UK Property Investment Blog

According to Globrix, one in four properties in the UK have been on the market since the beginning of 2008.

Now before you jump the gun and say ‘isn’t that a bad thing?’ we can tell you straight out that, no this isn’t bad. In fact this is great news.

Why? Because all these properties add up to is an ever accumulating pool of bargains that you can keep on investing in.

Think about it for a second. In the last year property prices have fallen 15%. A 15% drop that would have made a £250,000 property drop in price by £37,500!

So whilst the media would have you believe that drops in property prices are bad, this in fact is far from the truth. The reality is, is that property prices are simply readjusting from their unrealistic highs of 2007 and are finally stabilising.

And the outcome of this stabilisation? Properties – which have previously felt inaccessible in the past – are now becoming more affordable. By the day!

Offer your property portfolio more…

Everything is in your favour. Even as we are writing this, there are a growing number of properties for sale – scattered across the whole breadth of the UK – that are just sitting there, waiting to be bought.

And it is not just one location that is experiencing these low sales. It is taking place across the whole of the UK. Don’t believe us? Take a look at these figures:

Rochdale: 26%
Aberystwyth: 23%
Manchester: 13%

And these figures represent only the properties that have been on the market the whole of 2008, imagine the rest…

But if you still can’t picture how this is great news for you, consider this scenario for a moment. Imagine in one city there are 300,000 properties. Now if you work under the assumption that one in four of them are for sale and have remained unsold, that is 75,000 properties.

Now if you also note that there are over 23 million properties in England and Wales alone, that is a lot of unsold properties, just begging to be bought by you.

Describing their free 2 hour property investment workshop as ‘The most profitable 2 hours of your life’, we have to admit when we heard about Property Mentor, we were a bit skeptical:

“Financial freedom after your first 4 properties? Profit in 30 days? No risk?” – it sounded too good to be true. We thought, surely this couldn’t be possible in such a short amount of time? So we put Property Mentor’s word to the test.

Cosy and approachable, the pure intimacy of their selective 3-5 person workshops instantly put us at ease. Making what was about to happen next, a complete adrenaline rush.

Using their simple step-by-step system, they broke down the flaws in the current housing market into delectable segments, before putting the facts to us straight:

Far from being an investor’s enemy, the credit crunch could be utilized to become your ally. Ensuring you come out owning more properties than you did during the property boom.

And surprisingly it made complete sense. Falling house prices = investment bargains

Even more surprising, they proved that anyone can become a property investor. Whatever your age, gender or experience their easy to use system is specifically designed to maximize your profits, allowing you to find the right properties at the right price for you.

Initially novices to the world of property, we came out of their seminar knowing how to:

• Structure properties for long term success
• Earn money whilst we slept
• Find the right properties at a click of a button using their specialised Property deal analyser and research software
• Get 100% mortgages using no money down deals
• Achieve a 100% tax free income from our properties… and much more

As per usual there has been plenty of activity in the housing market news this week.

On Monday it was announced that saving rates have hit a new 5 year low and pension savings were struggling too – further stengthening the point that property is the place to invest your cash if you want to make any money for the future.

Tuesday saw the announcement that the number of house sales estate agents were putting through had fallen again, showing that there is still less competition from other buyers so you should still be able to secure all those bargains you are spotting. On Wednesday Northen Rock revealed they were slashing their mortgage rates following the bank of Englands interest rate cut, more good news for investors with tracker mortgages.

On Thursday it was reported that mortgage lending is still on the decline, further strengthening the position of the buyers who have the funds approved. Then today  an extension to the government mortgage rescue plan was announced to further help those who are struggling with their mortgage repayments.

• Fri 16^th – Mortgage Rescue Plan is Extended – http://news.bbc.co.uk/1/hi/business/7831756.stm
• Thu 15^th – Mortgage Lending Still Falling – http://news.bbc.co.uk/1/hi/business/7830301.stm
• Wed 14^th – Northern Rock Cuts Mortgage Rates – http://news.bbc.co.uk/1/hi/business/7829095.stm
• Tue 13^th – House Sales ‘Continuing To Fall’ – http://news.bbc.co.uk/1/hi/business/7825418.stm
• Mon 12^th – Savings Rates Hit Five-Year Low – http://news.bbc.co.uk/1/hi/business/7824338.stm
• Mon 12^th – Pension Fund Deficits Hit £195bn – http://news.bbc.co.uk/1/hi/business/7824666.stm

Also are you signed up to the Property Mentor newsletter? If not you should be, every Sunday and Wednesday we mail out to everyone updating them on the latest news and why to get involved with Property Mentor today. You can get yourself on the Property Mentor newsletter list by going to www.propertymentor.co.uk and signing up for the free video clips on the left hand side.

Ok so lets have a look at the news from this week. The big news of course was the bank of Englands decision to cut interest rates again, down to just 1.5% – the lowest in history. This could be good news for those on tracker mortgages as they may see their mortgage repayments cut again, however Nationwide has already said they will not pass on any further rate cuts. What this means is investors are making more money, their mortgage repayments have reduced yet their rent charge has stayed the same.

The other main talking point this week is the fall in house prices continuing to fall with prices now down to the same level as in 2004. This means that there are plenty of bargains around, house prices will recover its just a matter of when…..therefore NOW is the best time to invest. If a property stacks up and its rental income is greater than the mortgage repayments then why wait? By now, its all about cashflow NOT equity.

• Fri 2^nd – House Prices ‘Fall to 2004 Level’ – http://news.bbc.co.uk/1/hi/business/7807724.stm
• Fri 2^nd – Nationwide Ends Tracker Rate Cuts – http://news.bbc.co.uk/1/hi/business/7807813.stm
• Mon 5^th – Mortgage Rationing Gets Tougher – http://news.bbc.co.uk/1/hi/business/7811357.stm
• Tue 6th – House Prices ‘Fell 15.9% in 2008’ – http://news.bbc.co.uk/1/hi/business/7812108.stm
• Thu 8th – Interest Rates Hit and All-Time Low – http://newsvote.bbc.co.uk/1/hi/business/7817453.stm

Also well worth a read is this analysis of the property market from the BBC: http://news.bbc.co.uk/1/hi/business/7795672.stm

The big thing to push at the moment is the new years resolution, how would you like to become financially free in 2009? Now is the time to start.

Also make sure you are addressing the current news stories of mortgages reducing, lower interest rates and falling house prices in a positive light. You will need to show in no uncertain terms why each thing is good for investors if you want to convert those leads. Hit me up if you need any help with that.