December 1, 2010 | Author

Author Alan Forsyth

Alan Forsyth from Property Secrets, explains why this is a good time to invest in UK property.

When we look at the current situation in Ireland and the lack of flexibility the country has in terms of reorganising their economy, it shows how relatively fortunate we are in the UK that we have not joined the Euro.

The fact that the Bank of England firstly is independent, but more importantly can decide on interest rates has made a significant difference in the UK.

For the UK to have managed to get interest rates down to 0.5% and hold them here for 20 months and counting – with the expectation they will still be at this level in another 10 months – and being able to action the quantitative easing so quickly, allowing extra liquidity into the economy to the tune of £200 billion has undoubtedly saved us in the UK from a deeper recession.

Quantitative easing, is about getting further liquid funds into the economy, generally through the buying of government bonds by the Bank of England from financial institutions, such as banks, giving them fresh liquidity which then should result in more lending to businesses, and individuals.

This resulted in the UK officially moving out of recession at the start of the year – and growing between April and June by an impressive 1.2%.

We are all aware we shall not see much growth over the next few years – and with the public sector job cuts, employment figures will continue to be under pressure for the next 2-3 years, but overall our monetary policy at this time appears to have been relatively successful.

Ireland on the other hand is now looking at getting bailed out by the EU – as it struggles to cope with huge debts, and trying to bail out in particular the Anglo Irish bank.

An official investigation into Anglo Irish bank by PricewaterhouseCoopers revealed it had 15 customers who owe the bank more than €500m each, money that will never be recovered – incredible figures!

Clearly there was a great deal of irresponsible lending in Ireland, but the lack of flexibility in monetary policy clearly has a major impact in trying to work their way out of the situation.
As previously mentioned in the UK, finance markets are slowly improving – with many new lenders entering the market, and existing lenders reducing their rates, both on fixed and tracker mortgages which is an excellent indication that they see interest rates staying low.

With buy to let properties available on 75% LTV finance giving over £150 a month positive cashflow this is a great time to be buying investment property.

Thanks to Alan for that informative article. Alan has also put together a free 7 part course on mistakes to avoid as a property investor. Click here to download.

Hi Julie

Hope you are well!

With the crisis in Ireland grabbing headline news right now, currency specialist Nigel Hodges explains just how the bailout is affecting the pound and euro whilst Alan Forsyth compares both markets and the one that he would rather invest in.

Nigel Hodges Despite the announcement of an EU rescue package to Ireland pushing the Euro higher in the first instance over the weekend, the aftermath of political uncertainty that has since risen to the surface has caused the single currency to weaken. The Pound has climbed back against the Euro as it has emerged that the Irish Green Party has called for a general election throwing into some doubt whether the new budget will be passed in December, or whether a new Government would reject the terms of any rescue package.

The Pound had initially fallen against the Euro since Friday with the focus on the Irish bailout package pushing up the single currency. The Pound closed at €1.1693, dropping by 0.5% against the single currency over the course of last week. It weakened against the Dollar by 0.8% last week to close at $1.5989.

Britain’s contribution to the Irish rescue package has been defended by the Chancellor as a necessary move to protect the British economy by ensuring stability in Ireland, one of its main trading partners.

A Rightmove survey has found that 42% of people surveyed believe that UK rents will rise 12 months from now. With mortgage lending low and UK house prices falling, there is likely to be increased demand within the rental sector.

You can get a free currency report from Nigel and his team by clicking here

Below, our very own Alan Forsyth explains why this is a good time to invest in UK property.

Alan Forsyth When we look at the current situation in Ireland and the lack of flexibility the country has in terms of reorganising their economy, it shows how relatively fortunate we are in the UK that we have not joined the Euro.

The fact that the Bank of England firstly is independent, but more importantly can decide on interest rates has made a significant difference in the UK.

This resulted in the UK officially moving out of recession at the start of the year – and growing between April and June by an impressive 1.2%.

Ireland on the other hand is now looking at getting bailed out by the EU – as it struggles to cope with huge debts, and trying to bail out in particular the Anglo Irish bank.

With buy to let properties available on 75% LTV finance giving over £150 a month positive cashflow this is a great time to be buying investment property.

To register your interest on our BMV UK Property Deals, click here and enter your details for regular updates on the property types & locations that interests you!

You can also get information on your foreign exchange requirements from our partners at Currency Solutions by clicking here or calling +44(0)20 7740 0000.

Kind Regards