Recent press cuttings
25th February 2008Now?s time to jump in: IT?S A BUYER?S MARKET
CITYA.M. Living article
‘Now’s time to jump in: IT’S A BUYER’S MARKET’
The negative comments about a housing market downturn mean there are exceptional deals to be had by the smart investor, says Fruitful’s Nick Hopkinson. HOUSE Prices Falling… Property Bubble About To Burst… Buy-To-Let Investors Pulling Out… You’ve seen the headlines over the last six months. But a closer inspection of the market by Fruitful Property Investment, oneof London’s top property investment companies, shows that, for both novice and professional investors, right now is an ideal time to buy.
The gloom and doom of the property situation has been exaggerated in recent months, so you may think it’s not a great time to buy. But according to at least one expert, you’d be wrong. Nick Hopkinson of Fruitful says that the downturn won’t last. ”With interest base rates now on downward trend and the latest inflation figures in line with government targets, the residential property slowdown is going to be very short-term. Anyway, when the press tells you the annual growth rate in property prices is falling, they’re basing this only on figures from underperforming areas.”
CHRONIC SHORTAGE: The rate is not falling in London and the South-east — it’s growing and will continue to grow. Why? Because there’s chronic property shortage after years of undersupply and the region remains the most popular area to live for immigrants. ”Consequently, demand is always going to be high in the long term — as are house prices”. Supply of new homes remains critically stifled by the “not in my backyard” (nimbi) driven planning approval system, which still exists despite years of government studies and proposals, including the Barker Housing Review of 2005. Also, with Europe’s borders becoming ever more porous, the flow of human traffic into the UK will only increase, and the majority of new arrivals will head for London and the South-east, driving up demand even further. Property investment in the region is therefore clearly still a good idea for those looking for a long-term return.
But why invest now? ”It’s a real buyer’s market right now,” Hopkinson explains, “as a result of the media ‘bad news’ perception around property, the market’s short-term volatility and last year’s credit crunch.” First-time buyers and traditional homemovers are simply not buying. “However, smarter investors with along-term view are taking advantage. The property market has always been cyclical, delivering sustained growth in the longterm. The major house builders still have quarterly sales and revenue targets to achieve for their shareholders, regardless of current market sentiment.” As a result, specialist firms like Fruitful, which has long-term strategic relationships with FTSE developers and a reliable track record, is currently negotiating some very exciting deals.”
SAFEST INVESTMENT: But why invest in property at all when there are stocks and shares?” There are three extremely good reasons,” says Hopkinson. “Firstly, building a property portfolio is by far the safest form of investment over the medium to long term, because the fundamental market factors of supply and demand are always going to drive values up over the long term if you buy in the right area.” The housing market is far less volatile than the stock market, with little risk of losing all your money — as long as you do your due diligence and budget properly. Secondly, we source properties under market value, using our excellent relationships with blue-chip agents and developers in emerging hotspots in London and the South-east, Delivering low-risk investments in those areas they say, are as safe as houses.” And thirdly, Fruitful specializes in maximum gearing — property jargon forsaking maximum profit on the minimum outlay, by leveraging the mortgage and the discount we negotiate. ”People should be taking advantage of the exceptional deals that are out there.”
Hopkinson makes it sound so simple, but what about the time and stress involved with buying a house? Viewing properties, investigating the area, forecasting the figures, applying for a mortgage — it all takes time, which is something that most of us don’t have. ”It is one of Fruitful’s aims to build long term fruitful relationships with our clients, delivering a complete, hassle-free service for time-poor professionals, so that you can build your portfolio no matter how Busy you are,” says Hopkinson. ”Our experts source the properties, and our clients put their money in.”
ONTO A WINNER: “We then take care of everything else —arrange mortgages, complete the sale and find tenants.” It’s that easy. “And that’s why we believe you should put us to work right now while the market is right.” The sooner you do, the more money you’ll make in the long term as your investment matures.” So if you’re looking to invest capital this Year, you should be considering the safer property option. If Hopkinson is right — and he certainly knows what he’s talking about — you could be onto a winner. Why not stick it in bricks?
For more information call Fruitful Property
Investment 9am-6pm on 020 7031 8282 or email
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