Hi all
A few months ago, things in the property market looked all rosy. Demand was strong. Rents were likely to increase, values would do their 5% a year without question.
Just in the last few weeks I've really noticed a change in sentiment toward property investment.
With valuations still quite high, this leads me to think we may have neared the peak of this cycle and property has just run out of puff.
What I'm seeing is that in the past a property yielding 6% would have been snapped up. Now investors seem to be doing their sums, factoring in zero growth and thinking "wait a minute, its going to actually cost me to hold this property. Surely that can't be a good investment". And if the investor isn't, the bank is doing it for them by not extending the finance.
Is anyone seeing it any differently?
A few months ago, things in the property market looked all rosy. Demand was strong. Rents were likely to increase, values would do their 5% a year without question.
Just in the last few weeks I've really noticed a change in sentiment toward property investment.
With valuations still quite high, this leads me to think we may have neared the peak of this cycle and property has just run out of puff.
What I'm seeing is that in the past a property yielding 6% would have been snapped up. Now investors seem to be doing their sums, factoring in zero growth and thinking "wait a minute, its going to actually cost me to hold this property. Surely that can't be a good investment". And if the investor isn't, the bank is doing it for them by not extending the finance.
Is anyone seeing it any differently?