Should the investor start to invest again?

Should the investor start to invest again? During the noughties investors were buying and selling a rate of knots. Many made a killing with prices moving on average 10% every 6 months. This came to an abrupt end in 2008 when the crash happened.
The builders started to offload stock in an attempt to clear as much debt as possible and some investors took advantage of this.

Unfortunately even some of those seasoned investors did not expect what happened between 2009 and 2011. Further drops, reaching as low as 40% below 2007, prices meant that those late investors got seriously burnt along with some of the more seasoned ones from earlier investments.

We are now seeing a stabilising of the market, and property prices settling down. Vendors needing to sell have sold and prices are now around 30% below their heady prices in 2007.
So is it time for those of us looking to invest to look at overseas property again?

My view is yes. There are some great buys out there currently. Not because they are 30% below previous price points but because this does appear to be the bottom. Property prices will increase. Not at the rate we saw in the noughties but over the next 10 years they will increase. We have just seen another bank wobble, share prices are recovering but still unstable so where better to put your savings than into bricks and mortar.

I was told once that over the last 100 years property has increased on average 10% per year every year! Now I am not saying we will see that level of growth in the next few years but it has to be better than sitting in an unstable banking institution and also giving you and your family some pleasure over the next few years.
If you get more than 1% increase per year over that period you are as they say “quids in”, if it stays the same you have had free holidays for the next few years, either way a better investment than in a bank account!

As mentioned in previous newsletters the leading builders are building again. There are some superb projects coming to market that will allow you to release money slowly if necessary. Changes to pension’s funds and the release of your pensions are due soon, and if you reside here you can claim your pension tax free. If that’s not enough reason to take the plunge…

If you want to discuss any of these points or just want to chat through the market email me on david@bpaproperty.com, or call (00351) 918 473 280.