Buy to let "BOOM"

Buy-to-let boom shows no signs of stopping as landlords snap up property worth £160bn.........

Read more: http://www.dailymail.co.uk/news/article-2098971/Buy-let-boom-shows-signs-stopping-landlords-snap-property-worth-160bn.html#ixzz1mYmqZYmA

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The UK Property Market 2011/2012

Hi All,

We’ve been getting a lot of questions about the market, and I thought it worth sharing both questions and answers - so here goes.

I’ve kept it very brief, so if you want further details, let us know click here or visit our website www.grantpropertyinvestment.com

Kind Regards

Peter Grant

CEO

1. What's happening with prices.

Prices fell in 2008 but have been very stable since then. We predicted that prices would be flat in 2011 and in fact they have risen slightly, according to Nationwide Building Society.

2. Has the financial crisis changed the market?

Yes. Since 2008 the market has moved from being a sellers market to becoming a buyers market - favouring investors. There is lower mortgage availability for first time buyers. Buy-to-Let mortgages on the other hand have risen sharply in 2011, allowing investors take advantage of very favourable buying conditions.

3. What's happening in the rental market. 

Rents have been rising as have yields. We have 100% occupancy in prime areas. The Scottish rental market has performed better than England.

4. What impact has the euro crisis had this past 6 months.

None. Prices have in fact risen slightly.  It's been similar to other past 'crisis'. In good times property prices rise and in less good times property prices remain flat.

5. Why is property less volatile than shares and bonds.

Shares and bonds make headlines and react to headlines because they are completely liquid so there can be dramatic price movements. Property prices don't react to headlines and have always been very stable by comparison.  

6. What is likely to happen in 2012? 

2012 is predicted to be similar to 2011, with prices stable and perhaps rising slightly. Nationwide are predicting 2% growth. Rents are likely to carry on strengthening as are yields. We expect occupancy in prime areas to remain very high.

7. How does property compare as an investment?

Over any period (3 years or 30 years) residential property has outperformed shares and commercial property. Over the last 40 years, the average growth is 7% pa. Through gearing that‘s a 28% return pa.

8. When investing, what should I focus on?

There are several rules to follow in order of priority

  1. Location, location, location. Choose a prime city centre area
  2. Traditional property outperforms new build, so focus on that

  3. Rentability. Look for strong rent and high occupancy

  4. Experience. Use GM as a partner and use our strong experience

  5. Price. Buy well but without compromising on the above points

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Welcome to 2012!

Hi All,

I thought I'd drop you a quick personal note to thank you for all your support in 2011, and to wish you a very Happy New Year. I hope that 2012 proves to be a prosperous and fun year for you.


If one of your New Year's resolutions is to invest in 2012, then let me know. I'm pleased to say the team were busy over the second part of December, which is traditionally a great time of year to pick up some brilliant bargains, if only because everyone else has switched off for Christmas! This year is no exception, and I'd be delighted to put you in the loop as to what is currently available.

I look forward to working with you in 2012.

Kind Regards,

Peter Grant
CEO
Grant Property Investment

For the latest update on our property portfolio, please visit our website.

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Housing rebound coming in 2012

Firstly from all at Grant Property Investment, we would like to wish all our clients and suppliers a Merry Christmas and Happy New Year!

Attached and below is a fantastic article from Barclays outlining their forecasts for the 2012 housing market. As we expected they have forecast a bumper year for 2012. We have further press articles relating to a positive outlook for 2012 within our website, please Click Here to see more.

Barclays Capital (BCS: 10.17 0.00%) analyst Stephen Kim predicts a housing recovery buoyed by improving jobs numbers and the fact prices for nondistressed homes will have stabilized without government support.

"In the absence of a government homebuyer incentives, prices for non-distressed home sales have stabilized for almost a year," Kim said. "This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of nondistressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices."

Barclays said recent economic data — including higher job creation in November, housing starts and improved homebuyer traffic — point to some improvement potential in the sector.

In mid-2010, the federal homebuyer tax credit expired, leaving the housing market without training wheels for the first time since the 2008 economic meltdown. Yet, prices in some housing markets remained stable on the back end.

With its new outlook in the market, Barclays upgraded D.R. Horton's (DHI: 11.76 0.00%) stock to buy and raised price targets for D.R. Horton, Lennar (LEN: 18.51 0.00%), Toll Brothers (TOL: 19.26 0.00%) and Meritage Homes(MTH: 20.28 0.00%).

At the same time, the investment bank raised its 2012 earnings-per-share estimates for D.R. Horton, Lennar, Meritage Homes, Pulte (PHM: 5.59 0.00%) and Toll Brothers, while lowering its estimates for KB Home (KBH: 7.03 0.00%).

"Thus, the key to timing housing’s recovery depends primarily on when these first-time buyers decide it is safe to buy a house," Kim concluded.

Please visit our WEBSITE for more information on this article and about Grant Property Investment's unique range of in-house property investment solutions!

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What makes residential property a good investment?

Hi All,

I thought it worth giving a brief update on what’s happening in the world of property. It’s an interesting picture!

While the world around is going through turbulent times, with high stock market volatility, the property Investment market has grown on several fronts.

1. Property prices rose by 0.8% in October, compared to October 2010, according to Nationwide 
2. The number of mortgages written in October rose to a three year high, helped by a strong growth in the mortgage products available. 

In fact it’s not unusual. History shows that residential property has very low volatility. When I look back at the major events of the past 15 years, (such as the 1991 recession, 9/11, the dot com bubble), while the stock markets invariably crashed, property either rose, or worst case went flat for a period. The attached graph shows the big picture.

The big impact was when mortgage lending was pulled back in 2008. The market went back by around 18%, and then rebounded by around half that figure. It’s been flat for the past 18 months, but now seems to be rising again.

But let’s not forget it’s a buyers market. On the ground we are finding several things.

1. We can drive a bargain. House sellers in need to sell quickly are more likely to accept a lower price, because of the Euro zone headlines. 
2. Yields are at a record high. Even in Prime areas we are able to get 7% - 9% yields (and 100% occupancy). 
3. Smart investors can smell a bargain. In November so far enquiries and purchases are up at record levels. 

I hope this helps paint a useful picture of what’s going on. It’s certainly a good time to cherry pick a bargain. If we can help, we’d be delighted to do so. The headlines all indicate investors becoming more active. The press has even been highlighting property as a safe haven – with high returns.

Visit our website for further information about us.

Kind Regards,

Peter Grant
CEO

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Buy-to-Let growth continues as lending hits three-year high

Buy-to-let lending has climbed to its highest level in almost three years, figures from the Council of Mortgage Lenders have revealed.

In the three months to September 34,500 buy-to-let loans worth £3.8bn were advanced, up 16% by number and 19% by value compared with the previous quarter. This is the highest level by either measure since Q4 2008.

Q3 saw 18,580 buy-to-let purchase loans 12% of all house purchase loans up from 9% in Q3 2010.

Charles Haresnape, managing director for residential mortgages at Aldermore, says: “The buoyancy of the buy-to-let sector confirms that investor appetite for residential property remains strong, which has been fuelled by tenant demand.”

For further information on this article please visit our website www.grantpropertyinvestment.com or call us on +44 (0)131 247 3131 

To view this full article through the original author please visit Mortgage Strategy http://www.mortgagestrategy.co.uk/b2l-growth-continues-as-lending-hits-three-year-high/1041506.article

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UK Property Investing - Buy to let

We’ve had a big response to our update on bank lending, and we’ve been asked a lot of questions around the Investment Market. I’m pleased to share some general advice around buying and investing.


1. Timings. In general it’s a good time to invest. It’s still a buyers market, and there’s great value to be had.

2. Areas. The best areas to head for are city centre. They are experiencing the best yields and the highest occupancy. The more prime the better.

3. Type of property. Traditional property has always been the best performing compared to new build (measured across both yield and capital appreciation).

4. Rental Market. There have been lots of headlines around a strengthening rental market. Scotland is generally performing better than England. The Student Market is particularly buoyant. Prime city centre areas are best.

5. Yields. Average yields in the industry are 5%. Larger traditional property in city centres gives a yield of 7% and above (that’s an improvement of around 20% due to lower prices and higher rents).

6. Capital appreciation. The long term average is 7% pa. On a geared return that’s a 28% return.
Banks are more active again. The number of buy to let products rose by 26% in the last quarter. B2L lending has increased by 40% on the previous year.

Everything seems to point to investing – but investing wisely. Buying in good areas and at a good price is key.

If we can help, let us know. www.grantpropertyinvestment.com

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