The housing market in the United Kingdom moves in cycles and is heavily influenced by interest rate movements and the general shape of the economy. If you take a look at UK housing market history you should be able to identify peaks and troughs and use these patterns to make the biggest profits.
Can you really rely on History?
Looking back at the peaks and troughs of the UK housing market is OK but is it something that you can truly rely upon for your next property investment success? No one predicted the crash in 2008 and the impact that that had on the housing market. There will always be these kinds of exceptions that make historical property investment analysis far from sure.
Follow the Peaks and Troughs for Success
The ideal scenario is to make a property purchase in the trough cycle so that you can buy at the right price, and then sell your property in a peak cycle so that your profits are maximised. Be careful with this as the peaks and troughs for each year are likely to vary. Despite this you should be able to spot certain time frames where buying and selling are best.
Get in at the Bottom of the Cycle
Use the historical data to predict when the troughs are going to hit the bottom of the cycle. This is the best time to buy your next property. Just before this bottoming of the cycle is the ideal time to make a purchase. This should give you enough time to get your property ready for sale at the right time.
It is best to sell before the Housing Market reaches its Peak
Most smart property investors will sell their properties before the market is at its highest peak. If you wait until the peak you will be competing with every other property investor who is looking for the highest profit. The price of the houses will be too high and this will initiate a downturn in demand.
Only Trade Short Term Assets during the Peaks and Troughs
Don’t use all of your investment capital to trade on the peaks and troughs of the UK housing market. It is best to diversify and keep hold of long term assets and flip short term assets for good profits during the peaks.
You need to get your timing right if you are going to be successful in the UK housing market cycles. You need to have a clear understanding of the market and a good feel for when the buying and selling times are right. This takes courage and sometimes you will have to go with strong gut feelings and intuition.
Profits during the Housing Market Cycles are possible
There is no reason why you cannot make a good profit from housing market cycles. As usual you will need to do your homework and keep your finger on the pulse. You may not get it right every time but you should win overall.
Hands Off Property Investment Partnerships are the way to go
You will need a great deal of knowledge and experience to succeed with housing market cycles. Why not consider an easier way which is partnering with the experienced property investment team at CPI for your next property investment success? Contact us now for a no obligation discussion.