Singing Pig

PS In response to earlier posts there is never a good time to invest in property or any investment market for that fact. There will always be sceptics that predict the worst and there will also be people to say otherwise! Unless you have a crystal ball theres no real way of knowing. One thing is for certain, to a certain degree once your on the ladder theres no looking back! If you look at property in the long term 3-5 years plus the market will rise, increasing your equity. In the short term, 2008 is the year to buy, the market will level off and dip slightly and then continue to rise. If the market does plateau or dip slightly thats the time to buy... as rents will rise as also! In 10 years time a house thats valued at £100k today will 3 times that amount! Look at prices 10 years ago! Get on the ladder as soon as the opportunity arises!

Nick - this is the newbies forum - and yet we know that you run a property sourcing company  -   you could try to get your facts a more more "on-target".  

 

""If the market does plateau or dip slightly thats the time to buy... as rents will rise as also!  "

 

Rents payable  by tenants bear a direct relationship with wages, not with the price of property  -  just because property goes up in value does not mean that wages do also  - what it does mean is that tenants can afford less expensive and smaller properties.

 

""In 10 years time a house thats valued at £100k today will 3 times that amount! ""

 

Nationally and  historically houses have doubled in price every 7 years  

 

""If you look at property in the long term 3-5 years"  - 3-5 is VERY short term with property  - you will not have paid off your initial buying costs until at least the end of year 2 possibly even much longer than that if you have to do major refurb work on it  !!!

 

lets not paint tooooo rosy a picture hey ?  

Hi,

I was not saying that rents will rise because property prices rise. I was saying that if the market slows or dips slightly people panic sell and as such nobody looks to get on the ladder at that point. Even if the market does go down in value by 30% rents will rise as the rental market will increase as a whole as everyone is looking to rent not buy in the near future. That is then the ideal time to buy!

What I was trying to point out was that even if you get on the ladder now and prices drop slightly or even significantly, if you look at property as a long term investment you will be making a wise move. If you look at property prices over the past 50 years on a graph, prices will go up and down over time, but if you draw a line through it, it still goes up!

My point.... If the opportunity to get on the ladder arises, do it!

I was also saying that if anyone is interested in getting on the ladder I would be more than happy to help. Its not as hard as you think!

Please feel free to log onto www.ebercarmon.co.uk for our low money down deals.

Thanks

nick houghton:

Hi,

I was not saying that rents will rise because property prices rise. I was saying that if the market slows or dips slightly people panic sell and as such nobody looks to get on the ladder at that point. Even if the market does go down in value by 30% rents will rise as the rental market will increase as a whole as everyone is looking to rent not buy in the near future. That is then the ideal time to buy!

What I was trying to point out was that even if you get on the ladder now and prices drop slightly or even significantly, if you look at property as a long term investment you will be making a wise move. If you look at property prices over the past 50 years on a graph, prices will go up and down over time, but if you draw a line through it, it still goes up!

My point.... If the opportunity to get on the ladder arises, do it!

I was also saying that if anyone is interested in getting on the ladder I would be more than happy to help. Its not as hard as you think!

Please feel free to log onto www.ebercarmon.co.uk for our low money down deals.

Thanks

 

I always believe in the 18-20 year housing cycle of rises and falls.  At the moment we are in the part of the cycle where prices have leveled off and are now falling.  Traditionally the fall lasts a few years before they rise again.  I think the balance is about 2/3 rises followed by 1/3 falls every 20 years roughly (This  is usually linked to decaying memories of the last crash in the boom years for example Paragon previously went bust under a different name in the last crash and is going bust now). You will always make money in the long term however in the shorter term of less than 20 years you are significantly more likely to loose out dependent on how close you bought to the peak.  So those who bought in the last couple of years are the most vulnerable to losing out if they sell. 

""Even if the market does go down in value by 30% rents will rise as the rental market will increase as a whole as everyone is looking to rent not buy in the near future. That is then the ideal time to buy!""

 

this makes no sense at all

 

if the market goes down my 30% - why on earth would rents go up ??  IF this happened -   BTL landlords would be buying property in their droves  =  more supply of rentals    =  lower rents .........     - surely this is the underlying philosophy of the whole BMV business !!!!!!!

 

 

Hay... Thanks for All Your Replies! Sorry It Took Long! I Forgot My Password... One More Question I'd Like To Ask Tho...Would Anyone Recommend Bridging Loans? If You Have Little Capital.. Would The Property Have To Be BMW At At Least 25%?...With A Rent Back At 125%?....

 

 

 

Hi Bee,

 Well Bee, the most important step is the first. So spend some time looking into the real nitty griity and get loads of advice off here. Learn from peoples mistakes and piggy back your way to the top.

Regarding not having a job, you need to think long term.. If you want a career in property development you still need to pay the bills so for starters you need to get a job. Unless you sign on but thats your choice. I guess a good way to start would be to work as a property finder and try and get to work for the big boys and work out how they make their money. Then see if you can do the same, but better.

A good way to buy property no money down is to buy BMV from motivated sellers. Stuart Downes has a course on how to do this at http://www.belowmarketvaluepropertyinvestments.com

Hope this helps! Remember the first step is the most important one... Dont rush!

 Best Helen.....