Property investment * advice on how to make money out of investing in property in the UK and abroad and find the best deals * America * Australia * South Africa * New Zealand
Start of article about investing in property.
Property, like any other investment can go up and down in value and whilst property has continued to show a year on year price increase for the last fifteen years, there is nothing in the world that is protected against market fluctuations and property at some point is going to drop in value.
Timing on when to buy, when to hold and when to sell is everything. If you are looking at a long term investment, then property is just about the safest investment you can make. However, this depends on the rental markets, property maintenance costs and other practicalities and market conditions that will be outside of your control.
Investing in property is not simply buying a property and watching it go up in value. There are numerous factors you need to take into account and each of these factors will be influenced by other conditions that will influence the way you make a decision both before and after you buy.
WHAT AND WHEN TO BUY INVESTMENT PROPERTY
We have property finders throughout the UK and in all the overseas property hotspots throughout the world but lets use the UK and USA property markets to give examples as they will have both a direct and indirect influence on the world property markets. If you are thinking of investing in property, you have to look at all the influencing factors before making a decision.
The USA sub prime lending markets have caught a cold in recent months due to irresponsible lending where people who could not afford to buy a property have defaulted on their mortgages. This has resulted in hundreds of thousands of properties being dumped back on the market, property prices have crashed, interest rates have risen and the USA is facing a recession.
Low cost UK mortgages
Cheap overseas mortgages
Cheapest removals to America
Removals to Australia
Now you would think that property speculators would be muscling in on the American property market and buying up properties because they are so cheap, but they are not and there are a number of reasons for this. Interest rates are relatively high at the moment and likely to go up as the lenders write of billions of dollars in bad debts. Property prices are likely to continue to fall in the states and if you buy property as an investment, it is either to sell on again or rent it out. However, the rental returns would be low, the supply is too high and the demand is poor. Investing in property in the USA at the moment is therefore not a good option and investors are keeping their money in safer more secure investments.
There is saying "When America sneezes, Europe catches a cold." The World's largest economy has caught a cold which means that Europe especially the UK is likely to go down with a bad dose of the flu and whilst this is not likely to be terminal, there are a lot of inexperienced property investors who will not have been inoculated against what is likely to happen next.
So should you even be investing in property in the UK and if not, where are you likely to find the best property investments?