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Long-term thinking expands

Written by Jim Barnaby

Friday, 02 May 2008

Reading the latest stories of the alleged impending property apocalypse, it may seem to some that it is rather easy to ignore certain things that are going on in the market. What so many people involved in the buy-to-let industry really think and are planning to do appears to be sneaking under the radar of some.
In many ways this has certainly not been a good property week. For those looking to buy mortgages it has seemed particularly gloomy. Yesterday's news that the Bank of England had recorded a drop from 72,000 mortgage approvals in February to 64,000 in March may have seemed bad enough. But to add insult to that particular injury the Bank's governor, Mervyn King, told MPs at Westminster today that the much-vaunted £50 billion bond package it launched this month was there mainly to restore confidence in the banks, not to boost the mortgage market, although he hoped this would eventually occur to some extent. This explanation of purpose closely matched that of Council of Mortgages director general Michael Coogan.
Yet how relevant is this to buy-to-let? Only, perhaps, in the sense that, as has been so frequently said in recent months, demand for lettings can only be boosted by a fall in the number of people buying, as first-time buyers need to rent while they hold back from trying to get on the ladder.
The current circumstances may also have a range of advantages for buyers, as revealed by research from I-PropertyAssets. The firm found that as many as 70 per cent of landlords polled believed that the current market was a good time to add to their portfolios, reported Mortgage Solutions Online.
Further study of sister company property Secret's membership base showed that 40 per cent saw refurbishments as the best way forward, 30 per cent preferred auctions or repossessions, while only 12 per cent favoured new build or off-plan.
I-PropertyAssets director Peter Bennett commented: "I think what this survey shows is that, at least amongst intelligent property investors and buy-to-let landlords, there remains confidence in the UK property market investment."
That intelligence may be the key to the whole buy-to-let situation. Those who have lost out may not have had it, or at least not applied it. The National Landlords Association (NLA) today attacked Inside Track, a company which has just gone into administration, for what it saw as a modus operandi consisting of very unwise advice. Accusing the firm of promising to make Britain "a country of property millionaires", chairman David Salusbury said there was "a real danger in encouraging such massive speculative investment in residential accommodation."
He concluded: "Investors in residential property should be focused on the provision of affordable and decent homes over a much longer period of time and not just capital growth."
One again, then, the issue of long-term investment strategy comes to the surface. The large number of investors who believe now is a good time to add to their stock will not do so expecting a sudden surge in growth (only 13 per cent of those surveyed by I-Property Assets predicted any growth in the market in the next 12 months), but many will have their sights fixed further ahead, to when the cycle will eventually deliver an upturn.
In today's world Property investment is an excellent investment option especially investment in UK

Article Source: http://www.ArticleBlast.com

About The Author:

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property

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