Property Investment

A world-wide phenomenon of the 21st Century, so far, has been the mass migration away from stock market investments and pensions into real estate. From a steady flow of money into property in the latter half of the 1990s, the "wall of money" hitting property has become something of a flood since the Dot Com Crash of 2000.

In the UK the Buy-to-Let Mortgage, more owner friendly letting laws and societal changes which favour mobility and renting have all contributed to the growing trend of, on the one hand, a growing army of landlord investors, and on the other, a growing band of singleton students, working people and professionals who rent. Many of the latter group have debts from student days and high living, are finding it very hard (without parent help) to get onto the housing ladder and in any case are not inclined to settle down and marry. They want to live a mobile uncommitted Generation Y lifestyle well into their thirties.

This has all become something of a virtuous circle for property as we write (October 2006) as rising property prices price more and more people out of the market and into renting and so increase demand for the investor landlords who want to let their investment properties.

Commercial property has had a similar impetuous in investor demand where auction houses have never been so busy and with novice and professional investors paying top prices.

© LandlordZONE 2006