Property Investment 101 for Rookies

If you consider getting into a property or move up to the next rung of the property ladder, here's some words of advice by Michael Yardney. This article was posted on July 31, 2013 on Yahoo Finance.

Property investment is not something you should enter into lightly. But for some reason, that’s what a lot of people who have dreams of making millions with real estate do.

They think, "I can go out, buy a house somewhere, stick in some tenants to pay the mortgage and make a killing! How hard can it be?"

Fact is most property investors fail. Stats show that around 50 per cent of people who buy an investment property sell up in the first five years, and of those who stay in the game, 90 per cent never get past owning one or two properties.

So if you're looking to get into property or move up to the next rung of the property ladder, here are some words of advice:

Knowledge is property investment power

Firstly you need to understand what makes a good property investment and recognise that not just any old digs will do.

You can profit from real estate in one of four ways, and if you get the combination right you’ll make money from bricks and mortar. They are;

1. Capital Growth – to build yourself a sound asset base your properties will need to appreciate in value at wealth building rates (in other words above average capital growth.) This will come from strong demand from owner occupiers (who push up property values) and tenants (who help you pay your mortgage.)

2. Cash Flow – in other words your rent.

3. Tax benefits – while you should never invest solely for this reason; a good tax strategy can help you manage your cash flow, decrease your tax obligations and increase your bottom line.

4. Accelerated Growth – getting your hands a little dirty (metaphorically speaking) by investing in a property that needs a bit of cosmetic TLC through renovations or a major facelift through property development, is a great way to manufacture capital growth.

Cycles

While timing the market is not the be all and end all, it certainly helps to understand how the property market moves in cycles.

Following the herd and buying when everyone else is on the property bandwagon doesn’t always work. That’s often when the market is near its peak.

On the other hand you have more chance of nabbing a good deal in a buyer’s market, when property is out of favour. That’s why Warren Buffet said “Be fearful when others are greedy and be greedy when others are fearful."

Currently many of the property markets in Australia are in the early upturn stage of their cycles, creating good medium term investment opportunities.

Location

Location can make or break a property investment. But what is the right location?

I look for areas that will have strong ongoing demand from a wealthy demographic of owner occupiers who can afford to and are prepared to pay a premium to live in good locations.

Some of the major drivers of this type of capital growth are:

• Proximity to the city


• Proximity to the sea

• Adjacent to a prime suburb

• Amenities such as proximity to a train station, large shopping centre, and within the zone of a highly sought-after public high school.

• Suburbs that contain period style homes e.g. Californian bungalows, Federation, Victorian, Edwardian style homes.

I also like buying in areas going through gentrification – a suburb that is relatively cheap now but has the potential for capital growth in the future as a wealthy demographic of people move in.

One way to find this type of location is to drive through the streets and look for some of the obvious indicators that people with money are moving in:

• Are people spending large amounts of money on renovating/extending their homes?

• Are there small black (or maybe now it's white - the new black) BMWs and Audis parked in the driveways or are they old Ford Falcons and Holden utes?

• Is the nature of the shops changing – more cafés and deli and lifestyle shops.

Money, money, money

A sound financial strategy is as important as a sound investment strategy when it comes to property.

Without a well rounded understanding of how to maximise your borrowing power, use equity as a leverage to build your portfolio and maintain a financial buffer to see you through the difficult times that we all ultimately face, you are setting yourself up to fail financially.

It's important to set aside a cash flow buffer in a facility such as an offset account or Line of Credit, to cover you for a rainy day.

Financial fluency

While you could make lots of money in through property investment you could also easily lose it.

If you are financially illiterate when it comes to managing money, budgeting and even balancing the books at home, how do you think you’ll go when it comes to a multi-million dollar property portfolio?

You may need to learn the ins and outs of taxation and the financial advantages you can enjoy as an investor, as well as the best structures to own your investments in, such as personal, company and trust set ups.

Rather than trying to learn it all yourself and wear numerous hats, it's worth surrounding yourself with a good team of professionals who can guide you with their knowledge and expertise.

An independent property strategist, a finance broker and an accountant should all be people you rely on to support you in the journey to real estate riches.

If you’re the smartest person on your team, you’re in trouble!

Some final words of advice (or warning) for investors

1. Formulate a plan – understand what you want to achieve and then make investment decisions accordingly.

2. Be cautious – You’ll find everyone is happy to give you advice. Rather than listening to well meaning friends, it’s important to only listen to people who have achieved the financial independence you’re looking for and who have maintained it for a period of time.

3. Understand the difference between a sales person and an advisor. Many sales people are cloaked as advisors and suggest they are representing you the buyer when in fact they are representing the seller or a property developer.

4. Be prepared to pay for advice – it’s much cheaper than learning from your mistakes.

5. Not everything that glitters is gold – often when you start out it can be tempting to see opportunities everywhere. The problem is you don’t yet have the perspective to decide what is a good investment and what is not.

Property doesn’t discriminate; it doesn’t care who owns it. Today the residential property market is worth 4.68 trillion dollars (according to RPData) and over the next decade it will increase in value by billions and billions of dollars.

If you get it right, you can have your share.

Michael Yardney is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the Property Update blog. Subscribe today and you'll receive a free video training - The Golden Rules of Property Investment.

Article Source: http://au.pfinance.yahoo.com/our-experts/michael-yardney/article/-/18221863/property-investment-101-for-rookies/

House Prices Hit Three-Year High

This article by Sarah O'Grady of the Express can be alarming to new home buyers because house prices are much higher than a year ago and have elevated year on year.

HOUSE prices are steaming ahead at their strongest annual growth rate in three years.

Values this month are 1.3 per cent higher than they were a year ago and have increased, year on year, for the sixth month in a row.

Depending on how far the market picks up again this autumn, 2013 could see the highest rise in prices since the economic downturn, according to property analyst Hometrack.

It says prices rose 0.3 per cent month-on-month in the traditionally slow month of July, down from rises of 0.4 per cent recorded in both May and June.

But across England and Wales, 29 per cent of postcode districts registered hikes over the month, falling back only slightly from 31 per cent in June which had been the biggest uplift recorded in almost six years.

Richard Donnell, director of research at Hometrack, said: “The year has got off to a strong start.”

Other indicators of the “health” of the market are still improving on the back of rising prices and sales.

Sellers are achieving 94.4 per cent of the asking price on average, equalling 2007 levels. Homes are taking just over eight weeks to sell, marking the shortest sales period in six years.

Also, the number of first-time buyers is on the up, said Britain’s biggest mortgage lender, Halifax. It estimates that there were 120,000 first-time buyers in the first six months of 2013.

This shows an increase of almost one fifth year-on-year and marking the biggest number since there were 181,500 buyers from this sector in the first half of 2007.

Prices increased more strongly during the first half of this year than many experts had predicted, boosted by Government schemes such as the £80billion Funding for Lending and Help To Buy.

Lenders report that their “risk appetite” is returning and have slashed mortgage rates on the back of the schemes. But some experts fear that these schemes could simply help to create another property bubble that is bound to burst.

Article Source: http://www.express.co.uk/news/property/418221/House-prices-hit-three-year-high

 

What is the Best Way to Judge the Value of your Property?: David Airey

In this article David Airey discusses important tips to consider to evaluate the value of your property.

When it comes to judging a property to get a reasonable indication of its value and probable sale price there are three options you might consider.

First, a real estate agent can give an appraisal which is largely an educated guess based on their current sales experience and local knowledge. This is informal but usually pretty helpful as an indication.

Second, an owner or buyer can hire a professional valuer to produce a more formal and authoritative report. These reports are based on sales information held at Landgate and from information obtained from real estate agents on recent sales not yet reflected in the government data. Usually these are the reports which banks and legal bodies will accept as valid for lending and legal purposes.

A professional valuation removes any perception that there might be a bias on the part of real estate agent appraising a property and is regarded as more independent.

Thirdly, the option to pay for a property report from one of the many private companies which are not valuers. However, people thinking of doing this should be aware there can be limitations to this.

Most of the companies which provide this service are based on the east coast of Australia and have few or no staff here.

This means that the reports are largely put together based on Landgate data showing the last sale price and then calibrated to place the property in the context of the current market.

While that might sound quite reasonable, such reports can only be based on the unimproved value of the property since its last transaction.

For example, if a property was purchased in 2005 and the owner demolished the old house and built a bigger one in its place, then this would not be known by a property group based in Sydney or Melbourne.

They would only know of the 2005 sale price, even though the site now has a completely different value. It’s a similar situation if an owner puts in a pool, adds a second story or patio, or maybe constructs a lock-up garage.

These things are not readily detectable through an arms-length report based on data rather than being produced by actually sighting the property and being familiar with its history.

If you solicit a property report from a company that deals in real estate data, make sure it can measure the current improved value of the property and not rely simply on historical sales information.

Better still, engage a local valuer if you need a formal, legal valuation or contact a REIWA agent for an appraisal if that’s all you require.

Either way, it pays to use the local services of those who know your neighbourhood.

David Airey is president of the Real Estate Institute of Western Australia. This article was originally published on reiwa.com.

Article Source:  http://www.propertyobserver.com.au/residential/what-is-the-best-way-to-judge-the-value-of-your-property-david-airey/2013072863556?utm_source=po&utm_medium=aida&utm_campaign=ourobservers:adviceandanalysisforreaders

Brett Alegre-Wood Overviews the UK Budget 2013

In this interesting video, Brett Alegre-Wood overviews the UK Budget 2013. Rather than go line by line he summarizes the important bits for property investors in the UK and abroad.
 

Video by:yourpropertyclub
Video Source: http://www.youtube.com/watch?v=aMMRXxAB5dQ

West Midlands: Where Help to Buy is Booming

This article by TheGuardian on 23th July, 2013 can benefit first-time buyers in procuring newly-built homes.

Regeneration-led developments at former car factories contribute to success of scheme for acquiring newly-built homes

More than a quarter of demand for homes under the Help to Buy scheme for acquiring newly built homes has been in the West Midlands. The area has accounted for 1,873 out of 6,899 reservations across England. Mark Evans, head of new homes in central England at estate agent Knight Frank, says Help to Buy has opened up the lower end of the market, where people most struggle to raise deposits: "It has had a lot of PR, it has had such a lot of profile and it has helped unlock the marketplace to a certain extent."

Help to Buy has also taken off in this region because the Midlands has plenty of regeneration-led developments at former car factories, according to Margaret Snook of Orbit, the country's largest Help to Buy agent, which operates in the West Midlands and East Anglia. "There doesn't seem to be a shortage of properties in most areas," she says. "In Birmingham, the Black Country, Coventry, there are big [development] sites."

The mortgage guarantee scheme has universal appeal, she adds. "It is not a particular income bracket or type of person. It is families, it is single people, it is couples; people on lower incomes, people on higher incomes." Her impression is that the scheme is heavily weighted in favour of first-time buyers, although there is a strong pull for existing homeowners, who are keen to move. "It is helping people to be more mobile."

This means that aAverage property prices of £130,432 in Wolverhampton look set to rise, but Snook says it is not yet possible to judge whether Help to Buy is driving up prices. "Whether that is directly linked to Help to Buy or rising confidence, it is too early to say."

Author: Jennifer Rankin

Article Source: http://www.guardian.co.uk/money/2013/jul/23/west-midlands-help-to-buy-property

International Investors Target UK Property Market

This is good news for the UK property market being one of the target market for international investors as stated in this July 22, 2013  issue of Select Property.

The UK property market is particularly appealing for international investors.

Summary:

• International investment in UK property reached £4.15 billion for the first half of the year

• This is 75% of the entire market

• Investment from the Far East rose by 166%

Investors from around the world are increasingly looking at the UK for their next property purchase, according to recent figures from BNP Paribas.

Its findings revealed London’s property market was dominated by international investors for the first six months of 2013.

Investment from overseas buyers reached £4.15 billion, accounting for 75% of the sector.

Richard Garside, Senior Director of London Investment at the firm, said: “All parties are attracted to London by the high quality of investment stock and the mature and transparent nature of our market.”

He stated that London appeals to both seasoned investors and those who are new to the industry from emerging economies.

BNP Paribas revealed investment from the Far East in London property grew by 166% during the second quarter of the year, totalling £1.04 billion.

Earlier this month, the organisation revealed the central London office market was faring particularly well, with take up of office space in the city rising to 1.71 million sq ft during the second quarter of the year, which is the highest level since the final three months of 2010.

Article by: Natasha Al-Atassi

Article Source: http://www.selectproperty.com/2013/07/international-investors-target-uk-property-market/

Britain Fleshes Out Contested Mortgage Guarantee Scheme

This recent article of Yahoo News discuss the details of the help-to-buy plan by the government to help first time home buyers.

LONDON (Reuters) - Chancellor George Osborne will meet lenders and house builders on Tuesday to flesh out how a state-backed scheme to guarantee mortgages for risky borrowers will work when it comes into force in January.

The Help-to-Buy scheme, unveiled in the government's March budget, is designed to help people purchase their first home with as little as a five percent deposit.

The first phase of the scheme, which offers buyers of new-build properties a 20 percent equity loan interest-free for five years, kicked off in April; but the more important second phase, which offers 12 billion pounds, of mortgage guarantees does not come into force until January.

With house prices already rising faster than inflation, critics have questioned the wisdom of encouraging risky borrowers to jump on the property ladder.

The International Monetary Fund and the Office for Budget Responsibility have both warned that prices are likely to be pumped up more than supply, making it harder, not easier, for first-time buyers.

Bank of England policymakers have expressed concern about state intervention in the market and what will happen to prices when the mortgage guarantee scheme ends in three years' time.

The government said on Monday borrowers would need to have a good credit history, provide proof of income and satisfy the affordability "stress tests" set out in the Financial Conduct Authority's Mortgage Market Review.

The government also said taxpayer guarantees could not be used by wealthy people wanting to purchase second homes. Mortgage lenders, it added, would be required to collect a declaration stating that the borrower had no other property.

Details of the commercial fees charged to lenders have yet to be announced. The government said the fee structure would depend on loan-to-value bands and would be finalised following discussion with the banks and building societies.

"It will be set to encourage as many lenders as possible to participate in the scheme, while protecting the taxpayer," the finance ministry said.

(Reporting by Christina Fincher; Editing by Andrew Heavens)

Article Source:  http://uk.news.yahoo.com/britain-fleshes-contested-mortgage-guarantee-scheme-003610732.html#a7heI4c

Shares or Property – what's best?

An article by Julian Knight of The Independent shares which choice would you choose that will carry out results, now that property prices are rising and the stocks are on the up as well. The choice is yours you just have to be clever on which investment to choose that will work out to your advantage.


These are heady days for UK property prices and the London Stock Exchange. For the first time in a long while, according to property website Rightmove, house prices are rising once again across the whole of the UK.

We are not quite partying like it's 2008, but we may be seeing a little more than just the ubiquitous green shoots in the property market.

As for the stock market, the green shoots have possibly moved into full bloom. Since the nadir of the eurozone late last year, markets – with one or two hiccups along the way – have generally powered upwards; largely off the back of stronger growth in the US.

So which is best right now to deliver returns an investment in property or shares?

Property

Much of the nation's wealth is tied up in housing – around £4trn by the latest estimate – and with huge population pressures, as well as a limited supply of land to develop, there are those who suggest the recent rise in house prices is simply the market settling back on its seemingly inexorable upward path.

What's more, buy-to-let investors are benefiting as fewer people can afford the deposit to climb onto the housing ladder and are forced to carry on renting.

Trevor Greetham, director of asset allocation at Fidelity, said: "In a reversion to pre-bubble form, the UK looks set to enjoy a housing-led recovery. The recent Royal Institution of Chartered Surveyors survey was very strong, pointing to a sharp rise in UK house prices and recovery in the economy."

Darius McDermott, managing director of Chelsea Financial Services, is also bullish over UK property prices: "I'm actually more positive on property than I have been for some time. A couple of managers I have spoken to expect mid to high single-digit returns (6-8 per cent) over the remainder of 2013 and for the following couple of years."

Mr McDermott, though, cautions against return-hungry investors diving into direct buy-to-let, which have major fees involved and, of course, can be subject to punishing "void" periods, when the property is vacant and not earning any rental return.

It is also possible to make money from the overall moves in the property market. The Castle Trust fund, for instance, promises to track the Halifax house-price index and peg returns to that.

Property downsides

All property investment must come with a large health warning that prices can go down as well as up, and interest rates, at historic lows for the past four years are bound to increase in the future.

In fact, the Resolution Foundation recently said that the best-case scenario, where interest rates rise by current expectations and family-household income growth is strong, will see 700,000 households spending more than 50 per cent of their income on repayments. As a result, some could end up in arrears or even repossessed.

Share investing

Markets have looked beyond the doom and gloom headlines and enjoyed strong growth, far higher than house prices. In addition, many companies are sitting on large stockpiles of cash which raises the potential for mergers and acquisions, normally good news for investors.

As for dividends, these are on the up too as corporations return to profit after a poor couple of years. All this has led to a bull stockmarket, with, in the main, rising share prices.

To iron out the peaks and troughs of stock market performance Mr McDermott recommends investors consider ploughing in regular, small amounts of cash rather than big lump sums, which could be made just before a dip in market prices. Another way to reduce volatility is to invest in an investment fund rather than a single company share. These will spread their money around a range of companies. However, you are reliant on the quality of the fund manager.

"Finding a manager with a good track record, consistently outperforming the market is key. They have the professionalism to monitor the investments they make on an ongoing basis, much more so than the overwhelming majority of private investors," Ben Yearsley from stockbroker Charles Stanley said.

Alan Smith, chief executive of Capital Asset Management, reckons the track record of shares is better than property: "Over the long term, shares have tended to outperform property (when dividends have been reinvested) but of course that outperformance comes with additional levels of inherent volatility."

Share downsides

All investments can go down in price as well as up but shares can be particularly volatile, an unexpected profits warning or legal case emerging can send individual company share prices plunging. As for stockmarkets more generally, these can move against investors in double-quick time off the back of poor economic news.

Charlie Ellingworth, from Property Vision, sums up the dangers: "The volatility of the shares market has put off a number of investors as they have seen share prices plummet and rocket several times within a short time frame."

Verdict

Most financial experts believe that when it comes to cash or shares, the answer is have a bit of both.

Author: Julia Knight

Article Source: http://www.independent.co.uk/money/spend-save/shares-or-property--whats-best-8722809.html

Apartment Demand Keeps Rising

This article posted on Dominate with Domain last June 14, 2013 shows the increasing demand for apartments in Sydney, Australia.

Apartments are fast becoming the property of choice in Sydney as prices continue to grow at a quicker rate than for homes and rents close in on those for houses.

At the top end of the market there has been a run of penthouse sales.

Figures from Australian Property Monitors show the median apartment price growth over the past five years at 23.6 per cent, leading the house price growth at 17.1 per cent.

The median Sydney rent for the June quarter was $500 a week for houses and $470 for apartments.

The liquor industry entrepreneur John Piven-Large has just paid more than $15 million for property developer Bob Ell's two-storey penthouse in Potts Point.

Downsizing from a $40 million Edwardian waterfront home in Point Piper, Piven-Large will live in the exclusive block Pomeroy, with 650 square metres of internal space, plus wraparound terraces with both harbour and city views.

Last week, there was the $13 million off-the-plan sale in the nearby luxury 10 Wylde Street development. The whole floor was planned as two penthouses, but an unknown buyer bought it as one 430sqm penthouse.

At the launch, CBRE agent Caroline Fagerlund took 16 deposits for the 21 apartments available, with prices ranging between $795,000 and $5.2 million.

SJB architect Adam Haddow said he was not surprised by the popularity of the project, as the buyers were downsizers who wanted a property big enough for friends and grandchildren to stay.

''The market's maturing, they're not thinking of these apartments as being just an investment that they're going to sell in five years' time, they're here for the foreseeable future or even their whole lives.''

Restaurateur Gabriella Fedeli has no intention of leaving her apartment in The Hyde, overlooking Hyde Park.

''I love the swimming pool, which I don't have to look after, I've got a bit of a view over the treetops, I'm close to the city and there's the safety aspect of having a 24-hour concierge,'' said Fedeli, who owns the Surry Hills Italian eatery Il Baretto.

The demand for big apartments is so great agents are confident about putting hefty price tags on them.

Richardson & Wrench Pyrmont's Nick Countouris and Sotheby International's Michael Pallier have hopes of more than $13 million for two adjoining penthouses at the end of Sydney Wharf in Pyrmont and CBRE wants more than $15 million for a 400sqm penthouse at the Eliza tower in Elizabeth Street.

Simon Symond, brother of mortgage entrepreneur John Symond, is setting up a kind of Homeworld for apartments to capitalise on the ''rise and rise'' of strata living.

He thinks small apartments have the biggest future. ''It's all about cost and affordability, hence the shrinking,'' Mr Symond said.

Author: Stephen Nicholls, Lucy Macken
Article Source: http://news.domain.com.au/domain/real-estate-news/apartment-demand-keeps-rising-20130713-2pwqr.html

Ten top tips for buying a house at auction

A very helpful article by Your Money on July 10, 2013 in providing some useful advice before buying a property at auction. 

 

You can pick up a bargain when you buy property at auction, but it pays to know exactly what you are doing.

Follow these top tips for buying success:

1. Do a dummy run Visit a property auction or two with no intention of buying that day. This will familiarise you with the process and make it less daunting
2. Take an expert If you know someone who has bought at auction before, ask them to accompany you when you attend a property sale for real
3. Check out the property Always visit the property/ies you intend to bid for beforehand rather than relying on a catalogue description, as you would if you were buying via an estate agent
4. Take a builder If the property is older, unoccupied and/or neglected, ask a trustworthy builder to visit the property with you to give you some idea of how much work it might need and what that might cost you
5. Commission a survey You must have a survey of the property carried out in advance of the auction, even though you will lose the survey fee if your bid is not successful. A rudimentary lender’s valuation may not suffice, particularly if the property is old or has been unoccupied for a while
6. Stick to your budget It is easy to get carried away in the auction room and bid more than you had planned, particularly if you end up in a bidding war. Set an ideal price and a maximum price you will go to in your head, and stick to it
7. Sort out your mortgage Get a mortgage arranged before you go to the auction. That will determine your budget and ensure that you will be ready to complete on the deal within the maximum 28 days allowed. You are legally bound to buy any property you have successfully bid for at auction, so make sure you have the finance in place
8. Have the deposit on hand You are also legally obliged to stump up 10% of the property’s sale price on the day, so make sure you have the funds available. Take your chequebook and two forms of ID.
9. Allow for extra costs As well as paying for the survey upfront plus any arrangement fees for the mortgage which may or may not be payable before completion, you may have to fork out a ‘buyer’s fee’ of anything from around £100 to £500, so check with the auction house in advance. And don’t forget to budget for other costs, such as Stamp Duty and buildings insurance
10. Strike a deal If the lot you want has not attracted any interest from others and remains unsold at the end of the auction, you may be able to do a deal with the vendor afterwards. This became common when the property market flattened in 2008, but is less likely to happen these days. 

Article by: Your Money
Article Source: http://www.yourmoney.com/your-money/news/2280745/ten-top-tips-for-buying-a-house-at-auction

Property Asking Prices up for Seventh Month in a row, says Rightmove

This article by Property Wire on July 16, 2013 shows the price of property coming onto the market in England and Wales has now risen for seven months in a row and asking pricess are now 4.8% above a year ago, figure according to the latest report from Rightmove.

 The latest monthly rise of 0.3% takes the average asking price to £253,658 and comes at a time when agents are experiencing more inquiries from buyers and all regions are showing price growth for the first time since September 2010.

Several factors suggest this is a broader based recovery, according to Miles Shipside, Rightmove director and housing market analyst. ‘The market is currently benefitting from the aggregation of marginal gains where incremental improvements across a range of key market drivers help to slowly but surely build momentum,’ he said.

‘Rightmove’s lead indicators show increasing enquiries to agents and developers, new sellers and marketing prices. An important signal for a broader based and sustainable recovery is that all regions of the country now have higher prices than a year ago firmly on the record,’ he added.

Early findings from Rightmove’s latest Consumer Confidence Survey of more than 25,000 home movers show that 62% of home movers expect property prices to be higher a year from now, double the 31% recorded a year ago.

‘Consumer confidence is key to the housing market and on this front there has finally been a year of minimal bad news, with a reasonable amount of good, after four years of pretty consistent doom and gloom. Barring a raft of bad economic news, we expect the positive impact of this on the property market to continue,’ explained Shipside.

Evidence of an increase in housing transactions suffer from a considerable time lag, but HMRC’s most recent year to date figures  are up by 5% on 2012, while Bank of England figures for mortgage approvals year to date are up 6% on last year. In a clear signal of new business building in the pipeline, Rightmove’s email enquiries to agents and developers are up 18% year to date compared with 2012.

‘Confidence and the ability to take on long-term mortgage commitments give more buyers the spur to enter the market or trade up. The route from property enquiry to trading onto or up the property ladder has been cleared of some obstacles, resulting in a partial unblocking of pent up demand,’ added Shipside.

He pointed out that markets don’t expect a base rate rise until the latter half of 2016 and the Funding for Lending Scheme (FLS) is now fulfilling its promise of creating competition that eases mortgage rates and increases availability. On top of that, Help to Buy, currently available for new build only until January 2014, is capturing prospective buyers’ interest.
‘The ability to borrow is increasing as the Funding for Lending Scheme starts to deliver, though it still favours those with better deposits. Lenders are squeezing their margins, and with the prospect of no base rate rise for three years consumers are increasingly aware of moving options rather than debt burden,’ Shipside said.

‘With the Help to Buy scheme already breathing more life and confidence into the new build market, and expected to have a similar impact on the resale market from January next year, the outlook for the second half of 2013 and beyond is increasingly positive,’ he added.
As a result of the positives Rightmove has doubled its 2013 price forecast from 2% to 4%. ‘Given what we’ve seen over the first half of this year, we expect the average asking price of property coming to the market in England and Wales will end 2013 around 4% higher,’ said Shipside.

‘While the current annual rate stands at 4.8%, in recent years the gains of the first half of the year have been eaten away in the second. Between June and December last year, asking prices fell by 7%. The signs are that prices in 2013 will not dissipate as they have in recent years,’ he explained.

However, he added that there will be significant underlying regional variations with some areas, primarily in the north, struggling to stay in positive territory for the year. ‘London will continue to outperform the rest of the country and we also expect the South East, the main beneficiary of the over spill from the capital, to maintain its strong momentum, both driven by an on going shortage of supply of property for sale. Asking prices in the capital are currently 29% higher than they were five years ago compared with 7% in the South East and just 5% nationally,’ he said.


Article by: Property Wire
Article Source: http://www.propertywire.com/news/europe/uk-asking-prices-recovery-201307168009.html

Is the UK recovery finally underway?

Peter Spencer, professor of economics and finance at the University of York, talks about the U.K. recovery as business confidence is returning and companies are now in a "position to spend cash".

To know more about it, watch here: http://newsr.in/video/20130715/1329965/Is-the-UK-recovery-finally-underway.htm

FREE WEBINAR and Q&A session: "The 10 Biggest Mistakes Property Investors Make When Dealing with Builder's"

FREE WEBINAR and Q&A session: "The 10 Biggest Mistakes Property Investors Make When Dealing with Builder's" (Builder of 41 Years reveals all) Thursday, 18th July, at 8pm (BST). Claim your FREE ticket here http://tiny.cc/10Mistakes

Our speaker will be LaVern Brown and he's really kindly agreed to give a free webinar and Q&A session. He's been an NVQ Assessor for many years and is the author of 'How to Win When Dealing with Builder's', so there's not much this guy doesn't know on the subject. There's only limited spaces so if you're interested register here; http://tiny.cc/10Mistakes

Loans to first-time Buyers at five-and-a-half-year high

Tens of thousands of first-time buyers took out loans in May

The latest news is happening on the property world featured by the BBC News on 12th July, 2013.

The number of first-time buyers taking out mortgages has hit its highest total for five and a half years, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML said 25,000 people took out their first mortgage in May this year, a 42% increase on May 2012.

That is the highest number of first mortgages since December 2007.
The number of loans made to people moving home, or remortgaging, rose by 18.7% over the same period.

The government's Funding for Lending Scheme (FLS) is widely credited with making mortgages cheaper and more available, since it was launched in August 2012.

"Both the borrowing appetite of first-time buyers, and the availability of attractive mortgages for them, have improved markedly since a year ago," said Paul Smee, director general of the CML.

Under FLS, banks and building societies are able to borrow from the Bank of England at cheaper rates, providing they use the money to lend to individuals and businesses.

Despite the increases in lending recorded by the CML, the latest figures show that monthly lending is still running at half the level it was before the financial crisis.

The figures could also have been exaggerated by a relatively low uptake of mortgages in May 2012.
This was because of a change to stamp duty thresholds at the end of March 2012, which led many people to bring forward their house or flat purchases.

However, the first phase of the government's Help to Buy scheme has helped to boost lending to first-time buyers since its launch in April.

Borrowers can take an equity loan from the government to help them buy a new home, so only need to find a 5% deposit.

Article by: BBC News Business

Article Source: http://www.bbc.co.uk/news/business-23285138

Planning to Sell your Property this Summer?

Stephen Ludlow, chairman of the ludlowthompson suggest that summer is the best time to sell your property because of the weather and it shows off properties at their most attractive.

Pic: Summer is always a popular time to sell properties 

 

High demand for properties and risinga great time to sell

Summer has always been a popular time for homeowners to put their houses up For Sale, as the warm weather boosts viewer numbers and shows off properties at their most attractive. And with house prices in the capital currently on the up, now is a great time to take the plunge if you are planning to sell.

The value of London house prices rose 9.4% in the last year thanks to a shortage of housing stock and an increase in demand for properties, while values elsewhere in the UK fell.

Stephen Ludlow, Chairman of ludlowthompson, explains: “Anyone thinking about selling should consider taking advantage of the current conditions, given the buoyancy of the London housing market and with demand stronger than ever.”
ludlowthompson’s top tips for sellers:

• Make sure you have prepared your legal pack providing all information about the property
• Prepare the property for viewings by making it as attractive as possible
• Make sure you have maximised all marketing avenues to ensure your property has the best chance of selling

Article by: ludlowthompson.com

ArticleSource: http://www.ludlowthompson.com/news/Planning_to_sell_your_property_this_summer/article.htm?id=1262

Developers 'bully house buyers into using expensive mortgage brokers'

This article by Sophie Christie of The Telegraph discussed how building developers insists on making their clients choose the mortgage broker they prefer. They even came to the point of forcing them and not giving them any option to seek on their own.

A growing number of building developers are pressuring their clients into using their preferred solicitor and mortgage broker, experts have warned.

Developers' in-house mortgage brokers may not have access to the whole of the mortgage market, a rival suggested Photo: ALAMY

There has been a "marked increase" in developers forcing buyers to use their proffered mortgage broker and solicitor in return for "incentives" such as free flooring, a senior mortgage expert has warned.

These in-house mortgage brokers may not have access to the whole of the mortgage market or may charge high fees, which could outweigh the value of any incentives, according to Alistair Hargreaves of John Charcol, the mortgage broker.

He said developers were not allowed to insist that you use their finance professionals unless an incentive was being offered. These incentives came in various forms, such as paying 5pc of your deposit, covering your stamp duty or legal costs or having different flooring put in at no extra cost.

"Not every developer does this, although as a client you will always be asked to speak to their dedicated mortgage broker initially. The difference is that some developers will insist that you use their brokers, others just recommend it," he added.

Mr Hargreaves pointed out that any incentives had to be declared to the mortgage lender, as a valuer will usually reduce the value of the new home by the value of the incentive. For example, a property priced at £400,000, with a 5pc deposit paid by the developer, will have its value reduced to £380,000 by the surveyor. "And because the value of the house is reduced, your potential mortgage amount will be reduced as well," he said.

"I recently saw a client who had negotiated a price on a new build house, with free flooring as an incentive thrown in, worth up to 2pc of the value of the house. The developer was insistent that they use their own mortgage broker, who was charging potentially up to 1.5pc of the mortgage amount as a fee; and they did not even have access to the whole of the market, just a restricted panel of lenders."

His advice to buyers was to "dig your heels in" and insist on using your own broker.

Last month Ray Boulger of John Charcol, said estate agents were also pressuring house buyers into using their in-house mortgage advisers rather than allowing them to seek independent advice.

Author: Sophie Christie of The Telegraph
ArticleSource:http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10170855/Developers-bully-house-buyers-into-using-expensive-mortgage-brokers.html

Who is Juswant Rai?

Juswant runs the Berkshire Property Meet, the UKs Leading Property Networking event. He is well known or infamous on the property circuit because of his easy going manner and the BPM. http://pinterest.com/juswantrai/

In this video Juswant Rai Introduces the Berkshire Property Meet on June 2013.

Owner: Juswant Sylvia Rai
Video Source: http://www.youtube.com/watch?v=krWQgl1cJWo

HMO Daddy - Jim Halliburton

Jim Halliburton (The HMO Daddy) talks about his property journey and success.

 

Credit to: Aziz Patel
Video Source: http://www.youtube.com/watch?v=WNTWjCmx1Ng

Webinars by the Biggest Names in the Industry

We're fortunate to be working with some of the biggest names in the property industry from authors, coaches, full time investors, builders, you name it. Every month a different expert will be sharing their wealth of knowledge in a FREE webinar. Our webinars are free to join, and always will be.

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