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.

Find Out if You Could Benefit From a Free Property Investment Seminar

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.

1. 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.
2. 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.
3. 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.
4. Unstable Economy - Any rumour of an unstable economy and one of first industries to be hit is residential property market.
5. 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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