Property Investment Advice to Buy UK Real Estates
Tagged: Real EstateSome of the other complications with these events include failure to disclose commissions, the promoter having relationships with the actual properties being sold or proposed and as a result misrepresenting the investment.
Here are some property investment advices to take care of to ensure an intelligent purchase:
- Look into the demographics. This is the key to learning what your clients need. For example, the rising aging population and high divorce rate of the UK means more demand for city center flats or smaller-sized homes for an individual person. Usually, young investors want a fashionable and urbane home while families concern with safety and accessibility to school and transport as priority.
- Stick to what you know. Suppose having your property investment buying in an area that you know well. Research entirely and consider the local economy. Above all, assure that you are buying a property located in a bustling or up-and-coming part of town.
This property investment advice is helpful only for those individual who have some extra funds they could use to purchase a new loan in case the original one is called. Believe there are probability for anyone out there, whether you are a first time buyer, and not sure where to buy, someone seeking for a hands free property investment with assured returns, someone seeking to top up their pension, or someone who is willing to give 10 hours a week or so and be in a position to sack the boss in 3-4 years time!! However for anyone to succeed at property investment, they must have some good knowledge from property investment advice- a clear strategy, concern about property tax, mortgages for investment properties and mainly understanding what a good property investment deal is and the core of leverage.
So, first start exploring online, then you came across some excellent resources and invaluable information - however there are also some who are more interested in charging you a fee than getting you a good deal.
The UK Housing Market - What Happened?
Tagged: Real EstateAccording to the Royal Institution of Chartered Surveyors (Rics) house sales are at their lowest level since their monthly survey began in 1978. The annual fall, according to Halifax Plc, is 10.9% and house prices in August fell by 1.8%. Property prices have returned to the levels seen in early 2006.
There are a number of reasons for the fall. Crucially the credit crunch means that banks are less able to raise funds from wholesale markets and therefore do not have the funds to lend on. In addition, whereas this time last year banks were keen to invest in the housing market, they now see the housing market as a risky investment and want only to lend to buyers who are safe bets. This equates to buyers who have a large deposit plus a good credit score. Long gone are the 100% mortgages and the large salary multiples.
For the potential buyer household incomes are squeezed with higher costs for food, energy and fuel, and with a recession looming employment may not be secure. Such pressures have not been seen for a decade. Furthermore, of the buyers that have secured mortgages they may wait to see how much the market falls.
In a nutshell, there are fewer buyers who have secured mortgages and with fewer buyers there is less demand for housing and so prices have fallen. Some experts predict that prices will fall by as much as 25% in total from peak to trough and the market will begin to recover in 2010. In contrast, the Centre for Economic and Business Research predict a total fall of 15%.
So what will stop the freefall? The UK government announced some, in effect, minor measures: interest free loans, a stamp duty level rise and help for those not affording their mortgage. This was a welcome help but is unlikely to stabilise the market significantly as the key problem is the banks having funds to borrow and then those banks taking the risk to lend.
Hope glimmers as the US Treasury has in effect nationalised the US’s two largest mortgage providers, Fannie Mae and Freddie Mac which will protect millions of mortgages and indeed, banks worldwide who are exposed to them. This hugely costly intervention is expected to stabilise the US housing market which in turn will stabilise the US economy. As a result UK banks will be able to secure funds to lend to consumers. However, return to the previous easy lending criteria is unlikely and even when banks have funds to lend they are likely to require the borrower to show that they are a good investment: with a deposit and affordable repayments.
The housing bubble has burst, but the fact remains that the property market in the medium and long term will be backed by the sheer necessity of housing requirements. The population is increasing and there is not enough housing to home everyone. With less sales, property developers are currently short of cash and are putting their projects on hold. As a result new building will be well below the government’s targets and as demand outstrips supply prices will go up. Indeed, the Centre for Economic and Business Research expect house prices to rise by 30% between late 2009 and 2012.
And so the UK housing market is expected to be slow into 2009 but as the economy recovers so too will the housing market.
Repossessions up at B&B
Tagged: Mortgages, Property, Real Estate, UKRepossessions up at B&B
Permalink: Repossessions up at B&B
by Gill Montia
Bradford & Bingley (B&B) has reported that the total number of its mortgages three months or more in arrears or in possession rose to 5.88% during the first half of 2009.
The proportion compares with 2.48% in the same period of 2008, although the buy-to-let lender adds that during the second quarter, arrears levels began to decline.
The figure has continued to ease throughout July, falling to 5.82% at the end of the month.
However, repossessions for the first half surged by almost 50%, to 961, compared to a year earlier and the trend is expected to continue for the remainder of the year.
Furthermore, the proportion of B&B’s mortgage book in negative equity stands at around 40% and the lender says it has made a provision of £270 million to cover fraud and professional negligence from applicants for its buy-to-let and self-cert loans.
B&B was taken into public ownership in September of last year, its retail deposit book having been sold to Santander, and is in the process of being wound down.
The group posted a pre-tax loss of £160.0 million during the six months to the end of June, compared with a loss of £26.7 million in the same period of 2008.
Nationwide Building Society rescues block of condemned flats
Tagged: Mortgages, Property, Real Estate, UKNationwide Building Society rescues block of condemned flats
Permalink: Nationwide Building Society rescues block of condemned flats
by Kay Murchie
The Nationwide Building Society has saved more than a dozen families in a block of condemned flats in Dodgeholme Court, Mixenden, Halifax.
The families were forced out of their homes as the block was condemned after fire officers were called in to inspect the building and told tenants they had to leave.
However, the Nationwide has told the Courier that it has written to tenants letting them know it plans to get the building into a habitable state, despite the responsibility for the upkeep of the building being with the block’s owners.
Charlotte Sjoberg told the Courier that the Nationwide was prepared to invest in the building, which would protect its financial interest and that of owner occupiers.
“We are also talking with the receivers to establish the situation for the owner-occupiers who find themselves in a situation where they are paying both rent and a mortgage“, said Ms Sjoberg.
“We hope to have a positive resolution to this situation soon,” she added.
Warnerlane Ltd, the company responsible for the upkeep of the block, has been charging a service fee for the upkeep but Nick Hancock, a receiver with accountancy firm UHY Hacker Young’s Manchester offices, said he was “horrified” by the condition of the communal areas.
However, on further investigation, it appears Warnerlane do not have the funds to improve the block.
Mr Hancock adds: “The Nationwide was not obliged to do what it did, the society has not taken possession of the block. “We are trying our best and feel dreadfully sorry for the people in there.”
UK repossessions fall in second quarter
Tagged: Mortgages, Property, Real Estate, UKUK repossessions fall in second quarter
Permalink: UK repossessions fall in second quarter
by Kay Murchie
The Council of Mortgage Lenders (CML) has today announced a fall in the number of homes repossessed in the second quarter of the year compared with the previous three months.
According to the CML, 11,400 homes were repossessed in the second quarter of the year. While this was a rise of 14% compared with the same period in 2008, it was down 10% compared with the first quarter of the year.
It was feared that rising unemployment would lead to a sharp rise in repossessions but historically low interest rates, increased lender tolerance and Government rescue schemes are helping, said the group.
The CML has predicted 65,000 people will have their properties repossessed during the year - a 17-year high. While this is 10,000 less than the estimate it made late last year, it is still considerably higher than the 40,000 homes repossessed in 2008.
Meanwhile, there were 205,600 homeowners in arrears of more than 2.5% of their outstanding mortgage debt at the end of June - this represents 1.85% of outstanding mortgages.
Commenting on today’s figures, the CML’s head of policy Jackie Bennett, said: “With unemployment rising and the economy still weak, the outlook will remain challenging for the rest of this year and into 2010.”
Repossessions expected to soar due to rising unemployment
Tagged: Mortgages, Property, Real Estate, UKRepossessions expected to soar due to rising unemployment
Permalink: Repossessions expected to soar due to rising unemployment
by Kay Murchie
The Council of Mortgage Lenders (CML) is due to release repossession figures later today and a sharp rise is expected.
The CML has predicted 65,000 people will have their properties repossessed during the year - a 17-year high. While this is 10,000 less than the estimate it made late last year, it is still considerably higher than the 40,000 homes repossessed in 2008.
Rising unemployment is expected to result in a rise in the number of borrowers falling behind with mortgage payments, which could ultimately lead to them losing their home.
Figures released by the Office for National Statistics earlier this week revealed that the number of unemployed in the UK has risen to its highest level since 1995.
Official figures show that unemployment increased by 220,000 to 2,435,000 in the three months to June, and takes the unemployment rate to 7.8%.
The figures equate to around 2,500 losing their jobs a day.
However, historically low interest rates have meant lower mortgage payments for many and this has eased the burden somewhat. Rates currently stand at 0.5%.
CML reports 23% rise in mortgage approvals for June
Tagged: Mortgages, Property, Real Estate, UKCML reports 23% rise in mortgage approvals for June
Permalink: CML reports 23% rise in mortgage approvals for June
by Kay Murchie
The Council of Mortgage Lenders (CML) has today revealed that the number of mortgages approved for house purchase soared 23% in June, compared with May.
The rise is the fifth consecutive monthly increase and represents the highest level for a year.
According to the CML, 45,000 home loans were granted during the month - just 6% lower than June 2008 and is certain to fuel hopes of a recovery in the housing market.
However, the group cautions that the level is far from a return to the housing boom and first-time buyers still need an average deposit of 25% in order to secure a mortgage.
First-time buyers were granted 17,200 loans during the month, totalling £1.9 billion - more than a quarter on the previous month.
CML economist Paul Samter comments: “Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.”
“There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels,” adds Mr Samter.
Meanwhile, the number of loans for remortgaging rose by 13% compared with May. Record low interest rates are “dampening” the demand for remortgaging, according to the CML.
In other news today, the Royal Institution of Chartered Surveyors (Rics) said house prices will rise over the next few months due to a shortage of homes for sale.
According to Rics, part of the renewed optimism within the housing market comes as a result of demand from new buyers outstripping supply.
The organisation said just 8% more surveyors reported seeing price falls than those who said the cost of homes increased - this represents the lowest figure for two years.
Furthermore, 29% of surveyors predicted sales levels would rise going forward.
However, Jeremy Leaf of Rics, cautions: “Although demand for property is continuing to rebound, it still remains low from a historical perspective.”
Rics: House prices expected to rise due to house shortage
Tagged: Mortgages, Property, Real Estate, UKRics: House prices expected to rise due to house shortage
Permalink: Rics: House prices expected to rise due to house shortage
by Kay Murchie
The Royal Institution of Chartered Surveyors (Rics) believes that house prices will rise over the next few months due to a shortage of homes for sale.
According to Rics, part of the renewed optimism within the housing market comes as a result of demand from new buyers outstripping supply.
The organisation said just 8% more surveyors reported seeing price falls than those who said the cost of homes increased - this represents the lowest figure for two years.
Furthermore, 29% of surveyors predicted sales levels would rise going forward.
However, Jeremy Leaf of Rics, cautions: “Although demand for property is continuing to rebound, it still remains low from a historical perspective.”
“Crucially it is the lack of supply that is helping to underpin prices at the present time. Significantly, the more positive news on prices - at least in some parts of the country - may prompt more properties to come on to the market,” adds Mr Leaf.
Mr Leaf also warns that a lack of mortgage funding and rising unemployment could hinder a recovery in the property market.
Last week, Rics scrapped its original forecast of house price falls of 10-15% in 2009. Instead, the organisation said it has noted a “considerable shift” in the market and believes that despite the mortgage drought and rising unemployment, house prices may end the year slightly up.
Meanwhile, yesterday the Centre for Economics and Business Research (CEBR) said it expects house prices to lose a further 3% of their value during the remainder of 2009, before bottoming out and rising just 2% in 2010.
Benjamin Williamson, CEBR economist, said: “Our view is that the extent of house price falls already seen means further significant falls are unlikely.”
According to the CEBR, house prices will have fallen by around 24% from their peak in autumn 2007, using the Halifax’s monthly house price survey as the benchmark.
Last week, the Halifax reported a 1.1% rise in house prices in July, while independent financial adviser firm Bestinvest said that house prices have bottomed out and confidence in the property market will grow over the next few months.
Proposals to cut house-sharing sparks anger
Tagged: Mortgages, Property, Real Estate, UKProposals to cut house-sharing sparks anger
Permalink: Proposals to cut house-sharing sparks anger
by Kay Murchie
Proposals to limit homes being rented to more than six unrelated people has been criticised by landlords and the National Union of Students (NUS).
Under the new proposals, the Government may give councils the power to restrict the number of houses in multiple occupation (HMOs) in one area, to prevent ’studentification’.
A spokesperson for Communities and Local Government said: “Students bring benefits to the places they live in, but too many residing in one area can impact negatively on a community.”
However, the NUS and property groups argued that students bring large sums of money into often previously derelict areas.
Furthermore, businesses within the community, that have benefited from student custom, would also suffer, if students are forced out.
Wes Streeting, president of the National Union of Students explains: “Students live and work within their communities and contribute hugely to their local areas through charity work and campaigning on local issues, not to mention the massive boost they give to the local economy.”
Residents in some areas populated by students complain that during university holidays, they become ghost towns, while houses and gardens are left untidy by tenants and landlords.
However, according to landlords, councils should be dealing with the problem locally and the new proposals are the wrong option.
Richard Price, director of operations at the National Landlords Association, adds: “Planning is about buildings; homes are about people. Changing HMO planning regulations in order to allow small groups of vociferous local residents to discriminate against certain parts of the community is not helpful.”
CEBR: Further significant house price falls unlikely
Tagged: Mortgages, Property, Real Estate, UKCEBR: Further significant house price falls unlikely
Permalink: CEBR: Further significant house price falls unlikely
by Kay Murchie
The Centre for Economics and Business Research (CEBR) said today it expects house prices to lose a further 3% of their value during the remainder of 2009, before bottoming out and rising just 2% in 2010.
Benjamin Williamson, CEBR economist, said: “Our view is that the extent of house price falls already seen means further significant falls are unlikely.”
According to the organisation, house prices will have fallen by around 24% from their peak in autumn 2007, using the Halifax’s monthly house price survey as the benchmark.
Last week, the Halifax reported a 1.1% rise in house prices in July, while independent financial adviser firm Bestinvest said that house prices have bottomed out and confidence in the property market will grow over the next few months.
Also last week, the Royal Institution of Chartered Surveyors scrapped its original forecast of house price falls of 10-15% in 2009.
Instead, the organisation said it has noted a “considerable shift” in the market and believes that despite the mortgage drought and rising unemployment, house prices may end the year slightly up.
However, many reports still highlight that the lack of mortgage funding could still hinder a recovery in the property market.
Mr Williamson of the CEBR cautions: “The key question now is the extent to which rising unemployment and weak wage growth will lead to a second wave of house price falls, or whether this has already been built in to existing expectations.”