Private Rent Houses | Buy to Let Investment: UK Rental Boom vs US
http://bit.ly/ORY7ko
The closeness of relations between the US and UK depends on the government of the day and the feelings of the public, but it is hard to miss the similarities between the two in the recent bust and now in the subsequent rental booms. To sum up, the banking sectors of both countries were at the heart of their crashes. When sub-prime borrowers began defaulting en-mass and house prices started to fall, banks on both sides of the Atlantic were crippled and overwhelmed by the amount of bad debt and properties that needed to be repossessed. cheap letting agent In both countries the aftermath of this has been a rental boom, as thousands of additional renters have been added to the market because they can’t get mortgages and/or have lost their home to repossession. Therefore, buy to let investors are capitalising on the rental booms in both the US and the UK, but which boom is best? I am going to have to say the US. This is because more because the buying opportunities are better than perhaps the yields. In the UK house prices started falling properly in 2007, they fell by about 20% then in 2009 they started rising again. They rose about 6% between April 2009 and April 2010 leaving the overall average decline at about 14%. Since then prices in the UK have generally stagnated at about the same level. Meanwhile in the US, prices started falling in 2006 and have generally kept falling ever since (with some regional exceptions) fuelled by the continued repossession problem. According to the S&P Case/Shiller index house prices have fallen 34% since 2006, but if you adjust for inflation the drop is more like 40%.
http://bit.ly/ORY7ko
The closeness of relations between the US and UK depends on the government of the day and the feelings of the public, but it is hard to miss the similarities between the two in the recent bust and now in the subsequent rental booms. To sum up, the banking sectors of both countries were at the heart of their crashes. When sub-prime borrowers began defaulting en-mass and house prices started to fall, banks on both sides of the Atlantic were crippled and overwhelmed by the amount of bad debt and properties that needed to be repossessed. cheap letting agent In both countries the aftermath of this has been a rental boom, as thousands of additional renters have been added to the market because they can’t get mortgages and/or have lost their home to repossession. Therefore, buy to let investors are capitalising on the rental booms in both the US and the UK, but which boom is best? I am going to have to say the US. This is because more because the buying opportunities are better than perhaps the yields. In the UK house prices started falling properly in 2007, they fell by about 20% then in 2009 they started rising again. They rose about 6% between April 2009 and April 2010 leaving the overall average decline at about 14%. Since then prices in the UK have generally stagnated at about the same level. Meanwhile in the US, prices started falling in 2006 and have generally kept falling ever since (with some regional exceptions) fuelled by the continued repossession problem. According to the S&P Case/Shiller index house prices have fallen 34% since 2006, but if you adjust for inflation the drop is more like 40%.
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