Property Investing

Even as an investor I still consider myself to be a buyer. Yes I have got access to strategies and systems that other homeowners have not, but at the end of the day I am doing the same job as them: buying a property.

That is why I have found the Telegraph’s recent report about the FSA’s plans to cap mortgages alarming. It is absolutely the step in the wrong direction for improving the property market.

At the moment this report is still all speculation, but if it were to happen then we are set to face even tighter lending restrictions.

Maybe I am over-reacting, but I don’t think I am. Here is what I mean: supposedly the FSA want to restrict how much lenders can lend to homeowners by allowing them to borrow only 3 times their annual salary.

Now on the one hand this information is arguably good news for professional landlords like you and me as it will result in more homeowners choosing to rent instead of buy, but this change can affect us as well.

For the majority of us we use our own money to establish a property investment before using the equity we accumulate to invest in another. So if this action does take place any one looking to make a credible living through property investment could have a harder time doing so if they are restricted in cash-flow.

Hopefully the FSA will see sense before they implement even more restrictions onto the property market. But if anyone else has got an opinion of this please let me know.

speak soon

Wendy xx

PS. Here’s the story I was on about – http://www.telegraph.co.uk/finance/personalfinance/5002083/Proposed-cap-on-mortgage-lending-by-FSA-is-suicidal-say-property-experts.html