It is kind of weird at the minute.  EVERYONE is reporting house price rises.  All the latest data from the biggest names have reported consistent rises however everyone is playing it down.

 

"Do not read too much in to the figures"

"Double dip"

"Unlikely to carry on increasing..."

 

It is as if the people reporting the stats cannot believe the stats.  I can just imagine when these organisations get the data they are double and triple checking that their data gathering tools are working correctly!

 

So they have to rip up their usual dribble about how we are all doomed and we are all going to die(!) etc. and put in the positive news but then say we will all die but just a bit later!

 

If you are looking at this whole episode of property history with the view of making money from it then you might see the following:

 

• Yields are decent.  This has not been the case for a long LONG time.  I remember when property companies were claiming a 6% yield was good!  You can get 8%+ yields and borrow at sub 5% rates. Margins have never been so good.  For those who like the really high yielding stuff and can get commercial funding you can get 12% yields and borrow at 3%.  That is a clear margin of 9%.  Every £1m invested expect to make £90k p.a.!
• No money down investing is possible.  Because you require big discounts from the vendor to do no money down investing and since it is a buyers market investors are buying up big time from those who are desperate to sell.
• It is a niche industry.  Property investing is now non-mainstream.  When it does come back (which it will because the nation LOVES property) whatever you bought will get dragged up in price.  Quick gains can be had but should not be sought.

 

So if you can really see through all of it you may be on the brink of providing for yourself with little effort if you make the moves. 

 

So are you ready to move?  Let me know.

 

Ajay

 

 

Posted on: 2nd Oct 2009