| |
|
Article Directory :: Finance & Investment Articles
There is a new trend in the UK's property market. With price stabilisation sweeping through many areas in the country, many people have resorted to strategies that allow them to benefit from the property price adjustment in the UK. According to new research from Abbey, there is an estimated two million homeowners who are looking to take advantage of the levelling out of property values.
Industry professionals are certain that the trend of renting before buying is here to stay. By renting most people see it as stress-free option - the absence of worry over maintenance bills or the need to be concerned about having an exit strategy - many people have decided that the current climate is appropriate and they are thus readily leaping feet first into the letting market. While there are those that have been inclined to question the validity of the strategy, many have chosen to take advantage of the rising number of people looking to rent.
Lettings firm Hamptons International has reported that since the start of the year, the number of people scouting for rental accommodations has risen by a third. The company states that the demand from motivated renters has been extraordinarily robust and that sellers have opted to rent out their property between sale and purchase.
Rental converts
One group of people have wisely turned to a strategy that not only help them beat the evening out of property prices but allow them to reap returns despite the doom and gloom that some in the industry are foretelling. Rather than selling their property in a stabilising market, they have decided to enter the rental market.
In addition to this, Abbey reports that more than 800,000 homeowners are planning to sell their properties and move into rental accommodations. These people referred to as renting converts intend to buy new properties when property values reach their all-time low. Considered an astute move, this strategy could lead to sizeable cash earnings - with some people looking at many thousands of pounds - as well as the possibility of purchasing a more superior home at a good price.
Rental regulars
Meanwhile, those who have already been in the rental market for some time have chosen to remain in the sector. Proof is Hamptons' data revealing that over three-quarters of tenants are extending their rental contracts. This occurrence in addition to the growing numbers of people looking to rent is thus prompting a significant rise in rental charges. Tenants have been particular about locations with good commuter links to London and first-rate learning institutions.
Property investors and buy to let owners
Property investors and buy to let landlords also stand to gain from the balancing of property prices, particularly because of the rising number of people looking to rent rather than purchase their homes. According to the National Landlords Association, rents have risen by 13.8% in the past year. As this trend persists, buy to let investors are sure to reap significant revenues. Lettings company Bidwells says that demand has now exceeded supply and has cited some instances where rental returns have exceeded 10%.
Those thinking about making the most out of a healthy rental market would do well to remember the most important factor when buying investment property - which is to buy below market value. Veterans in the property investment arena know that the key to a good investment is to purchase at the lowest price possible price as you make your money when you buy not when you sell. And when you purchase from a distressed seller, you'll be able to acquire a property for the best price thus enhancing your strategy and allowing you to sidestep the negative equity trap. When you're able to achieve this on regular intervals, you'll be ensured of doing well over the medium to long term.
Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - http://www.Property-System.com
 EasyPublish™ this article - publishers click here
More articles by Parmdeep Vadesha
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More finance articles: - Hard Money Lenders - Hard Money Loans (Louis Jeffries)
Real Estate Investors choose to use hard money loans as a source to purchase and rehab property to make a substantial profit that they may not have without the use of this expensive money. - Top Ten Reasons Why You Should Buy Multifamily Properties (Lance Edwards)
When you sit down and examine the advantage of owning multifamily properties, you will be amazed at the multitude of benefits. While other avenues of income generation offer some attractive incentives, owning multifamily properties brings many great things to the table. Let us explore these advantages: - 3 Types of Investors for your Multifamily Deals (Lance Edwards)
The word "investor" is quite a general term that means different things to different people. Dictionary.com defines an investor as "someone who commits capital in order to gain financial returns". So what does this mean in terms of real estate investing? There are three types of investors: lending, equity and hybrid (or combination). Here is a breakdown of these three types of investors. - What a Multifamily Property's Class Can Tell You (Lance Edwards)
When you are dealing with multifamily apartment properties, it is very important to understand the different classes of properties. The class that a property is assigned can tell you a lot about the property and if it is worth your time and money to invest in. There are four different property classes: A, B, C, and D. - 5-Step Process to Financial Freedom Through Real Estate Investing (Lance Edwards)
You have learned how to create a real estate business. But at the same time, you want to create your net worth. The steps to getting this done are a 5-step process. Not only can you apply this process to your business, but you can apply it to your personal life. - Is Buy and Hold Dead? (Jack Funderburk)
According to Jim Bianco (9/14/2009) (BiancoResearch.com), the Dow has closed above the 10,000 level 1,859 times since 1999. If one had put their money in a short-term Treasury bill the first time the Dow pushed above 10,000 and simply rolled over the proceeds of the bill at each maturity (and the interest), one would have a better return on their investment today, without any market risk. - How to Find a Lucrative Home Business (Stacy O'Quinn)
A lot of people are running very lucrative home-based businesses these days. Thanks to the proliferation of technology and the widespread use of the Internet, there are an amazing number of niches to be found, none of which require much investment or staffing. The criteria for evaluating opportunities could be the same regardless of what kind of business you have in mind. - Home Budgets Can Be Thrown Off by Both the Expected and the Unexpected (Ozeme J Bonnette)
If there is one thing that can cause tremendous damage to our finances, it would have to be irregular expenses. These are expenses that do not happen every pay period or every month, but often come up at some point during the year. We will review a couple of the more popular irregular expenses. - Guaranteed Online Personal Loan Types (Mark Inglis)
A description of the type of lans avaliable withing the UK. - Small Business Association Quarterly Report on Small Business Creates Factoring Surge (Kristin Gabriel)
Kristin Gabriel is a social media marketing professional who works with The Interface Financial Group (IFG), North America's largest alternative funding source for small business. The company provides short-term financial resources including invoice factoring, accounting, finance, law, marketing and banking.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
