week have been saying this for months.

It has confirmed what I have felt for a long time. The 'new' landlords are working to some other business plan to which I dont have access to....or would dismiss as laughable if introduced to it.

Houses are just a commodity like anything else.

I wonder what sort of business plan these 'new' landlords work to?

Somebody has lost the plot.....and it aint me.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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