If there is one part of the current financial crisis sure to be long lasting, it would be the effect on the property prices. Not only will the prices take some time to recover lost ground after more than a year of falls, but the sort of growth many have been expecting has not been as rapid as initially hoped.
For those who are in property investment for the long term, this is easily dealt with by waiting for the value of their portfolio to rise knowing it will eventually gain again. In the mean time however, some investors might struggle due to the type of finance they used when buying during the peak period.
When values have fallen, investors can have problems. Sainsbury’s Bank surveyed recently that UK landlords have seen a total of £118.4 billion off the value of their portfolios.
Landlords in property investment for the long term will still find that if they keep reliable tenants or have property in areas of strong rental demand, they will have the best chance of riding out the storm and seeing better days ahead of them. The other security measure for investors is to look for appropriate mortgage insurance for these uncertain times.