How long-term investment pays

Released on: January 25, 2008, 11:03 am

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: In the current climate with its talk of crunching credit,
plummeting prices and declining dividends, many have seen the buy-to-let market as a
near-certain victim of the emerging economic circumstances

Press Release Body: In the current climate with its talk of crunching credit,
plummeting prices and declining dividends, many have seen the buy-to-let market as a
near-certain victim of the emerging economic circumstances.

Not so, it seems, judging by recent surveys in the industry, which have found the
majority of investors feeling rather more optimistic than one might expect. What the
Association of Residential Letting Agents (Arla) this month, plus Alliance &
Leicester and Bradford & Bingley last month found was that this optimism went
hand-in-hand with a commitment among most investors to be in it for the long-term.
Arla, for instance, found that the average investment time was for 16.7 years while
just two per cent of those polled said their involvement was intended to be for less
than two years.

This attitude appears to have been encapsulated by the calculated actions of
investor Angela Cook, an estate agency office manager in Middlesbrough. She
explained to nebusiness.co.uk this week that her investment - two 100,000 homes in
the nearby town of Newton Aycliffe purchased five years ago - was based on extensive
research which underpinned the long-term commitment she has made.

She said: \"This year is likely to be tough and we may see a dip in prices of about
five to six per cent.\" However, she added: \"Before I entered the market, I did a lot
of research dating back to the 1950s and found that, in general, every ten years the
market value doubled and then suffered a slight dip.\"

Such a dip may thus be occurring now, just as there was a small dip in property
prices in the mid-1990s and a larger one in the early 1990s recession. In the
meantime, however, the rising prices seen in recent years have of course been much
more than five or six per cent. Ms Cook\'s calculation is that the longer-term
increase will be as well.

The website reported that there were still good buy-to-let opportunities even now in
the area, with John Murphy, managing director of Alpha Independent Financial
Planning in Middlesbrough recommending the town because of its student population.
This may surprise some, since recent tips for property hotspots this year, such as
the recent list in the Independent, have tended to exclude the north, with the
exception of Liverpool thanks to its 2008 European City of Culture status.

Yet there is still optimism around. Recently the Basingstoke Gazette reported that a
Homebuyer and Property Investor Show survey concluded the buy-to-let industry would
not just be strong in London and the south-east but also boost the whole UK property
industry.

If buy-to-let is here to stay for the long run, it looks like it is because its
successful practitioners are too.

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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