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What Investment Factors Are Important When House Prices Rise?

Over recent months we have certainly seen a lot in the media about the increase in house prices that we have been seeing nationwide. Since 2008 we have been involved in one of if not the biggest recessions in history and we are now beginning to see the economy begin to recover.

So what does this mean to us as property investors?

We have been buying properties since 2007 and we believe the reason we have come through the recession and gone from strength from strength is because of one of our main principles which is buying for cash-flow and return on investment. Now don’t get us wrong we know that on average properties double every 7 to 10 years and when we do experience capital growth it will be a major boost for those who have invested in property. However we do not believe in waiting for this indefinitely and banking on this when making our investment choices. When looking at our buy to let investments for ourselves and our investors, we believe in focusing on return on investment and cash-flow as these figures when calculated correctly are not subjective and are there in black and white. For example through working with qualified financial advisors we are able to find out current mortgage rates and take out fixed mortgages for up to 5 years meaning that we know what we are paying for our mortgages. With rents at a very competitive price we are still seeing great returns on investments.

With prices on the rise we will still apply the same principles and make sure are investments are stress tested and cash-flow positive meaning that we will not rely on just capital growth. Therefore whether the market moves up or down we are in a position to make good returns and enjoy a solid long term investment. One way we do this as prices rise is through making our investments Multi-Lets. This is where we would rent rooms individually in areas of high demand to combat any increase in prices. We also aim to buy properties below market value and therefore factor in a buffer for any market downturns.

At Embrace we believe that as long as you stay up to date with your property education and current strategies you can make money in any market conditions. We teach a number of strategies for this and are helping many people just starting out achieve great returns on investment.

- Peter Iwaniszewski

 

For further information about investing in property please contact Embrace on Tel. 02476-158187.

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