| This article is based on predictions for the UK | | | | will probably be a year when the people the banks |
| property market in 2009. Its goal is to help property | | | | love, will be able to prosper and the people that don't |
| investors who invest in the UK to have a better | | | | quite fit the banks profile and criteria will struggle, |
| understanding of what is happening in the property | | | | unless they can find away of getting around their |
| market so that they can make educated decisions on | | | | funding problems. Investors that are having difficulty |
| where and how to invest. | | | | getting funding will need to think laterally and consider |
| Property Prices in the UK | | | | doing things like joint ventures with investors that |
| Prices will most likely continue to fall throughout 2009. | | | | the banks do like to lend to. |
| If your investment strategy has previously been | | | | Many banks are currently viewing full-time |
| based around capital growth, then you seriously need | | | | professional property investors with large portfolios |
| to rethink. Property investment strategies that are | | | | as high risk and as a result are reluctant to work with |
| based mainly around capital growth will most likely | | | | them. Hence, it is sometimes the full-time investor |
| struggle over the next few years. The financial | | | | that needs to seek out the smaller investor to work |
| market is very unstable at the moment, so if you | | | | with as well as vice versa. |
| were planning on using the equity in your properties | | | | Which Property Investors Struggled and Which Ones |
| as money to live on, then you are in for some lean | | | | Thrived in 2008? |
| times ahead. | | | | Property investors that relied on releasing equity and |
| That said, if you buy now you can pick up bargains | | | | capital appreciation as a main part of their strategy |
| that are significantly below market value (BMV) and | | | | have struggled. Those that coupled this strategy with |
| therefore you will be locking in great capital growth | | | | buying new build or off-plan properties are currently |
| for yourself for the future. | | | | going through a desperate time, if they are still |
| Keep in mind that not all areas and all types of | | | | investing at all. |
| property are dropping in price at the same rate. You | | | | Cash or equity rich investors that have been involved |
| need to know your own investment area because | | | | in property investing for a number of years probably |
| you may well be in an area where prices are not | | | | did well through 2008. Even though the value of their |
| dropping at anywhere near the national average or in | | | | pre-2008 portfolio might have dropped, their ability to |
| an area where certain types of properties are | | | | still buy property at hugely discounted prices will |
| actually holding their value reasonably well. | | | | probably have made up for the shortfall. |
| Rental Yields and Values | | | | Property investors that historically focus on monthly |
| This is a difficult one because on the one hand, in | | | | positive cash flow producing properties, which where |
| many areas rents are going up and the demand is | | | | bought at below market value, are the ones that |
| high, because many people can either not afford to | | | | currently have the biggest smile on their face. Many |
| buy or don't want to buy in the current economic | | | | of these investors are now looking at better rental |
| climate. Yet on the other hand, there has been a big | | | | yields than they have had for years. They are looking |
| increase in the amount of homeowners who have | | | | forward to another year of potentially increasing the |
| not been able to sell their own property and who | | | | rents they charge their tenants and increasing their |
| have decided to rent it out instead. This has meant | | | | rental yield at the same time. |
| that in certain areas there has been an oversupply of | | | | What Types of Property Investments to Focus on in |
| rental properties to the market and as a result rental | | | | 2009. |
| prices have remained stagnant or even been forced | | | | It's time to get back to the basics of buying BMV |
| down. These trends will probably continue in 2009 | | | | cash flowing properties in the right areas. Now is |
| and the majority of areas will probably see an | | | | always a good time to buy property if you learn the |
| increase in rental yield, while some may not see any | | | | fundamentals of how to buy cash flow positive |
| increase at all. | | | | properties, in the right areas, at the right price. |
| The Problem with Financing Your Property | | | | Don't be afraid. There are even new builds that have |
| Investments | | | | now legitimately been reduced in price so much, that |
| Even though interest rates have being cut, lenders | | | | the figures actually stack up. Auctions are also |
| are still being selective about passing on any cuts, | | | | becoming places where, just like the good old days, |
| and even when they do pass on cuts, they are being | | | | you can once again pick up bargains. |
| very picky about whom they pass them on to. 2009 | | | | |