publication date: Jun 16, 2009
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
The immediate answer to this question is both! Yes prices on some properties in some areas will continue to fall during 2009 and in other areas - typically good locations with restricted property supply – prices will probably stagnate and could even start to rise.
Ideally you need to identify an area and property type that will grow in value that at the moment is selling for less than it’s worth – even in tough times such as these.
Never has there been a more important time to carefully research properties that you buy as over the next ten years, not all properties will grow in value as they have over the last ten and more importantly, not all properties will be rent on a monthly basis with no voids.
If you are a property investor:-
1. You need to realise that the days of ‘no money down’ deals are gone. Any offers that organisations make about ‘no money down’ deals are likely to be breaking the law in some way.
2. Instant money from capital growth and rental income with no time invested isn’t going to make you money over the next ten years.
3. Today’s investor doesn’t stick to one type of property investment. They find ways to buy properties at up to 30% less and ensure they buy a property today that if they sold it the next day would make a profit, all costs included.
4. Property investors that will make money in the future are ruled by yields, not ‘we love this house’ or getting carried away in a bidding war to get a property they want.
5. All good property investors make decisions based on a clear exit strategy, they know when it’s best to buy and sell and all the costs involved.
Finally, don’t look to continue investing ‘on your own’. Running a property investment business as a main business or a sideline isn’t something that you can now do without professional help. You need financial and specialist tax advice and a good legal lawyer.
For more information on property investing purchase our Property Investment eBook or Factsheets, visit the One to One Support section of the website, contact us or call 0845 838 1763.