I am really excited about the property market right now as I am sure thousands of others are too. They say "buy low sell high" is the secret to making successful investments so if one of the deepest recessions on record doesn't get you excited I'm not sure what else will! Property is following the same cycle it has always followed and now we are nearing the bottom - those buying at or near the bottom should in theory benefit from another 15-20 years of growth.

Today, I want to talk about some of the things I have seen going on recently and how I think property investing will be affected.

Employment

Interesting to watch the news recently highlighting the problems British workers are having finding jobs and how British companies are having difficulties getting British people to do the work migrants have been doing for years (our immigration rates have fallen dramatically and many Eastern Europeans have gone back home). As we go deeper into recession, and skilled work dries up, many locals will find themselves picking strawberries, cleaning, packing etc. This will be very painful for many.

So how does this affect property investment?

Well for a start, people are going to be downsizing to save money = more demand for good quality rental properties at the lower end of the scale. When unemployment exceeds 3m as it almost certainly will next year, we shall see a huge increase in demand from the social housing sector for private rental properties – in fact even as I write this there is a massive demand for social housing that greatly exceeds supply.

Consequently, local housing allowances are higher than private rents in many areas and that is why you are seeing many landlords switching from professional lets to LHA. It's a no brainer when you consider that your rent is higher, the turnover of tenants is generally lower and the government is effectively responsible for your rental income. Just make sure you pick your tenants carefully in the first place and get guarantors if unsure about someone.

People are also struggling to sell their properties which means rents in some areas of the country have fallen due to oversupply. Again, this is why many landlords are switching from private lets to LHA. Having said that, mortgages are severely restricted for many without large deposits so expect demand for rental properties to continue to remain strong for a long while yet.

To view the rest of this article registered subscribers of the Property Tycoons Community can download the full newsletter by clicking here. Members also receive the full hard copy version through the post each month. If you are not a Property Tycoons Community member and you would like to know more about the huge range of benefits or take advantage of a free one month trial click this link to join the worlds largest property investor community featuring ready made deals, no money down finance, how to get started in property, workshops, mentoring and much more.