Uncertainty and nervousness is currently gripping the global financial markets. Many property investors in the UK are wondering whether to buy property in the UK at all in the current economic climate.

But are we really on the verge of the property market crashing down around us?

This article will explore what’s currently happening in the financial market and whether now is the wrong time to be buying property in the UK. It’s goals is that after reading it you will have a much better understanding of the current financial climate and how you can still make money in it.

What’s happening in the financial markets around the World?

The speed and the depth of reach of the fall out from the sub prime financial crisis in the States has taken many investors and financial organisations by surprise. Many people knew that the stability of the US economy had far reaching implications for the rest of the World, but just how far, is only just becoming apparent.

There has been a panic amongst lenders in the UK and a reluctance to really admit how hard they have been hit. Banks are becoming suspicious of each other and we are in a situation where they are no longer lending to each other as freely as they used to.

All the big lenders appear to have been hit heavily. Some of them are now admitting it openly and asking for help from shareholders while others are determined to try and put a brave face on and try to brave it alone.

The Bank of England is desperate to keep the mortgage market stable and the economy going forward. There is confusion within the Bank of England as to what is the best way to achieve this, but as a result of them knowing something has to be done, they have decided to make 50 billion pounds available to try and help curb the problem.

One thing that that has become abundantly clear is that many banks and financial organisations appear to be run by people with very little business and financial savvy themselves. Criteria that have been set in the past for lending purposes seem to have gone out the window and one has to ask oneself, on what basis where they set in the first place?

On the whole, 100% plus mortgages seem to have been abandoned. Big players in the buy to let mortgage market, such as Mortgage Express, have pulled key products, such as their same day remortgage product and are now insisting investors have had their property for at least 6 months before being allowed to remortgage.

Many property investors are finding life difficult as they are having a hard time finding mortgage products that make buy to let investing financially viable.

Surveyors seem to be running around like headless chickens, not really having a clue how to value properties in the current climate. While they where confident of their valuations in a more stable market, bring in a little instability and their valuations seem to be on shaky ground, with each surveyor looking over his shoulder and being scared to overvalue properties, hence many times undervaluing them.

Off plan property investors are being especially hard hit since surveyors are being particularly caution with anything that it is difficult to get comparables for. Properties that where bought off plan 18 months ago are now coming to completion and are not worth what they where projected to be worth.

The fragility of the lending World and how it operates has become painfully apparent to all.

Should you abandon the idea of buying property in the UK altogether?

Good question. And with the speculation of a UK property market crash, it is a question that many investors are asking. However, astute property investors don’t get caught up in speculation. They know that they just need to focus on buying BMV properties based on local affordability that have good rental yield and they will be fine.

They are confident that if they can buy these properties for around 4 times, or less, of what the local average salary is and they can manage to get a reasonable rental yield, then long term they are onto a winner.

However, if you are looking at buying in areas where the property prices are 7-10 times the local affordability then you are potentially on shaky ground.

These are great learning times for the positive thinking UK property investor. For the next few years you probably won’t be able to complacently buy a property anywhere in the country and just expect it to rise in value. Now, is the time when you have to learn your craft properly. It’s time to go back to school.

The next few years promise to be lean times for most investors. But for the wise, experienced investor who understands the property and financial markets and who knows how to work with them in any and all economic conditions, the next few years should be years of expansion, not contraction. Yes, there are difficult times a head, but out of huge challenges can come tremendous growth.



Rent Back Fast

It really has not been clearly determined whether or not Tiger had his incident on a public street or not.
I think this would make a big difference in some of our opinions about his silence.
So? Was it a public or private street?
Anybody know?
Hi Saharaaj….I have to respectfully disagree with you…..it is VERY important and makes ALL the difference; if Tiger crashed on “private” property, for example, his own driveway, he is perfectly within his rights to remain silent……”private” property is JUST THAT: “PRIVATE” and he owes no one an explanation.
HOWEVER “public” property is a completely different matter…..if he has destroyed public property thru careless or reckless operation of his licensed motorvehicle, he must answer to the authorities about this, in one way or another.
Oh, Karen, sweety, I hope you’re wrong, but I fear you’re right.
Has there ever been a finer, more articulate, polite, greater golfer, greater role-model than Tiger Woods.
My heart goes out to the man, and WHATEVER happened out there, I hope, for him and his family, and for golfers around the world, past and present, these difficulties can be fairly and honestly. resolved while still retaining the integrity of this great young man
PoohBear: no..no..no…you don’t understand.
This “you have the right to remain silent” works when you are in CUSTODY.
If you have committed a crime or are SUSPECTED of having commited a crime, and an officer interrogates you, and you INSIST on not responding to a fair, legal question, YOU, my friend, are going to be provided with free room and board for the evening or when your attorney arrives, whichever comes sooner.

Rent Back

On Tuesday night, officers opened fire upon a van which alledgedly had driven at them. However the shots were fired after the fact, while the van was driving away, killing the driver and causing extensive damage to nearby properties as the van crashed through a fence and into a house. Im interested to know whether it is ethically justified to shoot at a vehicle driving away from you like that, after the threat of being struck down by the vehicle has passed?

Quick House Sale

There has been lots of specualtion as to what is going to happen to property prices in London. Will they crash or rise slightly in the next few years? Debating as to whether to sell or not?

Rent Back Fast

i hit a handai and the lady called the cops but they couldnt show up and do a report because it was private property and i just gave her my information. am i off the hook or it dont matter if a cop does a report.

Repossession

There’s a kid who always do this, and I want to take legal actions.
But I am uncertain if this is a kid thing or is it something personal

Rent Back

The incredible benefits of investment property finance have been around for decades. Anyone who is in the know about making money knows that investing in property in any form is one of the most stable and sure fire money making investment opportunities in the world. Property values will double every few years and in developing countries, that rate of return could be twice or even three times of normal markets. China, the Middle East and the developing coastlines of European countries are just some of the examples of property lines that have been making people all over the world tremendous amounts of money.

Now it is a buyer’s market – especially in the U.S market where the subprime crash has tunnelled prices to unbelievable depths. Now this is another incredible benefit of investment property finance. Because of the low low prices, aspiring investors have more and more opportunities to make money on property that is below the market value. Because of the elastic nature of the properties economics, the value will eventually in the next few years, progressively increase. Securing a piece of property is easier now than ever more, you just need to be educated on the different methods to do it and cash in on the falling market.

The other benefit is a low risk on any loans you secure to start your headway into investment property finance. The proper use of leverage, especially of your available funds will ensure that your profit margins increase. This is of course only a good opportunity if you have a good knowledge of contract law, finance, some basic accounting and of course the insurance market. The investment strategy should be sound – and you should never borrow too much money than you can handle. Be modest in the beginnings of your investments in property and have a look at several portfolios before you do anything.

Another incredible benefit is the varying ways money can be made on property. Be it through the rental market, mortgage, or any other permutation of investment property finance is king in wealth building. With a sharp eye on liquidity, safety of investments, rate of return and tax benefits, you will live the incredible benefits of investment property finance. Imagine knowing how to dip your hands in several long term and short term portfolios that give you an excellent income. This can be done, and you don’t have to be a property expert to do it.

You just need someone to show you the way. Reap the incredible benefits by learning from the experiences and the teachings of some of the best property moguls on the internet. Through wealth building programmes you can learn at home (and finding them is as easy as doing a search on Google), investing a modest sum, you can be well on your way to building an impressive portfolio. I won’t waste your time as I expect you are itching to investigate the opportunities in property finance. My only advice to you – learn all you can, learn from the best and you can be the best. Anyone can make money from property – it’s just a matter of knowing how.



Sell House Quick

can anyone please tell me how to do an A2 level project that investigates the properties of an effective crash barrier? it would be helpful if you used links to useful websites in your answer. thank you

Sell and Rent Back

We’ve just accepted an offer on our 1 bedroom flat for 280K (we bought it for 134K!) So we have a healthy deposit. We’re looking to move areas in London and to get a 2 bedroom flat between 330-390K this wouldn’t be at the very top of our budget buts it’s pretty damn close!
Are we mad to be buying at the moment?
Should we just be selling and the renting to see if the market drops..but this could take a couple of years of it rising and then we can’t jump in at the same point.
So many people say the market will increase, but surely this level can’t be sustainable?
And will it crash soon or will interest rates take a big leap up to calm the market and to cover for all the people going bankrupt?
It’s all so scary! I just wanted to know what other people were thinking. Thank you so much

Repossession

I can’t right click and click on properties because it causes a crash.

Passive Income