2008 was a challenging year for property. The drying up of credit markets led mortgage lenders to rise interest rates and tighten their lending criteria. As a result demand for property dropped and so did average house prices.

2009 will be a good year to invest in property:

1. Low interest rates

The drastic actions of the Bank of England and the government are now leading mortgage rates to fall by the day. Although lenders are dragging their feet to pass on the BOE base rate cuts in full, cheaper inter-bank lending and competition between providers is now resulting in a gradual reduction in mortgage rates. In 2009 we will see the lowest interest rates in years.

2. Cheap Properties

Average property prices in the UK dropped by about 15% in 2008 and needy sellers are willing to let their properties go for prices buyers could only dream about a year ago. Reduced purchase prices mean better value, reduced loan amounts, and lower repayments. The market will probably bottom out during the course of 2009 then start rising again. The recovery will reward those who get in before it starts.

Cheap loans combined with lower prices are an investor’s dream. It is in time like these that savvy investors make their money.

“Be greedy when others are fearful and fearful when others are greedy”

Warren Buffet

We wish you successful investing in 2009!

Alpha Property Investment Ltd