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PIN: 'Great time to buy' for property investors
16 May 2008 10:30
House prices are falling now but they will eventually rise again, the Property Investment Network (PIN) has forecast, making this an ideal time for speculating in the market.
PIN's founder Simon Zutshi estimated that house prices would drop by about five per cent over the next two or three years, with falls in some areas and rises in others, but that after this they will stabilise and then continue to rise again overall.
He asserted that this is therefore a 'great time to buy' property as investors can get hold of houses for excellent prices, but warned that they will then have to be prepared to hold onto their acquisition for the long-term while they wait for prices to recover.
Mr Zutshi also predicted that the multitude of amateur buy-to-let investors with just one or two properties will now start to leave the market for a while, driven by the growing difficulty of obtaining mortgage finance and by declining house prices.
Latest research by Paragon among brokers has shown that just one in six buy-to-let mortgages granted over the three months to the end of February went to first-time investors, compared to two out of five back in May 2001.
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