The conventional wisdom is that buy to let is dead, with many investors who bought in the last two years sitting on overpriced and under-occupied apartments. These tend to be in the big new city centre developments – attempts to transform Leeds, Manchester and Liverpool into the new Manhattan (or at least Canary Wharf), seem to have been ahead of the curve, to put it politely. Adding to purchasers’ woe is that their shiny new flats look horribly overpriced, with commentators suggesting that UK house prices might fall by 10 per cent in 2008. Neil Woodford, fund manager at Invesco Perpetual, reckons that some of the city centre new-builds are currently ‘almost unsellable’.

Bad news for sellers, but for buyers with a fighting fund, it’s worth monitoring the market, as a trio of favourable fundamentals are making domestic property look attractive. First, there is the opportunity to strike a very hard bargain with developers desperately trying to unload unsellable apartments (though many of them will simply take flats off the market rather than dumping them). You’re also going to find properties increasingly appearing at auction, as sellers (sad but inevitable are foreclosed upon). Second, as potential buyers hold back to see how much prices will fall, rental incomes are heading steadily upwards. Thirdly, the second quarter point interest rate cut in three months is making borrowing cheaper (though it has to be said the lack of credit just now means getting a mortgage is nowhere near the sure thing it was a year ago, and lenders are slashing the loan to values on offers). Good buy to let mortgage deals at present include BM Solutions with a 4.99% three-year fix and Mortgage Express with a 5.99% tracker.

This week on Wallet Watcher John Rennie covers financial DIY and doing your own accounts and gives tips on the property market including the UK Residential Index Fund , finding value in the property market and consolidating property investments .

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Even the most money minded of us can shy away from doing the books. In fact, entrepreneurs can be famously good at the big idea stuff, but pretty poor at looking after the petty cash. That can be disastrous for a small company. Startups with full order books still go out of business and it’s usually down to cashflow problems or sloppy accounting.With more and more of us working freelance and working from home, the onus is now falling on us to do our own books, our own tax and national insurance. The Inland Revenue has forced the matter too, by moving increasing numbers of us to self assessment – doing our own tax return forms in other words.

As ever, there’s a silver lining. You CAN simply toss your paperwork over to an accountant. That will cost you several hundred pounds a year though, and you’ll never really LEARN about your finances.

Most accountants are conservative souls, who will do a tidy book keeping job and keep you safely within the law. And quite right too.

But there is lots you can do to maximise your tax saving – Be very clear that we’re talking tax avoidance not evasion here.

You’ll need to get all your paperwork in good order ANYWAY before you send them off to the accountant. So let’s look at doing it yourself. You’ll save AND you’ll learn how to make your business work better.

Step 1, get very organised. You need to keep everything, be it bank statements, invoices, receipts.

Get a box file to put receipts in as your get them and label it for that alone. The Inland Revenue demands that you keep records for five years anyway, and you need to ensure you’re getting tax relief on every train ticket or phone bill.

As an added prod here, remember that they can fine you for failing to keep proper records.

Step 2 Get a cashbook and note your daily ins and outs. A spinoff is that this will also focus your attention on your spending – so you’re likely to spend less.

You’ll be transferring this daily and weekly information into your main accounts system. There are some excellent software packages, including Sage’s range of accounting software, though an Excel spreadsheet will do the job.

Remember, there’s no ONE right way to do the accounts. Find a simple system and STICK to it.

Step 3 Keep your business cash separate by setting up a business bank account. Any payments for work you do MUST go into this rather than your personal account. If you show the Revenue that you’re doing it correctly, they’re far more likely to leave you alone.

Step 4 Let the Inland Revenue know that you have begun trading. Although people tend to be scared of the Revenue, they’re actually very helpful, providing lots of literature including a ‘Right Way to Start Your Business’ booklet. They’ll also be able to tell you when you need to pay tax on account, and when to pay the balance.

Step 5 Find out what you’re entitled to. Whether it be allowances, tax credits or claiming tax relief on parts of your phone and electricity bill if you work from home. You can also get relief on new computer equipment. Find out.

Step 6 Don’t put things off. Okay, so you were a bit lazy about the books last month. Don’t put your head in the sand. Dig out the paperwork and get it up to date. Then keep on top of it.

If you really are hopeless at organisation then get help. An accountant who specialises in your industry, be it journalism, building or simply self-employed workers is the best bet. Get a personal recommendation from friends who are in the same boat.

But remember. Very few of us are born organised or numerate. I speak as a man who failed his maths GCSE twice before learning to love figures. If you can overcome your fear of doing the books you’ll get a huge sense of satisfaction out of doing it yourself. And you’ll have more money to spend at the end of the tax year!

Remember that price falls are irrelevant unless you actually need to sell. Keep your property off the market and don’t worry about an asset that will recover its value in time.

And spend the money you could have flushed away on agents fees, stamp duty and the rest on adding value to your home, by building an extension, putting in a new bathroom or insulating the loft.

When it comes to sell, your house will be that much more appealing to buyers.

Headline figures about ‘10% falls in property prices’ disguise the fact there are lots of mini housing markets out there.

If you bought wisely and conservatively your flat may fall by 5%, but the flashy new builds down the road may be coming BACK on the market 20% below their original price. If you have a fighting fund, it could be a good time to snap up bargains.

The creaky old aphorism ‘It’s an ill wind that blows nobody any good’ is nowhere more true than in the City of London. Every market fall sees someone making money. Falling house prices are no exception, and the launch of Alpha Beta’s UK Residential Index Fund allows investors to hedge against falls in their property portfolios.

You’re effectively betting how much prices will fall … and profiting if you get it right. For the more daring, there are also spread bets available on house price falls. Big gains and big losses are to be had here, but they’re not for the naïve or cautious investor.