Property Wire has uncovered some interesting information regarding property investments. Research showed that 52% of HMO landlords propose on adding to their portfolios in 2015, this is in comparison to 23% landlords involved with property investments. This is because of the increase in interest rates next year, which becomes an issue when you are pushing for income on your property portfolio.
As it stands, the majority of the property investments have a gross field of below 7% attached to it. However, with the increase in house prices putting its brakes on, it’s caused capital growth to become unpredictable and unreliable. It’s natural that different housing locations will offer a higher growth rate due to things such as transport links and employment opportunities. Fortunately for you, The House Crowd operates mainly in Manchester and other major cities, so you can expect a healthy annual gross return.
The increase in interest rates will show a significant decrease in their margins after buy-to-let investors have enjoying low interest rates.
It will be interesting to see what 2015 brings to the world of property investments and although you might not be able to rely on interest rates, you can rely on The House Crowd.