Updating post from Reddit.
This is a tweet from "The Landlord" the owner of The property investment project Blog.
When nobody has any money... who is paying the rent?
Anyone who doesn't want to be homeless....
Rent is the last priority after food and utilities. Shit, it’s probably after Netflix and Spotify.
But they have no money? What?
[Insert Advert for Rent Guarantee Insurance]
Are you expecting the Trump tariffs (10% in the UK) to cause mass unemployment? I don't see that occurring, mainly because we are a services economy, and even our exports to the US have been largely unaffected compared to most major economies.
It's certainly possible.
It’s all joined up tho. Britain’s world-class law firms and management consultancies and advertising agencies and engineering design companies and accountancies all do vast amounts of work for global companies that actually make stuff and will therefore be affected by tariffs.
Most of the big UK corporates are multi-national. Which means they are all getting hit by tariffs, multiple times in some cases. Share prices across the board are dropping like a stone. I would bet the majority of CEOs right now are reeling in their spending plans and preparing for cost-cutting. That hits us all.
I'm a pessimist, so hope I'm wrong, but this down-swing has potential to be really bad I think.
I was waiting for rate cuts!!
Yep if it does get bad bad, then this is coming.
Ah someone watched the sky news this morning. Quote for quote. Lmao
Autos would be one but as you said mostly services, so moderate. Doubt it'll go to Scottish oil/gas and fishing (at least now, but agro would be hit too).
Oil price right now...
service economy sounds safe as houses at the dawn of the ai age lmao
For who, the economy/company or the employees.. hmm
10% on good manufactured in the UK... If we sell something to the US and it was manufactured in China, then it's 34%. Have a guess at how much of the stuff we sell to the US is made in China? It's bigger than 34%.
Sounds like those companies should re-shore manufacturing, which will lower unemployment in the UK or USA.
UK sounds better as can can still use China but as long as it's sufficiently transformed.
Govt apparently. My soon to be ex-tenant had an allowance and. it's almost maxxed out to me.
The government.
Worst case sell it to blackrock who cant stop buying home to rent out but nobody cares because the UK only hates the normal man making money not the trillionaire investment firms who run everything
Or have some diversity?
100%
Stock are not an alt to real estate (especially with the direction of fin markets) Thats why i only have one for a side hustle atm.
Both stocks and RE have risks. Stocks appear to be more volatile, but some of that is because your property does not have a minute by minute price you can see.
RE can go through long periods of poor total returns. Yield is only part of the return.
Net yield on a property is usually higher than a glooal equity fund div yield, but historically, stocks have returned more total return.
Property generally should consider costs such as maintenance etc. There is also more regulation risk around property, such as rent controls.
Analytically, property is a poor investment choice compared to stocks, because many companies can reinvest their cash flow back into the business at high returns to produce compounding magic. You can't do this with property, even if you purchase another property, it takes time to accumulate the cash and the returns are not nearly as good as many businesses you can invest in.
Property also has relied on leverage for their returns, and that game has diminished massively.
"Slow and steady is cool with me.... until a tenant from hell comes along".
When properties become homes and stop being investments, we'd be out of this housing crisis pretty damn quick
This is a community for Landlords. You can be anti-landlord in other places like /r/HousingUK/
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They have been coming down over last few months and SWAP rates have plummeted in response to Trump.
Swaps have been coming down relative to what time period?
They have been pricing in a small Bank Base Rate Cut for many months now, however since the Trump Tariff announcement have taken a view of a larger cut.
However, It could change as easily.
The brits dont do fixed rate mortgages over 30-Years, look up 2 and 5-year sonia swaps.
