Property investment and Buy to Let in the UK over the past ten years has been booming. During this time, many ordinary people have profited greatly from rapidly rising property prices and growing rental demand and many people have become property millionaires as a result.
Many felt that this would last forever and whatever they touched turned to gold however, all the confidence and excitement that surrounded the UK property market has rapidly drained away during the past nine months with the onset of the credit crunch.
During this time, cheap credit has dried up and with it a now stalling and falling property market. Many believe that the writing is on the wall now for the UK property market and that a property crash is now just around the corner.
However, as hard as it is to believe for many, the current market conditions hold huge amounts of opportunities for the savvy and gutsy property investors who are willing to tough out the hard market conditions and invest for the medium to long term. Here are my key tips of how you can profit greatly from the current UK property market conditions.
Tip 1) Target motivated Sellers; The current difficult economic conditions will create many difficulties for home owners. With many home owners fixed rate mortgages coming to an end, many will see their mortgage repayments rocket and as a result, many will move into arrears on their mortgage payments. However, this is where savvy property investors can help home owners in financial difficulties plus make big profits in the process.
People who are in financial difficulties and who are keen to sell their property fast are called motivated sellers. These are the kinds of people property investors want to target because a property investor can offer to buy a home owners property fast in return for a large discount off the properties market value of up to 30%.
This not only means that an investor can make immediate profits, but it also means that it saves home owners from financial ruin. Another benefit to both parties is that investors can offer the vendors to stay in the property as tenants and offer a rent back option meaning that tenants can stay in their property but without the financial strain of having to keep up to the mortgage.
But the key question is, how do property investors find motivated sellers? There are many ways that this can be done but two of the most effective ways are to drop leaflets around your local area or to set up a small website to capture leads. These are the two lead strategies that large investment companies use to target motivated sellers and it is highly effective if implemented correctly.
In summary, this is a very powerful strategy that UK property investors can use to make instant profits in current market conditions. All I would say to investors is always to act ethically and responsibly with home owners and make sure you keep to any agreements or promises that you make.
Tip 2) Buy Distressed & Repossessed Property – There are many ways that property investors can profit from UK property but one of the best ways is to find distressed properties (properties that are in need of work) and repossessed property.
These types of property deals are great because you can buy them well below market value and as all property investors know, most of the profits are made when you buy a property not when you sell it.
And because of the tough market conditions, many home owners will have their properties repossessed which means investors can buy property well below its market value.
Buying and renovating property is one of the oldest and most profitable strategies that investors use and as long as you buy the property cheaply, there are huge profits to be made, especially in these market conditions.
Buying repossessed property is one of the holy grail deals for property investors. Through my business, we have found large amounts of repossessed property deals throughout the UK and there are so many bargains available now to investors if they are willing to search for them.
And with the tough market conditions looking like they will continue for the foreseeable future, there are guaranteed to be plenty of repossessed property deals and bargain properties that will be available to be bought very cheaply.
Conclusion – The current tough property market conditions in the UK will mean that there will be large amounts of bargain property deals available for investors who are willing to find them and bargain hard to buy them at the right price.
Our advice to UK property investors is to research hard, register with lots of estate agents and property auctions and bargain hard as there will be so many opportunities for investors to buy property deals at a huge profit.