Interest rates cut again
We hope you had a great Christmas and New Year!
Lets have a look at the news from this week. The big news of course was the bank of Englands decision to cut interest rates again, down to just 1.5% – the lowest in history. This could be good news for those on tracker mortgages as they may see their mortgage 
repayments cut again.
However Nationwide has already said they will not pass on any further rate cuts. What this means is investors are making more money, their mortgage repayments have reduced yet their rent charge has stayed the same.
The other main talking point this week is the fall in house prices continuing to fall with prices now down to the same level as in 2004. This means that there are plenty of bargains around, house prices will recover its just a matter of when…..therefore NOW is the best time for you to invest.
If a property stacks up and its rental income is greater than the mortgage repayments then why wait? By now, its all about cashflow NOT equity.
* Fri 2nd – House Prices ‘Fall to 2004 Level’ (news.bbc.co.uk)
* Fri 2nd – Nationwide Ends Tracker Rate Cuts (news.bbc.co.uk)
* Mon 5th – Mortgage Rationing Gets Tougher (news.bbc.co.uk)
* Tue 6th – House Prices ‘Fell 15.9% in 2008’ (news.bbc.co.uk)
* Thu 8th – Interest Rates Hit and All-Time Low (news.bbc.co.uk)
Also well worth a read is this analysis of the property market from the BBC:
http://news.bbc.co.uk/1/hi/business/7795672.stm (news.bbc.co.uk)
With the mortgages reducing, lower interest rates and falling house prices, a positive cashflow of £500-£1,000 per property per month is entirely possible. All you have to is know where to find them and buy them and that’s exactly what Property Mentor do.
How would you like to become financially free in 2009? Now is the time to start.
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