Awesome news for investors: base rate comes down to 3%…
Hey guys,
Well they did it! I have to say that, like everyone else, I expected rates would drop between half and one percent, but 1.5% is even more of a bonus for existing investors.
Yesterday I met with a client who was worried about their portfolio. I worked out the the previous rate drop saved them around £200 per month in repayments, and that if they dropped another 0.5%, their repayments would in turn drop by a further £200 per month. The drop means that they are £800 better off each month and are now well into cash flow positive territory, after just 2 years of building their portfolio.
Investors will breathe a sigh of relief that the Bank of England Monetary Policy is in fact in touch with the reality and I’m impressed with the action they’ve taken rather than the usual wait and see.
So get ready for much better times in terms of your cash flow. You might also like to look at some of the hugely undervalued property we have available as developers get rid of the last of their remaining stocks before embarking on their new build projects.
Live with passion,
Brett Alegre-Wood
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