Property Investment
Review For 2010
Sunday 5th of February 2012
Outlook On The Property
Investment Market
In 2010
2010 is going to have major lending issues for buy to let property investors in the UK, and rising interest rates could also put a lot of pressure on the entire industry, according to experts.
Looking at the market from a lettings view, everything that will happen in 2010, is going to controlled by the bank’s ability to fund investors and home buyers alike.
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When property prices do start to rise possibly in the middle of 2010, then there will be huge implications on the lettings industry.
For home buyers looking to upsize, as an example, the effects of the bank’s lending could force them to be unable to sell their property and they will result in renting out their current property rather than selling it.
There will definitely be a reduction in the number of instructions, as we have already seen this in the past few months.
On the other hand, this could start to encourage more people to look at the rental market, and also encourage first time buyers to stay in their current rental properties until they see what is going to happen to the property market.
The increase in people wishing to rent, will bring with it a stable rental market.
The key for most property investors in 2010 is to be more open minded about their buy to let investments. Unemployment is still remaining a problem and continues to grow, so tenants may not always have a clean credit record or even be in employment. Read my 8 top tips to buy to let investment here.
This does not mean a tenant is going to be a high risk, but it does mean that extra measures will need to be put in place such as guarantors to protect your investment and ensure you do not get any void periods.
All in all the outlook for 2010 looks positive for property investors. Although there will not be as many available properties on the market, the rental market will remain strong.
Best Regards,
Colin Parker
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'Armchair Investment' At Its Best GUARANTEED Property Discounts GUARANTEED Rental Income GUARANTEED Money Back Offer You Invest - We Do The Rest!please enter your details below ...
Valuation £60,000
You Buy At £48,000
Gifted Equity £12,000
Rent £375pcm
Mortgage £130pcm
Gross Income £245pcm
Total Investment £16,985
Valuation £100,000
You Buy At £80,000
Gifted Equity £20,000
Annual Rent £6,300
Annual Mortgage £2,610
Gross Income £3,690
Total Investment £24,985
Note: Mortgage interest rate calculated at 4.35%. Rents are averages for property valuations. Other costs will reduce gross rental income - management fee is 10% of the annual rent (only paid if property is tenanted) and buildings insurance will be c£125pa.