Interesting question, isn’t it?
The doom mongers (many who missed out on the property boom) say property prices will fall dramatically (and so do most newspaper columnists), yet the property ‘optimists’ say that now is a very good time to start buying.
So who is right?
Everybody has an opinion but what I always say to myself is “look at the person who is giving the opinion and what their motive is.” For example, if someone is selling property, will they say prices are going to fall? And which headline sells more newspapers? Prices to Crash by 30% or Prices to Drop by 3%?
Nobody knows how far property prices will fall (if they do) and how quickly they will recover. The important point is that if your property investment deal stacks up, there is no reason not to buy in the current market for the long term.
In fact, experienced and smart investors are starting to see some GREAT deals coming through now!
The important thing now is to make sure you can answer ‘YES‘ to the following three questions:
Lately I’ve been asking myself what the biggest problem facing Property Investors is. The answer? A growing portfolio!
Why is this? Surely a growing portfolio is a good thing? Well, as your portfolio grows, your paperwork grows with it. I know people who are drowning under paperwork and struggling to keep it organised. I know what that’s like. I used to be one of them. That’s why I got into designing property management software. I started investing back in 1999 and according to the results of our recent analysis of 3 years of customer feedback, nothing much has changed! Paperwork is still the biggest problem for Landlords.
The top 5 concerns were:
1. Increasing paperwork: keeping on top of bills and rental income
2. Staying legal: keeping track of safety certificates and legal documents
3. Good tenant management: making sure they get the information they need
4. Income tax management: knowing what is due when
5. Maintaining a positive cash flow: becoming harder with increasing property prices
In other words, exactly the same problems I had in 1999 and all the same reasons I got into designing property management software!
You can check out the results of my labours here.