There has been a full 180 degree turn between the two of us namely first time buyers and investors.
2 years ago first time buyers had access to all the lovely high LTV finance. 125%, 110%, 2nd charge lending etc. they could out bid us and refurb it better than us as they had more to play with.
Now fast forward to now. Investors and first time buyers have pretty much the same LTVs offered to them. Yes there are 95% for first time buyers but rumour is no one gets offered them!
So based on the fact that we have the same finance offered to both investors and first time buyers it becomes a level playing field. But think again.
We have an advantage over these sort of buyers. We are aware of no money down schemes! A first time buyer has absolutely no knowledge of such schemes. Just try it out. If you work in an office or have a brother or sister just tap them on the shoulder and ask them these 3 questions relating to property:
There will be a resounding NO to all three questions. This is because to the first time buyer there is no interest level for this sort of knowledge. Most people just get on with their lives. It is just us crunchy nut cornflake nutters who know about these schemes because our livelihood depends on it.
So the advantage has tipped in our favour hence property prices look favourable as we are the only real ones buying and we drive hard bargains!
I watched panorama yesterday and it was all about the pension crisis. All these people who had contributed to their pension policy and are getting a pittance from their contributions.
Hello! NEVER give your money over to any company or organisation with the promise that they will give it back to you. Even if they try to bribe you with various tax advantages.
You must have full legal protection over your money and the only way I can see you have full legal protection is if your name appears on the title deeds on any property located in the UK.
The only way you can lose your right over property is if the Land Registry collapses. If this happens then I can only think we would be in the middle of World War 3!
And remember ownership of a property means inflation proof recession proof income for the period of ownership. You can forget about property prices once bought as the simple reason you bought the property was for its cash flows - NOTHING ELSE.
So. Are you going to join the big property grab of 2009? Not sure? Speak to us.
Posted on: 30th Mar 2009