2008 could be our year!

[sqftmag]

Am I the only person who throws things at the TV when doom merchants rant on about a falling property market? As I and other investor friends see it, 2008 could be our year.

The future for us landlords could be surprisingly positive. The Royal Institution of Chartered Surveyors recently reported record growth in the demand for rental property, and the National Landlords Association claims one in four landlords are feeling so confident they are planning to grow their property portfolio significantly over the next five years.

Whether you're an experienced landlord with a large property portfolio or an amateur investor poised to dive into buy-to-let property, next year looks to be an interesting year.

The downside could be:

• Increased mortgage costs following five interest rate rises
• Predictions that house prices will flatten out or fall, reducing the likelihood of significant capital growth
• Fewer transactions in a weaker property market.

Yet, on the upside you have:

• The chance to capitalise in a buyer's market where repossessions are set to rise
• A predicted 10% increase in rental demand,
• A growing pool of immigrant tenants and first-time buyers who cannot afford to buy or who prefer not to do so in an uncertain market
• A further drop in interest rates on the horizon.

What's your view?

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[Kimberley Charman]

I agree. I am currently lining up my funds so I am ready to increase my portfolio when the conditions are right. These TV programmes and many of papers can't wait for a property crash or dip. I suspect most of them don't have any investment property! They're so short-termist in their view. Property is a long-term investment with ups and downs. The down times are bad for sellers but great for buyers. So I'm looking forward to the buying opportunity ahead.

Kimberley Charman
Director, Property Investors Road

[AnotherPropertyGuy]

It's refreshing to hear from some positive people about UK property!

With the average price of property at 6 times income, I think it is time for prices to fall. It's not affordable for first time buyers and it reduces the property options for lots of people wanting to move to a property with more space. A correction of about 30% would be fantastic news for millions of young people in the UK.

Inflation is a growing problem, affordability is a problem, the world economy is looking shaky. On the flipside, I believe immigration is the biggest factor fuelling property prices. The demand for property (to buy or rent) is supported by ever increasing immigration to the UK.

I predict a fall in the UK and have sold to rent. I am now looking for somewhere else to invest my savings.

[Paul]

Haven't got time right now for the nitty gritty, but here here, well said that man!

Originally Posted by sqftmag

Am I the only person who throws things at the TV when doom merchants rant on about a falling property market? As I and other investor friends see it, 2008 could be our year.

The future for us landlords could be surprisingly positive. The Royal Institution of Chartered Surveyors recently reported record growth in the demand for rental property, and the National Landlords Association claims one in four landlords are feeling so confident they are planning to grow their property portfolio significantly over the next five years.

Whether you're an experienced landlord with a large property portfolio or an amateur investor poised to dive into buy-to-let property, next year looks to be an interesting year.

The downside could be:

• Increased mortgage costs following five interest rate rises
• Predictions that house prices will flatten out or fall, reducing the likelihood of significant capital growth
• Fewer transactions in a weaker property market.

Yet, on the upside you have:

• The chance to capitalise in a buyer's market where repossessions are set to rise
• A predicted 10% increase in rental demand,
• A growing pool of immigrant tenants and first-time buyers who cannot afford to buy or who prefer not to do so in an uncertain market
• A further drop in interest rates on the horizon.

What's your view?

[AnotherPropertyGuy]

I think that rental prices will hold up and probably increase as more people sell their houses in order to rent. With house prices falling, an increasing number of homeowners will try to sell their house and cash in while the prices are high. These people will then rent.

Buy-to-let landlords that have overstretched themselves and have equity of 10% or less could be in trouble when it comes to refinancing. They represent a greater risk to lenders. If they do get financing, it will be at a premium rate. Landlords that have a good amount of equity in their portfolio (my guess is 25% or more) will be fine.

Property has always be a long term winner but in 2008 the value of landlords portfolios will fall and banks will become more cautious. If so, landlords will find it hard to get the finance to grow their portfolios. Better to wait and watch.

I take all news from the National Landlords Association with a pinch of salt. They have a massive vested interest. When making investment decisions, you should rely on unbiased information.

[Paul]

I also expect to see some extra bargains for the serious investor as less experienced landlords having had their confidence shaken look to withdraw from the market...

[Property Developer]

Great opportunities for cash buyers. We won't see another year like 2008 for some time. Fill your boots!!!

[misch.chief]

Tis true, but for actual house prices, it isn't low enough yet

I agree!! For investors looking to buy this is a fantastic time! I think all the scare mongering on television is ridiculous. And all the people who are saying "oooh no I'd wait" are wrong. Wait too long and you'll have missed the boat! Buy now - prices are bound to rise again.

[bill mccallum]

I'm relatively new to the forum and definately new to property investment, but this year is when i get started, already looking at a number of opportunities, but I'm concentrating on places off the beaten track...

most nuy-to-let investors and BMV's are looking at the major towns and cities, but I'm looking towards rural markets where values remain high, some areas in the south west you cant buy a 1 bedroom flat for less than £120K...

So while the "investment gurus" are sitting on their over priced flats in Manchester & Leeds, I'm looking at Devon & Dorset.

1 example is a 10 bedroom house for only £250K... a little work and it becomes 3 flat leases and worth £560K so if all goes to plan £200K profit in less than 6 months.

anyone interested in JV let me know mccallum_bill at hotmail.com