UK Housing Market on Precipice of Gold Rush

From time to time an anomaly occurs in the market, one which ensures that almost anyone who is positioned correctly can make a killing if they know what to do. Just as with the Klondike Gold Rush during the backend of the 19th century and the Dot com boom at the back end of the 20th Century.Is the housing market developing into one of those anomalies?Let explore why indicators suggest it may:The long term view is clear and unambiguous, house prices must rise from their current position. We live on an island with only a finite amount of space, house building cannot keep up with demand there is no suggestion this situation will change any time soon, and the population is growing.Economics 101 states if Demand exceeds Supply prices go up – London is a microcosm of the UK and a great example of what is likely to happen in the overall housing market, house prices rebounded in London 24 months ago, overall they will increase.It’s difficult to get credit this is creating a bottle neck, those that can are sucking up properties like an ant eater visiting their favourite ant hill but not all the investments are good. These properties will come back onto the market when interest rates rise.The credit bottle neck is creating massive pent up demand within the First Time Buyers market and those who wish to upgrade their homes. This is equivalent to a dam which is ready to burst. For those that know how to service this market this represents an unprecedented opportunity.Low interest rates mean that your savings are not getting a good return anywhere. When you take into consideration an inflation rate of 2.9% and an average savings rate of 1.6% means that your savings are actually shrinking every year and this doesn’t include any charges the banks levy for managing the savings account. If you know what you’re doing returns in property can be huge and using the right strategies you could be getting upwards of 35% annualise returns.Stock market uncertainty and the recent stock market crash has put many off investing in the stock market – property offers one of the only viable options.Now the question is how are you positioned to take advantage of this tsunami of opportunity swelling and growing underneath your feet right now. There are 100,000′s of property investors that are cleaning up at the moment and you could be benefiting from this unprecedented and long term market trend as well.It’s not difficult but you do need to know what you’re doing.The best thing to do to take advantage of the growing opportunity is to invest in your education, learn what successful investors are doing and copy it!

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