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