Wrong time to buy property?

[TigerTea3]

Hi,

Looking for some advice re. investing in property.

Bit of background info. Early 30s, non U.K. resident although will potentially retire in the U.K. (home country)

I have £10,500 invested in VWRL s&s

£9,000 invested in iShares FTSE 100

£6000 invested in VWRA s&s

And then I have £60,000 in the bank that I had intended on using to buy a buy to let property this year (first time buyer) however with the rising interest rates and the current state of the U.K. economy, I'm inclined to think I'd be foolish to invest in property right now.

I'm now wondering whether I stick half of my cash savings into the stock market and give myself another year or two to see how the interest rates go with regards to buying property, continue to save and put the other £30,000 in a decent savings account or if I just go ahead with buying an investment property anyway as I know it's important to diversify your investments.

Is there anything I've missed?

Thanks

I should add, the buy to let would be bought in the U.K. and I'd be using a buy to let expat mortgage.

I've said it before and I'll say it again. In the long term, property always increases in value.

I do think property is a good investment and it's definitely part of the plan but would you buy now within the current climate or say wait a year or so to see how interest rates etc pan out?

People have talked about house price crashes for years, I can’t remember the last one though. I’ve heard it said they could drop 15%, that might happen if people can’t afford mortgages, but I suspect they will largely switch to interest only, surely some will be forced to sell, but given the need for places to live it would take quite something to achieve that level of drop. But with 10% inflation in a bank account you effectively loose 10% off it each year it’s sitting there, the banks will take their time to offer decent savings rates! And the stock market is unpredictable over the shorter term, it’s a risky thing to put money there for a year. If you can get a mortgage now which is relatively long and the sums add up that may be the best option, even if house prices dropped 10% the cost of the mortgage repayments may be much higher than currently.

Just be aware that you wouldn't benefit from First Time Buyer's relief on the stamp duty, and you would be stung for an extra 5% for being a non-UK resident.

The stock market is losing value right now, this isn't the time to be investing in stocks.

Is hold off for a bit and see what is happening with the repeal of s21. It was part of the conservative election manifesto and if they don't bring it in, Labour will.

It stops landlords from ending tenancies on the basis of a notice after a set period of time - there would be fewer grounds for possession which will make it harder to reclaim property from tenants.

Everything's up in the air at the moment.
Think I'd give it 3 months at least.
Put money in savings accounts now there's interest.

What currency is your money in? If it’s in non-pounds it could be a good time. If it’s in sterling i can’t see why you’d bother with rates so high. There little to be made as a landlord as it is a tthe moment, it has become very expensive . Wait to see if prices come down and jump in to grab a bargain if you can then as they won’t stay down forever.

I have several buy to let properties I’ve had for over 15 years. They’ve gone up very little in value. I’ve never made any money off them. With interest rates going up I’m going to soon have to start subsidising them plus I pay tax on the mortgage payments as they’re interest only and on SVR rates (can’t remortgage them, all are flats with cladding or fire safety issues). It really isn’t easy being a landlord in this country!

Not to mention tenants not paying rent and not looking after the property.