Property investment 'not sustainable on a short-term basis'

Posted: 08 Jun 2011 11:11:06 GMT

Property investors might find house prices do not automatically rise.

Property investors are likely to find that their houses do not rise in value immediately, particular in the current climate.

That is the warning of Peter Mindenhall, researcher at IPINGlobal.com, who suggests: "The days of just buying a property and watching it rise in value are over for the time being."

It is not sustainable to view houses as a short-term investment, as there could be very low volumes of sales within localised markets that affect sellers, Mr Mindendhall continues.

Those who may be in a more secure position are long-term buyers who have low loan-to-value mortgages or who paid cash for their purchase.

Such individuals are likely to still remain in their comfort zone, even if interest rates go up.

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