Tuesday, 19 June 2007

Spanish property investment

HiFX, a Spanish foreign exchange company have released details suggesting that Spain is still the favourite destination for property investment abroad. There have been a number of share price collapses in Spanish property firms recently which have fuelled speculation that there will be a market crash. However property experts believe that this is more hype than based on anything factual.

A few parts of Spain have seen a decrease in property investment, which could be termed a ‘slow down’ but one could suggest that investors who were willing to do their research properly may make a profit from these areas. However we are talking mid to long term, not in the next few months.

Mark Bodega of HiFX was quick to point out that although some areas of the country had suffered in recent months due to oversupply other areas "still have much to offer". With the abundance of low cost airline flights which continue to serve Spain, it looks certain to remain as a holiday favourite for some time to come, and thus buying a holiday home to rent, would not be a bad bet, especially in the less subscribed areas.

Simple Property Investments expert, Ros is just as quick to point out that “investing in homes in the UK can also be considered a good bet especially is proper research is conducted and potential property yields calculated”. In addition she mentioned the impending launch of a property area report, which would soon be launched, in order to bring together all of the information available for a current post code.

Buy to let market healthy

As reported in the Telegraph earlier, Bradford and Bingley the mortgage specialists have conducted a survey and found that in fact the higher interest rates “have no impact” on the longer term health of the buy to let market.

The survey found that more than half of all land lords still intend on enlarging the size of their property investment portfolio. Only 4 per cent were considering actually realising some of their assets and decreasing the size of their portfolios over the next six months.

Would you believe that the most popular place in the UK to buy property to let is Brighton, with almost a third of land lords surveyed, owning a property within the limits of that costal city. The recent spurt of growth is believed to be fuelled by the huge student population and the fact that it is so close to London. It is technically only 1 hour by train from the centre of London.

Hailed as the "jewel in the South East's crown", Bradford and Bingley claims Brighton is "enjoying the fastest rate of growth" at the moment, driven by its large student population and close proximity to London.

The majority of land lords who were surveyed are "everyday people" seeking capital growth and a means to supplement their ever diminishing pension reserves.

The Director of Mortgages at Bradford and Bingley, Andy Wiggans, said "Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns."

Tuesday, 12 June 2007

Seaside town property

Apparently there is an element of symbiosis between the UK property market and the redevelopment of seaside towns, which many would be property investors might want to take advantage of.

The Co founder of PropertyFinder.com and property expert, Nick Leeming said that the booming market meant investors were prepared to pay for property in areas including Padstow and Rock on the Cornish coast, or the Isle of Wight. Additionally they are prepared to pay the prevailing high prices, knowing that it is in fact a good buy to let prospect, and should be relatively easy to keep tenanted.

Regeneration of the seaside towns is a key feature in the growth of property by the seaside, but as with anything property investment related Caveat Emptor should be the buzz word, as these types of towns can be “hugely variable”. The buoyancy of the property market is the driver of regeneration of areas which previously were not economically viable.

Ok well anyone who has been to somewhere like Brighton recently will be well aware of the cost of property and the fact that it is very popular with Londoners, many of whom commute. For this reason you might want to use the free property search tool to check out a few of the other costal towns which might be a bit cheaper.

Monday, 4 June 2007

Deansgate apartments | investment property

According to an investor who published an advert in Landlord Expert, a new apartment/flat just off Deansgate, which is prime real estate near the City centre of Manchester, would produce an estimated return of between 816 and 1077 percent in two years. In addition the information given suggests that it could be rented out to tenants for at least £1100 per month.

Hmmm… I wouldn’t want to cast any aspersions on anybody, but perhaps they might want to find out just how many apartments are currently available and being built in the centre of Manchester. The term over supply springs to mind, and that would mean those calculations were well out.

Investors are advised to look further a field, perhaps just outside the city centre, like the new development of Pulse apartments near Old Trafford. These are taking advantage of the excellent transport links especially using the Metrolink tram system, that currently serve the sporting venues in the area.

Those looking to invest in property are advised to always do their own research into market trends in the area, and the viability of buying property there.