Investors urged to look at quality of property and long-term potential
Property investors and landlords have been urged to take a long-term view of their assets to weather the economic downturn.
While property values may not fully recover over the next 12 months, Edinburgh property management specialists Cullen Property are advising clients to stay calm and stick to their assets for long-term gain.
The company expects the market for both buying and letting property to calm down in 2009, with a number of opportunities arising for serious investors. Managing Director Malcolm Warrack and Operations Director Steve Coyle share their expectations for the property market in Edinburgh in the New Year:
• House prices are likely to continue to fall slightly, although parts of the city may withstand this trend. Lower prices may tempt investors back into the market
• Property investors will most likely see their mortgage rates falling as fixed term deals come to an end and customers are moved onto standard variable rates which have fallen considerably following interest rate cuts. Investors are therefore well advised to hold on to their property and wait for the market to improve before selling
• Rental properties: supply and demand will level out as some ‘reluctant landlords’ realise the legal requirements involved in letting a property and decide to sell at a slightly lower price instead
• Rents are expected to remain stable in Edinburgh, although there may be slight increases in the most popular areas near the universities and the city centre
• Quality of rental accommodation is likely to increase as landlords upgrade properties to attract prospective tenants and give themselves an advantage over competitors whilst minimising voids between rental periods
Cullen Property’s Managing Director Malcolm Warrack comments: “We have always advised our investor clients to look at property as a mid or long-term investment and to make sound financial arrangements.
“This strategy has worked really well and, so far, none of our clients have had to sell a property due to the credit crunch.
“Instead, we have been able to achieve occupancy rates of over 98%, which we have maintained for over five years.”
Cullen Property currently manages approximately 300 properties across Edinburgh, over 65% of which are occupied by students. The company offers a full management service, including property sourcing, lettings and refurbishment.