It is an ill wind that blows nobody any good 

With all the bad news currently in the media about the property market, you could be forgiven for deciding to abandon your property investment ambitions, or at least for postponing them.

In our view the current credit squeeze is going to mean the end for the 100%+ mortgages used previously by the majority of investors to purchase over hyped, over priced, brand new off plan “executive” apartments. However as we always thought the deals were rubbish we are not planning to lose much sleep about it.

Of course those people unfortunate enough to have reserved one of these units two or three years ago may now be looking at big losses, particularly if they need to sell quickly or if they are now required to find a deposit they had not planned for due to the withdrawal of their “100%” mortgage.

It is also true that some people will also find that they can no longer borrow enough money to make UK property investment viable for the moment. 

Money under the mattress then?

On the other hand, anyone who can still qualify for a mortgage and who has a deposit available may be in a position to bag a real bargain over the coming months. As we said, it's an ill wind that blows nobody any good.

The current market correction can therefore be seen as a good thing for anyone seriously interested in buying property as an investment over the medium to long term. It could even throw up some profitable flips if the increase in enquiries we are getting from those who wish to ‘sell fast’ is anything to go by. It's also good for first time buyers and anyone moving up the market.

An Exciting Time

We think that now is the most exciting time for property investors in years. As we have so often said at our seminars it is much better to buy on weakness and sell on strength than vice versa. Or, put another way, better to buy on the first part of a down swing than the last part of an upswing.

Need Not Greed

However we would like to take this opportunity to remind everyone of the biggest reason for buying property as an investment in the first place. And that is because it is the only viable way that most people are going to achieve financial security. Or, put another way, buying property now may be your best chance of avoiding poverty in old age.

(You could try saving enough money from your earned income but to be honest unless you are earning a fortune we would not recommend it).

This window will close

Of course we can't promise you that there will not be a global economic collapse next year. What we can say is that if there is, it won't just be property owners who suffer, it will be everyone. In the mean time, just in case we are not about to be catapulted back to the Stone Age, you have to consider the possibility of a recovery and if interest rates fall that recovery may come sooner rather than later.

You don't have to go it alone

As we keep saying, it is not our goal to convince anyone that property is a good investment, far from it; you need to make your mind up on that one yourself. Our goal is to convince you that if you do want to buy property as an investment, you are better off with our help than going it alone.

In the mean time, our current recommendations are

• Review your finances
• Make a plan (with our help)
• See the glass half full  

Choices Acquisitions and Investments

01342 840000