I have a little portfolio of properties in the UK and am in the process of adding to it at the moment. Why am I doing this now? If you have been following my blogs you will know that my analysis of property markets is based on simple economics. Buy at the bottom of the market. I believe that certain areas of the UK market are at the bottom and provide great value which can even be enhanced with some structured negotiation.
There is an undersupply of new build properties at the moment for many reasons. Principally the key is the situation developers have benn faced with.
Because of the uncertainty developers faced last year with falling house prices and less demand, they had put a stop on their supply. Many developers have been waiting to sell their current stock before even thinking about moving on to new projects.In fact quite a few developers have folded and their existing stock will be sold at discount to canny investors. Likewise land banks bought with hefty bank loans will begin to be offloaded in a spate of foreclosures.
There will be a lag time before new developments happen and therefore another oportunity for the experienced investor. However, at present there is very little opportunity in new builds and the clever investor will look to recently built stock that has to be sold below market value and therefore with built in equity for the investor!
Simply put, stock levels are drying up! The pressure is on to get the best deals.
Don't get left behind!