As you probably already know, the pandemic altered many things.
Pre COVID-19, solid property investment was sought out by investors and people have always wanted to own their own home. Then, pandemic measures brought about working from home and investor property priorities changed as garden, living and green space was reassessed with parking space. The restriction of hybrid working (flexible working between workplace and remote) released home purchasers and investors to explore new regions, and geographical boundaries changed.
The consequence of this shift was (and is) property values being shunted; competition for bigger homes and investment property options in less expensive areas because a growing demand plus limited supply and accessible capital costings is, as you probably already know, a recipe for house price increases and, further down the line…interest rate rises.
With house-price-to-earnings continuing to rise and mortgages (with low rates) appearing easily accessible for all, the demand for housing (rental and owned) has, as you probably already know, never greatly subsided since affordability constraints began lifting in the late nineties. Therefore, with property purchase (and capital raising) the lockdown key is the calculations because past performance doesn’t provide future guarantee which, as you probably already know, alters many things.
Article and Image credit: Copyright SUF © 2021
