Strategy for current market conditions: Find motivated sellers and negotiate price!
November 11, 2022
Cash purchase calculations
December 10, 2022
Nick and Martin talk about a change of strategy for Invesmore. Mortgage purchases for buy to let or not viable any longer. This is for 2 reasons:
1. Interest rates are now very high for foreign national buy to let investors
2. It makes no sense to gear up with mortgage finance in the expectation of capital gain.*
* if you buy property with mortgage finance, you can own a larger number of properties, get the capital gain from a bigger portfolio and therefore multiply your capital gain returns. But, this only works when the market is rising.
The new strategy is to find motivated sellers, buy with cash at a discount from market value, renovate, hold for at least 2 or 3 years till interest rates probably decline, then refinance and extract most of your cash to then reinvest in other property.
