Property and Real
On a daily
basis we are being told that the housing market is ready for bust, that
there are no growth opportunities. The fact is that the last time the
property market was in downturn the negative equity situation really only
affected those in London & the South East. The truth is that property has
doubled in value every 7 to 9 years since records began. Rents have also
doubled every 9 to 12 years. What this means to any investor is long term
quality & safer growth in their investment.
People will always need somewhere to live and business will always need
somewhere to function from, so even if we do see a slower market for a few
years there will be another growth period after it. So the savvy
investor will use this time to leverage well and to capitalise on the
Here are key factors to watch for:
1. The cost of borrowing & how you control your cashflow. How will you
hedge and protect your assets with another type of investment such as a
business and equities. What yield will you achieve and what will be your
return on capital employed?
2. Level of inflation and the economic factors and cycles influencing this
to anticipate the future and your decision making. Good
experienced investors will plan well ahead and know what strategy to adopt
to benefit from all market situations.
3. Taxation, interest rates, employment opportunities, better transport
links all affect the subsequent demand for housing in the area you may be
4. How much time do you have to invest in a property - be realistic.
If you don't have the time because you are working then use an agent. A
word of warning though but make sure that they are really looking after your
interests, not charging the earth, because you should not be dealing with