CoronaVirus: Should Investors Be Worried

Forth Action Invest on December 6, 2020

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Whether you believe it or not the coronavirus is here and having a significantly negative impact on most of the economies of the world. Firstly we want to offer our support to any investors who may be struggling in these difficult times, We are always open to discuss strategies and offer support in general.

Right now the UK Housing Market is facing a huge degree of uncertainty, Which we are now seeing evident with most lenders reducing their mortgage products or withdrawing them altogether.

Housing enquires dropping significantly by no fault of their own which will naturally see the house prices drop in time. The new coronavirus bill seems to be offering Landlords some security by ensuring that buy-to-let lenders will offer a mortgage holiday of up to three months for private landlords whose tenants have been impacted by the coronavirus, however it is understood that landlords will be expected to offer a similar rent holiday to their tenants. There is also some degree of uncertainty as to how that will affect landlords credit scores going forward.

What to do?

Now would be a great time to reset and look into your portfolio, manage the stock that you have and make sure you are looking after your tenants especially those who have been impacted by the current climate first-hand. This is a great time to show your current tenants that you are a landlord worth staying with, in the long run.

It would also be a great time to explore new investment areas you may have been considering in the past but just not had the time. Alternatively re-thinking your strategy in order to future proof your portfolio for events which may occur like this in the future, “We will touch more on that shortly”

Where there is uncertainty there is always an opportunity! And for those who are in a position to buy with Cash, Now is your time. Over the coming months, we are likely to see less competition in the auctions, Motivated vendors and repossessions rise. We encourage those investors who are in that position to capitalize over the coming market but to be fair and conscious of peoples circumstances.

Strategies

At Forth Action we encourage our investors to diversify their portfolio with a mixture of strategies and sectors to work in. For example, we wouldn’t advise our clients to have 100% of their portfolio reliant on the private sector but to balance it with social housing “Government-backed leasing schemes which are in essence, Recession-proof!” Now we are seeing the impact that a severe economic downturn can have on the Private market with a lot of the tenants losing jobs & income.

The current climate will for sure be an eye-opener to most investors who have in the past put all their eggs in one basket. If you are intrested in learning more about social housing or how you can future proof your portfolio feel free to contact us or look at some of our current investments