Current distress in property market most favourable for investors

Posted under General by Alan

While many investors are extremely worried over their investment in property market, Ducalian, a property investment consultancy believes that distressed residential property market in the UK is most ideal for professional investors.

According to consultancy’s sales and marketing manager, Timothy Lambert, now is the right time for property investors and professional landlords to take a plunge in the market, after doing some research on possible yield from investment.

Lambert also argues that prospects of good return are brighter with distressed property than with the savings returns or current stock market. He informs that yields on distressed properties have been presently exceeding more than 10%, assuring good value.

Average price of a UK home, as per Nationwide’s house price index, stood at £147,746 in February, which is 1.8% lower than in January and 17.6% less compared to last year.

According to Ducalian, due to severe financial constraints, homeowners have a tight time schedule for sale and distressed properties’ prices are also at comparatively low levels. The consultancy recommends serious investors to act now before market starts hotting up.

Data from a property source reveals that distressed properties gave yield of an average 94% of asking price in February, as against 91% in October.