Does the proportion that I pay myself for a property increase when property prices rise?

We answer these and many other questions in our video blog episodes.

Here is the transcript of episode 31 to read through:

If property prices go up, then of course the share of the costs that you have to pay goes up as well. Completely right. If we take that in a long-term comparison, if property prices have doubled after 10 years, for example, due to inflation, or after 15 years, and you were then to buy the property in 10 or 15 years' time, your tenant will of course also be paying significantly more, because rents develop too.

However, your own contribution will naturally have increased too. Therefore, if you want to invest in buy-to-let properties, it makes a lot of sense to invest quickly. Because with a physical asset the rule is always: the sooner you get in, the better. But your reasoning was completely spot on. So, if you are asking yourself whether costs rise when prices go up? Of course they do. Therefore, the phrase that will always apply there is: "If only I had...". That is the one I hear most frequently in my now over 30-year career.

Most frequently, the people I advise on capital investment say to me: "Martin, if only I had bought a year ago, if only I had bought two years ago, if only I had bought three years ago." But I can tell you, everyone will be saying the exact same thing again in five years' time. If only I had bought five years ago. You are completely right. It is important to buy early. The earlier, the better.

Keywords:
property prices, cost share, long-term comparison, rent, personal contribution, buy-to-let properties, investing early