Property Investing

It has been a difficult couple of years for property with values falling and credit problems making it difficult to raise ‘buy to let’ finance to buy properties.  As someone who likes to invest in property, I have been affected as much as anyone with the value of my portfolio falling and my purchase ability curtailed by the lack of investment mortgage products on the market.
Now, however, may be the time to consider property investing, expanding your portfolio or deciding to make your 1st property investment.  According to property valuation site Zoopla.co.uk, the average UK property has risen in value by £57 every single day since April 2009.  They also claim that these booms are occurring across the entire UK, as in Scotland estate agents are selling properties at 5.25% more than they were in January of this year – 3% more than the rest of the UK where property prices have risen on average by 2.23%.
So, it seems that property prices are on the rise which means the market is recovering.  That’s all very well, but people often ask me if now is the time to invest in property, what should they buy?
A good idea comes from the property experts at Savills.  In a recent report, the international property consultants revealed that neglected properties are now selling at 10%-35% below fully modernised homes – a difference that is perfect for investors who have got cash to invest.  With such savings readily available, this extra cash flow can easily be used to do up these properties, and bring them up to the same standard (and value) of their neighbouring homes.
I like this idea, and it is a tactic I have used before.  In the present market where there are fewer homes for sale, buyers are more discerning.  Properties in good condition are more saleable and achieve better values and so properties that need refurbishment are able to be bought at very low prices.
Another way I find good value property is on the website propertysnake.co.uk.  This site monitors property prices and has a database which is updated daily and shows reductions in the asking prices of properties across the UK.
One of the other good property investment tips I read recently was to consider property investing now to take advantage of the very low interest rates available.  Whilst you might have to put in a slightly higher deposit than, say, two or three years ago, you are likely to be able to secure a good value long term fixed rate on your borrowing thanks to the record low Base rate.