Successful Real Estate Investing » United Kingdom

Lessons from the U.K. to the U.S.

admin — Mon, 15 Mar 2010 14:11:06 +0000

Should the Americans take a lesson from the Brits? When the financial crisis hit more than a year and a half ago, the United Kingdom was affected, yes, but not that much. Especially complicating the real estate crash was the Fannie Mae and Freddie Mac brouhaha which until now is siphoning off taxpayers money like an endless pit.

The British are looking at this crisis from a whole new different angle. They are approaching the mortgage of homes the eco-friendly way. How so?

They have proposed that new homeowners can have a lower and longer time paying for their mortgages by upgrading their homes into being more energy proficient. Through the installation of practical loft and cavity insulations, solid wall insulations or renewable energy generating technologies by 2015, a lowering of carbon emission by 29% by the year 2020, and the rest will have the chance to access to advice, information and finance. These will not be expected to be acted upon by homeowners immediately. All these will be available through a pay-as-you-save strategy.

Is the British government just plain dreaming a dream, or do they actually have a viable and workable long term plan that will solve two problems with one stone? Already, the tongues of critics are wagging. And the British government does not care. They say that it is more important to have energy-proficient homes than it is to make money. It is a slow process, yes, but the long-term effects are the future.

Dubbed Homes, Greener Homes: A Strategy for Household Energy Management, this has actually been in motion since 2002 and has already helped more than 7.5 million homes become more efficient. And there is no denying how man has ruined the environment. Critics are saying that now is not the time to do this. The British government is saying, no more politics. The right time is now.

Martin Ellis, chief economist at the Halifax, one of the UK’s biggest lenders states, “Annually, homeowners should be better off: I think energy efficiency will become something that people take into consideration alongside location. It won’t make a huge difference to prices, but it should be a positive one.”

So should we take lessons from the British and follow the lead? Actually no, they are not taking the lead. The American government has taken the lead. The problem is that the British government is implementing what they have proposed to do, they are acting on it. They are not making politics set the rules.

The U.S. government created the Building Technologies Program to help improve the energy-proficiency of American homes and buildings constructed almost forty years ago. The U.S. Department of Energy is adamant in its pursuit toward Zero Energy Buildings mainly for commercial buildings and is funding research for innovative technology. But as usual, politics do get in the way and the American homeowners do not have the incentive to improve their homes as it has become too expensive.

So can the Americans listen and learn from the British? This is the question that remains unanswered.

Prices of Luxury Central London Market

admin — Wed, 30 Dec 2009 16:11:59 +0000

The prices of Luxury house properties in London has increased by 2.1 % currently in the month of December 09 and it has achieved the status of strongest estate market among UK markets as per the current reports.

The effect of latest bonus tax levied on the banks shall have least effect as indicated by comments by international consultants about Prime Central index London.

As a consequence of the announcement of Bonus Tax there were many transactions in the range of £800,000 to £1 million prices of which fell down immediately a temporary effect thereafter the prices have improved. Good number of new transactions has been recorded at higher prices in the same week.

Increasing Trend of Prices:

In all prices have increased by 13.8 % after March 09. These are still at a low level, as compared to March, 2008. The particular areas, which are strongest are located at Chelsea, Kinsington and Knights bridge with recording 3 % increase as compared at prices of last month level.

Residential property market got revived by an excellent upward movement of prices in 2009. There was increase of buyers by 25 % during the year 2009 in comparison to 2008. This is due to buyers from Russia, Europe among Italy was a major contributor. There were buyers from Middle East countries also.

The latest months’ reports indicate prices of very expensive properties in the range of £5 million to £10 million and more have witnessed positive increase in the prices touching 2.6 % price growth. The beginning was marked in £2.5 million price tag market during the period of spring.

Role of Foreign Buyers:

There has been substantial rise in inward investment from foreign buyers, primarily with interest to take advantage of weak pound and presence of overall lower prices. Influenced by economic improvement of the city, there has been increase in the traditional buyers also routing their transactions through local bankers, availing finance from hedge funds and playing of private equity houses again in the market.

The summarized account of the year about to end, it shall be ending with positive results i.e. demand of new buyers has registered an increase of 25 % however the supply is closing at 18 % increase.

The Bitter Competition:

The investors and occupants of properties are in a tug of war in competition to find the best properties, due to the supply position not up to mark, there is competition in bidding amounts.

If the market is looked from short term prospective there is a positive note. For long term there are many factor influencing it like the out come of election and declaration of emergency budget.

The UK market is likely to have suffering outcome at high end as well as entry levels as a result of certain measures Government revealed in its pre-budget announcement

Bank Bonus Hitting Market:

The UK property market will suffer at the high end and at entry level from measures announced by the government in its pre-budget statement, it is claimed.

There warnings about ten thousands of potential sales shall end half way due to duty holiday scheme ending on 1^st January 2010. Effectively there shall be old level of tax shall be restored at the same time the effect of bonus tax on banks shall also affect these properties in the beginning of next year 2010.

UK Residential Properties Fore Casts

admin — Sun, 27 Dec 2009 13:22:33 +0000

There fore castings that UK residential buildings shall register an increase of 2 % during 2010 and the number of transactions shall also increase in proportion. There shall be adequate support of the properties available in the UK market meeting the demand for residential properties.

The Royal Institution of Chartered surveyors feel that the number of transaction shall jump from the present level of about 60000 to around 70000.

The supply of properties for sale shall be increasing during the beginning of 2010 year. There shall be struggle in meeting the demand present in the market for residential properties. This struggle is likely to trigger the prices further. Surveyors feel that there are not much houses for sale.

Effects due to Demand & Supply:

So as to reduce the gap between demands and supply the market shall respond by a big measure. There is already cautioning by the lending organizations about uncertainty of the economy scenario due to the influence of labor market not showing reciprocal encouragements.

The market shall face challenges the impact shall be that by the end of year there shall be just 1 to 2 percent increase in the prices.

Even in spite of there shall be normal market influence to reduce the gap between demands and supply. There shall be an imbalance in the beginning of the year marked by gains in prices.

All the more the reduction of gap between supply and demand will ultimately start its effect in a great manner on the market. The imbalance between supply and demand will continue into the early part of the new year resulting in some further house price gains. The cumulative effect of more properties available and the initiating of the exiting strategy as a result of massive support programs shall support the economic situation also.

The Christmas Sentiments in the Market:

As a consequence of Christmas season, the transactions numbers and volume of business shall witness the increase, which is the wish list of dealers through out the country. The category of first time buyers shall have difficulty in raising adequate funds in the absence of support from friends and relatives.

On the contrary comments from Bank of England, differs in its opinion that the price gain at present shall not be sustainable during the year 2010. The present strength of housing market is surprising.

It is expected that next year the housing activity shall be comparatively lower and the effect on the housing properties shall be minimal. At present there are more enquires than the sock of housing properties available.

Residential Properties Increasing Price Trend

admin — Wed, 16 Dec 2009 21:56:24 +0000

In the month of November, 2009 there was increase in the prices of residential prices in UK. It is expected that they shall now remain stabilized in the coming New Year. The rise was to the tune of 1.4 % in comparison to the previous month. Now the average cost of a house property stands at around £168,000.

The increase in the residential properties prices has been continuing for the last 5 months in continuation. April, 2009 witnessed highest rise of 17.7 % and there is cumulative increase of 4.2 % during the last 9 months.

A comparison of the trend of September to November 2009 period over the last year reveals an increase of 3.7 %, which is biggest rise.

Factors Causing Increase:

The economists are of the view there has been sudden increase in the demand foe residential property because of better affordability circumstances in respect of person owning properties and first time buyers felt they can arrange for the down payment considerations.

Having reached a peak it is anticipated the rise in residential properties shall remain contained at the present level or only nominal increase of not much significance, which shall depend on the behavior of UK economy and the number of properties available following the demand and supply principle.

Based on the information on 1^st December 2009 the average cost of UK resident property was around £163,000.00 this being the average figure the actual price have been much more.

Conflicting Opinions:

There are some sources putting their prediction that prices in 2010, shall fall in the background of weak economy, over valuation of the residential properties by artificial hike and presence of more rigid mortgage lending terms.

It is understandable, when the shortage of residential properties factor ceases to operate, the prices of residential properties is bound to fall.

The financial analysts have optimistic view because of presence of buoyancy in the market even in spite of the fact there are factors de-acceleration the price rise.

The November 2009 increase of 1.4 % preceded by 1.1 % and 1.5 % increases during previous two months shows the steepness of the trends.

If a comparison is made on year to year basis the prices of residential properties are higher over the last year period but still they are 16 % below the highest increase ever recorded.

The national index at present stands at 12.5 below the peak level record it discounts the possibility of fall of residential properties prices.

Guidelines To Purchase Property In London

admin — Thu, 05 Nov 2009 18:27:00 +0000

Buying property is not a very easy task especially when you are going to invest your hard earned money. For home owners as well as financial institutions the concern is still there when there is no foreseeable solution. For buyers who are purchasing house for the first time it is difficult to find a good home. Couples in Britain are nowadays recommended to buy property as an investment scheme. Builders prefer to work on large projects to have greater profit margins. Hence that indirectly implies bigger houses.

One must identify the budget for purchasing a house at first. A mortgage is needed and hence one must have a clear idea of the borrowing amount. It is then only one can offer a good price on the property. The lenders calculate on multiples of income to check your purchasing power. This signifies they check prices based on 3 times a persons salary. If it is purchased jointly then it is 2.5 times the joint salary. It is advisable to consult a Capital management Group Independent Mortgage Advisors. These people are professionals and they can assist you taking your future plans depending on your income level, savings, employment prospects, tax commitments etc.

You must also count the fees to be charged by the solicitor. The solicitor takes his fees based on the kind of property you are heading towards. There are a list of expenditures that the solicitor adds up like the disbursement expenses, stamp duty, the price of your property, the registration fees for the land, the search fees taken by the local authorities, the bank transfer fees and any other costs incurred while the deal is being done.

A main thing of worry is the cost of living growing higher in London as compared to the other parts of United Kingdom. The property which you can afford is hard to hunt. However, new development schemes show some hope in near future for better properties at reasonable prices in London.

To Choose A Residence In Eastern London

admin — Sat, 29 Aug 2009 16:09:02 +0000

London being a big metropolis, buying property can be a challenging task. London has areas each different from each other in culture, house price and location. The demand for property and house is huge in London. In comparison to the demand the supply is relatively low. Hence the purchase price of the economy of London properties is high. It is recommended to keep your eyes open and get the best deal for property at the right time for a right place.

To choose a residence in London which will prove to be the suitable property is a tedious and confusing job. To get a good price most purchasers look for properties in areas where transport is a bit less or places which are developing and have good future prospects etc. To live in east London you can purchase great places. These areas are in competition as they comprise of studios, Bangladeshi restaurants and other small shops here and there. The East London areas are Brick Lane and Spitalfields. The property projects in these areas are developed and improved. There is provision for trader’s market, public areas and a collection of young creative artists over here. The taste of Asia can be seen prevalent over here. The east if London has really become very popular in choosing for a residence to live life at.

The place called Canary Wharf is also a very suitable place to purchase property in London. This is one of the most developed and cosmopolitan area in London. The architecture is modern and stylized over here. This place is residence of more than one hundred de signers, designer stores, fashionable taste and trendy malls. There are even provisions for comfortably shopping underground during winter months. Simply sit and decide what kind of lifestyle you wish for you and your family. And then start searching the job of purchasing the right house.