Up or Down: Where will prices go and what does that mean for you?

According to data gathered and analysed for the first half of 2007 by Royal Institution of Chartered Surveyors (RICS), the overall property market in London and throughout the UK is strong and healthy. There are, of course, some pockets where prices are declining, but those decreases are offset by increasing values elsewhere.

Could this strong market change in the future? Of course. Smart investors understand that property prices move in cycles. If you study the patterns in the areas in which you want to invest, you'll recognise those cycles and be able to apply strategies that will allow you to do well regardless of specific market conditions.

Whether you are just getting started or are an experienced investor, remember these key points:

• Have an exit strategy before you buy.

Know how you are going to make the property work for you and have a plan for a profitable exit when the time is right.

• Choose the right market.

Consider the strategy you want to use—for example, buying to let, buying to flip, buying as a lease option, buying to refurbish and either rent or sell—and research the market to be sure the strategy will work in the market of your choice at the current time and price points.

• Know your price limits.

For each property you consider, do a thorough analysis before making your offer and determine the maximum amount you can pay to make a profitable investment. If you cannot make the purchase at or below your maximum, walk away from the deal.

Back to Investment Articles