Time for the speculation to end

Released on: December 29, 2007, 12:06 pm

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: Of course, there may be other possible factors at play, such
as the regional fact that the south west has seen higher house price inflation than
the midlands.

Press Release Body: The old saying \"speculate to accumulate\" may ring true - but in
more than one way when it comes to the buy-to-let market. Accumulating failure
appears to be the way for some in the buy-to-let market as the nature of the
industry and the state of the housing scene tilts the advantages all towards the
long-term landlord.

Such a point was made by Tom Entwistle, editor of landlord portal Landlord Zone. Mr
Entwistle pointed out that where prices are falling, the speculators are in for a
hard time, but not those who are looking to rental returns for an income now and the
market to rise over a much longer period of time than just the next few months.

He stated: \"For the established landlords that are running this as a business, as
opposed to the ones who have just gone in for the speculative investment, they are
happy with it [a situation of falling prices].

\"It doesn\'t really matter what the price of your property is if you are renting it
for the long-term. And if they do drop, some of them will be buying in,\" he added.

This was particularly true, Mr Entwistle noted, of areas where there is an
oversupply of flats. One prime example of this was produced by property website
email4property.co.uk. This site, which found Bristol to have enjoyed the highest
house price growth of any city in England and Wales outside London ( 9.2 per cent),
also found lower figures in cities such as Birmingham. According to the latest Land
Registry figures the second city has seen annual prices up by a much lower 3.7 per
cent. One contributory factor to this was the 5.5 per cent fall in prices in central
Birmingham, where nearly all sales have been for flats.

Of course, there may be other possible factors at play, such as the regional fact
that the south west has seen higher house price inflation than the midlands. But
David Bexon, managing director of email4peroperty.co.uk, said that errors had been
made in the renewal and rebranding of such cities, stating: \"In some cases this has
led to available housing disproportionate to the requirements of the local
demographic.\"

For the long-term investor, meeting the needs of the local demographic is the key,
whether this is flats for professionals, student houses near a university or larger
homes for families. For the speculator, a rush into the wrong type of property in
the wrong place and at the wrong time has been a bad move. As Mr Entwistle
concluded, those guilty \"Jumping on the bandwagon and seeing this as a great way to
make money quickly\" will be \"the ones to suffer\".

In today\'s world Property investment is an excellent investment option especially
investment in UK

Web Site: http://www.assetz.co.uk

Contact Details: Address:Assetz House, Newby Road, Stockport,Cheshire,SK7 5DA

fax:0845 400 6010

email:linkexchangeseo@gmail.com

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