Housing Market in Trouble - Interest Rates Rising, Buy-to-Let Properties No Longer Viable

The housing market is heading for serious trouble in the UK, US and many other countries as the worldwide economy slows.

I think house prices will continue to fall, especially with higher interest rates on the way.

More bad news to come - FT reported rising Bond yields today and food prices are set to rise again following the destruction of the dam on Ukraine which has flooded and destroyed wheat fields.  

Buy to lets deals just don’t add up anymore with higher rates. I’ve been offered properties which have great yields and would’ve looked amazing with lower interest rates. But when you look at the deal in light of 5% or 6% interest rates on an interest only mortgage the rent barely covers the payments. 

I’m also hearing from landlords who are selling because they are higher rate taxpayers.  Higher interest rates, together with George Osborne is helpful tax changes have made their existing buy to let property unviable.