World Property Prices Are Declining – Is This Good For Property Investors?
By Jon Roshwood
With houses prices falling all over the world the question is are declining world property prices good for the UK? Lower prices can promise a real benefit for people who have the money to spare and want to buy into property. A recent survey revealed that house prices have fallen in almost all locations over the entire world as the Global Recession starts to take a real grip and affect the lives of ordinary people.
Just for a moment consider looking at the rate house prices are falling in many parts of the UK…it is good news as it can be seen that it is not as severe as many other parts of the world. For example in Riga, which is the capital city of Latvia, houses prices have fallen by almost 37 percent! This is a much higher decline than that experienced in the UK where house prices have fallen by circa 18% in the last year.
Good deals can be found if you know where to look, and there are some very good deals to be found both here and abroad, but that is if you know where to find them. It is worth remembering, that if you have the money available to spend then this can be some seriously good news for you as you can get some really top drawer bargains, and as we all know the only way real property prices can go eventually is up. You will almost certainly see a fantastic return on your investment in the future.
Following on, the Bank of England is making further cuts to interest rates. In actual fact some people are paying no interest at all on their mortgage! This can be another great reason to buy real estate property right now. If you have one of the popular tracker mortgages then you will have been enjoying a cut in your monthly mortgage payments for months on end now. Unfortunately, the seriously bad news is that not all of the Banks are passing on the recent interest rate cuts to their customers. So quite understandably this will not be good news for everyone right now.
Until the Banks are able to sort out their affairs it remains an uncertain time. One thing that is worth considering is that the taxpayer is helping the banks out of this problem! It does seem a tad unfair that some of the banks are not prepared to pass the savings in interest rates onto their customers, and that cannot be right! After all this all makes the British public much more sceptical about banks and it is just a real pity that we have come to rely on the Banks so much.
Future deliberations do really need to ensure that the correct lessons are learned from this latest crisis, which will inevitably ensure in helping to avoid this unfortunate situation in the future. So to recap, if you are in the fortunate position where you have some extra cash then there has never been such a good time to buy! With interest rates so low this will make your return on investment far more attractive than would have otherwise been the case.
However not everyone is going to be in the enviable situation of buying investment property as many, many, people are losing their jobs as a result of being made redundant and as a consequence the thought of buying a home is almost certainly to be the last thing on their minds at the moment.
Jon Roshwood is both an active property investor and real estate writer
and recommends that you visit the property portal
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