In the past, any homeowner looking to sell their property in Scotland would first have to advertise their property and give a minimum property price quote, before inviting buyers to put in ‘offers over’ bids.

Now what always used to fascinate me about this process was the fact that these quotes didn’t have to be accurate estimations. Using set guidelines, sellers could in fact set a minimum bid for their property which could cause buyers to place bids more than 25% above their original quote. Meaning not only could they benefit from guaranteed capital returns, but they could easily use this extra cash to invest in their property.

However, this has now all changed…

Following the introduction of the ‘Home Report’ last year – which are the equivalent of our HIPs – homeowners must now provide an accurate valuation price of their property, meaning they can no longer experience such sizeable returns.

In fact, Home Reports have impacted on their investment system so much that ‘offers over’ are rarely seen nowadays. Instead sellers are choosing to market their properties under an ‘offers around’ scheme which if they are lucky can generate them some capital, but nowhere close to what they were used to.

I have to admit, that this change to their property investment system has made Scotland a much more accessible location for property investment. Notoriously lower in price compared to properties in the Southern regions of the UK, all the myth – and overspending – behind this region has gone, making their system not that far from their own.

Even their ‘offers around’ is basically a similar version of our own general bidding system where the highest value is usually accepted by homeowners.

I can honestly say that I am thoroughly looking forward to getting stuck into the Scottish property market now it is less of a mystery.

After all, with average house prices of £155,691, and rental incomes of £907.63 a month (based on a 4 bedroom property), the returns far outweigh the investment cost.

Wendy xx

You may remember the other week that I discussed Economists predictions which suggested that because of static property prices, the buy to let investment sector will grow in popularity.

However, I have also been hearing rumours which suggest that property prices are about to go into a double dip.

Now I don’t know about you, but these mixed reports are driving me crazy. For example should I keep investing in property under the pretext that property prices are not going to fall any further? Or should I believe these double dip rumours and wait for these property price falls to hit?

If you haven’t heard either of these stories I’ll quickly sum them up for you:

-          In the Bank of England’s Financial Stability Report they revealed that property prices are at risk of going into a double dip should banks choose to sell off £200bn worth of distressed properties. Not only will these sales reduce banks ability to give loans, but this sudden increase in properties for sale could disrupt the supply/demand balance.

What’s worse, should they do that, banks may be forced to sell off further properties, causing further price falls.

Now as a property investor, increased properties for sale (which are discounted) is great news as this means more opportunities to invest at a more affordable price. However the indecisiveness of these rumours is completely and utterly frustrating.

What is right? What is simple speculation? When is the right time to move and harness these property opportunities…?

The answer is: who knows? I for one have got no idea, but one thing I am certain of is that I will be paying closer attention to what is happening in the property market over the next couple of months.

Wendy xx

For me, my favourite episode had to be when they introduced property expert Andreas Panayiotou. Leaving school at 15 with no qualifications to his name, by 2006 he had managed to build a property portfolio worth £700m which he subsequently sold before the recession hit.

He is proof that it is possible to build a credible property portfolio without having to use your own money; that you can invest without being an experienced property investor.

Then there were their other episodes.

For those of you who were crazy enough to miss Property Watch, here is a quick run down of what they discussed:

Episode 1: Asked the question of whether now was the right time to buy and if property prices would fall further.
Episode 2: Examined mortgage and interest rates, whilst speaking to homeowners who had found bargains.
Episode 3: Discussed the pros and cons of renting, and the UK’s obessession with property.
Episode 4: Looked at property trends and the impact rising house prices will have on the market.

They are definitely worth watching

Wendy xx

I have learnt a great philosophy this week, one that I just had to share with you: ‘It is all about the cashflow’.

Now I know for the last few weeks, I have been harping on about going on a property course – well I have done it, and it was incredible!

I am actually shocked by how little I knew about the property market, which made the course all the more insightful.

Take negative equity for example. We have all got it at the moment. It is practically unavoidable. But what I discovered this weekend is that it doesn’t have to spell the end of the world. Yes it is a pain, and we would all rather not have to watch our properties fall in price, but it doesn’t have to spell the end of an investment. If anything it can lead to a more profitable future.

You see what it all comes down to is cash flow and whether or not your rental property is still generating a positive cash flow.

If it is, so what if your property is going into negative equity. As long as you have got the patience to wait, once the recession is over you can sit back and watch as your property once again experiences captial growth.

I think what many of us forgets is that we have been in a recession before. 1989, 1973, 1923… supposedly we even had a recession during the Roman Empire (wow!). So it is really nothing new to see this. It’s to be expected.

Any ways, I just wanted to pass this onto you, as it has personally given me a new view on my property investments.

Good Luck everyone.

Wendy xx

Hope you all had a great xmas! Now I don’t know about the rest of you, but I have always found Christmas to be a quiet period for property investment. We all seem to drop off the radar, but I’ve started to think that this is a big mistake.

I was browsing on BBC News the other day (I admit it I was trying to avoid having to cook Chirstmas dinner) and I came across an article about falling house prices. Now I know this is old news – we all know that property prices are fallings – but even I was surprised at the extent property prices are falling at.

Commercial properties down 50%
Residential properties predicted to fall a further 15% – bringing it down to an impressive 30%!

The Halifax have even predicted that some properties are falling in price by £1,000 per week! I know, incredible.

So here is the thing – why is the market so quiet? Looking at these figures, the bargains appear to be getting better and better, so in truth what can top your New Year off more than investing in properties at just 70% of the price?

Now I know one reason is because banks are supposedly getting set new targets to achieve in January, and so will be offering more mortgage options, but I can honestly not see the point in waiting.

Can someone help me with this one? Is there really any specific time when it is advisable to wait and not invest?

Anyways happy New year everyone!!

Wendyxx

Visit us weekly to see what the hot property is.

Area Cambridge

Property type Semi detached

Number of bedrooms 5

Length on market 7 months

Valuation £250,000.00

Positive Cash Flow £519.00 per month

This property was chosen from a selection of properties available this week, but felt to be the most promising deal with the potential returns.

With now being the time to buy investment properties, making the right choice is important.

Bear in mind that one of the reasons that house prices keep on fluctuating is because the government cannot match demand for permenant housing in England.  There is a shortfall of 300,000 properties each year so although for now property prices have seen a slight decrease they will always rise as demand is higher than supply.