It's a Buyers Market for Property Investors
Want to get it on the property buyer's market? Well even if you don't have all the capital to invest in property outright, there are still ways you can grab some truly undervalued commercial and residential property.
Doing your research and discovering undervalued property in the right areas and there are lenders out there that despite the economic gloom and doom will still lend to you. It's all down to the numbers,
You will have read all the reports that property as an investment is dead. That the days of using property as investment are over. Seriously, how can that be? The demand for property has never been greater than it is today, and what with the issues on what land can be developed, property is going to stay in short supply for the foreseeable future. The challenge at the moment is money. Specifically the challenge of finding secure and safe tenants.
Property remains one of the safest and in the long term, most profitable investments around. Everybody needs somewhere to live. Businesses need somewhere to sell from. Manufacturers need somewhere to manufacturer from. Property will always be needed.
Okay, so the economy is a mess. So? Remember when the banks failed? Barclays Bank shares fell to about 20p a share. I was thinking of buying some as I believe it was impossible that the government would let a major bank fail (I didn't, much to regret!). As I write this, Barclay shares are trading at £1.75. £1000 invested then would today return £8750. Not a bad return! The same I suggest is true with property. The value of property (dependent on the quality of the property) always increases in the long term. What you need to do is to plan to weather the current storm. Be able to make certain that the property you invest in will at the least cover all it's costs till the economy turns around again.
Property flipping used to be very popular (buying property, refurbishing it fast and then reselling). That strategy is no longer viable. For the near future the new strategy has to be buy, refurbish and rent. Then at least you are covering your costs, getting some profit, and when the market does turn, you can resell. With the number of repossessions in both residential and commercial properties there are thousands of sound investments to be had.
Common in stock trading, "buy and hold" works equally well in property investment. You have to be in it for the long term today, with an eye to a ten year or longer wait for your full return on your investment, while it covers it costs and makes some profit.
With many quality properties coming on the market every day, finding undervalued property is relatively easy. And as long as you have 20% to 50% of the property value, and a sound business plan, most financial institutions should be prepared to partner you.
It is precisely of the recession that the rental market is booming. It's unfortunate, but due to the increase in repossessions and people moving around the country as they have found work away from home, the residential market is booming. Even the commercial rental market in some sectors is picking up. Many people made redundant are starting their own businesses and looking for office/work space. Research you local market, spot the need and fill it.
In July of this year there were over 92,000 homes repossessed. From one bed flats to beautiful detached homes, they are all on the market at well below their true value. The vital thing is to do your research, pick properties that need little refurbishment. Properties in prime areas where there is demand for rental properties. Over the next few years you could steadily build yourself an impressive property portfolio that is not only giving you a monthly income, but is also a solid and guaranteed retirement fund.
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