2010 - What does it hold for us?

Hello to everyone - and wishing you a slightly belated Happy New Year...well it is still January!

I haven't been active on my blog page yet this year for the simple reasons that I have been busy, with my technical experts, putting together the final touches for my website. It was tentatively launched in late 2009 - with the real intention of it being totally live by January 2010.

So at least that's one goal achieved on time already this year!

2009 proved to be a great year for finding bargains - as the media seemed to do its best to help property collectors by painting the blackest picture ever - whilst actual economic indicators painted a constantly improving picture.

Highlights for us on the acquisition front in were probably the 2 one-bedroomed apartments that we secured for half the price that they sold for in mid-2008, also a high-quality Victorian terraced house bought from a very motivated seller for 40% of what adjoining properties sold for in 2007, and a top-quality 1930s classic semi-detached property bought for £100,000 - which was appraised by 3 local agents to sell-on for an average of £160,000 (we have kept it to rent out!)

On to 2010 then.....

As ever, I am constantly being asked what my views are on the climate for property investing in the UK for the next 12 months, and, as ever ,I reply along the lines that the climate is always right - on one condition.

Those who know me well will instantly know what that specific condition is.....

It's the condition that you only ever buy properties that are way, way below their TRUE MARKET VALUE. Nothing for me will ever change in that respect.

Why pay full price for a property when you can pay much less if you know what you have to do to find bargains?

My view has always been that if we buy and hold properties for a number of years and cash in on the dynamics that are working in the UK in favour of property 'collectors' - then we can't go wrong.

However...if we buy those houses at ridiculous prices on day one - then we have an instant reward immediately. This 'cushion' protects us from any short term market downward blips (downward movement is always short term - looking back at historical price movements confirms this fact).

Buying at low, low prices gives investors (especially novices who often are quite fearful of 'getting into property') a lot of confidence in the form of being protected against nasty price falls!

Once again its all common sense - but, in my experience the majority of property investors - the amateur investors - quite often pay full-market-value prices - or very near to market value for their properties. This way you are making it harder for yourself to create maximum wealth - plus the obvious fact that you are parting with more money than is necessary in order to build your portfolio!

The last 12 months will have given existing property investors a lot of confidence and valuable experience, whilst it should also have given those considering property investment as a route for wealth building a lot of encouragement.

Why do i say this?

Simply because no one can deny that we have just gone through the most devastating set of global economic circumstances in generations - I don't have to elaborate here!

Yet...house prices actually rose about 5% on the year!

This time last year, there weren't many people who would have been confident enough to predict anything but massive falls in property. I have to say though that I am not surprised by this positive growth figure at all though.....

To me, its quite obvious when you analyse the dynamics working in favour of the UK property market, why the the prices didn't plummet.

I am not going to extensively list those dynamics here - they are listed in great detail in a few pearlier posts in this blog site. However, you probably realise that a growing population (growing by well over 400,000 every year!), reduced housebuilding - when there is already a housing shortage, and almost obsessive demand from UK inhabitants to own their own property are fundamental drivers in slow and steady house price growth.

Recent economic indicators also point to the fact that the UK is now coming out of recession - next week's Government report should make this official - meaning that things are simply getting better than they were. Let's not complicate things ....things are improving.

Now, I might be wrong here, I'm not a so-called economics expert, but if property prices rose around 5% in the worst year on record for general economic activity - then I'm pretty confident that when things get better with the global and UK economy - as they are doing now - it will have a positive long-term affect on property values.

Other recent economic indicators that we have seen...

· A quarterly growth in economic output of 0.7%
· Property prices rising for 6 consecutive months
- Rate of unemployment slowing down sharply
· Car sales surging ahead
· Extremely low interest rates
· Manufacturing results at their highest for two years

So there we have it - nothing really changes for me. Buying very low - and being patient are the two components of my strategy to increase my wealth. the good news is that anyone can buy property - and anyone can be patient too

Unfortunately not everyone has the ability to consistently secure properties at ridiculously low prices.

If you are interested in finding out more about this precious skill - then please visit my website

http://www.propertyinvestmentcoach.co.uk/

Until next time.....