SHOCKING! Home Prices Falls Again to £281,000! What Happens Next?

[@thethinkingman2005]

Hi Simon, could you please do a video on what it means to be over leveraged and how to avoid it. Is 40% equity a safe amount?

[@UK-Property-Tax-Accountants]

Over leveraged is where you make a loss on the rental rather than the mortgage % of the property. If interest rates increase and you make a loss then you are over leveraged Over leverage can also appear when your property is at risk of falling in price below the mortgage value

[@DowntownR]

Real Prices are falling all over the uk. Inflation and the difference in cash return on saving. The next decade will show that property is a poor investment.

[@UK-Property-Tax-Accountants]

It depends. Capital growth may be small or in a slight negative position. However, rental yields are up adding to the investment bottom line over time

[@g.p616]

Savings rates are currently above inflation. House prices are falling in real terms. Rental yields on a fully leveraged property, when taking into account general maintenance costs and factoring in rental defaults is negative. Any investor would be MAD to purchase new property as a BTL!!

[@UK-Property-Tax-Accountants]

@g.p616 I don’t agree with your last point. We have lots of clients making good money with rentals provided they have the right set up and not over leveraged. ROI of 8-12% is still achieved What properties do you have and what are your investments doing?