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Is it time to leverage your investment capital?

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FWL

Active Member
With UK interest rates at rock bottom, the UK property market holding relatively steady at the moment and high hopes for the UK as a whole in the medium to long term, is now the time to leveraged your investment capital?

UK interest rates really are very attractive at the moment and even if you have to retain a buy to let property for many years to come you should be able to secure an attractive rental yield which would at least cover your mortgage. Yes, we appreciate there are difficulties with regards to tenants and employment prospects post the coronavirus but I think now is the time to look a little further ahead. Now is the time to leverage your investment capital with debt!
 
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Longterminvestor

Administrator
I totally agree, it is time to ramp up your property investment so long as you are able to secure a rental yield which will pay for your mortgage as well as some surplus on top. Yes, we all appreciate that the UK property market will perhaps struggle in the short-term but the UK population continues to grow as does demand for property. Newbuild numbers have for many years now been behind the curve and this is unlikely to change. Hence, demand for UK property will continue to increase.
 
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Longterminvestor

Administrator
Yesterday's news from the Chancellor is very positive in the short-term and the hope is that momentum will have built prior to the expiry of the statutory holiday at the end of March 2021. There is the potential for acceptable rental income in the short-term and long-term capital appreciation on investment in selected areas .
 
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Longterminvestor

Administrator
I see that the Scottish government has announced their version of the stamp duty reduction which only goes up to £250,000. Interestingly, the plan cannot be put into place straightaway in Scotland due to "administration" issues. Surely this will bring the Scottish property market to a grinding halt for first-time buyers? Why would you buy a property today when in the short-term you could save on stamp duty?
 
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