Hi Readers
I don't know about you, but I cannot believe it is christmas in just over 3 weeks! Time really flies these days....Anyway.....We are going to take a very brief look back at the property market in 2007 and look briefly ahead to 2008.
I think 2007 will be remembered solely for the collapse of the american sub-prime lending market and the global credit crunch that quickly followed. There is no doubt that this event nearly brought the global financial markets crashing to their knees. It certainly has proved a death knell for poor old Northern Rock and who knows if they will survive or become one of the most catastrophic collapses for a FTSE 100 listed company in UK history. Whatever happens to Northern Rock, the future and well being of the Bristish Economy and the UK property market firmly lie with the Bank of England, interest rates, the rate of inflation and the price of crude oil.
It has been noted by HSBC recently that if the UK property market is to avoid a price crash, the Bank of England will have to aggressively cut interest rates by 1.25% to 4.5% by the start of 2009 in order to make sure the property market remains buoyant. But there is another side to this....
The Bank of England are expecting to drop interest rates as early as next February with further falls planned for later in 2008 BUT only if the Bank of England's inflation targets are met. If inflation increases above its target rate, then interest rates may be kept at 5.75% or may only fall gradually by 0.25% or 0.5%.
The rate of inflation very much relies on the price of crude oil and if a barrel of crude increases, the cost of a litre of petrol at the pump increases and the costs of transportation and manufactoring for businesses increase,businesses then hike up prices for goods and services to cover these extra costs, which means higher costs for consumers, and in turn the rate of inflation rises. As you can see, the current rate of inflation depends a lot on the price of crude oil, so my advice for property investors out there is to keep a very close eye on this over the next few months....However, the good news is that the price of a barrel of crude oil has dropped to $90 after the US said they had larger than expected oil reserves, but this will need to be watched carefully in the coming months.
So as you can see, the uk property market and the economy are going through uncertain times and in my opionion, confidence will only return to the property market if the Bank of England drops interest rates to 5.0% or below, but we will have to see what will happen in the next 6 to 12 months.
Ok a quick look at 2008.....This is a difficult year to predict as any stability, confidence and growth in the property market will all depend on the Bank of England dropping interest rates so that confidence can come back into the market. However, I feel that property prices will remain largely steady with any growth confined to the north and in particular Scotland.
Ok, that wraps up this post, so I hope that you all have a great weekend and remember to keep a very close eye on the price of a barrel of crude oil and the rate of inflation as these two factors will determine how rapidly the Bank of England will drop interest rates in 2008.
Until next time, invest wisely
Take Care
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Friday, 30 November 2007
Friday, 23 November 2007
Interest Rates Could Fall By 0.5% in 2008
Dear Readers,
Recent news from the Bank of England indicates that interest rates could fall by 0.5% in 2008 if their latest inflation forecast proves correct. The Bank of England calculates that inflation will hover around its target rate by the end of next year.
The city has been predicting a fall in interest rates for some time now and a cut in the base rate of 0.25% could come as early as February next year and a further possible fall in the base rate possible later on in the spring.
However these interest rate cuts are by no means certain with current forecasts subject to what the bank calls "Substantial Uncertainties". With turmoil in the finacial markets, weaker economic growth at home and abroad and slower house price growth, the Bank could afford to cut rates. But with near record oil and commodity prices and plus a weaker sterling all combine to sustain inflation, at least in the short term .
I personally hope that interest rates do fall as predicted because I think that this will not only breathe some new life into the UK property market but will also ease the financial strain on home owners and landlords who are cradling large mortgages.
I will finish by saying lets all keep our fingers crossed!
Invest wisely
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Recent news from the Bank of England indicates that interest rates could fall by 0.5% in 2008 if their latest inflation forecast proves correct. The Bank of England calculates that inflation will hover around its target rate by the end of next year.
The city has been predicting a fall in interest rates for some time now and a cut in the base rate of 0.25% could come as early as February next year and a further possible fall in the base rate possible later on in the spring.
However these interest rate cuts are by no means certain with current forecasts subject to what the bank calls "Substantial Uncertainties". With turmoil in the finacial markets, weaker economic growth at home and abroad and slower house price growth, the Bank could afford to cut rates. But with near record oil and commodity prices and plus a weaker sterling all combine to sustain inflation, at least in the short term .
I personally hope that interest rates do fall as predicted because I think that this will not only breathe some new life into the UK property market but will also ease the financial strain on home owners and landlords who are cradling large mortgages.
I will finish by saying lets all keep our fingers crossed!
Invest wisely
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Thursday, 22 November 2007
Property Investment: Why It's A Good Time To Buy
Dear Readers,
There is a lot of doom and gloom circulating around at the moment with many saying that the property market will crash and the days of large property price growth is long gone. And while it is true that the UK property market is going through a slow down, this does not mean that property is a bad investment....far from it.
With property prices in many areas stagnating and in some areas actually falling, there are going to be a lot of good deals about for savvy property investors to buy some bargains, plus investors will be in a position to really haggle to buy property at the best price.
Another reason for property investors to be positive is that the rentals market is booming. This boom is being fuelled by the mass influx of Eastern Europeans coming to the UK looking for work and a better life. Many of these immagrants are looking to rent which in turn is fuelling demand for rented accommodation.
Another interesting factor to consider is that there are whispers coming out from respected sources that interest rates may fall by 0.5% to 0.75% in 2008. This will mean that borrowing becomes cheaper and this will help to stabilise the property market and will mean that people will have more money to spend.
But probably the biggest factor and signal for a slow and continual average rise in UK property prices over the next 5 to 10 years is there is a lack of housing stock in the UK compared to the size of the population. With the population in the UK soon to top 60,000,000 people for the first time, these people will need to live somewhere either in the form of rented accommodation or to buy property. This means that for the time being demand for property is generally greater than supply which should mean that property prices will slowly rise in the next few years.
House price inflation in the UK in the next few years is expected to be the following 2008: 2% 2009: 7% 2010: 10%. These increases will most likely be fuelled by interest rates falling and the continual demand for property.
There are also lots of excellent property investment opportunities out there for property investors. Every town and city will hold great investment opportunities in the form of refurbishment projects, repossessions or motivated sellers that can be bought for a good price.
All in all, we believe that buy to let in the UK is still a great investment opportunity that will continue to offer investors good returns. Property investors just need to buy the right properties at the right price and plan to hold in to their investments for the medium term so that they maximise their returns.
Until next time invest wisely
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
There is a lot of doom and gloom circulating around at the moment with many saying that the property market will crash and the days of large property price growth is long gone. And while it is true that the UK property market is going through a slow down, this does not mean that property is a bad investment....far from it.
With property prices in many areas stagnating and in some areas actually falling, there are going to be a lot of good deals about for savvy property investors to buy some bargains, plus investors will be in a position to really haggle to buy property at the best price.
Another reason for property investors to be positive is that the rentals market is booming. This boom is being fuelled by the mass influx of Eastern Europeans coming to the UK looking for work and a better life. Many of these immagrants are looking to rent which in turn is fuelling demand for rented accommodation.
Another interesting factor to consider is that there are whispers coming out from respected sources that interest rates may fall by 0.5% to 0.75% in 2008. This will mean that borrowing becomes cheaper and this will help to stabilise the property market and will mean that people will have more money to spend.
But probably the biggest factor and signal for a slow and continual average rise in UK property prices over the next 5 to 10 years is there is a lack of housing stock in the UK compared to the size of the population. With the population in the UK soon to top 60,000,000 people for the first time, these people will need to live somewhere either in the form of rented accommodation or to buy property. This means that for the time being demand for property is generally greater than supply which should mean that property prices will slowly rise in the next few years.
House price inflation in the UK in the next few years is expected to be the following 2008: 2% 2009: 7% 2010: 10%. These increases will most likely be fuelled by interest rates falling and the continual demand for property.
There are also lots of excellent property investment opportunities out there for property investors. Every town and city will hold great investment opportunities in the form of refurbishment projects, repossessions or motivated sellers that can be bought for a good price.
All in all, we believe that buy to let in the UK is still a great investment opportunity that will continue to offer investors good returns. Property investors just need to buy the right properties at the right price and plan to hold in to their investments for the medium term so that they maximise their returns.
Until next time invest wisely
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Wednesday, 21 November 2007
Property Seminars: Are They Worth The Money?
Dear Readers,
Over the past few years with the boom in property prices and buy to let, a whole new industry has been born, the "property investment education and advisory" industry.
Many companies have sprung up offering one or two days seminars promising a dream of showing new property investors of how to become a property millionaire in under 5 years or less. This on the face of it is perfectly fine BUT, these seminars do not come cheap...
Many property seminars will set you back at least £1,500 and some charge over £2,000 for a one day seminar. But some might say that the price is justifyable if they are on the road to becoming a property millionaire but in many cases these property seminars simply give basic information and pad out the seminars with waffle with the main aim of the seminars to offer "up sell" services.
It seems that many people come away from these seminars feeling they have not got value for money and feeling they have waisted their money. So should you really be spending upwards of £1,000+ on a property seminar? In my opinion...NO!
There is so much information out there that there is no need to pay thousands of pounds for it. There are lots of good books, membership websites and forums that give lots of useful advice away at a reasonable price and in some cases for free.
So I see absolutely no value in spending over £1,000+ for a property seminar when you can find out all the information you need to know for free or by buying good property investment books or subscribing to property investment membership websites.
My final piece of advice is if you have the urge to spend a huge amount of money on a property seminar.....think twice and put your money to much better use.
Invest wisely
Kind Regards
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Over the past few years with the boom in property prices and buy to let, a whole new industry has been born, the "property investment education and advisory" industry.
Many companies have sprung up offering one or two days seminars promising a dream of showing new property investors of how to become a property millionaire in under 5 years or less. This on the face of it is perfectly fine BUT, these seminars do not come cheap...
Many property seminars will set you back at least £1,500 and some charge over £2,000 for a one day seminar. But some might say that the price is justifyable if they are on the road to becoming a property millionaire but in many cases these property seminars simply give basic information and pad out the seminars with waffle with the main aim of the seminars to offer "up sell" services.
It seems that many people come away from these seminars feeling they have not got value for money and feeling they have waisted their money. So should you really be spending upwards of £1,000+ on a property seminar? In my opinion...NO!
There is so much information out there that there is no need to pay thousands of pounds for it. There are lots of good books, membership websites and forums that give lots of useful advice away at a reasonable price and in some cases for free.
So I see absolutely no value in spending over £1,000+ for a property seminar when you can find out all the information you need to know for free or by buying good property investment books or subscribing to property investment membership websites.
My final piece of advice is if you have the urge to spend a huge amount of money on a property seminar.....think twice and put your money to much better use.
Invest wisely
Kind Regards
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Tuesday, 20 November 2007
New Build/Off Plan property: Good Investment?
Dear Readers
Over the past 7 years, new build and off plan flats have become popular property investment opportunities for property investors. On the face of it they are attractive investments as you are often buying early with a discount, and offering a brand new property to the bustling young professionals and corporate lets market in towns and cities up and down the country. Sounds like a sound investment doesn't it? But read on further.........
We have been doing some research through the summer and we have found that many large towns and cities are simply seeing an over supply of new build flats and a lack of demand from buyers. This means that these new build flats are struggling to sell and in many cases property investors are having to sell them at a loss just to get rid of them and this is a common scenario up and down the country.
The offplan/newbuild investment property market is a huge industry in the UK with many property investment clubs and property developers offering new build flats off-plan with seamingly good discounts and promises of good rental returns to hungry property investors eager to make a good profit.
However, many of these discounts that are often are not genuine as the prices have often been inflated to make the discounts look more generous so property investment clubs and developers can sell these properties quickly. And for the unfortunate property investor who buys one of these investments without doing thorough due dilligence, the losses can be significant.
Our advice is if property investors are going to invest in newbuild property make sure that you do your research and due dilligence carefully. get any potential investments independantly valued to make sure they are not over priced and the discounts are genuine and make sure there is genuine rental demand for the area you plan to buy the property.
Our final piece of advice for property investors is to always check property valuations and claims are genuine before buying and make sure that all the figures stack up. If the figures don't work or the discounts are not genuine, walk away......
Until next time, invest wisely.
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Over the past 7 years, new build and off plan flats have become popular property investment opportunities for property investors. On the face of it they are attractive investments as you are often buying early with a discount, and offering a brand new property to the bustling young professionals and corporate lets market in towns and cities up and down the country. Sounds like a sound investment doesn't it? But read on further.........
We have been doing some research through the summer and we have found that many large towns and cities are simply seeing an over supply of new build flats and a lack of demand from buyers. This means that these new build flats are struggling to sell and in many cases property investors are having to sell them at a loss just to get rid of them and this is a common scenario up and down the country.
The offplan/newbuild investment property market is a huge industry in the UK with many property investment clubs and property developers offering new build flats off-plan with seamingly good discounts and promises of good rental returns to hungry property investors eager to make a good profit.
However, many of these discounts that are often are not genuine as the prices have often been inflated to make the discounts look more generous so property investment clubs and developers can sell these properties quickly. And for the unfortunate property investor who buys one of these investments without doing thorough due dilligence, the losses can be significant.
Our advice is if property investors are going to invest in newbuild property make sure that you do your research and due dilligence carefully. get any potential investments independantly valued to make sure they are not over priced and the discounts are genuine and make sure there is genuine rental demand for the area you plan to buy the property.
Our final piece of advice for property investors is to always check property valuations and claims are genuine before buying and make sure that all the figures stack up. If the figures don't work or the discounts are not genuine, walk away......
Until next time, invest wisely.
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
Zone 4 Property Blog Is Now Live!
Dear Readers
We have just launched our blog where we will be listing interesting and useful posts and news regarding the UK property market, property investment and other issues to do with landlords and property invesors.
We hope that you all enjoy our new blog!
Kind Regards
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
We have just launched our blog where we will be listing interesting and useful posts and news regarding the UK property market, property investment and other issues to do with landlords and property invesors.
We hope that you all enjoy our new blog!
Kind Regards
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
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