With residential property prices set to fall by 7% in 2008, according to the Council for Mortgage Lenders you would be forgiven for thinking that property is not the good investment that it was a few years ago.
Investing in residential property and even commercial property has certainly lost it’s lustre recently and will probably remain out of favour for at least a year.
Admittedly those wanting to snap up buy to let bargains in London, if they can arrange the finance, may be onto a good thing, however overall the outlook for property investments is not good, to say the least.
There is a property sector that is booming at the moment though. Farmland and the associated farmhouses.
Farmland had remained in the doldrums for a number of years, however with soaring worldwide demand for food and prominence given to growing bio-fuel crops, land prices are increasing rapidly.
Arable land was selling for around £3,000 per acre in 2005. An acre of good farmland is now valued at £7,000 per acre. That is over 100% increase in three years.
So all those farmers who were struggling to make ends meet a few years ago, must now be rejoicing as the value of their land, and the crops that it produces, increases dramatically.
So if you can afford the millions to buy a farm, then now is the time to go ahead. Farmland prices are set to rise further.