Property Investment: Has the Bubble Burst?
Investment in property is a thriving market. Or is it? Has the market grown too quickly for its own good, and are people investing in property and then finding that they lose, rather than make money. In short, has the property investment bubble burst? This article takes a look at the investment property market, and in particular at the growing popularity of the property investment forum (e.g. http://www.singingpig.co.uk/articles.aspx#propertyInvestment) to discover whether the market is still healthy, or whether the bubble has, indeed, burst.
Property investment has been big business for a number of years now. The popularity of this venture is easily seen if one only looks at the increasing number of television programmes on the subject, and the large number of how to magazine articles and books. There is always somebody looking to make money through investment in property. Similarly there has been a growth in the number of investment property advisors. Advisors know that if they point their clients in the right direction then investment property is a way of gaining from a number of different areas in the market. The growing number of websites, e.g. http://www.singingpig.co.uk/articles.aspx#propertyInvestment on the subject also testifies to the way the investment property market has grown.
The property market and investment in property has grown faster than anyone would have thought possible and some investors are facing problems that they had not envisioned when starting on investment property. A look at property investment forums reveals that those with larger properties that have been turned into rented accommodation now have to have a license. Under the UK Housing Act of 2004, those who do not license their property by a certain date may face up to a �£20,000 fine, or find themselves having to repay rent to tenants. This can make their investment property an expensive, rather than a money making business.
Property investment forums reveal that many people thinking of, or already investing in property, have little or no idea of the problems they may be facing. They do not, for example, have much idea of the rights of people with regulated tenancies and if they go ahead and buy such properties with hopes of raising the rent to market value then they could stand to lose a lot of money. Sometimes the television programmes make investment property attractive and property developing, problematic, but doable for most people. Many of the problems that come up on property investment forums are not often covered, which means that some investors are going into the business blind.
A look at the news reveals that investment in property is becoming a tricky business. This month house prices have fallen in the south east and while this may be good for someone looking to invest, if the prices don’t rise again, they could find themselves losing money. Some investment properties come onto the market simply because the owner is having trouble selling. Before investing in such a property it might be wise to research the area to try and discover why the property has not sold, especially if the investor hopes to resell at a profit. Clearly there are problems associated with property investment and buyers would do well to investigate these before jumping in. Despite this, it is perhaps too soon to say whether or not the property bubble has burst.
