Falling House Prices - Still a time to Profit
How Can You Profit From Property?
House prices are falling - as if you didn’t already know! But they haven’t fallen so fast for 18 years. The average house price has dropped a shade over 10% since this time last year. And according to Nationwide, the fall in house prices is actually accelerating. June saw a 0.9% fall; July fell by 1.5% and August saw a fall of 1.5%.
So is there still a means or a mechanism by which to profit in these uncertain times?
The housing market hasn’t looked so grim since 1990. But look at the peaks and profits we’ve had since then…
If you look historically, the property market has increased in value over the longer term. Of course there have been ups and downs in the market, but over the longer term, property has remained a pretty safe bet.
And as several estate agents are reporting, some interest is returning to the property markets, with a slight increase in viewings. Although they also say that the increased viewings have not necessarily yet translated into increased buyings.
So there is still a degree of caution across the different property and housing market sectors. Most experts agree that people are waiting to see how far (or how much further) the house prices are going to fall, before making any commitments.
The average house price, again according to Nationwide, is now £15,000 cheaper than a year ago.
On the other side of the coin, a number of mortgage lenders have announced they are going to cut the cost of fixed-rate mortgages, to encourage buyers to take action in the housing market.
So is there a way to profit from all this?
What’s the best way to buy into the property market and find your niche within property investment?
What’s the best way of finding your way around in this current market uncertainty?
One of the best ways is to get some expert advice. From someone - or a team of people - that have been through the ups and down of property investment and can guide you through the pitfalls, so you can learn firsthand from their mistakes.
Property Mentor is one such team. They are offering a free property investment seminar in different locations around the UK. Click here to find a location near you.
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5 Reasons Why Houses Prices Are Falling
Why Are House Prices Falling
The housing market in the UK is in freefall currently, in stark contrast to the buoyant property market scene of just a few years ago. But why are house prices falling and are you concerned about the negative equity that your home presents you with.
Throughout the nineties and midway through the 21st century the UK property market enjoyed its biggest ever boom. Our homes it would seem were our biggest asset. This though was a false sense of economy as most would never realise the equity in our homes as to move would negate the profit gained.
- House Prices Are Unaffordable To First Time Buyers - First time buyers are finding it increasingly difficult to get onto the first step of the property ladder as the average house price to earning ratio are now poles apart.
- Mortgage Lenders Are Not Approving Finance - The phrase Credit Crunch applies to the mortgage industry more than any other. Applications for mortgages are fewer and more mortgage applications are being rejected.
- Interest Rates Increasing - Interest rates are increasing with velocity, the average monthy mortgage repayment has risen by 30%. This effects first buyers and low wage earners who are now in danger of repossession.
- Unstable Economy - Any rumour of an unstable economy and one of first industries to be hit is residential property market.
- What Goes Up Must Come Down - the last decade of phenomenal growth had to slowdown sometime, an initial slowdown is viewed as a negative - the knock on effect is panic, reduction in consumer spend and eventually a credit crunch situtaion.
Is Now A Good Time To Invest In Property
If you intend to move house or buy a property for the first time for the sole purpose to live in it may be wise decision to not do anything yet. House prices will probably continue to fall for the forseeable future - then recovery is expected.
For the property investor now is the perfect time to invest in property both residential and commercial. The Buy To Let market will increase dramatically as tenants will outnumber available property.
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Buy Property To Rent To Students
Investing In Property To Rent Out To Students
If you have ambitions in the property investment market - the student market is currently enjoying massive growth. Even in times of economic troubles the one thing that the UK will never run out of is students and their need to be accommodated.
Year on year more school leavers opt to go to university, meaning more investment opportunities for you.
Buying into property around universities and university town is and will always be a the most sensible property investment you will ever make.
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The Current Student Demand For Accommodation
Fact 1: A high majority of universities can only house or accommodate around a third of its total number of students. Simple mathematics dictates that two thirds of students need somewhere to live for the duration of their courses - ideally within a half mile radius of their university.
Fact 2: Mortgage lenders have reduced the number of mortgages offered by nearly 40%. The number of people who find themselves stuck on the first rung of the property ladder is rising dramatically. This increases the need for rental accommodation.
Fact 3: In the last 4 years, student rent has risen 17% - a £36.16 increase per month. It may sound like a small amount of money, but when when you factor in time imagine what this figure will amount to in 1 year. Approximately £430 free extra profits, based completely on interest and inflation.
Fact 4: Private rental accommodation has risen by over 50% in the last 6 months. Some students especially in and around the London area are now paying an additional £200 more than they were two months ago. with rent set to rise a further 6.3% in the next year - the wise property investor is profiting.
Tenancy For Life - Is It Possible
Can you imagine earning between £500 to £1000 each and every month - for life.
Every year nearly 6 million new students leave school and begin their journey into further education, yet an incredible 70% of this number will have to find rental accommodation - off campus.
The solution to their problem lies with you through Buy To Let
Buy to Let For Students
Property Mentors unique step by step system can teach you how to profit form the student demand for property - the exact same system we use to make our very own investments. You can invest with no previous experience, using little or none of your own cashflow and make instant free equities of over £15,000. It sounds incredibly simple - the risk is minimal and rewards are potentially huge.
As long as there are students there will always be a demand for rental accommodation. More and more 18 year olds are opting to go to university every year, meaning more tenants will be searching for a home to shelter them through the next 3 years of their life. Now is the time capitilise.
All you need is a system to make this goal a reality. Systems such as these are available to everyone - but surprising few fully understand or aware the potential.
The Buy To Let property market is not elitist or for the cash rich compaines or individuals.
In our FREE 2 hour property investment seminar we will introduce you to new, unique strategies seen no where else in the country, that will enable you to receive 100% mortgages, and become financially free after your first 4 properties.
So make your investment dreams happen. Book your free course today …
Solving the Property Investment Puzzle
Fitting Together the Pieces of the Property Puzzle
With all the different opinions on property investment, house prices, inflation, recession, and what’s going to happen with the property market, it makes it difficult to work out a viable strategy to profit from property investment.
Even though house prices may be falling in most regions, the rise in rents since April has kept many landlords in the game - and in profit - particularly since the rise in rents has helped increase their gross yields.
RICS spokesperson James Scott-Lee said:
“The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up… Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns.”
It seems that established and savvy investors have been reaping the benefits of the housing downturn for some time now, and will probably continue to do so.
But there are still quite a few hurdles to cross, before you can be certain of turning a profit in these uncertain times. Many people may be reluctant to enter the market right now, which could be a blessing for those with the foresight to profit from property, buying low and either renting or simply waiting for the markets to turn once again.
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Students Still a Good Bet?
There are certain areas that tend to remain buoyant, despite other market forces at work. These are cities where a lot of re-generation is taking place, and top student and university towns. As far as property investment from rentals, it seems that places such as Nottingham, Durham, Bangor, Manchester & Hull remain well above average, with yields far better than other areas of the country.
Although many investors may think that this is a weak property market at the moment, research is showing rental yields are on the up, and buy-to-let investors have an interesting opportunity to take advantage of the increasing demand for student accommodation, whilst capitalising on the lower house prices.
As Nick Clark, Managing Director of the Property Investor Show said recently:
“There will always be a sustained demand for properties which will produce a far greater annual rental yield than the average buy-to let property. In fact, it could be as much as six to seven per cent more.”
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Buy To Let On The Increase
Buy To Let Property Is A Good Investment
As housing prices continue to tumble the buy to let or lettings market is sharply on the increase - this is according to the Royal Institution of Chartered Surveyors (RICS)
As mortgage lenders are becoming more choosy as to who they grant mortgages to - the buy to let market is benefitting from the current market conditions.
Would be borrowers who are struggling to obtain a mortgage, are now forced into the property rental market - a real boon for anyone who has bought property to play in the property investment game.
Demand in the rental or buy to let market is outstripping demand in all areas of the UK - massively.
Buy To Let Markets Biggest Increase In 10 Years
The buy to let market has enjoyed its biggest and fastest growth rate in 10 years with no sign of a slow down over the coming month. If you are thing of buying a property as an investment - now is the time do it
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London is traditionally the busiest and most successful of the UK regions for the buy to let market but quite remarkably it is the North that has enjoyed the highest and fastest growth rate.
Scotland has experienced the slowest growth rate and the most stable market conditions.
House Prices Fall, Rental Prices Rise
Despite the media negativity towards the housing and property market in general, it’s the residential property market that’s suffering the most; and in particular the residential property owner who’s sole purpose is to live in his or her property.
The state of the buy-to-let market means that landlords can now charge more for their rent and so balance out the fall they’ve experienced in the equity of their investment.
All in all the landlord is not suffering. The wise property investor is buying more properties or preparing to invest, as house prices will soon reach a low point where there the next fluctuation will be generally up.
Have you got ambition to get into the property investment market? The property investment market is a very profitable one provided you invest wisely.
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