Is the property Market all doom and gloom – Not for Buy to Let Investors!!

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 6, 2007 -- It seems that we are besieged at the moment with stories of uncertain house price inflation and the market slowing down but what does this mean for the buy to let investor.

In this uncertain climate with such conflicting views it is extremely difficult to know what to believe. Last weeks Hometrack figures (Considered by some to be the most reliable source in the market) revealed a drop in selling prices of 0.5% in the most affluent London areas. However Hometrack also reported that less people were putting their houses up for sale, perhaps they are waiting to see what happens with the much speculated interest rates or are unwilling to commit to a new property in such uncertain times. This combined with the CML (Council of Mortgage Lenders) prediction of a rise in repossessions and a drop in mortgage lending in 2008 give a very gloomy picture of the housing market. However conflicting with this are figures from Nationwide published last week that show house prices were up 1.1 % but they went on to say that ‘The underlying dynamics of the market are clearly not as strong as this time last year’ and again a report of less people searching for properties and less mortgage approvals was indicated.
The resounding opinion coming from the leading estate agents seems to be that although the market is not as buoyant as that of 2000 and the height of the boom is over that it will be a soft landing rather that a crash and house prices will remain steady and show modest 3% rises.

What does this mean for the private landlord and buy to let investor ? Well, the hardy among us who are in it for the long term will benefit from peoples caution to commit. Property Investment company Inside Track’s Head of Communications Pierre Williams said the negative headlines were not ‘borne out by reality’ and that short term fluctuations were not the prime factor - it was how the market performed in the long run. He went on to say the worsening undersupply situation and the buoyant overall economy would underpin long term property prices. He added that the high inflationary state in the market was ‘not sustainable’ and the slowdown could be seen as a ‘relief’. If the market stabilises long term growth will be underpinned and investors should be able to plan for an investment future in the property market.
In the short term there is much a buy to let investor can do to protect their investment. The savvy investor:
• Keeps tabs on the property locations through local newspapers and websites
• Performs their own due diligence with respect to rental yields
• Takes décor into consideration. Poor décor can be costly in both time and money.
• Furnishing their property to suit the potential tenant. Companies such as Lodge Furniture can supply furnishings with a style and cost to suit most rental properties.
• Gains as much local knowledge as possible.

In the long term investors should be able to plan ahead with the promise of a more stable market.

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