Property as an investment

[admin]

Is property still a viable investment in the UK these days. Are we heading for a crash or a soft landing?

[Aibo]

It's hard to give a definitive answer as each area is affected differently but I wouldn't be investing in property right now unless I was a developer. If you look at property snake -- home -- find falling house prices in your area they have some startling 'glass is half empty' figures.

I was reading one of the Irish newspapers this week where some houses are experiencing a drop of about 10,000 Euro per month. I think they are in the midst of a housing crash that is to a large extent not reciving the newpaper coverage that their amazing property boom experienced.

[attagirl]

With so many people out building and investing, I would have to agree with Aibo. I only see housing prices going down and do not see an immediate rise in sight. I would only consider buying a house as an investment if it were only for myself and family to live in and pass down later.

[Barb]

Well thats different. When we bought our house of course we were concerned that prices might go down and we would be in negative equity as happened to so manu house owners in the eighties. But we decided that this was a purchase of a home, not an 'investment' and the investment was providing a safe, warm home for our family. Ok, it reads a little corny but thats a different mentality to real property developers and investors.

But ultimately, I think house prices in the UK market are overpriced. Even in rural areas of the UK, you will find that people having second homes (the country weekend retreat!) creates more of a demand where you could recently find a lovely place for just above £100K

[APhillips86]

I think it depends on where you live whether or not it is a good investment. If you live in a place where there aren't a lot of people, but a lot of people are expected to move their in the future, then it is probably a good investment.

[FinD]

the thing is though that property is always a long term investment and although it's supposed to keep falling this year, it sounds like it should pick up again and continue to grow in coming years - so actually now or in the next months when prices are more affordable is probably the best time to get on the property ladder.

[financestrategy]

hey pal
i think its the right time to invest in the property or otherwise you can wait a bit more long, as prices may slash. you can buy the property at that time and keep it for long period, certainly you'll make a handsome earning out of it 10 years down the line.
according to me its the right time or you can wait for a while.
take care.
best of luck

[Jenna343]

You have to consider a lot of things when you invest on a property. The type of property, location, and how you handle it.

[stockmarket007]

Even if you are thinking only in terms of current prices, you should also take into consideration the fact that you may rent that home and generate some money from it and that is also considered an investment.

[Consultant_Lorens]

Its a nice discussion to participate in. Well I am pointing out some reasons to make you clear about that UK Property Market.

4 reasons why the UK Property market will NOT crash
Some people are concerned about the possibility that the housing market in the UK is headed for a crash similar to what has happened in Spain and the USA. While there are some commonalities between these housing markets and our own, the prices here are not going to approach the levels seen in those countries.

The truth behind hype: why the market is in no danger of a crash
Some in the media may tell you that the UK is on a course towards Spanish and American style housing crashes, but in truth nothing of the sort is occurring:

1. Spain's housing market is struggling because they are still building more housing than there is demand for. While for property investors this is a great scenario, it isn't so healthy for resellers.

The UK has exactly the opposite problem.
183,000 new homes were built in the UK in 2005. This may sound like a lot of new construction, but is far short of the amount of new homes needed to impact the market to the extent that prices would drop. This would require the construction of 245,000 new homes annually, a goal we are falling far short of at the present.

2. Between 2000 and 2006, the UK's population rose by 1.7 million, which meant that around 800,000 new homes would be needed. Even though over 1 million homes were built in this timeframe, it was still not enough to account for the demand created by second home ownership.

3. When consumers are looking to buy a new home, they don't compare their salary against the purchase price of the home, they compare it against the size of their mortgage payments.

While you will hear the argument that the proportion of mortgage payments to household income has grown from 15% in 2001 to 19.6% in 2005, these numbers are still far short of the 34% seen in the housing crash of 1989.

4. As per the current economic trends, it is only natural that certain areas have kept pace with demand while others can simply not grow fast enough.

Take full advantage of the market abroad: start building a successful portfolio today.
When you think about the housing crashes in the US and Spain there is another perspective to look at it from – opportunity for property investments.

By investing in Spanish properties, you could bring in an income of more than 500 pounds a month!

It's a buyer's market and it's wide open to UK investors.

You could buy properties for 40% under the asking price! With the right planning, you could buy quite a lot of property in Spain for a very low investment.

I hope the above information will be of help to you all.

Regards........