Property Predictions For This Year
This is our first property article of 2010, and I have to say I think for the keen eyed Investors out there – this year could be an excellent, and potentially final, opportunity to develop your property portfolio.
My opinion, which I will review in 12 months time is that prices will be higher on average than today, maybe not by much by higher. The key is therefore making sure you are buying at SIGNIFICANTLY BELOW todays market value to take full advantage of any rises.
If you were able to get a house valued at £100,000 today for £75,000 and it increases in value in 12 months to £104,000 you have made an equity gain of £29000. Take my advice and use this as an opportunity to expand your portfolio.
'Pundits expecting a house price collapse will look like turkeys by next Christmas, unless the pound really fowls up' is the New Year forecast from the Centre for Economics and Business Research, as reported in the Daily Mail.
Doomsters predicting falls in 2009 got it wrong, while the CEBR congratulates itself for having predicted that house prices in 2009 would more or less be where they were at the end of 2008.
It based its predictions on the volume of mortgage lending, while other economists worried about affordability and average incomes.
It has been predicted that House prices will end 2010 between two and four per cent higher than today.
The CEBR say prices won't fall back significantly in 2010 either. Mortgage lending will continue to improve and interest rates will stay low - unless precarious public finances lead to a sterling crisis.
The shortage of housing supply is likely to continue. As a result, it predicts house prices will end 2010 between two and four per cent higher than today.
Over the longer term, they say, the weak economy will continue to hold back growth, but the CEBR still expects house prices to be around 15 per cent higher at the end of 2012 than they are today.
Article Courtesy of Ross Quin @ Morgan Grey
