Singing Pig

Hi everyone

And especially to Clottie!

Well can u belive I am at last ready to invest. BUT look whats is happening in only a few months since I posted!!

I sold my house (last August) just in time but what to do now. What I wanted to do was to buy to sell but I dont think thats on now? What do people think!!

I have £50,000 to invest-what should I do? ANY advice would be gratefully received believe me as according to the papers we are doomed.......................

However I did see these:

http://uk.reuters.com/article/personalFinanceNews/idUKNOA54682120080515?pageNumber=3&virtualBrandChannel=0

 and

 http://uk.reuters.com/article/personalFinanceNews/idUKNOA92101120080519

So what would professional investers here on this great forum suggest I do.

thanks

Hi Housebot, the housing market is not finished.  Remember, investors make money when the market is down and when it is up.  Having said that, do you know you that you can generate cashflow without owning property or even getting a mortgage?  This is what I currently do.  It is pertinent to change strategies in line with the current situation.  Rather than applying for a mortgage or wasting my time on that I merely aim to control property and generate cashflow from it.  How?  I hope the below helps.

The Cash Flow Gurus - Rick Otton and David Lee Presentation at Maidenhead on 29th May.  Too crucial to be missed in today's market. Book Now!  http://tinyurl.com/5ld8ur

Generate Cashflow From Property For Today and Tomorrow Without A Mortgage!  http://tinyurl.com/5duycj

Tunde

www.MimiTobiasProperties.com

Yes, and there were more millionaires created during the great depression of the 1930s than at any other time.

 A professional investor (in housing or any other asset class) is someone who can make money regardless of what the market is doing.

Property values is only one key indicator in this industry and if you are an investor rather than a trader it is of relevance only when you buy, sell (which you probably won't) or refinance.  The more important measure for an investor is/should be cashflow.  Traditionally, as housing prices soften, rents increase so you should start to see some improvements in achievable rents.

 The other thing of course is that if there is a downturn, a professional investor will be looking to buy more rather than sell what s/he already has.

Of course, the one thing we can't do in property that a stock market investor can do in a falling market, is sell shares you haven't got on the basis of being able to buy them back cheaper to fulfil the contract.  Doesn't quite work with property does it??

 Tunde - I'd be interested in your experiences of using Rick's rent to own strategy.  I have the manuals but so far haven't found either vendors or tenant/buyers able to get their head around it well enough to feel comfortable doing a deal on this basis.

In the current market, everyone who can't sell their house or flat seems to be trying to rent them.

In the last property downturn, there were very few private rented properties, so I am not sure if there is any evidence of rents increasing in this situation. If this all turns into recession then rents will be further limited by unemployed tenants.

I agree that cashflow should be king, currently where i live landlords are trying to sell 4 bed student lets at £240K.  This is a yield of around 4%, not mortgeable and in a climate of drops in value I would be looking to buy at yields of well over 7%.  This implies capital value drops of 40-50%  (students can't pay much more rent and if they can they go to a nice shiny Unite block!

I would say that the housing market investor should stay out of the market until capital values drop to a level that reflects a realistic level of net rent. Investing on the back of the hope of ever increasing capital values is finished.

Chas