March 9, 2009
The property peak
Story link: The property peak
The average house price has now settled around somewhere close to £140,000, which for some people, represents a huge loss compared with the capital gains they were sitting on just 12-18 months ago. House prices continue to fall, just like the stability of the futures of people who were depending on their value to retire.
House prices have tumbled a long way since their peak in the autumn of 2007 – by a fifth, in fact.
Much has been made of the fact that they are now roughly back in line with their long-term average, at around £148,000. But that is beside the point – house prices never rise in line with their long-term average: they either grow faster than it or slower, or simply fall – as is now happening.
March 3, 2009
£1 trillion decrease in property prices
Story link: £1 trillion decrease in property prices
Every time I read up on property prices it just gets worse. The average house has decreased in value by over £35,000 in the last 12 months and around £2,500 in the last month, but what is amazing is the grand scale of the property crash, loosing around £1 trillion in total!
£1 trillion decrease in property prices
Let’s not get too worked up about the £40 billion loss by RBS – those foolish bankers that went into a bidding war to buy ABN Amro at peak.
If the Nationwide figures are any reflection of the true value of houses in the UK then we have just witness about £1 trillion wiped off the value of the nation’s housing stock in the same time it has taken for the full lunacy of the ABN Amro deal to be realised.
There is hope for the housing market
Story link: There is hope for the housing market
While the demand is increasing within the property market, the supply is so over flooded, it is not allowing house prices to stabilise to their original state.
The good news for homeowners is that banks, led forward by Northern Rock, are increasing their lending, by freeing up the criteria, which is obviously good for the future of property prices.
There is hope for the housing market
More homes are being put up for sale and more are also finding buyers, but at prices well below sellers’ expectations. As a result, the average sale price is now 88 per cent of the figure at which a property is first marketed, according to the latest survey from Hometrack, the housing data group.
This reinforces the message coming from all parts of the property market — that househunters are demanding bargains amid forecasts of further price subsidence.
February 25, 2009
It is a great time to buy!
Story link: It is a great time to buy!
Very good advice throughout this article.
While the market may continue to decline for some time, there are still some mega bargains to be had, which are worth getting hold of now rather than later. Once the crunch in the property market passes, then it will be a struggle to find a property that represents good value for money, as most sellers will hold out to recoup their losses.
Put out the bunting; Northern Rock has £14 billion in its piggy bank, and is ready to lend, lend, lend. If you have the deposit necessary to secure a mortgage, this is good news. It’s an excellent time to buy. What? With all the doom caused by tumbling prices, and the (US) sub-prime catastrophe, oughtn’t it be the reverse?
Shouldn’t buyers shrink away, as if the property monster’s very breath would turn them to stone? I think not. True, the market is still on the way down; but it is better to buy in a declining market than a rising one. Believe me, you won’t be the only one to spot a good deal when prices start to go up. It can be painful if the bargain someone else has snaffled happens to be the place you would really like to live.
February 23, 2009
Renting a property
Story link: Renting a property
Many property owners looking at a rental opportunity as a very easy to way to earn an exra income, when in reality, it definitely is not.
Renting out properties comes with many, many catches, which is the trap most private landlords fall into. It is always wise to do extensive research into the rules and regulations of the buy-to-let market, before renting out a property.
I would rather cut off my arm than sell Crabshell,” Steve Smith says of his holiday home in Kingsbridge, south Devon. One glance at his three-bedroom second-floor flat and you can see why: directly on the waterfront, 5 Crabshell Quay has airy, light-filled rooms, floor-to-ceiling windows that look straight out over the Kingsbridge estuary and sandy beaches within a short walk.
Steve, 48, and his wife, Susan, 47, spotted the £400,000 property in 2004, while it was still being built, during a drive around the area. They put down a deposit on the same day. Since then, they and their three teenage children, together with extended family and friends, have thoroughly enjoyed their little piece of Devon heaven.
Now is the time!
Story link: Now is the time!
If you are planning on purchasing a property, then getting into the market now is so much better than say, 12 months ago.
Of course, there is a problem for a lot of people who are looking to purchase a property, due to the fact that mortgages are a lot harder to get these days.
When Lauren Cleak and her fiancé, Chris Stevenson, looked around for a place to buy in southwest London eight months ago, they were disappointed by the lack of options on their limited budget. The couple gave up their half-hearted search for a first home and resigned themselves to spending the early years of their marriage in rented accommodation.
“We felt we’d never be able to afford anything of our own,” said Cleak, 28, a PR director for the fashion company my-wardrobe.com. Then, all of a sudden, house prices began to fall, sellers became desperate and things started to look promising. “We knew we were in a better situation in the market than ever before,” she says.
February 17, 2009
25% discount will sell your home
Story link: 25% discount will sell your home
I am not really sure why estate agents are considering this to be something special. If car dealerships had a sale of 25% discount, they too would see a huge increase in sales, but eventually the novelty would wear off for customers and they would expect further discount in the future.
This will do nothing good for the property market.
25% discount will sell your home
ESTATE agents have identified a “tipping point” that they claim will bring buyers flooding onto the property market.
Homeowners willing to price their property at least 25 per cent below its peak value are swamped with offers, agency Savills said.