Current UK market conditions ideal

Current UK market conditions are ideal for making lots of profit

Here are just a few reasons why.

New landlords/investors take a ‘short term’ view to property investing. They have bought into the propaganda that it is easy to become a millionaire over night by investing in property. They never take the time to understand the rules of the market and are therefore easily swayed by the slightest change in market conditions. They are also heavily influenced by what others say about the market. Because of this, they stop buying and offload whatever properties they have – usually at a discount. This result in a reduced supply of available rental properties!

First Time Buyers are unable to - or unsure about - getting on the property ladder. Yet they need somewhere to live. So they rent a property until the market changes to what they perceive to be ‘more favourable’.

This results in increased demand for rental properties. And as you know, when ‘demand’ is much greater than ‘supply’, those still in the market – i.e. astute investor with a long term perspective – make a 'killing' because:

a) They are able to buy more properties well below market value – usually from the ‘bailing out’ novice landlord/investor.
b) There is little competition from other landlords, so void periods are at a bare minimum.
c) Demand for limited supply of rental properties means you can comfortably increase rents and benefit from a ‘positive cash flow’.

Understand that from a 'long term investors' perspective, the UK property market typically swings – like a pendulum – through 2 major extremes:

Fast Capital Growth & Low Rents – where the market has been for the last couple of years.
Slow Capital Growth & High Rents – where the market is currently swinging to.

So, to make money, all you have to do is understand the market trends, adopt a long-term perspective and then position yourself accordingly!