Returning homeowners
Some may say feeling encouraged by increased interest in the property market is strange, unusual and different, but I personally feel this is great news for property investors like you and me. Yes it is a sign that people want to buy, but when you consider everything else that is happening in the property market, this information is still positive. Let me explain.
Firstly there is the number of homeowners emerging onto the market.
During the months of January and Febrary 2009, interest increased by 17% according to Rightmove. So whilst the press may like us to believe that the property market is stagnant and empty, the real truth of the matter is that homeowners are genuinely interested in moving. They do want to spread their wings, move and find a property location filled with new possibilies (okay maybe not that much, but you get the picture – people want to move). The only obstacle stopping them is mortgage lenders, which is where we come in.
Then there is the fact that the media is 2-3 months behind on the property market, meaning the news you are reading in your regional papers today, might in fact not be that accurate a representation of the market place.
But anyways back to my original point: homeowners are returning. They want to buy, want to build on their future and like us want to take advantage of bargain property prices and low interest rates. So what is stopping them? The cost itself.
Registrations to view a property may have risen by 20%, and 2 in 5 first time buyers maybe considering entering onto the property market in the next 18 months, but with mortgage lenders asking for at least a 25% deposit, the vast majority of these interested parties still won’t be able to afford it. Instead they will be looking for a solution to cater for their needs whilst they wait for the right deal to appear.
Add all these elements together and being a professional landlord in the current financial climate is fantastic! You just need to know how to read between the lines, first in order to appreciate what these reports are telling us and secondly to then put this knowledge into action.
Then there is also the fact that all these figures point towards the theory that the property market is nearing the bottom of its price fall.
Considering homeowners are now taking the time to invest in property means they have recognised where the property market is at and want to jump on board before property prices begin to rise again.
And it will. History proves that with every credit crunch/recession, property prices recuperate better than ever before afterwards. So in essence now is truly the time to act. The signs are there. The market is changing!
Okay rant over (sorry for anyone reading this) but I couldn’t help myself. This information has genuinely got me excited about what is to come and has got me thinking of new ways to entice homeowners.
Speak soon guys and good luck!
Wendy xx
