It’s been an interesting week or two as we look at the prospects for property investment.
Of course, we’ve had Bank of England Governor Mervyn King reporting expected growth and falling inflation over the next 2-3 years in the last couple of days – a welcome change after what seems a very long recession.
Within the property world itself there have been a series of encouraging reports:
First of all, the latest home owner optimism report (“House Price Sentiment”) suggests that more home owners believe that the value of their properties rose in April. In addition the rate of the rise is reported as the fastest since the index started in Feb 2009.
Interestingly this confidence crosses the age range, with increased confidence both among younger and older owners.
There are regional differences as usual, – with London, as ever, outperforming and Wales one of the weaker regions.
One of the underlying factors may well be the boost in confidence which has followed on from the government’s “Help To Buy” project, announced in the budget.
This appears to have triggered an immediate increase in the number of first time buyer enquiries, according to agents across the country – even though the guaranteed mortgage part of the deal will not come into effect until next year.
consistent with theis agents reported overall an increase in enquiries during April – the first for almost 3 years.
Alongside this tenant demand continues to rise – and outstrips supply.
So, how will this impact all of us as property investors?
First of all of course, this is good news for all existing property investors and especially anyone with negative equity – the propects for groth in value have improved at last.
What it does also mean though, is that it may become ever harder to find great deals to invest in. Substantial discounts will be harder to negotiate.
However, it will take time for the improved confidence to filter through into higher prices – and meanwhile there are still some great opportunities out there. Plus risk will have reduced a little as the economic outlook improves.
All in all, it’s a great time to invest in property. Provided of course, that you ensure the figures stack up – and that you buy the right property in the right location.
Discover more about today’s property investment opportunities at our next PIM on 30 May 2013 – 6-9 pm Holiday Inn Bristol
If you want to find out more about property investment, or are looking to expand your contacts or knowledge, then do make sure you come along to our next Property Investment Meeting – PIM – on 30 May 2013 at Holiday Inn Bristol City Centre – we have a great headline speaker, Francis Dolley, a successful property investor in Bristol, who will be talking about his astonishingly powerful and simple Multi-Let Cashflow System.
Plus it’s a great networking environment and there’s plenty of time to chat to property professionals and get all the latest inside info!
We have a great 2 for 1 offer too – so you can bring a friend or partner free.
To Your Property Success
Del Brown, Property Options