Sometimes I come across some real straight talkers who just want hard evidence that an opportunity exists.  I quite like these people as they do not need all the fluff, they just want you to prove to them in figures/facts/real data that property works.

So for those who just want me to cut to the chase here we go.  I will prove to you that property investment in the current climate is a damn good idea.

Its because of 4 reasons:

1. rents are rising
2. borrowing costs are dropping
3. property prices are falling slightly hence cheaper deals available
4. availability of buy to let mortgages still strong

This means once you take off the mortgage cost of a cheap property from the newly inflated rents then your profit margins are greater what they would have been 12 months ago.

In effect landlords with current portfolios will start to see increased profits due to borrowing costs falling and rents rising.

1. Evidence of rents rising

see the section "Are rents rising" in the article below:

http://property.timesonline.co.uk/tol/life_and_style/property/investment/article3720172.ece

2.  Evidence of borrowing costs dropping

Here they talk about lowering the BoE rate to avert a recession.  Which has a double effect for us landlords ? borrowing gets cheaper and our debt balance is devalued due to inflation running above the BoE targets:

http://www.bloomberg.com/apps/news?pid=20601068&sid=aYQ_ikzYm0qo&refer=home

3.  Evidence of property prices dropping slightly

We all have heard that prices are dropping but to what extent? Here is April?s figure:

http://www.yourmortgage.co.uk/showPage.html?page=3625225

4.  Evidence of availability of buy to let mortgages:

I know there are plenty of 85% loan to value mortgages available as I am in the process of getting some myself.

Speak to my broker and they'll happily give you the list!

So I hope you can see there are big opportunities for 2008.  If you want us to build you a property portfolio then tell us what you you want by filling out our Property Submission Form.

FILL OUT PROPERTY SUBMISSION FORM

Ajay

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Posted on: 28th Apr 2008