Understanding how a bridging loan works will really help put you in the driving seat, particularly if you are starting out in property investment and property development.
New challenges for Property Investors!
Identifying those opportunities are now getting harder and investing in property is harder than it ever has been.
People made a lot of easy money in property without having to do anything. Not because they were clever, but because the market was doing it for them and rising. They didn’t really care about what rent they would get or how they would pay off the mortgage. They were all playing for capital appreciation, in other words, growth!
Changes to the mortgage market & much more!
Of course, since 2008/2009 with the market changing, property prices not going berserk, tighter mortgage lending rules and more recently the anti-landlord movement which has seen huge tax changes among other things! This has meant most casual investors have either sold and left this sector or will do so. They aren’t getting capital appreciation like they once did and so it’s harder to find the returns that once existed. It’s harder to make rental alone stack up.
Of course, that’s not to say there aren’t still huge opportunities. There are! The difference is you’ve got to work much harder for it. You’ve got to be committed to being in the ‘property game’.
What now for property investors?
Investors now need to consider how to maximise an asset. Whether that is their existing property portfolio or when looking at new opportunities. They need to look at different types of property asset class from residential buy to let, HMO properties, holiday lets, commercial, semi-commercial, industrial units, and property development.
So if you are starting out in this world of being a property investor don’t worry, there are actually more opportunities because of this. It does mean you have to consider more options and maybe look for undervalued properties or properties at auction and if you do, then using bridging loans will likely form part of your strategy to finance the opportunities.
One last thing!
Before you go (hopefully not forever) I wanted to share with you a little thing we are working on! Its called the Property Insights. We have a facebook page which will explain a little more and it will mean the world to me if you go and ‘Like’ it. I know you will get a huge amount of value as it develops because as you might have guessed, the idea is to give you insights into the property market. CLICK HERE TO CHECK IT OUT.