During the last few years, the local house market has continuously seen a plunge in house prices, falling by as much as 30%.
These days it is more tricky than ever to acquire a house in the customary manner, ie lending from a conventional financial organization such as a bank.

The economic predicament has impacted on borrowing and in particular on over-borrowing on Investment Property as the financial institutions remain over careful, with no obvious desire to bolster the previously profitable Buy to Rent opporTunity.

As a result, a lot of investors are finding borrowing against their deposits very hard because of the unwillingness by most banks and building societies to encourage these Buy To Rent propositions.
Today, Buy to Rent mortgages for new build properties are offered for houses at approximately 75% to 80% advance to price ratio, dropping to in the region of 65% on apartments, leaving investors to make up the shortfall. For many people this is not possible as their money is invested in in other equity.

However there is some hope at the end of the tunnel for house investors.
Typically, house prices in Britain tend to follow an 18 year cycle of rise and decline. Also, monetary movements show that each price drop is traditionally followed by a period of growth.

There still remains the chance to acquire property at discounted prices due to the increase in repossession and the fall in sales.
Based on this theory, as we come out the present recession Llocal property prices should begin to increase yet again, creating opportunities for deals and to make money.

It has never been a better time for the smart investors to look at their investment portfolio and look at growing their property purchases, particularly in the British residential market which is more predictable than commercial and property abroad, so a sounder investment.

The suggested step is to source deeply discounted house deals, at Below Market Value prices, which present financial profit directly, allowing investors to grow and develop their property portfolio regardless of the stagnation in the market.
As house prices are currently moving to the least possible to which they are likely to reach, there are an ever-increasing number of deals around ranging from 10%-20% less than market value.
A smart investor will spend now rather than wait until the market improves and when there will be fewer discounts on offer. And when the market starts to pick up, there will be even greater rivalry for excellent property investment deals.

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