So, now the Association of Residential Letting Agents (ARLA) is predicting that it will be a tough year for landlords in 2009, as they are more exposed to the continued property downturn.
I think everybody knows that 2009 is going to be tough, especially for those who have overstretched themselves with debt and those who are unfortunate enough to lose their jobs.
However, if the fundamentals are right then property will always remain a solid investment, both from a cashflow and long-term growth perspective.
The key at the moment is to focus on property cash flow and to make sure that you aren’t making a loss on your rental income. Even though property prices continue to fall, as long as you don’t need to sell your property then you will be able to ride out the storm as long as your rental income is covering your mortgage repayments.
This, of course, means that you will make a capital appreciation eventually even if you are facing negative equity at the moment!
There is a lot of doom mongering going on about property at the moment, but the fact is that experienced investors are now starting to look at what deals are out there.
Let’s face it, if you are able to buy a property in the current market conditions at a 20% discount to the current market value, and one that generates a good positive cashflow, then why would you not invest? Buying at such discounts now could mean that you are buying at a 40-50% discount in a buoyant market.
This is what will be happening in the coming months, and the experienced investors will be snapping up such deals.
