In 2023, households across the globe faced financial strains due to economic fluctuations and escalating living costs. Despite these challenges, homeowners demonstrated remarkable resilience, managing to cope with the rising mortgage payments triggered by higher interest rates.
As we step into 2024, a sense of uncertainty prevails among consumers. The global narrative is heavily influenced by inflation, ongoing conflicts, and geopolitical tensions, while high interest rates and stagnant real incomes further compound the unease.
Mortgage rates, while showing signs of reduction from their peak, remain significantly higher than the historically low levels observed two years prior, when rates were between 2-3%, occasionally dipping below 1%. With these higher mortgage payments, more individuals are opting to remain in rental accommodations for extended periods, leading to an ever increasing demand for HMO rooms.
Within this challenging landscape, Puran Investment emerges as a beacon of resilience. Many smaller landlords, particularly those with properties held in personal portfolios, are finding it increasingly difficult to sustain their buy-to-let investments due to rising interest rates and ongoing rental reforms, with a significant number opting to sell their assets.
In these times, it is imperative to maximise asset income, and strategies such as HMO’s provide a substantial advantage. Puran Investment specialises in high-income strategies like HMOs, showcasing their expertise in optimising returns from real estate investments.
Furthermore, Puran Investment diligently conducts regular stress tests on its portfolio to anticipate and mitigate potential challenges. This proactive approach ensures that Puran Investment not only navigates through these turbulent times but also positions itself as a leader in overcoming the array of issues currently facing the property market.