Nick Carlile, of Platinum Portfolio Builder, reveals what impact inflation rise and falls have on Buy-to-let property investors.
“From an investor’s point of view, how much impact inflation has, really depends on how much actual cash you have to play with and whether you can afford the squeeze on your finances that an inflation rise implies,” he said.
“When inflation rises it means that not only does the everyday cost of living increase, but all the goods and services you buy when developing a property to sell on or rent out, also become more expensive. These can include plumbers, surveyors, electricians and solicitors as well as paint, flooring and furniture. If rates were to rise on top of this, it’s easy to see how investor profit margins get squeezed from all directions.”