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News & Views...
The monthly newsletter from Property for Life
January 2008

Market update

With a new year upon us, now is an ideal time to take a look at how the market performed over the last 12 months.

Although the market has cooled over the last few months 2007 was still a very good year for property investors. Taking figures from the Nationwide house price survey if you had purchased the average property at this time last year, it would have increased by a very respectable 6.9% or £11,894.

However, if this property had been purchased with an 85% mortgage and assuming the rental income covered your costs, your return on the original capital would have been around 46%. Of course this doesn't take into account any equity that may have been gained through a discount on the original purchase thereby making this return even greater. Not bad for a slow year is it?

So what happened to the market during December? Once again, the results from the main house price surveys are mixed with some reporting an increase and others reporting a decrease. Overall, this is indicative of a static market, hardly surprising given that December is historically a very slow month.

It is a little early for the December reduction in the Bank of England base rate to have any significant affect on the market, however, this coupled with a potential further decrease in February or March will coincide nicely with the historical Spring upturn in house purchase activity which could have a positive impact on the market.

Our advice. Take advantage of the bargains that result from a weaker market, they won't last long.

Will there be a reduction in the base rate next month? Let us know your thoughts by completing our 60 second on line survey and you could win a bottle of Champagne. www.propertyforlife.com/survey

Buy-to-let investors take optimistic view

Buy-to-let investors remain bullish about their prospects with almost half of existing investors planning further purchases in spite of a slide in values.

"Every worthwhile accomplishment has a price tag attached to it. The question is always whether you are willing to pay the price to attain it - in hard work, sacrifice, patience, faith, and endurance." - John C. Maxwell, Author

"The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it." - Michelangelo Buonarroti 1474-1564, Painter and Sculptor

Develop a prosperity consciousness by Brian Tracy

The starting point of all riches is the development of a prosperity consciousness. You must become a financial success in your thinking long before you achieve it in your reality. Both poverty and riches are the result of a state of mind, and the most important single step you ever take on the road to wealth and financial independence is the decision to change your thinking, to impress into your mind an unshakable belief that you can and will achieve your financial goals. This must happen before anything else happens.