Why now is the time to buy property
Investors have identified that now is an opportune time to invest in property. A recent survey conducted by the Property Investor Show & OPP Live reveals that while only 16.1 per cent of investors purchased UK or overseas property in the last six months, over double this number intend to invest in property in the next six months and are currently searching for the right opportunity.
61.9 per cent of investors are intending to purchase property as a pure investment with 20.3 per cent looking for a part investment, part lifestyle opportunity. 58.5 per cent of these investors are focusing on UK buy-to-let, with 12.7 per cent looking to purchase their first home in the UK, 11.9 per cent, a second home overseas and 8.5 per cent, a second home in the UK.
Assisting this reignited interest in property is the accessibility to a variety of different finance options. While bank finance remains an issue, 17.7 per cent of investors are still able to secure bank loans to fund investment, having enough liquid assets to cover the current LTV ratio, 32.4 per cent have access to savings and 32.5 per cent are able to use the equity from existing assets.
Nick Clark, managing director of the Property Investor Show says: “This shift evident as the Land Registry releases figures that property values in London and the West Midlands rose by 0.8 per cent with prices also up in the east, south-east and south-west England and Wales. Furthermore, during August, the average price of a home in London has increased by almost £1,000 a week.”
Property Investor Show exhibitor and seminar speaker, Stuart Law, chief executive of Asstez plc says: “To make the most of this opportune time in the market, investors need to consider where to buy for income and where to buy for growth. Commercial property such as Tesco stores or trade counters, student cluster accommodation, holiday apartments and holiday resorts, some city centre apartments and USA houses all offer strong opportunities to generate income with net yields ranging from 5.3 per cent up to 15 per cent. However, these yields will drop as demand increases, stock reduces and prices increase.”
“Investors searching for growth on the other hand should consider residential distressed stock from UK developers which are currently 30-50 per cent off 2007’s peak pricing. USA land is also an option with typical plots for detached houses positioned on golf courses starting from £15,000. USA detached houses are also offering strong growth potential for investors with many available at 75 per cent off 2007 prices from around £25,000.”
The Property Investor Show & OPP Live offers an extensive range of exhibitors from all over the world; special sections dedicated to key areas of interest; and seminars, round table and panel discussions covering over 150 different topics will all ensure visitors, whether property industry professionals, seasoned investors or just getting started, will find something of value.
The Property Investor Show & OPP Live will run from 22-24 October 2009 at London Excel. For more information visit www.propertyinvestor.co.uk/london.
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