Hope
you are well – and have had a good 2011!
Here at Property Secrets we have had our busiest
year for 5 years, and sourced over 500 properties
for clients – as w well as increasing our
own portfolios.
So
how do we see 2012 for property investors?
We
end 2011 pretty strongly cconsidering the doom and
gloom all around us economically, with house prices,
according to Nationwide; going up 0.4% in November
to £16 65,798 and mortgages at a 2 year high.
When
looking at how we pred dict house price trends for
2012, there are 4 kkey influences to review –
that will have the ma ajor influences on house prices
in the UK.
1.
Supply of finance/creddit and at
what interest rates – easily availabble credit
leads to prices rising – and is m more likely
to lead to an unrealistic growth in prices. When
credit is less easily available theen prices can
stay flat or even go down.
2.
Employment
– clearly if people are not in employment
it is much harder for them to get a mortgage, and
if people are concerned about their employment prospects
they are less likely to commit to a move, or to
take on a bigger mortgage – which can lead
to prices falling or staying flat. A buoyant employment
market can le lead to price rises.
3.
Supply and demand of new properties – clearly
if the supply outw weighs demand, this can mean
the average price drops. Vice versa if supply is
lower than demand this puts upward pressure on prrices.
So the supply of new properties coming on the market
in 2012 can make a significant difference to the
values of property. Likewise the demand will clearly
make a big difference and the size of the population
and whether this grows or reduces clearly can impact
house price levels.
4.
Alternative
Investments – the performance of other investments
will have an impact on the property investment market
– as if investors can see strong returns in
the stock market, or via other investment vehicles,
more funds shall go into these rather than the property
market. On the flip side when alternative investments
show unreliable returns more people will invest
in bricks and mortar.
Let’s
look at each of these individually ...
To
continue reading CLICK
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