Is Now A Good Time To Nab A Property Bargain?
By Mary Waring
Experienced property investors do not tend to follow the sheep, and now will be an ideal time to add to their portfolio. Prices are dropping and tenant demand is rising sharply. Even with rental rates falling - a long-term view on a buy to let property is still a good idea - and the “pros” know this.
Inexperienced property investors buy when all around them are buying, which pushes the prices up and makes it more difficult to buy at a competitive price.
Experienced investors know that now is the time to look at buying property at a bargain. It has been said that there is no such thing as a “cheeky offer” in the current environment. Some sellers will have to sell and therefore what seems to be a low offer to you, may be acceptable to a motivated seller.
You can be assured that those who have made money from property will be viewing the current market as a buying opportunity and be snapping up as many property bargains as they can get their hands on!
It has often been said that the profit on a property is made at the time you buy, not at the time you sell. Therefore, you must ensure you buy at a competitive price. What better time than now to ”nab” a bargain?
** Property millionaires outnumber those of any other investment class **
Typically those that haven”t made their money directly from property generally invest in it indirectly. There’’s nothing wrong with seeing what successful people are doing and modelling this by applying those principles to your own life.
If the majority of extraordinarily wealthy people have used property profitably, it stands to reason that there’’s money to be made in this sector.
** Long-term capital growth **
Residential property has an unparalleled track record of producing high and consistent capital growth. In the period since the Second World War the value of UK residential property has, on average, doubled every 9 years.
Yes, there have been temporary dips in property values but property has subsequently recovered and values have gone on to increase.
For example, the Nationwide house price survey shows the average price of a house in Quarter 2 1989 was 116,674 (GBP). Prices then started to fall and sank to a low of 73,079 (GBP) in Quarter 4 1995. However, prices started to rise and by Quarter 1 2002 the average price had climbed to 118,100 (GBP), a figure just in excess of the previous high. The figures available for quarter 4 2008 shows an average value of 156,828 (GBP).
So even accounting for the recent falls in property value the average house is still worth more than twice the figure from 13 years ago.
About The Author
Mary is the founder and MD of Mary Waring Associates Ltd, set up in response to the number of people she met who wanted to acquire a residential buy to let portfolio. Find everything you need to about buy to let property on the Mary Waring website
Mary is:
* a successful property investor
* a highly experienced independent mortgage adviser
* a Chartered Accountant with experience as FD of a property company
