More and more I am speaking to seasoned property investors who are constantly looking for the sign that now is the time to start taking advantage of the current property market climate.
I have been in this position many times over the 3 decades I have been in property and one thing is for certain, you'll will never time it perfectly.
That being said, reading the property and economy news constantly as I do, there are some real signals that now or, soon, that time will come. I am seeing developers offer real discounts and incentives that 12 months ago, they just would not be offering, especially on those developments that are either complete or, soon to be completed. Developers are keen to get moving onto their next projects and off-loading the final 25% of the units they have for sale is imperative to enable them to do that confidently.
Another sign is that, more and more, I am noticing the comments from the Bank of England about Inflation set to drop to be much more constant and said with much more conviction with Mr Bailey saying to the Telegraph on Friday that there will soon be a "noticeable drop" in the figures in October, in comparison to sharp energy price increases from a year ago. This week, I have seen a countless number of articles all quoting the same. The halt on interest rate increases last quarter when the Bank was far less confident says to me that not only are they concerned about inflation, but they also have in mind the stifling of growth that high interest rates brings and that any window of opportunity to bring them down, they will take advantage of.
Clearly, mortgage lenders and the lending markets are of the same opinion, with 5 year fixed rates being offered now at below 5%, just a few months ago you would have been lucky to get 6.5%. In certain locations, demand for rental property is at a record high, this is pushing the rental prices up even more but it is also meaning people are always looking at getting out of the rental sector and moving into ownership. For a property investor, especially off-plan, this presents a real opportunity where you can secure the best units at the best prices, put down your deposit wait for completion, and look to sell at a profit to those owner occupiers. If you decide to keep it you know that the rental valuations would have also increased, borrowing costs would have come down meaning either way, it is a potential win win for a property investor.
I appreciate that my comments are not analytical, they don't come with graphs, charts and a mass of data, but I have been here many times before, I have seen how waiting and waiting for a sign from the heavens that never comes that the time is now to buy property and before you know it, the opportunity is missed, I have missed it myself many times. Interest rates on offer are still historically low and coming down, developers have repriced downwards, rental prices are going up, supply is never going to fulfil demand, buying is still preferred over renting and the population is growing.
If you are waiting for signals to move in property investing then these are just a few that you can not ignore, just a few.