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Right Time to Invest in British Property
House Price Recovery
It was one of the first financial indicators to drop in the recession and that was of course the decline of house prices. But Nationwide reported that house prices rose by 0.9% in June. This slowed down the drop for the year and could signal a sign of recovery in the market.
With this positive news it could be considered a good time to invest in property if you feel that the market has reached the bottom and is now about to rise. The problem has been the availability of mortgages and favourable terms. Once the recession hit the number of products were significantly reduced and the amount needed for deposits were greatly increased. But people will always need houses and it is one of the first things they choose to invest in.
If you compare house prices now to what they were last year you can see there are bargains to be had in this market in the current climate. Traditionally property has always been a good investment in Britain as people have sunk a large percentage of savings into having a good home. There is nothing to suggest the property market will not recover to the heights it reached before the recession provided people have the cash to invest.
The climate is more favourable to property investors who are able to pick up properties cheaper than in the past, sometimes as a result of repossessions which are growing in this country. With well spent minimal investment they can turn around a project and put the house back on the market. The risk has to be whether there are still people out there ready to buy them.
But then people have become more wary about credit in the recession and are resorting to living within their means. The days of mega spending seem to have left us. People seem more settled to enjoy what they have and stay where they are.
The financial crisis has meant reduction in wages and bonuses so the amount available for house purchases has significantly reduced. But as this area of business picks up it could have a knock on effect on the housing market.
Problem is people are not prepared to signal this small rise as the end of the recession. So if you were to purchase property now you could face yourself with further reductions in the market price, in future months, although it is not clear how much further they could fall.
If you buy property as an investment, it is a risk whenever you buy it and you need to prepare yourself to wait for a return but it could eventually come.