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Property investors need 'long-term view'
18 April 2008 11:30
People investing in property should take a longer-term approach and not be deterred by the current downturn in the market, according to one advisory firm.
Recent data from Halifax indicated that house prices fell by 2.5 per cent to an average of £191,556 last month, while the Royal Institution of Chartered Surveyors reported that 78.5 per cent more surveyors recorded a fall rather than a rise in prices in March.
Yet YourPropertyClub.com's managing director Brett Wood has nonetheless urged investors to take a 'long-term view' of the market, arguing that while prices are now dipping, they will reach the lowest they will be for a while before quickly climbing again.
He explained that there are slowdowns in the property cycle but that this brings down rates, boosting economic growth, followed by demand and then house prices, adding that experienced investors who had kept out of the market for a few years are now returning.
Mr Wood also advised buyers to always stick to areas with important amenities like shops, schools and transport links, while recommending that they look at sites where there has been some regeneration, such as in certain parts of the north of England.
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