More worries for homeowners in the USA with similar situations developing here in the UK
See my other Blog
The upshot is that if you are selling, make sure you get out of a deal soon, and if you are buying the cards are now stacked in your favour providing you make a low enough offer.
These situations tend to re-inforce my belief that property topped out in 2005 and makes the Bank of England's comments on house price inflation pretty hollow. Mostly anecdotal evidence from the lending vested interest groups.
Sunday 14 January 2007
Friday 12 January 2007
New Edition of An Insider's Guide to Successful Property Investing
An Insider's Guide To Successful Property Investing - Bundle
An Insider's Guide To Successful Property Investing - Part I by Peter Jones
Anyone Can Do It, You Just Need To Try
"It's the law of supply and demand. Real estate, especially residential property, is a commodity that's in critical shortage and for which there is enormous demand. It is a necessity, not a luxury. People can't print up 100,000 new homes as they might print up a stock offering. That's why I continue to say 'Don't wait to buy real estate, buy real estate and wait'" (Robert Allen, American self-made millionaire property entrepreneur)
A Very British Obsession
Have you noticed that the British are almost totally obsessed with the value of their homes? Perhaps it's because we remember the excitement experienced in the late 1970's and 1980's when house prices were moving so fast that paper fortunes were being made almost overnight. Every one was a jackpot winner and you didn't need a lottery ticket; if you lived in your own house or flat you were guaranteed a bumper payout. It's happening again, now. The market's hotting up and the same thing is happening. Friends of mine who bought a four-bed house in Surrey last year for £200,000 tell me it's now worth £300,000. I'm sure we've all heard stories like that.
Everyone seems to know how much their house is worth, almost to the last penny. What makes this so surprising is that the professional valuers, who tell the Building Societies how much your house is worth when you ask for a mortgage, spend at least five years training, including three years at university, and yet most home-owners seem to be able to get to the right figure instinctively!
When they retire most people's largest asset is the equity in their home. In a survey in the USA a few years ago it was found that the average home owner's assets were worth thirty times the value of a home renter's assets. Just look at how much the capital value of homes has increased in this country over the last 30 or so years. In 1969 the average price of a British home was around £4,500. In 2001 alone house prices went up an average 17% and today the average house price stands at over £100,000.
And owning your own home and "trading up" is still the most tax-efficient way to make money in property; if your home is your main residence for tax purposes, when you sell at a profit you pay no tax at all. So, if you are serious about making money in property the first step is to own your own home. It's probably the most important investment you'll ever make. It isn't just for living in. As the capital value accumulates it's also a cash machine, a savings account and a source of equity for your future deals.
But that is by no means the end of the story; it's only the beginning. As the British public are so naturally good at property I am always surprised that their interest stops at their own front door. Most people don't seem to realise that there are all sorts of opportunities in the property world for everyone to explore and exploit, which with a little bit of creative thinking everyone can afford.
I've been lucky enough to have spent most of the last 20 years working in commercial and residential property and have been able to follow the careers and fortunes of individuals in the property world who never seem to put a foot wrong, and who have been tremendously successful.
It's probably true to say that property has created more millionaires than any other type of business. And it seems that business people who are successful in another area are more often than not tempted into trying their hand at property, even if it's only as a side-line.
You would probably think all property entrepreneurs must have had at least a small fortune to start with and could afford to play with property. For some of them that may have been true, but certainly not for the majority. Many successful property investors have started almost literally with nothing, but by knowing just a little more than the average lay person have built up large property fortunes.
There are several powerful secrets all successful property people use which give them a better than even chance of being successful. In my book, An Insider's Guide to Successful Property Investment, I will teach you what they are and how to use them so that you can start to build a property empire of your own. If you have the time and the desire, and if you put these secrets into practice, you too can be a successful property investor. No problem.
And, actually, anyone can afford to be a property investor. It really is true that you can start your own private property empire tomorrow by buying properties for as little as £500, perhaps even less if you shop around. And if you are really clever you can start by getting someone else to pay for them for you, perfectly legally. I know this sounds almost incredible but I'll tell you how to do it.
How successful you will be depends upon how you perceive property. You need to understand that most people don't think of property as something they can be involved with. Perhaps it's psychological and they are overwhelmed by the physical size and scale of property. Perhaps it's because they assume that all property is too expensive and out of their price range and they don't realise that they don't have to pay the whole purchase price themselves, or any of it.
But the key to building your property empire is to start thinking more laterally, and to start to see the opportunity and not the building. The value of a property depends on the interest being sold and not on the physical accommodation it provides.
I have written this book especially for small investors who may have a few hundred pounds put away for a rainy day and want to do something more interesting than leave it in a building society. I am going to tell you why it's better to buy property using other people's money, and how to get them to lend it to you. I'll show you how to value investment properties and work out whether you are getting the best return on your money, and about the different types of properties that are available and why they should be of interest to you. And I am going to tell you in detail those little known secrets of property investing which will allow you to succeed where others will fail.
Within An Insider's Guide To Successful Property Investment you will also learn:
An Insider's Guide To Successful Property Investing - Part I by Peter Jones
Anyone Can Do It, You Just Need To Try
"It's the law of supply and demand. Real estate, especially residential property, is a commodity that's in critical shortage and for which there is enormous demand. It is a necessity, not a luxury. People can't print up 100,000 new homes as they might print up a stock offering. That's why I continue to say 'Don't wait to buy real estate, buy real estate and wait'" (Robert Allen, American self-made millionaire property entrepreneur)
A Very British Obsession
Have you noticed that the British are almost totally obsessed with the value of their homes? Perhaps it's because we remember the excitement experienced in the late 1970's and 1980's when house prices were moving so fast that paper fortunes were being made almost overnight. Every one was a jackpot winner and you didn't need a lottery ticket; if you lived in your own house or flat you were guaranteed a bumper payout. It's happening again, now. The market's hotting up and the same thing is happening. Friends of mine who bought a four-bed house in Surrey last year for £200,000 tell me it's now worth £300,000. I'm sure we've all heard stories like that.
Everyone seems to know how much their house is worth, almost to the last penny. What makes this so surprising is that the professional valuers, who tell the Building Societies how much your house is worth when you ask for a mortgage, spend at least five years training, including three years at university, and yet most home-owners seem to be able to get to the right figure instinctively!
When they retire most people's largest asset is the equity in their home. In a survey in the USA a few years ago it was found that the average home owner's assets were worth thirty times the value of a home renter's assets. Just look at how much the capital value of homes has increased in this country over the last 30 or so years. In 1969 the average price of a British home was around £4,500. In 2001 alone house prices went up an average 17% and today the average house price stands at over £100,000.
And owning your own home and "trading up" is still the most tax-efficient way to make money in property; if your home is your main residence for tax purposes, when you sell at a profit you pay no tax at all. So, if you are serious about making money in property the first step is to own your own home. It's probably the most important investment you'll ever make. It isn't just for living in. As the capital value accumulates it's also a cash machine, a savings account and a source of equity for your future deals.
But that is by no means the end of the story; it's only the beginning. As the British public are so naturally good at property I am always surprised that their interest stops at their own front door. Most people don't seem to realise that there are all sorts of opportunities in the property world for everyone to explore and exploit, which with a little bit of creative thinking everyone can afford.
I've been lucky enough to have spent most of the last 20 years working in commercial and residential property and have been able to follow the careers and fortunes of individuals in the property world who never seem to put a foot wrong, and who have been tremendously successful.
It's probably true to say that property has created more millionaires than any other type of business. And it seems that business people who are successful in another area are more often than not tempted into trying their hand at property, even if it's only as a side-line.
You would probably think all property entrepreneurs must have had at least a small fortune to start with and could afford to play with property. For some of them that may have been true, but certainly not for the majority. Many successful property investors have started almost literally with nothing, but by knowing just a little more than the average lay person have built up large property fortunes.
There are several powerful secrets all successful property people use which give them a better than even chance of being successful. In my book, An Insider's Guide to Successful Property Investment, I will teach you what they are and how to use them so that you can start to build a property empire of your own. If you have the time and the desire, and if you put these secrets into practice, you too can be a successful property investor. No problem.
And, actually, anyone can afford to be a property investor. It really is true that you can start your own private property empire tomorrow by buying properties for as little as £500, perhaps even less if you shop around. And if you are really clever you can start by getting someone else to pay for them for you, perfectly legally. I know this sounds almost incredible but I'll tell you how to do it.
How successful you will be depends upon how you perceive property. You need to understand that most people don't think of property as something they can be involved with. Perhaps it's psychological and they are overwhelmed by the physical size and scale of property. Perhaps it's because they assume that all property is too expensive and out of their price range and they don't realise that they don't have to pay the whole purchase price themselves, or any of it.
But the key to building your property empire is to start thinking more laterally, and to start to see the opportunity and not the building. The value of a property depends on the interest being sold and not on the physical accommodation it provides.
I have written this book especially for small investors who may have a few hundred pounds put away for a rainy day and want to do something more interesting than leave it in a building society. I am going to tell you why it's better to buy property using other people's money, and how to get them to lend it to you. I'll show you how to value investment properties and work out whether you are getting the best return on your money, and about the different types of properties that are available and why they should be of interest to you. And I am going to tell you in detail those little known secrets of property investing which will allow you to succeed where others will fail.
Within An Insider's Guide To Successful Property Investment you will also learn:
Why you don't need to be able to afford a whole property
How to use other people's money, and how to get it
What's a clever thing to do in a hot market
Why buying at auction can reap big rewards
Why residential lettings are as safe as houses
About a long-term idea; going for growth
About an alternative idea; going for income
All about what you need to know if you want to be a serial landlord
That patience is a virtue
All about residential reversions
That blocks of flats can be bought for as little as £1,000
All about valuable freehold ground rents
What 'garage mania' really means
How holiday-makers can pay for your dream cottage
How a lodger could pay your mortgage
How to buy a £60,000 investment property for £22,500
And I provide you with comprehensive 'action steps' to get you started
Buy my book An Insider's Guide to Successful Property Investment and start on the road to success in property today!
Peter Jones
Peter Jones is a surveyor with 20 years' experience in residential and commercial property, both in the private and public sectors. Peter is also Managing Director of a company he has recently formed to trade in residential property investments. He also acts as a consultant, with a particular interest in the valuation, and acquisition and disposal of investment properties.
An Insider's Guide To Successful Property Investing - Part II by Peter Jones
Just launched An Insider's Guide To Successful Property Investing - Part II. Exposing even more insider secrets of the business, now you can learn how even the "small guy" can become a successful property investor.
If you'd told me three years ago that today I'd own my very own property company with 28 rental properties, and that I'd have started it from scratch using hardly any of my own money, I'd have thought you were crazy.
What if I told you that you can do the same?
I believe that with the right systems in place, anyone can do what I have done, and by using my knowledge and experience, you can do it more easily, quickly and profitably.
It's just over two years since I wrote
If you benefited from reading my Insider's Guide Part I, you'll love Insider's II. I will show you, amongst many other things:
Ten sources of bargain properties, and simple systems you can use to find them.
Nine systems you can set up to create your own successful property business.
An eight-step plan to identify and buy the best property available.
The seven most important traits of a successful entrepreneur.
Six ways of generating profits from property.
Five reasons why I think property beats all other investment types hands down.
Four common scams in property and how to spot them.
Three things you can do to make a good deal "great!"
Two reasons why your property business could fail, and how you can guard against them.- one fantastic website that will help you build a serious property business.
I have subtitled my new e-book "Milking The System" because I believe that no matter how clever you are, if you don't have the right systems in place to find, buy, run and manage your property business, you cannot be successful. But, if you do have the right systems in place, and you use them, then success and profits are yours for the taking. I will show you in detail those systems, why you need them, and how to make them work for you.
My property business is now growing quicker than at any other time. In fact, the number of properties owned by my company will have doubled in the last year alone. But I'm not too proud to admit that when I first started out I made a lot of mistakes, mistakes that have cost me time and money. In Insider's Part II I will humbly share those mistakes with you so you can avoid the pitfalls and get off to a flying start. That's why I show you in detail:
Why we all do 'dumb deals' from time to time, and how to cope when they happen.
What you need to think about before you buy, including how to do your own due diligence.
How to do your own risk analysis before you buy, so you don't get caught by damaging negative cash-flow.
I am so pleased to be able to bring this title new to you now, which is a perfect compliment to my original publication. Now, with my two titles, I have been able to cover the whole subject of property investing in as much detail as is possible and have managed to bring the subject completely up-to-date.
I know that you will benefit from Part II as you have from Part I.
Best regards,
Peter Jones
Thursday 11 January 2007
More Misery in the UK
The jittery Bank of England Monetary Committee has set ther stage for a big shake out of over extended property owners with their suprise increase in base rates.
Their excuse is as ever inflation, however with exporters hurt and imports suddenly even more attractive it spells more unemployment, and you guessed it more mortgage arrears.
Europe, America and Asia must be rubbing their hands together.
From an property investor perspective, stand by for "distressed sales" opportunities from those novice Buy to Letter's who only entered the market in 2003, and those on a "off-plan" promise who now cannot afford the final installment let alone find a tenant. In addition, recent first time buyers having over spent at Christmas will be tightening their belts and worrying about their cost of borrowing.
On the negative side new tenants may find their rents harder to pay, and may have their jobs under threat.
Overall it may be better to steer clear of the UK (unless you can get a 10% rental yeild, rather than the avaerage 5.5% in London-which is less than their mortgage rate-so taking more money out of the ecomony).
As I have stated in other blog,and despite the reports of the vested interest group the UK property market just like the USA peaked in 2005.
So if you have the chance get out of UK property for a while. Gold Bullion is good.
Their excuse is as ever inflation, however with exporters hurt and imports suddenly even more attractive it spells more unemployment, and you guessed it more mortgage arrears.
Europe, America and Asia must be rubbing their hands together.
From an property investor perspective, stand by for "distressed sales" opportunities from those novice Buy to Letter's who only entered the market in 2003, and those on a "off-plan" promise who now cannot afford the final installment let alone find a tenant. In addition, recent first time buyers having over spent at Christmas will be tightening their belts and worrying about their cost of borrowing.
On the negative side new tenants may find their rents harder to pay, and may have their jobs under threat.
Overall it may be better to steer clear of the UK (unless you can get a 10% rental yeild, rather than the avaerage 5.5% in London-which is less than their mortgage rate-so taking more money out of the ecomony).
As I have stated in other blog,and despite the reports of the vested interest group the UK property market just like the USA peaked in 2005.
So if you have the chance get out of UK property for a while. Gold Bullion is good.
Tuesday 9 January 2007
US Housing Trends or Recession?
If you want to know where today’s US housing market is heading, then the two graphs shown below say it all. The first is a longer-term at median U.S. home prices from 1990. The recession in the early 90’s shows up as a dip, but nothing in the past 16 years compares to the plunge in 2006, from the peak in 2005. See my Blog on Gold Bullion and the Stockmarkets
The second picture is a housing starts and permits: from July 2005 to November 2006 the trend speaks for itself. The rapid reductions in permits means that the house building speculators are slowing down their building plans significantly. A classic sign of a RECESSION
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