Is it worth buying to let?
If you're thinking of getting into buy-to-let, it is worth remembering that Britain’s property crash isn’t over yet.
Last weekend's papers were full of news of record-high rents in Britain and tips on how to get into the buy-to-let business. But while getting into buy-to-let might (and after expenses only just might) provide an income, it is worth remembering that Britain's property crash isn't over yet: what you gain in income you might lose many times over as the capital value of your house falls.
How much? If you adjust for inflation, British house prices are down about 20% since the beginning of the financial crisis. That might seem a lot, but it isn't enough. Look at a chart of UK house prices over the long term, says Shore Capital's Jon Bell, and you will see that "steep rises in house prices" have been followed by "equal and opposite corrections".
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
