UK Property Investment – 4 Reasons To Help You Understand Why The UK Property Market
Will NOT Crash
There has been much concern lately after the housing market crash in the USA and Spain that the UK housing market will follow the same path. Well, although there are some similarities between the markets, we know for a fact that our prices will never go anywhere near those levels.
Why can we feel this confident? Simple – the demand for housing in the UK far exceeds the supply at any time.
It is predicted that there will be 100,000 new homes built before the year 2009 – and that is still only a quarter of the required amount. So, it is very safe to say that the market is safe, at least until the UK can somehow manage to match the demand.
Don’t listen to all the media hype – Here is the truth about why the market is far from crashing
Contrary to what the media is saying, our housing market is far from becoming the same as Spain and the USA.
Here are 4 reasons for you to consider:
1. While Spain continues to struggle due to the fact that they are still building more than they need, satisfying investors – but not great news for the resale market. We have the opposite problem in the United Kingdom.
While the numbers may sound impressive, building 193,000 new homes in 2005 is nowhere near what was needed. In order to really impact growth in housing prices and reduce the costs, there needs to be at least 245,000 new homes being built. We are not even close to reaching that figure.
2. The population in the UK rose by at least 1.7 million between the years 2000 and 2006. This resulted in a need for 800,000 new homes. In fact, there were over 1.1 million homes built during this time frame, however these extra 300,000 homes were still not sufficient.
They were unable to help with the growth rate of those going into their 2nd home ownership.
3. For whatever reason, when people are looking to move into a new home, they do not seem to compare their salary to the asking price of the house. They tend to actually compare their income only to their annual mortgage payments.
While it could be argued that mortgage payments have risen from 15 percent in 2001 to 19.6 percent in 2005 as a result of shared household income, these figures are still very much below the 34 percent that was noted during the 1989 crash.
4. As the economy grows, it is only natural that there will be more economic activity in some areas of the country, but there will be some areas which still struggle to meet these demands.
Due to a lack of housing and transport, there are certain locations that have become in very high demand to accommodate these needs, but they cannot expand at a fast enough growth.
Building a successful portfolio today will ensure you reap the rewards of the market abroad
Another possibility that needs to be considered when looking at the situation in Spain and the USA, is property investment. By investing in properties in Spain alone, you could see a massive income of over £500 each month. Their market is wide open to investors.
It is very possible to buy properties for up to 40% below what their asking price is in Spain. With the right initiative, there are many properties to be bought for very little money invested.
But, you need to have the right knowledge to make that happen.
PropertyMentor offers you the guidance you need to get started. When you attend their free 2 hour workshop, they will show you how you can turn properties into very lucrative investments and beat the credit crisis.
You will also learn:
• How you can become financially free after just four properties.
• How you can invest by using other people’s money. If you can find the right property, you can have tenants who make the mortgage payments for you.
• How to be earning a passive income between £500 and £1000 each month, which can provide you with enough equity to invest in the next property at no cost to yourself.