Landlords – 5 Reasons to Buy Properties in the North East 🚀🚀💥

A rising tide lifts all boats… You don’t have to be the greatest property investor if you get your timing right. Sometimes you just...

A rising tide lifts all boats…

You don’t have to be the greatest property investor if you get your timing right. Sometimes you just need to be in the right place at the right time.

I’ve been investing in the North East since 2007 and haven’t seen a market like this for over a decade. House prices and rents are increasing way above inflation and the end of furlough and the stamp duty cut hasn’t dampened demand.

Why do you think this is happening and how can I take advantage?

I think there’s lots of reasons house prices are increasing, mainly due to low interest rates and billions of government money being pumped into the economy. Also there’s the levelling up agenda and the end of austerity, which has meant the taps have been turned back on by the government.

Locally in the northeast I can also suggest 5 things which are driving rents and prices:

1. Levelling up – the government moving the treasury campus to Darlington and the new freeport in Teeside
2. Return on investment / yields – are some of the highest in the UK – investors are chasing these yields!
3. Housing benefits are no longer frozen – forcing rents higher
4. New large businesses are locating to the north east – the Amazon factory near Darlington & an electric battery plant near Blyth
5. Supply and demand, we’re seeing landlords exit driving up rents!

The problem with this though is should I take advantage or am I too late?

For me this cycle has got at least another couple of years to run. There’s still a wall of money sat in peoples bank accounts, saved during lockdown – approximately £166 billion! Which needs to be spent and I think this government with the level of debt they’ve accrued will allow inflation to run hot in comparison to interest rates.

Inflation is heading towards 5% while interest rates still remain at 0.1%

Remember inflation is your biggest friend when owning assets, your debt will never get any bigger whereas with inflation your assets (property) and your income (rent) will get larger. As long as your rents increase quicker than any movement in interest rates, inflation will always generate you more wealth.

So should I invest – I’ve done a quick video below highlighting some of the reasons why: