Here we go again.
As the latest property boom allegedly gathers pace, you may be trying to decide whether to invest in an investment property and make sure you grab a piece of the action, or alternatively to ignore the raft of positive sentiment and wait for things to quieten down.
If only we knew how far, and for how long, property prices are set to rise there wouldnâ€™t be a problem. But the age old problem is… we donâ€™t.Â And nobody does. Not even Bank of England governor Mark Carney despite his assertion that he can control interest rates without resorting to penalising the property investment sector.
So that leaves you with one sensible option. Look at the facts, listen to the experts and exercise your own judgement.
Fact 1: Thereâ€™s a significant shortage of properties.
Fact 2: The net population is growing
Fact 3: There are not enough new properties being bought to keep up with demand and the gap is growing.
Remember also that there are a large number of property owners that will want to, or potentially need to, sell their properties as soon as interest rates rise. And whatâ€™s more, the â€œHelp to Buyâ€ scheme will help first time buyers to enter the market from January 2014. All of which suggests that we will see a buying spree for property over the next few years, which in turn will drive house prices up and encourage more people to sell.
So the government are happy. Those that can afford to are hovering up the early deals before the main rush starts next year and house price inflation kicks in. Which will be music to the ears of the cabinet as this is a key factor that stimulates the economy as people have the â€œfeel good factorâ€ of increased equity which encourages them to spend, spend, spend!
So if you do want to benefit from long term cash flow by investing in property, now would be the time to buy in earnest â€“ the next 12 months may be the last few months in the best window of opportunity the property market has seen in 20 years.