Residential property prices have fallen since the stat of the year, according to figures from the ONS, with prices dropping 1% since December 2018, suggesting that now could be a good time to negotiate a reduced price on a property purchase.
Amid Brexit uncertainty, property prices across many parts of the UK are experiencing a dip, which makes now a good time to invest in UK property, according to Bruce Burkitt, managing director of Property Experts, a privately funded investment company specialising in all types of residential property acquisitions.
Uncertainty since the Brexit referendum has, for many, signalled a time to hold back from any financial investments following reports across the country that property values are falling. But Burkitt would contradict this and suggest that now is exactly the time to take the leap if you are considering investing in property.
He said: “Brexit is simply a condition in the market and an economic challenge that we are experiencing at the current time, but it’s actually a great opportunity for people to buy.
“Making money in this market is a skill, as in a rising market, anyone with means can invest in property, regardless of whether they make calculations correctly, as general market increases will usually absorb errors.
“Contrary to common thought, a volatile, falling market creates a great opportunity to buy, if investors adopt and follow specific guidelines.”
Burkitt advises investors to aim to take advantage of the buyers’ market by making low offers.
“Look to purchase at least 10-15% below market value, noting that the market value is often lower than the asking price,” he said.
Burkitt believes that the “real value” in a property deal can be found by adding value not just by simply refurbishing it.
He continued: “Perhaps buy a very large freehold one-bedroom apartment that can be sub-divided into two bedrooms, or convert a larger unit into several apartments.
“Alternatively, purchase a large property and create a house in multiple occupation (HMO) to rent out or sell as small units.”
“Investors should ensure there is finance in place to take out a buy to let mortgage on the property, and that rental values will cover mortgage repayments by at least 150%,” Burkitt added.