I don't think it's a good time to buy property as prices are high and very likely to drop later. I'm thinking about selling one of my properties and buying later when prices drop.
I do agree about house prices rising. If anyone has to work 30 years to own it it's overpriced. That's the state now. However, if you check the average charts, the only drop in 4 decades was in 2008 during the financial crisis caused by the banks. The very thing we're avoiding here. Since then, there's been a steady rise and with inflation this isn't likely to drop according to everyone I've spoken to.
There was a rise this year because stamp duty was removed but it's back now and prices are stabilising again. In some areas, the market is destroyed. The rental yield is ridiculously low compared to other cities. That happened mainly because a lot of people sold their overpriced houses in London and overpaid for 2 houses in populated areas. Where I live prices are rising non-stop but because people don't stop buying.
Within this madness, there's still lots of reasonably priced safe property options and that's the only one's we've gone for. One is already done and the return on that is 4.08% in a high demand area where no property stays empty after tenancy is over for more than 2 days.
This information is taken from the advisers who have been in this business for very long time. You should verify it if anyone has doubts.
PS. I actually waited 2 years to launch this thinking the same as you. The truth is that there's been no glimpse of prices lowering so I said Bismillah and went ahead. So far no regrets, everyone's happy. I pray we all succeed more and secure more assets for our families in order to do some great work of Deen which I'm craving to do. Just look at MS, almost deserted in terms of development.
I was in the same boat many years ago, saved a hugh deposit and bought in 2004 with a low 25yr mortgage, made some sacrifices paid it all off in 2014 now debt free.
For the current property that's acquired it would be £408 to be precise. Future properties could be more or less depending on location, value, price increase etc. It's basically identical to if you were to purchase your own for 500k. There's no difference whatsoever. It may give you 4.08% or if you're in a low demand or high-end (e.g. central London) area the same value property could you 3% or even less. For the one available now it's 4.08% for the shares available until all the shares are gone.
This cannot be undone and I am sure it will be greatly appreciated.
We apologise but you have been denied access to report posts in this thread. This could be due to excessively reporting posts and not understanding our forum rules. For assistance or information, please use the forum help thread to request more information. Jazakallah
