Investment newcomers

Buy-to-let as a strategy of property investment is still viable even in developed countries. However, newcomers in the game might think twice about getting involved, as they are likely to be the ones hurt most by the changes in property investment.

During the height of the almost worldwide real estate boom, success stories by relative newcomers to the industry were quite common. Many people both blue collar and white collar turned into property investors and a substantial number of them found very profitable success. Some of these now seasoned investors have long since quit their day jobs and consider themselves as qualified property investors.

A prime example of these success stories are twin brothers, Matthew and Peter Jones. The brothers were both policemen when they started investing and now they currently hold a portfolio of 25 homes which are worth an estimated £10m.

They launched their own property agency and have an office in west London. "We ended up making more money through property than by doing the day job so we became full-time professionals, setting up M&P Properties in 2003," Peter Jones states.

The brothers purchase buy-to-let properties which have made up the bulk of their portfolio, however they do agree that the property market is slowing down. Peter says, "This year looks like it will be a time to snap up a good deal."

While many analysts see this year as a wash and are simply biding their time until the markets recover, there are a significant number who see it as an opportunity to find the deals that no one else is willing to search for.

Investor aspirations strike many people and there will always be a number of persons willing to enter the market. Unfortunately, although there may truly be a considerable number of profitable deals available, the market may be too risky for anyone entering the game at this point.

With so many variables and a much less friendly real estate market, the risks are relatively greater than ever. With property prices remaining at high levels due to the period of soaring sales prices over the last few years, the profit margins are smaller and the possible losses are much larger.

BOOKMARK THIS PAGE (What is this?)