Property - Still a wise buy?

With signs the property market is stabilizing, property is far from being a get rich quick strategy. Not for the foreseeable future will we see the double digit figures which had become common place.

However, property remains a sensible investment if certain rules are followed, and in particular expectations are reset as to the type of profits that might be made. In a slower market, it is even more important to choose property in a strong location, and to manage your budget carefully. Also, choosing the right mortgage is essential. Many people are offered a loan on the high street which appears a good deal, but can have expensive fees or locks-ins that are part of the small print. At Alexander Sterling we represent you in the market and will recommend you the mortgage that is going to offer sustained value.

Aside from your own house, you may want to access the benefits for the property market by investing through becoming a landlord. The buy-to-let market is now exceptionally competitive and loans are not much higher than more mainstream mortgages. In the current market it is again necessary to be extremely careful about which property you buy. Some parts of the UK have over supply and landlords with mortgages can struggle to pay these if their property is not let.

Most experts – and indeed homeowners – see the property market as having further growth potential, but believe returns are going to be lower in the future than they have been. With migration into the UK expanding and pressures on new build homes growing, there are persuasive reasons why property will remain a good investment. The challenge is to make sure repayments are affordable – if there are further interest rate rises then many will have to stretch themselves in order to meet these.

To find out more about investing in properties, please speak to Steve where he'll be happy to help you.

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH

Email: sweisner@rad-new.com 
Tel : 020 7382 0437
Fax : 020 73740462

Mortgage Directory