Hi Paul,

First, I assume you mean the UK property market because it's posted in the UK section. Second, I assume you mean the market as a whole, rather than any particular area the investor would choose to invest in within the UK.

So on those assumptions, this is my business planning input, not a prediction. I don't have a crystal ball, but I do have to make some assumptions which support our investment decisions:

Within one year. Property prices will drop by around 10%. Advertised prices may not make this apparent, but I think the average completion price will drop by around 10%. More importantly, for BMV investors who seek specifically to buy from motivated sellers, prices compared with 2006/07 will create opportunities to buy up to 20% cheaper than in 2007.

Within five years.
Low expectation is that property prices will be at the same level as their peak of 2007.
High expectation is that they will be 25% more expensive than their peak of 2007.

If I get it grossly wrong, we'll have to work another few years until retirement. If I get it right, or underestimate the growth, we'll be retiring in 2010.