The recent credit crunch scare has cast doubt in the minds of many property investors, especially when it comes to investing in the UK, which was previously perceived as a safer bet due to proximity and familiar systems...

A large number of investors may be wondering if the UK property market is the right place to invest right now and whether or not it still offers the potential to profit, as it did prior to the credit crisis.

At Property Secrets we believe you should profit not panic. The UK continues to be one of the best world wide locations for property investment and for decades, the market has proved to be largely predictable, dependable and financially rewarding.

Property Secrets believe the way to make money in the UK property market now is to adopt a new strategy.

Good profits still to be made

Previously, off-plan, buy-to-let property was the way to optimise return in the UK market - nowadays this is not necessarily the only way to make profit in today’s mature UK market.

“Every market, wherever it is in terms of its growth cycle, represents opportunities for the long-term property investor. And the UK market right now is no exception.” comments Neil Lewis – CEO Property Secrets.

“Contrary to current popular belief, there are good profits to be made in today’s market but the key is to make the right investment. This means steering away from off-plan investments which not so long ago were extremely lucrative – but in an ever-changing market, this is now no longer the case.”

The key to making money in the UK market is to devise your strategy according to your market – in other words, know who you will be renting or selling to, understand what type of property they require and buy suitable property to cater for them.

Renovation tactics

Another key element to making the right investment is to always buy Below Market Value, which is an effective way of increasing yields. One excellent way to achieve below market value is buying cheaper property that requires some level of refurbishment, ensuring your returns are a lot higher.

On top of this another method to help increase your returns is to maximise gearing. The essence of this approach is that if you can buy, refurb and ensure that the total spend is at least 10% below market value of the finished product, then you are able to gear more highly, maximising returns thus reducing risk and worry. This makes a great combination of high gearing and strong yields.

More good news for UK investors is that there are still some emerging markets within the UK. Property Secrets have selected 12 locations that they believe offer the right fundamentals to become hot markets in the next few years.

Folkestone has everything stacking up nicely for it to become a major UK hotspot over the next few years.

As a coastal resort already within commuting distance of London, it has a head-start on any rivals. But with faster train services starting in 2009, millions of pounds worth of regeneration on the pipeline and a local billionaire intent on transforming Folkestone into a cultural Mecca…the town is already racing towards the finishing line while others are only just leaving the starting grid.

Student popularity

The historic Welsh seaside town of Aberystwyth gets a place on the property hotspot list simply because of its extraordinary popularity with students. In a recent poll, its university was ranked the favourite of all universities in the UK – and evidence of this materialised during term periods, when the mass of immigrant resident students represent well over a third of all inhabitants in Aberystwyth.

Like many major cities in the UK, Liverpool’s property hotspot status has ebbed up and down for the last 30 years or more.

The last five years have seen it shrink under the shadows of Leeds and Manchester, but it is now starting to shine again – and next year it becomes the European Capital of Culture, which I think will drive a new cycle of growth for resident homeowners and property investors.