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The 1% rule is a real estate investment term that investors use to discover whether a particular purchase will probably be worth making. If you’re getting a high dollar property, for example, or purchasing a property in an up-and-coming neighborhood that isn’t planning to see strong returns right away, you could decide to shirk the 1% rule while keeping focused long-term instead. Whatever you do, never decide to purchase a great investment property based on receiving a tax deduction - always target making the correct investment choice. Don’t focus on the risks alone (if that’s what everyone did, no one would ever buy an investment property), but don’t ignore them either. Are you prepared to sell the property if you need to? Eventually, the economy and borrowers will likely need to abide by market forces. The local market economy could change. Additionally, the UK housing marketplace has remained resilient even through economic and political uncertainty. Even now, many commercial establishments have been planned inside the city that can give good returns.
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