Profit from Slowdown
Homeowners and investors have ways of making a profit during the housing downturn
Some estate agents are reporting increases in the number of people selling homes whilst they consider the demand still strong. The will then rent for a few months and after around six months hope to return to the market and purchase property at a lower price. Of course to make this work money in a savings account must gain more profit than it would for property growth. Currently the best accounts are paying 6% whilst property is forecast to fall between 3% and a 4.5% rise.
If interest rates fall next month those with a variable rate mortgage will see payment decreases but make sure it is a tracker not discount as these are linked to the Bank rate.
Bank share have be dealt a blow recently but they usually beat the market by an average of 13% when house-price inflation falls so now could be a good time to buy provided that vulnerable mortgage banks are avoided.
Buy to Let to Rise
The buy to let market looks as though it will benefit from the credit crunch.
With good rental yields stable and many landlords adding to their portfolios the buy to let market is strong.
The number of tenants wanting property to rent is increasing and 72% of investors consider this is a good time to buy property.
It is also though that should the capital gains tax changes be implemented this could benefit buy to let investors but it is not expected to change the market to any great extent.
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