Market update
House prices slipped again during the last month with all major market surveys showing a small decline in the region of 1%.
The Rightmove house price index (based on asking prices) shows a drop of 1.2% indicating that sellers are becoming more realistic when it comes to pricing their properties with a reasonably quick sale in mind.
The nationwide index of house prices has revealed a decrease in house prices of 0.9% bringing the average price of a house in the UK to £172,415, still substantially higher than previous years. Commenting on the figures Nationwide's chief economist Fionnuala Earley said: "The pace of house price falls slowed significantly in June. House prices fell by 0.9% during the month, less than half of the rate of the 2.5% fall recorded in May".
Broadly in line with the other surveys the Hometrack house price survey recorded a fall in the average price of a UK home by 1%. This brings the overall price change for the first half of 2008 to -2.5% according to Hometrack. Not exactly a house price crash as many would have us believe.
The Bank of England Monetary Policy Committee will give their interest rate decision again on the 10th of July. Will it remain at 5% or could we see a cut? Either way, with house buying demand staying limited we remain in a buyers market making right now an excellent time to buy a bargain property . don't leave it too late!
Why invest in property?
With current economic uncertainty and the continuing stagnation of house prices in many parts of the country we go back to basics and take a look at why we believe property is still the best investment there is.
There are lots of ways to make money and some people would argue that property investing isn't really that easy. They complain that it takes time to develop the knowledge to understand the property market. It can take months to research areas and find the right investment property. Then when you've found it, you need to negotiate to get it at a favourable price, negotiate a loan, instruct a good solicitor...
Is this all starting to sound too complicated?
"As you grow older, you'll find the only things you regret are the things you didn't do." - Zachary Scott - 1914-1965, Actor
"I have had dreams, and I have had nightmares. I overcame the nightmares because of my dreams." - Dr. Jonas Salk - Discovered The First Vaccine Against Polio
Buy-to-let investors can maximise rental returns
Now that capital growth is currently limited, buy-to-let landlords are turning their attention to income generation. In other words, getting good rental returns and (most importantly) minimising the void periods between tenants. Making sure that your buy-to-let property will attract the right type of tenants and keep them there is more important than ever.
The key to being a successful landlord is to understand your potential ideal tenant and tailor your property to attract that market.
Different types of tenant appeal to different sorts of landlords, and the key is to make sure that your property beats the competition in attracting your target market.
"Keep on going and the chances are you will stumble on something, perhaps when you are least expecting it. I have never heard of anyone stumbling on something sitting down." - Charles F. Kettering 1876-1958, Engineer and Inventor
"Look at a day when you are supremely satisfied at the end. It's not a day when you lounge around doing nothing; it's when you've had everything to do, and you've done it." - Margaret Thatcher Former British Prime Minister
Creating Opportunity by Jim Rohn
An enterprising person is one who comes across a pile of scrap metal and sees the making of a wonderful sculpture. An enterprising person is one who drives through an old decrepit part of town and sees a new housing development. An enterprising person is one who sees opportunity in all areas of life.
To be enterprising is to keep your eyes open and your mind active. It's to be skilled enough, confident enough, creative enough and disciplined enough to seize opportunities that present themselves...regardless of the economy.
Lighten up - Quotes of University lecturers:
. "When I give a lecture, I accept that people look at their watches, but what I do not tolerate is when they look at it and raise it to their ear to find out if it stopped."
. "In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move."
. "There is a theory which states that if ever anybody discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable. There is another theory which states that this has already happened."
. "Creativity is allowing oneself to make mistakes. Art is knowing which ones to keep."
. "The shortest distance between two points is always under construction."
. "Avoid fruits and nuts. You are what you eat."
. "My grandmother started walking five miles a day when she was 60. She's 97 today and we don't know where the hell she is."
. "I believe in equality for everyone, except reporters and photographers."
. "If you look like your passport photo, you're too sick to travel."
. "If a man is talking in the forest, and there is no woman there to hear him, is he still wrong?"
. "I still say a church steeple with a lightning rod on top shows a lack of confidence."
. "From the moment I picked your report up until I laid it down I was convulsed with laughter. Some day I intend reading it."
. "Politics is the art of looking for trouble, finding it, misdiagnosing it, and then misapplying the wrong remedies."
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