Buying UK property when the property market is in a downturn, the demise of UK estate agents, the next property boom

Despite all the doom and gloom about the UK property market, there are still opportunities out there for property investors to pick up properties at below market value. The skill is in finding these properties, improving them quickly and cost effectively and then selling them on at a profit.

Start of article about the UK property market.

Previous page about buying UK property.

Most property investors who get themselves into trouble buy property with too high a loan to value mortgages or NMD (no money down) and whilst this can speed up the rate of building a portfolio, it also leaves any property investor very exposed to market downturns.

• First time buyers
• Selling and moving
• Investing to sell on

The biggest enemy of the property investor is not a property slump or hikes in interest rates, it is being over optimistic and not being cautious enough to walk away from a deal they fell may be a little risky. The more cautious property investors will build a property portfolio by buying and selling, building up working capital and only keeping properties that can return a generous rental income over and above the mortgage repayments.

This may be a slower way to build up a property portfolio but now that the market has turned, these property investors are in a position to wait out the storm, deal with their paper losses and most likely be able to move in on the investors who were less cautious who now need to sell properties quickly at under market value.

• Cheap interest remortgages
  
  
• Low cost home improvement loans
  
  
• Competitive mortgage quotes
  
  
• Cheapest credit cards
  
  
• Builders, Plumbers, Electricians
  
  
• Home improvement quotes
  
  
• Home information packs
  
  
• Reduce gas, electricity and telephone bills
  
  
• Money saving ideas
  
  
• Low cost removals
  
  
• Architects
  
  
• Surveyors
  
  
• Conveyancing services
  
  
• Sell you property privately by building your own website and save thousands of pounds on estate agents commissions

The secret is buying property at the right price, buying it at the right time, fixing it up fast and economically and being able to move it on at a profit without waiting for the highest possible price.

This takes experience and mistakes can prove expensive. You need good builders who can undertake the work if you cannot do it yourself. You need to be able to borrow money at a keen rate of interest and you need to understand the local market. There is a buyer for every property, no matter what the market is doing providing the property is sensibly priced.

Once the market starts to move up, there is no need to pull out but you do need to keep one eye on the future. Pessimism can be you greatest ally.

An extra bedroom in the roof or an extension can add 11-15% to the value of your property saving you a fortune on moving. By improving your home, you can save on:

• No conveyancing fees
• No removal costs
• No home information pack
• No stamp duty
• No estate agents fees
• Valuation and survey costs
• Furnishing and redecoration costs
• Far higher mortgage repayments