Market update
Average property prices fell again during April as the current economic slowdown continues. All main market surveys recorded a negative figure ranging from -0.1% (Rightmove) to -1.3% (Halifax). According to the Hometrack house price survey this is the 7th monthly fall in a row. However, don't be disheartened by these figures as we still believe this correction to be good for the buy to let market in general.
Rental demand is continuing to increase strongly as a result of these current conditions and rental figures achieved are also heading upwards. The cooling market is also excellent news for capital growth as it means that the much sharper falls that would undoubtedly have occurred had the market continued to grow at a rapid rate, should now be avoided. This will result in more secure and stable growth over the longer term.
Additionally, for those investors who really are keen to capitalise on the current market weakness, now is a golden opportunity to buy a bargain property. Whereas new build discounts of 15% were previously the norm, we are now continually being offered property at 25% or in some cases even 30% discount. With developers really feeling the squeeze, we expect these figures to become even more attractive.
With the base rate currently held at 5% could we see a decrease next month? We certainly think it's a strong possibility.
Make money in any market
With media attention focused firmly on the perceived static state of the UK property market many inexperienced property investors might think that now is not a good time to buy. However, clever investors know that it is possible to make money investing in property no matter what the market does if you know what to do and what to avoid.
Here's how:
"Security is mostly a superstition. It does not exist in nature nor do the children of man as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing." - Helen Keller 1880-1968, Blind/Deaf Author and Lecturer
"Take chances, make mistakes. That's how you grow. Pain nourishes your courage. You have to fail in order to practice being brave." - Mary Tyler Moore, Actress
Don't pay unnecessary tax
If you can claim large costs as 'revenue' costs rather than 'capital' costs then you can reduce your annual property income tax bill in a big way.
Sometimes it is easy to determine whether a cost is of a capital nature or not. For example, if you have had a new conservatory built, or even a new bedroom added, then this is clearly a capital expense. This is because it has increased the value of the property. Examples of this nature cannot be offset against revenue immediately.
"If you know what to do to reach your goal, it's not a big enough goal." - Bob Proctor, Author and Speaker
"Life is like riding a bike. It is impossible to maintain your balance while standing still." - Linda Brakeall, Author
How to invest like a millionaire by Loral Langemeier
Do you think you can't invest wisely until you've got a good stash of money?
If you said yes, than that's the wrong answer; and it's not what you should be doing if you ever want to become wealthy. Whatever your answer, if you want to learn how to invest wisely, I know I can help you.
We'll start with your objectives.
Lighten up - Odd US laws
Alabama . It is illegal for a driver to be blindfolded while operating a vehicle.
. Dominoes may not be played on Sunday.
. It is illegal to wear a fake mustache that causes laughter in church.
California . It is a misdemeanor to shoot at any kind of game from a moving vehicle, unless the target is a whale.
. Women may not drive in a house coat.
Florida . Women may be fined for falling asleep under a hair dryer, as can the salon owner.
. If an elephant is left tied to a parking meter, the parking fee has to be paid just as it would for a vehicle.
Kansas . Prohibits shooting rabbits from a motorboat.
Louisiana . It is illegal to rob a bank and then shoot at the bank teller with a water pistol.
Nebraska . It is illegal for bar owners to sell beer unless they are simultaneously brewing a kettle of soup.
New York . It is against the law to throw a ball at someone's head for fun.
. The penalty for jumping off a building is death.
Ohio . It is illegal to fish for whales on Sunday.
. It is illegal to get a fish drunk.
Texas . It is illegal to drive without windshield wipers. You don't need a windshield, but you must have the wipers.
. It is illegal for one to shoot a buffalo from the second story of a hotel.
. It is illegal to milk another person's cow.
. A recently passed anticrime law requires criminals to give their victims 24 hours notice, either orally or in writing, and to explain the nature of the crime to be committed.
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