The Current Market
Some positive news on property, in the UK, and with a recent survey of high net worth clients also showing that property, and residential property in particular, is still their main area to invest in! We also highlight an exclusive new private finance option for investors as well below! We also have some excellent new deals due in this week - see below. And for those waiting for information on how to source unlimited below market value opportunities close to home, look out for more information at the start of next week!
The Rich still prefer Residential Property
The Sunday Times reports, "Property has pipped equities to the title of most popular asset class among the world’s wealthiest individuals, according to a report published last week. The survey by Knight Frank of Citi Private Bank’s international high-net-worth clients — those with assets worth more than $10 million (£6.6 million) — showed that the bulk of their portfolios (33 per cent) were invested in property. Equities account for the next-biggest chunk — 24 per cent — followed by cash and bonds, at 17 per cent and 13 per cent, respectively.
The results indicate that even more money could be flooding into bricks and mortar this year — 71 per cent of respondents said they believed that 2010 was a good time to buy, compared with 68 per cent who think that equities are a good purchase.
Of those who have invested in property, residential — excluding the investors’ own homes — was the favourite, accounting for 50 per cent of a typical property portfolio, compared with 41 per cent invested in commercial property, 5 per cent in agricultural and 4 per cent in funds."
So encouraging news for those buy to let investors, knowing even the big players are still continuing to build up their portfolios, and seeing good opportunities out there!
UK Latest Prices
After the first downward recording of figures in February this year for around a year, March recorded a very strong 0.7% increase. After last year’s slight increase, this year I would expect prices to stay fairly flat. Overall this is a pretty good thing for us as buyers, and for sellers.
Yields are good just now for buy to let investors, and with us able to secure deals as much as 25% below current valuations, then yields and instant equity are very attractive.
While mortgages are still not loosening up a lot, the stamp duty window for first time buyers should help encourage more of them to enter the market which is attractive to investors.
There are also hints of 80% buy to let mortgages coming out over the next few months – which again you would expect as the lenders build up their confidence further – and with strict lending criteria still in place ie no self certified mortgages, and firm rental coverage required, they should be minimising their risks – even at 80% LTV
Article Courtesy of Alan Forsyth @ Property Investment Deals
