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Property Investment Market Update for Q4 2009

Commentary

Investing in property continues to be a tough choice in 2010, especially due to the lack of finance and so few properties for sale.

The low interest rates on the one hand help buy to let investors that are on tracker rates with a temporary boost of profits, on the other it means being able to 'bag a bargain' from a desperate seller who is about to be repossessed is more difficult.

Investors also need to be very wary of property investment clubs. We have already seen Passive Investment go under (see Graham Norwood's article: Buy to Let Investors fret as property firm fails). They were taking money from people just weeks before at the Property Investor Show.

Are no money down deals legal?
The main issue in property investment is whether 'no money down deals' are legal or not. The investment community is pretty split on this issue. Some believe that they are as the Lender's Handbook says that you require letting the lender know about 'third party' incentives but not 'forth, fifth' etc, but others dispute this. 

Kate's  view?
If you aren't transparent with the lender about the financial transaction and those involved, don't do it. If the lender is aware of everything that's happening, great, otherwise you are exposing yourself to potential problems if the lender finds out monies have been lent via parties they are not have not been made aware of.

Lease Options
These may seem a great idea, buy a property for a £1 is the advert to tempt you - but be careful.

This is a highly complex legal deal and you MUST NEVER hand over any money on a property for lease unless you are 100% sure and have independent paperwork to prove that the property doesn't need a lot of work and if you are letting, can be let legally ie an EPC, gas safety certificates etc.  

FIGHT FOR YOUR RIGHTS! Are you in favour of latest government legal changes?
If you are a landlord, would you like your tenant to have the right to rate you on a 'trip advisor' style website? If you have a three bed home, are you happy with getting planning permission if you want to rent out the rooms seperately?

Want to know more - read our campaign against some of the latest legal changes

Don't forget SALE AND RENT back schemes can only be carried out by FSA regulated individuals - READ MORE!  
 
Headline Statistics
There are no real statistics that regularly track property investment, however below are links to some of the most useful stats on property investment.

However, the Council of Mortgage Lenders (CML) have released this report on BTL Mortgages. It's apparent that the BTL market has been hit as hard as the residential market, with loans down by 56% and Savills have issued their Spotlight on Student Housing Report 2009

Other useful Resources:-
PROPERTY SECRETS    ASSETZ     SAVILLS     KNIGHT FRANK     GLOBAL PROPERTY GUIDE
 
LANDLORD MAGAZINE   PROPERTY INVESTOR NEWS

COUNCIL of MORTGAGE LENDERS
Their statistics supply a wealth of useful data, however in 2009 they are charging an enormous fee of over £7,000 per year to access their data. Clearly the credit crunch is also affecting CML funds! If you are a journalist you may be able to contact their press office for statistics.  

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
Mob  +44 (0) 7970 646872
Fax: +44 (0) 1530 264018

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