4 ways that YOU can profit from the property slump!
The best time to invest is during a 'credit crunch'
If you still read the property section of the newspaper, you can be forgiven for thinking that it is all doom and gloom in the housing market. But that is where you are wrong
During a property downturn there are always winners. In fact very successful property investors we know attribute their success to purchases they made during the early 1990's – right in the midst of the credit crisis.
And the current downturn is no different.
You too could be looking back proudly – in years to come – on properties you bought in 2008, thinking Yes, I made the right investment choice.
All you need to know now is - how do you become one of these winners
1. Rent, don't buy
This is the advice most property experts are giving the public and first time buyers. And they are right. Even with rising rental yields, renting is still 20–30% cheaper than buying a property. And who does this advice benefit in the long run? You – a future landlord!
2. Buy more
People are worried. With all the media hype and increases in living costs, inexperienced investors have got scared and are selling their properties below value. Giving you more and more opportunities to invest in a bargain!
Whatever their reason for selling, the price that you offer on their property can effectively be passed on to the next in the chain – at no direct detriment to the seller. We know your now wondering – how does that work? But it's simple. Let us explain.
When they go on to invest in another house, they will face the same price reduction. Balancing out the loss they made when they sold their property. They will be experiencing the same instant equity – that you have – of a property bought below value.
You'll both be winners.
3. Utilise the three d's
Death, debt and divorce are the three reasons estate agents still have any business. For some the need to sell is unavoidable, but there is one silver lining a great deal opportunity for you.
In particular, repossessions – which were a great source of bargains in the early 1990s – are on the increase. Even in today's market they still provide a great resource for new investors.
If you have an issue gaining from others' misfortunes, and hold back, then others will benefit. You need to stay focused and take advantages of the all investments presented to you. Otherwise you will lose out.
Stay in touch with estate agents for any potential bargains. We guarantee with the market as it stands, you'll be the first to know if a hot property hits the scene. With housing sales down, and commissions low, your estate agent will appreciate your interest – keeping you at the top of their contact list.
Sellers are increasingly motivated. If they put their house on the market, it is not to test the water, but because they want – or need – to sell. An empty property costs money: someone has to pay the mortgage, and it is decreasing in value. So work out how desperate they are and negotiate a deal, fast.
4. Put the pressure on developers
This is a great time to find a bargain on new–builds. And we can see why – with their share prices falling daily, developers' are beginning to feel the pinch.
Before you leap in though, make sure you do your homework. Not all of these properties are good deals and at the end of the day you are your top priority. So make sure you buy for the right reasons. With the right property you'll soon be reaping profits of over £1,000 per month.
Do some digging and look for developers who are struggling financially – it may sound ruthless but this is business. Their development finance is agreed in phases; the same as the way they build, so they will only be able to access the next lot of money once a certain number of properties are under offer. This is where we come in.
As buyers, we can take advantage of this necessity, and be selective when choosing our bargain. Remember – developers need us more than we need them. Meaning you will have complete control of your purchase. Perfect.
Now breathe let this information settle for a moment
We think you'll agree – the property market is much more promising than the media has let on.
And you can now get a slice of the action.
At Property Mentor™, we can give you all the skills you need to harness the true bargaining potential of the current property market; beat the credit crunch and find financial freedom.
You will learn how to:
- Structure your properties for long term success – you can take advantage of the aggressive price cuts and find a bargain. Some are selling at 40% below the asking value, giving you instant equity – free – to go into your next property
- Earn £300–£1,000 per property, per month – in a matter of days you could be on your way to investing in your first property. And with the rising rental yields, you could beat this £300 record and boost your income further