To buy - or not to buy? That is the question
With global financial markets in turmoil and the future of the UK property market in question it would be quite natural to wait and establish some stability before investing again... right?
Wrong! Now is the time to buy.
We have negotiated substantial reductions against CURRENT RICS (Royal Institute of Chartered Surveyors) valuations on a number of properties in the UK which are producing excellent rental yields. Now that Bank of England base rates are falling and lenders are under pressure to pass these cuts on, the cost of borrowing is at its best in living history.
Consequently, the income produced from rent covers the cost of ownership and produces a profit. Even if the interest rate for borrowing climbs to 7% plus we can still source properties that pay for themselves.
Even if prices fall during the next 12 months (expected reductions are in the region of 10-12% against today's 'asking' prices during 2009 it does not matter!! The rental yields will cover this drop and allow you to hold the properties until such time as the market starts to grow again.
That is all well and good, I hear you say, but I can't borrow money at the right rate or terms.
We have a variety of lenders who are prepared to lend at the right rates and terms if the deal stacks together. Why would this be? If the lenders are prepared to invest why wouldn't you?
RICS will value (especially if acting on behalf of a lender) at a very conservative rate – in some cases we have property at 30% below current RICS valuations. This means that even if price was an issue then the market would need to fall in excess of this level (and stay there!) to make the deal not worth it.
The property is cyclical and unless the laws of economics get re-written then it is fair to say that prices will recover over the next few years and start to grow again.
The 'savvy' investors are already moving in and will capture fantastic returns - the rest will allow the media to dictate and will lose out. Of course there will always be bargains in the market but not quite like what is available now.
Contact us immediately to find out more... ...these deals will be gone soon.