Timing and research - the keys to property investment success
With property prices increasing for the fourth consecutive month, now is the time to consider investing in bricks and mortar say experts at Edinburgh property investment and management property specialists Cullen Property.
The Halifax House Price Index in October noted a 2.8% house price increase, the fourth consecutive monthly increase and the sixth so far this year, with the average house price now standing at £230,184.*
Despite this increase, Cullen Property has been busy sourcing suitable properties in the city for existing clients and prospective investors.
Operations Director Steve Coyle explains: “In the past couple of months alone, clients have bought properties through us and we will be busy looking for other opportunities to buy in the next few months. Buying property now for the student letting market in Spring 2010 is particularly attractive.
“It certainly looks like the market has ‘bottomed out’ and serious investors want to make sure to purchase now – before prices increase even more.
“Our clients have seen the value of their investments growing steadily, and during these difficult times they have held their values and continued to provide steady rental income. More than anything else, we advise them to look at property as a long term commitment. It is an ideal way to save for retirement, while currently showing good returns on cash invested.”
The company believes that, although the overall value of property may have increased very slowly in recent months, a well chosen property becomes a great asset over ten to 20 years.
Steve Coyle: “Timing is crucial to property investment and local knowledge can be hugely beneficial when it comes to deciding what and where to buy. With more students coming to the capital looking for quality property to let, and limited numbers of sought after, traditional properties available, Edinburgh is an ideal place for property investment.”
Apart from timing and local knowledge, investors are urged to choose solid finance.
“Right now, property investment is a great option for those with a sizeable deposit,” Coyle continues. “And we hope banks will start offering more competitive buy-to let mortgage rates in the next few months.”
Prospective investors should speak to their financial adviser and consider using equity built up in their own home if they need to raise money.
Cullen Property currently manages approximately 300 properties across Edinburgh. The company offers a full management service, including property sourcing for investors, lettings and refurbishment.
* The Halifax House Price Index noted a 2.8% increase in October 2009, the fourth consecutive monthly increase and the sixth so far this year, with the average house price now £230,184: rightmove.co.uk/news/house-price-index/october-2009