UK investment Property the Smarter Way



Recent trends within the UK property market have raised concerns from industry professionals of a decrease in property prices over the coming year, with predictions varying from 0 to an 8 percent decrease. In the current climate, are investors really in a position to take advantage of the property market conditions?





Does the current economic market bear a striking resemblance to the property crash of the late 1980s? There are similarities, but we are no longer living in the 1980s, in the year 2008 the UK economy is in a more stable position, employment rates are currently high and inflation rates are still low.



For investors with current property portfolios, Quay Property Investments advice is dont panic; retain your existing assets within your financial capacity. Only consider relinquishing your property if you really need to, but be prepared that you may not achieve your financial expectations when selling.



Two decades ago, did serious property investors choose to sell their properties at a significant loss, or take advantage of the decline in property prices and invest further? Those that took advantage of the low priced properties and invested at that time have since reaped significant financial benefits. Learning from this, what advice do Quay Property Investments give to their investors in order to capitalise from the current property cycle?



Now is a good time to invest, specialist property investment companies provide opportunities to benefit from discounted property deals, taking advantage of these below market values and allowing the property market to go through the cycle, you may be in a strong position to cash in on a healthy profit in years to come. Property investment should always be considered as a long term investment and history has proven over the last 4 decades, that investments of this type has outperformed many traditional methods, such as pensions and share funds.



Franklyn D Roosevelt, former US president, said: Real Estate cannot be lost or stolen, nor can it be carried away, purchased with common sense and paid for in full it is about the safest investment in the world.



In 1992 my property mentor made his first property investment, 15 years later he now holds an impressive portfolio valued at over 2 million pounds.

Like many, he too was a property investor in the late 80s early 90s crash, and clearly remembers the last slump in the property market.



In the August 1989, the cracks in the property market were beginning to show and many first time buyers were struggling getting on the property ladder.



In 1992 I bought my first property with an initial investment of 18,750 (25% deposit). The property had been valued at 100,000, due to the market; the vendors failed to achieve the market price and reduced the asking price by a further 10,000. I was aware that over the previous years property prices had fallen steadily and I was in a strong position to negotiate

I offered a further reduction on the asking price, securing the purchase of the property for 75,000, 25% lower than the market value. I continued to build up my portfolio, purchasing a further three properties, at significant reductions over the next twelve months

Was this the right time to enter the housing market? I sold the first property that I bought, in 2003 for 150,000; my return on that initial investment of 18,750 (25% deposit) was 400%. I now own eleven properties.



Learn from the lessons of my property mentor, on how low prices can go, when sellers get desperate. So is buying a property during a down turning market a bad thing? Well, for my mentor and me it has proved to be the best time to invest, yielding fantastic returns.



This article was written by Sara Huck from Quay Property Investments, who manage their own UK and Overseas property portfolios of investment property, discounted property and investment land plots. This large portfolio means they can find the best investments to meet your needs, in many different property hot spots around the world.