10 ways for Property Investors to beat the ‘Credit Crunch’

1. Take a long term view
   property in the UK has doubled in value every ten years since the 1940's, regardless of political or economic climate. Think back to what property prices were doing in 1994, just after the early nineties recession? Now think about where values were in 2004. So although values are cooling in some areas of the country at the moment, in another ten years, it's highly likely that you will see growth in your portfolio. The people who will make money from property are those who are in it for the long haul.
2. Trust your choices
   You bought the properties in your portfolio having done your research, right? And at the time, you decided that it was a good bet. Don't let the current market shenanigans shake your confidence. Your decisions are still valid. Like the rest of us, you're going to have to be a bit more patient before you see the return, that's all.
3. Review your finance agreements
   UK lender's are already responding positively to the US's decision to underwrite their housing market. This should mean an increase in liquidity and available finance by the end of this year - and perhaps a rate cut as well by the BoE into the bargain. So in the coming months, it'll pay to stay on the ball and constantly review how your portfolio is financed, so you can take advantage of any great deals which come along. Read everything you can, keep yourself informed.
4. Top up your investment if you need to
   I've already said that you may need to budget an amount each month to make up any shortfall in your rental yield or to cover a void. BUT, think of it like this: many people have a pension that they pay into for thirty years or so, the performance of which is largely based on the performance of various stocks and shares, but that money isn't available to them - unlike equity in a property. Ultimately, property normally outperforms most other forms of pension or equitable investment.
5. Don't panic and don't liquidate
   latest news from the US on the government bail-out of lending institutions Fannie Mae and Freddie Mac should have a positive affect on the UK housing market in the next few months, making lending both cheaper and more easily accessible. And that should have an impact UK house prices. So although your investment may be worth slightly less now than you'd hoped, give it another 12 months and things will look different again. Sell now, and you may end up with a loss on your hands. You do the maths - by topping up the mortgage each month to bridge the gap between your rental yield and your outgoings, yes, it may be costing you a bit but how much would you lose if you sold right now? Exactly. That's why it pays to sit tight if you can. Especially if your property is valued at between £175,000 and £200,000, because that's where you're most likely to take a hit if you decide to sell now, because those who are in the market to buy will probably want to purchase at below the stamp duty threshold.
6. Rentals are strong in the UK right now
   41% of all letting agents in the UK say that have, demand for rental stock has outstripped supply in the last three months (Source: ITN). We all know why - many discretionary buyers have decided to drop out of the market due to the lack of liquidity in the mortgage markets, but they have to live somewhere, so hey presto, the rental market is booming. Which means there's no better time to be a Landlord!
7. Take advantage of the newly introduced stamp duty threshold
   If you're considering adding to your portfolio right now, it's a great time to do so: Alistair Darling has just handed you a £26,750 extra cash bonus! How? Because properties of £200,000 are just too close to the new threshold of £175,000 - the same way that properties on the market for £275,000 are too close to the £250,000 threshold. Which means that if you are able to buy at the moment, the chances are you'll be able to negotiate a £200k property down to £174,950, saving yourself £25k off the purchase price AND £1,700 in SDLT into the bargain.
8. Massive growth in overseas hotspots
   Perhaps your confidence in the UK market is still a little unsettled but you still think bricks and mortar are a good long term investment. In that case, consider the global property hotspots of Dubai, Brazil and Cyprus, all of which have sound economic infrastructures and have proven track records in delivering excellent returns.
9. Everything will rent at the right price
   If your current tenants are coming to the end of their agreement, and you're concerned about how quickly your property will re-let, just remember, everything rents at the right price. You just need to be realistic about what you can afford to accept. Don't be flattered into listing your property with the agent who gives you the highest valuation for rent, do your own research, and see what other competitive properties are out there on the market for the same level of rental.
10. Get Landlord's rent guarantee insurance
    I don't know why more people don't do this. For a hundred or so quid, you can buy an insurance policy that not only covers your rent if your tenants fail to pay, but also covers your legal costs to evict them. It's a total no-brainer, particularly in this sort of climate. Your letting agent should be able to arrange this for you.