Get rich quick property investors could be in trouble

A year ago, everyone seem to want to get on the property ladder, if you were an experience property investor, or maybe someone who after watching changing rooms run off to find yourself a property to invest in. But then it was easy then, you could get 95 percent mortgages and often 100 percent mortgages, why would anyone miss the opportunity to make a quick buck when the mortgage was just handed to you and you hedged your bets on the property prices rising. But, unfortunately you were wrong, like millions of other people who brought a property to turn over some cash fast.

Now you could be faced with negative equity, a year ago house prices were at their peak. You then would have paid a high price for the property, now with the falling house prices estimated to shed another 17 percent in price within the next 12 months. So if you brought a property worth £200,000 and own only 5 percent of it due to a 95 percent mortgage, you would be in negative equity of around 12 percent. You will owe more to your mortgage company than the property is worth.

Some say if you can keep hold of your property and ride through the storm that’s the best thing to do, it’s predicted that things should start to recover in 2011, but nobody can be completely sure, all we can do is hope the housing market gets better sooner rather than later.

Read more about the UK housing market here.