Property Comments: Buy, Sell, Renovate and Invest

Houses For Sale - Snapping up property

2010-02-10T22:47:00.003+01:00

If you are looking to buy some a new place, then be ready to snap it up. If you want to live in a desirable area (don't we all?) then so do plenty of other people too. You need to be ready to snap up property.

Plus, right now houses for sale are priced to sell. Sellers are jittery about house prices possibly going down again this year - the economy isn't out of the woods yet, and there could still be a "W" dipped recession.

Renting whilst you look to buy is still a good option. You'll be a cash buyer so you'll get your next property for a good price. Your costs for renting could easily be made up by the discount you could get by being a cash buyer.

Keep a keen eye out, have your finances in place and find your new home.

Selling Price of Houses

2010-02-02T14:14:00.005+01:00

Getting the price right on a house is key. If you really want to sell, then lower the price - it's easy. But the only problem is you're haggling with an asset worth ££££s. £10k on a £300k price tag doesn't sound so bad but £10k in your pocket, ready to spend, is a lot of money.

Trying to put the house on at a high price could mean you accept a lower offer by the time you actually get a buyer. You've lost more than you needed have.

Have a look what other houses are priced at in your area, go see a few, and check that your price is looks fair. If not, then bite the bullet, and go for a lower price. If you want to sell then it's the price that pulls in the buyers. Houses for sale with the right price get sold and with too high a price, they stagnate on the market.

Spring is coming early

2010-01-18T18:16:00.002+01:00

Apparently people are off to a flying start to find their property. Estate agents are reporting that they are busier than expected. They were expecting to be busy at Spring time as normal, but they are busy already. Potential buyers want to make the most of the low interest rates before they start to creep up, possibly later this year (can they hold out that long? Or will the low rates stay into 2011 to get the economy more safely out of the sludge?)

Plus, there's the general election looming and with a general election change is in the air. And people generally don't like change so they stay put in their houses.

If you want to move this year then consider doing it now. Have a look at http://www.wheresmyproperty.com to see what is on offer. If you're after a bargain then try http://www.renovatealerts.com - you'll need to do a little (or a lot) of DIY.

Personally I love moving house. It's refreshing, it's a new start and you can make your new house just as you want it to be. Sure it's stressful but it's exciting too!

Take Stock

2009-12-23T14:57:00.005+01:00

It's Christmas time, a New Year looms - time to take stock of what's happening.

If you want to sell your house this year, do it in the first half of the year - ideally in the Spring. Around the General Election and after the housing market is expected to dip. So sell in Spring and rent until the market is settled - or has indeed dipped. Mind you, the predictions for 2009 was that the second half of the year would see continued falls but instead prices bounced back. Still, if you're renting (or staying with family or friends) you're a cash buyer, you can move quickly and aren't in a chain - so you can usually make a low offer. Even lower if you get a place that needs a bit of work. RenovateAlerts.com have found a 2 bed flat in London E7 for £100k.

Decide what you want to do over the Christmas holiday and then make your move in the New Year. Happy Christmas.

House Prices 2010 Prediction

2009-12-15T14:55:00.004+01:00

What are house prices going to do in 2010? I think they will flatten out, some say they will fall. Interest rates are expected to stay low next year, unemployment are expected to rise, general election, mortgage constraints, imbalanced supply and demand all go in the pot.

If you're selling now, are you going to rent instead of buy? You could make more money with your savings in the bank rather than property. Or wait for a bargain like at renovatealerts.com and sit it out until prices do go up. Mind you, you might be waiting a long time. As the economy does grow there's going to be massive public spending cuts, higher taxes, and with less take home pay and less services people will be reigning in their spending.

Christmas House Selling

2009-12-08T11:37:00.006+01:00

If your house is the market now then why not make the most of the festive season to make your house more appealing. Bring on the pretty lights, spiced oranges, Christmas tree and pretty holly and berries. Any viewings you have now are serious ones - either they will be cash buyers or people who are thinking of selling. And if they like your house then they are likely to get their house ready to go on the market after the New Year. It's the quietest time of the year for estate agents so anyone who wants to view is a serious buyer. It only takes one buyer to lead to the sale.

Prepare the lighting before the viewing and do not leave it to the estate agent to do. You know your property best and will know what works best. Plus, you have the most to make or lose - even though you are paying an estate agent to do their job you're the ultimate (wo)man in charge.

Christmas may be the quietest season but house buyers may be using Christmas as a deadline to find a property - so do what you can to make property meet their deadline.

If you are buying a house now....

2009-12-02T13:12:00.003+01:00

If you're buying a house now then factor in enough cash to cover increased mortgage payments. Interest rates might not go up next year but they could the following year and they could go up quickly. The only way is up and the country's coffers need replenishing in a major way. And you'll need more money for household bills too...

But is it wise to buy a house now? Are house prices going to continue going up or at least hold steady in 2010? Many think not. Unemployment is expected to rise, there's a looming general election, mortgage interest rates are expected to go up and more property will come on the market.

But to rent - that's very costly too and a mortgage is usually cheaper than the rent payments. Ideally stay with family or friends and watch the housing market closely.

Property To Renovate

2009-11-26T12:11:00.002+01:00

If you're looking for property to renovate then have a look at Property To Renovate - Renovate Alerts finds property to renovate and then emails you the list of the links to the property details. It saves you the hassle of scouring the estate agents in your area.

And it's a good time to renovate property. House prices are still low, but on the rise, interest rates are low making mortgages cheap and they're expected to remain low for a while yet. That gives you the time to buy a place, do it up and then sell it on or keep it and live in it. Afterall a house can be a home too... for most people, that's exactly what it is. But if at the same time you can make a bob or two, then why not.

Providing you do, that is. Going over the top on redecorating and refurbishment is one way to sink money, so be realistic about the costs as well as the effort needed.

And if you're just wanting to scout the prices of property have a look at www.wheresmypropety.com who list property for sale in the UK.

House sales at Christmas time

2009-11-23T11:59:00.002+01:00

Basically,there won't be many. Most people are now into getting ready for Christmas, looking forward to the lights being turned on, carols being sung and presents to be bought. It's the quietest time of the year for estate agents.

So if you have your house on the market keep your house basically tidy just in case you get that elusive phone call that someone wants to see your house. Keep decluttering gradually without filling up your lounge with piles of "stuff" in the process. And use this time to have a check on what other properties are on the market for just to make sure that your property is set at a realistic price.

Spring time is the best time to sell your house and so you could use this time to check that your property is at it's best - should you give a couple of rooms a lick of fresh paint - neutral colours?

Selling your house is a bit of a waiting game. You just need one buyer and then you need that buyer to follow through to the point of exchange. You can then almost relax, but it's not really until you've got the keys to your new place that you can finally heave a big sigh of relief.

And in the meantime, just enjoy life and go with the flow.

Estate Agents

2009-11-06T17:25:00.003+01:00

4 estate agents, 4 valuations and there was a £70k difference between them and £100s commission difference. It's hard to see why anyone would go with the estate agent who are charging the most commission or why you'd choose the agent who values your property at the lowest or at the outrageously highest value.

When you want to sell your property why stop at 3 agents - get 5 agents round. Clean and tidy your house, book them in 1 hour after each other, let them know (they'll expect it anyway) and be done with it in a day. After each visit make a note of their valuation, their commission (is it negotiable? - it usually is) and your general impression. You don't want to muddle them in the evening when you're making your choice.

Local area knowledge is really key. As is complacency. Estate agents that have been around a long time can be great, but can also be a little complacent. Newer agents are extra keen to get your instruction and can offer longer opening times, better details, better tracking of buyers and even newer estate agents can have better knowledge of the area if they have worked with other agents within the area.

When you pick your estate agent, ask all the questions you want, ask them why they are better than anyone else and get as much information as you can from them. Ask them about who will be selling your house - usually a senior salesperson will come to value your house but then a junior salesman will do the viewings - you need an excellent salesman at all viewings.

A bad salesman can put potential buyers off in an instant. There are excellent estate agents out there and you need to find the one that's right for you and is worth paying £1000s in commission. Good luck and hope you get the price you're looking for.

Property going up - a bit

2009-10-30T22:45:00.003+01:00

Property has gone up 0.9& in September and that makes the annual rise up to 2%. So no big shakes but it shows that there is some confidence, at least for the time being, in the market. Buyers don't want to miss the trough of the market so are eager to snap up relatively low priced house whilst the mortgage rates are still low. And sellers, well, they've been unsurprisingly shying away from the market for some time now, if they have to sell, then at least they have an upward trend.

But what will happen when interest rates eventually go up. It seems a long way off in a way. By this time next year more countries will be out of recession, but unemployment will be higher, the government will be reigning in spending in the form of higher taxes, spending cuts which means job cuts and wage freezes, so the economy will be fragile.

House prices are not expected to shoot up any time soon. They are more likely to go up and down over the next year. Some experts suggest that there will be another 20% drop but that seems a bit drastic.

If you're buying then you'll get a good price and if you sell, well, between now and February it's generally a very quiet time for estate agents. However, if you're in an area where demand is high but supply is low then you may as well try to sell but do not accept too low an offer.

Buying a house is a huge investment - take your time in choosing a house.

Look After Your Property To Look After Your Investment

2009-10-13T20:45:00.000+01:00

If you are renting out your property it will pay to take care of it and here we look at what you need to take care of.

When you are renting our property you want to keep your tenants happy. Happy tenants will mean that your tenants will stay and so you will maintain a stable income. If you look after your property on an ongoing basis you will also save money on repairs and costs in the long run. And if you want then to sell it on it's in good condition for you to get a good price.

So firstly you need to check your property regularly. Try and spot potential problems before they happen. Outside areas that you need to check are the chimney, lead flashings and roofs making sure that they are all secure and safe. If they are not secure water will leak in and quickly cause damage which in turn will be costly to fix. You will also need to check for cracks on overflows, gutters and downpipes. Again, any water leakage will cause damage to brickwork which can cause long term damage.

The paintwork on windows and doors also need to be checked - cracked paintwork will allow water to leak into the frames and then they will gradually start to rot. Keeping on top of the paintwork if far cheaper than having to replace rotten frames.

You will also need to check air grates and the damp-proof course making sure that they are not blocked.

Inside the house, you need to check silicone seals around the baths and showers and the grout in between tiles. Again, if there are gaps water will leak and cause rotting and damage to the bathroom walls and flooring and could also cause damage to the room below.

All gas appliances need to be checked for safety every 12 months by a CORGI registered installer.

You should also make your property energy efficient. For example, loft insulation is the easiest and most cost effective energy efficiency measure you can take. To save up to 30% of your heating costs you need to lay loft insulations at least 8" deep. You may also be able to receive a grant to do this very cheaply so check with your local council about what could be available to you. Cavity wall insulations can reduce heat loss through the walls by up to 50% and again there are grants available to make this a cheap energy-saving option.

A modern energy efficient boiler and modern heating controls drastically improves the efficiency of the heating system. Fit thermostats on every radiator so that you can turn a radiator down very low in rooms that are not being used. Also, fit an insulating jacket to the hot water tank to keep the hot water hotter for longer.

All doors should be well fitting and you can fix a draught reducing brush or PVC seal to lessen the draughts. You can also fit curtains behind the doors and use draught moveable excluders.

Windows should be double glazed and if they are single glazed you can use secondary glazing and hang a heavy curtain to lessen the draughts during the cold winter evenings.

If you take care of your property your tenants are far more likely to take of your property too. You want tenants who want to keep the property in good condition and so if you keep it in good condition you are far more likely to find tenants with the same caring views.

Look after your property to look after your investment.

Top Ten Tips For Moving House

2009-09-23T14:44:00.000+01:00

Love it or hate it, moving house is time-consuming and stressful. Here's ten top tips to make the process easier.

1. Be organised. When you're moving house sort out your paperwork: you'll need a file with sections for your solicitor, estate agent, surveyor, mortgage broker, insurance, removal company, post forwarding and other minor, but important, contacts.

2. Be available, stay in contact and communicate promptly and clearly. To keep the process going smoothly and quickly reply promptly to all letters and phonecalls. Check the paperwork you receive. Mortgage providers, solicitors and brokers all get it wrong sometimes. You are the customer paying the money so you must check that they have got the details right. If you have any queries be sure to get on the phone and sort it out as soon as possible.

3. Declutter. As you pack up, sort out your things. Get rid of what you don't want instead of doubling your work load of packing and unpacking things collected over the years that you don't want. Moving house will usually mean a big clear out which is refreshing in itself.

4. Stay calm. Moving can be stressful, but there is little you can do once the process has started. If your buyer pulls out, you can't change their mind. Keep things in perspective and keep your normal life ticking over. Keep going with the flow and don't worry too much as worry by itself doesn't change anything.

5. Visit the new house a few times, take measurements so that you can plan exactly where all the furniture is going. When the removal men deliver the furniture you can at least tell them whether items are upstairs or downstairs and it'll save you some hard muscle work.

6. On the day of moving have someone to help. If you have children or pets, have the extra person around to keep an eye on them. When you are leaving your old home, go around with your family and say cheerio to your old home together. Moving house is a big event for every member of the family.

7. When you arrive in your house and the removal men have gone, open up a bottle of bubbly or something that is a treat. Perhaps a box of chocolates or a tin of sweets - something to give everyone a lift. You'll have boxes around you, beds will need to be made and everyone will be tired.

8. Hopefully, you won't have much cleaning to do before you unpack, but sometimes you will. Cleaning someone's grime is grim so get in help and get the job out of the way as soon as possible.

9. Give yourself enough time to unpack so that you can unpack properly rather than having to change where everything is a few weeks later.

10. Keep talking with your partner and/or family. Moving can be stressful for everyone. Talk to your children about how they feel and check any concerns that they have. They may need extra reassurance and time with you. Make the process as fun as you can and stay relaxed and in control.

Good luck!

Buying Rental Property

2009-09-10T16:35:00.000+01:00

Interest rates are low and are expected to remain low for the next year. House prices are low. Here we look at whether buying rental property is a good idea and if you are keen, then what you need to look for.

Interest rates are the lowest they ever have been are expected to remain low for the next year whilst the economy is given a chance to recover.

On the down side you will need a large deposit: at least 60% of the property purchase price and investment property mortgage rates are fairly high at around 5%. You will need to browse the internet to get some basic information and then call an independent mortgage broker to find the best deal.

Buying rental property is a long term investment. The key factors when considering what property to buy is to stick to some basic rules:

1. Location - this is all important. You need a location that will attract a lot of tenants so that when one tenant moves out you will easily be able to find another. No tenant means no income and you will need to fork out to cover the mortgage. Good locations are near universities, good schools, employment centres and good areas. The best way to start finding a good location is to speak to your local rental agent. They have the experience of knowing what rents well. A nice-
looking house in a not-so-good area won't rent well on a continuous basis.

2. Decor: rental property has to be in good condition. There has been an increase in rental properties as homeowners who have been unable to sell their house have rented our their house and the market is competitive. And you want reliable, trustworthy tenants who care about their accommodation. The property therefore needs to be maintained to a good standard. When you look to buy rental property you need to budget enough to decorate it to a good standard in neutral colours, and an ongoing basis you will need to maintain the decor to keep the property in good condition.

3. Parking and transport: Be sure to buy a rental property that has it's own parking. Tenants can pick and choose their rental property these days and the majority want their own parking. No parking often means no tenant or a tenant moving on after only a short time.

4. Work out your figures carefully. There are ongoing outgoings that must be factored in when you are buying rental property. The income needs to cover the mortgage, 3 months worth of rent to cover void periods, insurance (buildings plus you can choose to insure against void periods), tax, maintenance costs and management costs (if you choose to use an agency).

5. Be prepared to keep your tenants happy. If you are managing the rental property yourself, be available, return their calls promptly and deal with any problems as soon as you can. If you are using a management agency then keep in close contact with the agency to make sure that everything is in order and to check that your tenants are happy.

Buying rental property should be considered a long term investment. Keep money aside to cover void periods and be prepared to invest some time in it. The key thing you must do is research the location, have enough cash aside for maintenance and then attend to it regularly.

House prices, house prices

2009-08-10T20:20:00.003+01:00

House prices were up 1.3% in July - according to Nationwide. I'm glad because if prices keep going down selling my house will never happen - not that it's on the market - I wouldn't dare at the moment. It's choppy waters out there. Employment is expected to rise to 3.2 million in 2010. Public sector jobs are likely to be cut next, so people will remain wary of selling or buying such a big investment. Perhaps the double dipped recession is yet to come - no one knows.

But if you're a cash buyer then you'll have some rich pickings especially in the lead up to Christmas when the housing market is at it's quietest and people just want things wrapped up in time for Christmas - scuse the pun, but it's true. Just before Christmas is a great time to buy. If I was a buyer I'd wait til then - there won't be many properties on the market (as potential sellers wait til the Spring to put their house on the market) but it's worth looking to see what's out there.

I think house prices will go up a bit and then go down a bit in the winter months - but not significantly. If we're not already, then we are nearly at the bottom of the trough. Mortgages are generally still cheaper than renting, and mortgages are beginning to become more available. By Spring 2010 people who have been putting off moving will begin to take a peak at putting their houses on the market simply to move on. A lot depends on whether there will be double dip or not. Fingers crossed, there won't be - we want to get out of this financial mess.

Do You Want To Live In The Country?

2009-08-03T20:58:00.000+01:00

Here we explore the dreams of "living in the country". Is it all that it's cracked up to be? What do you need to check?

How many times have you heard people say, "I want to live in the country", "I want a smallholding!", "A holiday business!", "I want to work from home".

The idea of making money in the city, paying off the mortgage and going to live in the country is enticing. You can get a beautiful old farm house, work from home, enjoy the nature and breathe in fresh air. And most of this is true but there are risks and downsides to consider too.

So what's your dream? Make a list of what you are looking for.

Do you really want to live in the country? "In the country" could have a whole range of meanings. Do you want to live in a market town, a little village or really out in the sticks? Or would holidays do? I ask this because living in the country is so different to visiting it.

What do you enjoy about living in the city? The buzz, the access to theatre, music, education, exhibitions, people, shops, etc? When you have a dream it's easy to miss the truth of your current situation.

Living in a village can be fun and socialable, providing you get on with the general population (it could be small) and are happy to deal with village politics. However, they can also be intrusive - people are naturally curious and some people will want to know your business.

Are you happy to use the car a lot? Many country roads are winding, narrow and fast. Walking along country roads is not a good idea! If it's walking you're after check that you CAN walk in the place you're interested in. Sometimes there are surprisingly few walkways as it's private access.

Would you be happy living somewhere with few shops - of course you could shop online and have your groceries delivered by the local box scheme, or dare I say, a supermarket chain (maybe that wouldn't sit comfortably with the "living in the country" theme!).

Employment. If you want to stay with your current company, can you work from home? Is this acceptable? With the current credit crunch and subsequent redundancies, this is less available. Especially if you need to prove your worth - bosses may want to see you in the office. Setting up your own business is an option but research it thoroughly - it's a big risk, takes up a huge amount of your time, though the rewards can be worth it. Setting up a B&B is another popular option - and again, it's a lot of work.

The assumption of simply getting another job in your new location if your current job doesn't work out is again risky – jobs are now not easy to come by, and the pay is generally much lower outside the big smoke. Most people need an income and

getting this right, with your feet firmly on the ground, is crucial!

You may want to sell up and move to the country and own two houses. One as a holiday let and one to live in. However, research the costs and risks - holiday letting can be a drain if you can't let the property or if it needs a lot of maintenance and care.

This may sound all rather negative but the bottom line is that the dream and the reality need to be checked very rigorously before you take action. Otherwise you could end up wanting to move back!

Thinking Of Selling Your Property?

2009-07-28T14:38:00.000+01:00

Are you thinking of selling? Should you wait or should you sell? Here we are looking at what your options are.

Selling property, buying property, it's all been a bit of a mess. The fact is that sometimes you can't wait for longer and you need to sell up. Right now there is a shortage of property for sale as potential buyers stay clear of the low priced market yet buyers are out there as they want to make use of the low prices.

If you want to wait until prices go up remember that prices could remain low for some years or worse, could fall further. Unemployment is set to rise to over 3 million in 2010 and many companies have gone bust or have suffered, resulting in redundancies, frozen pay or reduced hours. For companies to recover and then to reemploy people will take a long time. For the economy to become stable after the government has pumped billions of pounds into it will take years and in the meantime there will be spending cuts in public services - generally speaking people will not have money to spend and instead people will be paying off mortgages, reducing debt and saving. The house prices from 2007 will not return until the country has recovered and there's a lot of recovering to do.

However, not all areas are all doom and gloom. In some areas prices have risen over the last year - Windsor has increased by 9% in the last 12 months and Pembrokeshire is up 5.8% in the same period. This compares with an overall annual fall of 12%. You need to check with your agent how your area has fared or check locally sold prices on the internet.

So in the meantime what do you do?

Well, the key question, is why and how much do you want to move?

Even if you are just beginning to think of selling it's worth calling estate agents and have your property valued. It's free, it's easy and you are gathering information. What could you realistically get for it? Be sure to have your property valued by at least three agents - they will all be very keen to persuade you to put your property on the market and may give you an unrealistic high price to convince you.

Are you thinking of trading up or trading down? How much does your desired house cost? How much mortgage would you need and how much mortgage can you get? The banks are beginning to lend out more money with higher income multiples and lower Loan To Value percentages but the criteria is still strict and lending isn't guaranteed as it almost used to be.

What's happening in your neighbourhood? Is a tram link being built which will benefit your property? Is a development due to start which will adversely effect your property? What is going on which could effect the sale or desirability of your property? You need to gather information together to get a clear picture of what your options are.

Estate agents want to market your property. Buyer enquiries are increasing but the estate agent does not have enough stock to sell. That puts you in a good position to negotiate their fee and get the lowest commission you can.

In the current climate it may pay to improve your house rather than sell. If you need more space then compare the costs of moving to extending your house, converting your loft or adding an office in the garden. Moving house is very stressful and most people want to avoid it, even when the property market is good. If your problem can be solved by improving your existing property then that might be the most economical and practical path to take.

Be sure to know exactly why you are thinking of selling and see if the problems can be solved in another way. Commuting may be made easier by negotiating how to work from home more often. The problem of the lack of local transport may be combated by buying two cars - far cheaper than moving house. Go through and think carefully about all the reasons of why you are considering selling and see what solutions you can come up with. Try to think outside the box and be open to new ideas.

Buying and selling property has been a quick money making fashion in the past, pre-credit-crunch. If you are thinking of selling gather as much information as you can and think through your options slowly and carefully. If you market it and price it realistically then there are likely to be eager buyers out there as there are so few properties coming onto the market. And then you can move on to your next chapter.

How to Sell Your House: Ten Tips To Get You Moving

2009-07-10T14:05:00.001+01:00

If your property has been on the market for months and just won't budge then review these tips to get some interest and get you moving.

1) Call other agents and ask them to revalue your house. Your price may be too high. Of course you won't want to lower your price but if you want to sell then you may have to. With a lower price you should get more viewings, and if you get a lot more, then buyers could outbid each other. It's down to how much you want to sell.

2) View your house with fresh eyes. Do any rooms need a lick of paint? Providing you choose neutral colours new paint can add freshness to any room, it's cheap, quick and you can do it yourself. If you want to be more creative you could add a bright colour to one wall and have matching accessories but that will add to the cost.

3) Check your house f or DIY. Handles hanging off the cupboards, dripping taps, windows without curtains or not hanging properly make the property look uncared for. You want people to want to live in your house. Sure you will get the buyers who want to renovate property, but they will also want to pay less money. Most buyers do not want to renovate property, especially if it is a family house. Book in a couple of weekends and evenings to get those jobs done.

4) Smells - sounds grim, but does your house smell? Do you have pets? Dog-owners can become used to the smell of their dog but to non dog-owners, it can be very off-putting. You may need to clean your carpets and deodourize the furnishings. One house I've seen turned out not to have a u-bend in the loo... easily fixed and problem gone. People want a fresh smell in the house and especially in the bathrooms and kitchens. Avoid cleaners containing bleach as the smell of bleach will linger. If you have a coffee machine, then great, put it on before you have any viewings. It's a very welcoming smell.

5) What's the first impression of your property. Check from the outside and make sure it's a good one. Especially if your property has been on the market for a long time and you've give up hope, the outside of the property might look neglected. Keep it looking good - you only need one person to buy your property. You need your front garden in especially good condition - doesn't take much time and makes a big difference. Keep the hedge trimmed and everything looking well cared for.

6) Cleanliness. For every viewing, make sure it's really clean. Sure, first impressions are hugely important, but after a favourable first impression, people begin to look closer. They want to live in a clean house and feel good. Dirt will turn people off your property.

7) Declutter. People want space. If your property has been on the market for a while you may have let things get cluttered. Have another clear out, tidy up and generally create space. You want to create a light, spacious and welcoming feel to your house, and where people will be able to imagine themselves in your property.

8) Ask a few agents to value your property. You may need a new agent with a new set of house details. Talking of which, check your house details - do they actually sell your house? Are the photos good and is a floor plan included? Some house details can be so poor, even negative with unflattering photos. Check that your agent is actively doing his job of selling your properly, not merely listing it. If he is not enthused by your property then you need another agent. Also, if he has had

your property on his books for a long time, then he may have lost hope in selling it and this may come out in his voice or odd comment to potential buyers - hopefully not, but worth checking out.

9) Say Yes to all viewings and be ready an hour before - agents can turn up early.
Viewings are great on one hand, but you need to prepare for each one. You've got to tidy up, clean and ideally, be out of the property. People who are viewing your house really are interested in actually buying your house, even if their property isn't on the market. Clean and tidy and then go out and do something nice - at least then you'll come home to a nice, clean house and you've had a good time, even if it's just round to the neighbours. And most definitely, let your agent have a spare key. When you come to sell your house you'll be paying your agent a hefty fee so make use of them. Do not show potential buyers around yourself unless you are a salesman - in your nerves or over-keeness to sell your house you may hamper a sale instead.

10) When you've done what you think you need, enter your house as if you were a buyer and what do you see? Make more changes to give the best impression you can. It's a detail but flowers always add freshness, brightness and show you care about where you live. In making these changes hopefully you'll have the bonus of enjoying your property more whilst you live in the property!

Good luck with your house sale.

To Sell Your House Or Stay Put?

2009-07-03T20:59:00.000+01:00

If you are a potential seller waiting to put your house on the market you need to consider your options carefully. Here we go through the issues to help you decide what to do.

Perhaps you were thinking of selling your house and just as you were going to go for it the credit crunch took hold and now you've been watching the housing market crash. Should you sell now before it gets worse or should you wait until things pick up?

It's a tricky one. How long do you want to wait? How much do you want to move? According to Nationwide, house prices rose in June 2009 by 0.9% as demand outstripped supply. Buyers who can obtain a mortgage want to make the most of the low interest rates and fallen house prices. The economy and housing market are no longer in freefall so if you put your house on the market now, then you may have a better prospect of finding a buyer than you would have done six months ago.

If you are tempted to move house, look at the reasons why you want to move house and prioritise them. Take tentative steps to research your options: ask an estate agent to value your house, get their opinion on what you could realistically sell for and whether there are interested buyers on their books. Speak to a mortgage broker to check what mortgage options are open to you. Check how much properties are in the new location. Gather as much information as you can to help you make an informed decision.

If you were thinking of waiting until house prices pick up then let's look at the factors that effect house prices. The credit crunch and subsequent recession has had a major impact on our economy. So far we have seen job losses mainly in manufacturing and banking and unemployment is expected to rise to over 3 million by the end of this year. The Organisation for Economic Cooperation and Development (OECD) believe that unemployment will reach 10% in 2010. Based on the recessions from the 1980s and 90s it takes nearly five years after a recession begins for employment to be back at the pre-recession levels, and with employment comes more spending power.

If you are waiting for house prices to rise significantly to get a better price for your home then you need to expect to wait a number of years as it will take this long for the economy to recover and for employment to return. Some economists believe that there could be a v-shape recovery, however others believe there could be a double-dip, or "W" recession, and thirdly that the recovery will be steady but very gradual. The latter two recovery types would have a particularly long lasting effect on employment and therefore spending, and therefore the housing market would also only slowly recover.

So you might want to try to sell before things get any worse! If you can sell quickly, that is in the summer months (avoid the run up to Christmas as this is traditionally the quietest period for estate agents) then you would need to prepare your house to sell and prepare a Home Information Pack at a cost of £250-450. Do you want to pay this much to try and sell your property?

If you are wanting to sell to buy another property in the same area then the fall in prices should be proportionate. If you wish to relocate to another area then you will need to research into the price falls of that area. You could be paying more for the same property or significantly less depending on the location.

There is unlikely to be a sustained recovery in house prices this year. There is a chance that prices could continue to rise in small degrees if demand continues to outstrip supply. Alternatively there will be a levelling out of small gains followed by small falls or most pessimistically, there could be more major price falls as unemployment rises. Next year house prices are likely to increase slightly as the economy begins to slowly recover.

There is very unlikely to be a return to the boom years of double-digit growth in the next few years so if you are waiting for major price growth then prepare to stay put for the medium term and make the most of where you are.

Use Your Property To Make Extra Cash

2009-06-19T21:27:00.001+01:00

If you are waiting to sell your property or need extra cash then consider renting out a spare bedroom to a lodger. Here's some useful guidelines on how to do it.

Firstly how much cash can you make? Revenue and Customs allow you to earn £4,250 a year tax free from lodgers, that's just over £354 per month. Normally bills are included in the monthly rent so you could charge £80 per week to reach the threshold. That's more than handy money.

On another administrative note, you would also need to check with your insurance company and your mortgage provider. They are unlikely to object but they may need to add it as a note to your policy.

You will need to choose your lodger with care - you are letting a complete stranger into your home afterall. You should obtain references and credit checks and you can also use formal lodger agreements, similar to a tenancy agreement, for protection for both parties. You need to agree the amount of rent, how it is to be paid, the notice period for either party, what is included in the rent and what the lodger needs to pay for (i.e. any damage to property).

Once you have prepared the room and before you advertise the room, write a list of rules. You need to be prepared before you meet any prospective lodgers. When you do have a viewing, interview your lodger and give the chance for your lodger to ask questions. You both need to decide whether you would be able to share your house with this person and whether realistically you will be able to live under the same roof.

House rules that you may want to consider include smoking, alcohol use, visitors, overnight visitors, cleanliness of kitchen and bathroom, laundering, car-parking, noise levels, pets, etc. Lodgers generally share the use of your kitchen and your bathroom but do not use your living room.

Regarding the use of the kitchen and bathroom be sure to have set times when you both have use of them. For the kitchen have a designated place to store your food separately, both in cupboards and in the fridge, which neither of you raid! It's grim if you're looking forward to your meal, having planned it and bought the ingredients, to get to the point of cooking it and someone else has used your ingredients.

Once you have a lodger check that each of you are happy and check if any changes are necessary. Communication is key to a good lodger/landlord relationship.

Having a lodger isn't everybody's first choice but it can work well if you choose the right lodger. If you are willing to make some compromises and share your house, you could make some very handy money, especially in the current credit crunch climate.

House Prices - Beware

2009-06-12T20:21:00.001+01:00

House prices are on the rise but be careful, the rise may not last.

In recent years much of the British public have made property into a sort of hobby. The TV shows have followed enthusiastic DIY'ers doing up some half derelict house into a lovely family home, rub hands with glee over the profit that was made, or alternatively spend over budget and be coping with difficulties along the way. We've seen how to transform rooms in an hour, how to buy property at auctions, or how to build a house from scratch. And so on it goes.

With so much of our wealth invested in our property and with so much money having been made in the rocketing house prices up to August 2007 no wonder we are watching house prices closely. A lot of people have done well in the past. If we missed out on the good investments in the last round we want to be in the action if there is another rally.

However, be careful. In May house prices rose 2.6% compared with April and this was the fastest rate of growth since 2002 (Halifax) but is this sustainable? Is the wider economy supporting a rise in house prices? And as the end point, should you buy now if house prices are to continue to go up?

Let's see why house prices have gone up recently.

There is a combination of reasons to go in the pot. More new buyers are registering an interest and members from the Royal Institution of Chartered Surveyors reported that buyer inquiries increased in May for the seventh month in a row and at a fastest rate since 1999.

Yet, with the property market having dropped to such an extent would-be sellers are holding off putting their property on the market. New instructions have continued to fall with the average number of properties on an agents book having dropped from 69.4 to 58.4 in May. There are not many properties on the market and there are new buyers wanting to snap up seemingly cheap properties along with the low interest rate.

Plus it's traditionally the house buying season. Spring is the peak time of the year when people buy and sell property - interest usually picks up in February after the New Year, people can be settled in by the summer when the holiday period starts and then it's the new school year and getting ready for Christmas!

The economy may be seeing glimmers of good news but the Bank of England's latest Inflation Report warned that the economic outlook was still very uncertain. The unemployment rate is currently 7.1% (2.22 million) and many economists predict unemployment to go above 3 million or 10% in 2010. According to the Office of National Statistics, in previous recessions unemployment took about 6 years to return to pre-recession levels.

Finance for first time buyers, although is improving, is still limited and has strict lending criteria.

For house prices to stabilise there needs to be stability in the wider economy. For house prices to rise on a consistent basis employment needs to be falling and that seems highly unlikely in the near future.

If you want to buy now and find what you want then the chances are that you'll be buying at a good time. However, there's still a high risk that house prices will fall as unemployment rises and therefore you need to be prepared to hold it for a number of years.

Keeping Up With House Prices

2009-06-08T10:43:00.001+01:00

News about house prices come every month from various sources and all slightly vary. Here we look at who says what and why.

Let's start with Nationwide and Halifax. Both provide mortgages and their house price figures are based on their mortgage approvals, not on completed sales (remortgages and further advances are excluded). Their data includes property from the whole UK market but each is based only on the mortgages passed through their companies, a much smaller sample compared to the Land Registry. They do not include cash buyers nor sales that fall through. As their calculations can be done at the time of the mortgage approval they have their data sooner and are able to broadcast their figures before the Land Registry.

The Land Registry is based on actual completed sales regardless of any mortgage or cash buy. The Land Registry data set includes residential property transactions in England and Wales and does not include Scotland or Northern Ireland. It's calculations are based on repeat sales so that the prices changes on the same properties are measured.

Property websites such as Rightmove report on house prices but their figures are based on residential property asking prices (England and Wales only). Since offers are made on nearly all asking prices this does not help with accurate information but it will show general trends and contribute to the general picture.

Related to house prices, the British Bank Association provide statistics on lending, including mortgage figures: how much was lent and how many mortgages were taken out. And so the property market can be measured by tracking how many mortgages were taken out in any month which usually follows the trends of house prices.

So let's compare the house price figures for April 2009 from each of the mentioned reporters:

Nationwide reported a monthly fall of 0.3% and an annual fall of 15%.

The Land Registry reported a monthly fall of 0.3% and an annual fall of 16.2%.

Halifax showed a monthly fall of 1.8% and an annual fall of 17.7%.

Rightmove showed a monthly increase of 1.8% and an annual fall of 7.3%. - this may show that new sellers are setting too optimistic an asking price.

There are many more reporters on house prices and all can contribute to how the property market is fairing but generally the most accurate report for England and Wales is from the Land Registry . The results together can show a trend and provide historical information. However, people are very keen to have forecasts to gauge when to buy or sell and the above companies monthly reports do also include some general predictions.

It is also worth reading the general economy news and outlooks as property prices are dependent on the general economy in terms of employment (people need to be employed to get a mortgage to buy a house), interest rates (low interest rates are great for now but there are only low because the economy is in such bad shape), mortgage availability and the general global economy.

Looking at these different aspects, the ride for house prices for the remainder of this year is likely to be bumpy. Keep reading the reports and keep an eye on the property that is right for you.

Are House Prices Going To Go Up Soon?

2009-06-01T10:20:00.001+01:00

Let's look at the latest information on house prices to see when house prices are likely to go up. Are we at a turning point?

In May this year, according to Nationwide, house prices have gone up by 1.2% and subsequently the annual house price fall has gone down from 15% to 11.3%. This is the second time in three months. Is the tide turning?

It's still early days. The economic climate is still unstable with employment expected to continue to rise - some think another one million will lose their jobs before the end of the year. Although access to credit is beginning to ease, it's easing slowly - in April mortgages approved edged up by 1000 and the gross lending increased from £3.4bn to £3.5bn.

Let's take a look at supply. Stock levels are falling and new property onto the market is scant. Fewer new houses are being built and potential sellers do not want to put their property on the market if they are only going to get a low price. Many want to hold out for a year or so in the hope of achieving a better price - and a better price on a house sale is worth £1000s. And then there are also the sellers who have taken their property off the market, either to stay put or rent out until the market picks up. Supply is unlikely to pick up significantly in the months to come. Only those sellers who have to sell will sell at this time, so that's the probate sales, repossessions (they tend to sell at auction more than through estate agents), marital splits and relocations.

On the demand side, house prices are low, interest rates are low and mortgages are becoming easier to get. There are increasingly more interested buyers out there - people who are in safe employment want to make the most of this opportunity and slowly those buyers will translate into sales. Or those that want to invest in property at a time when their savings are making a poor return. They will buy up the best of what's on offer and as the supply continues to fall or remains flat, house prices in turn will rise.

Seasonally, this is the busiest time for estate agents. People buy in the Spring and slightly less so, in the Summer so house prices are expected to go up a little at this time. Come Autumn and leading up to Christmas estate agents become quiet again until the next Spring. By early 2010 the economy will be more stable and then property prices may then be on a slow increase (and interest rates may have started to rise by then - they won't stay this low forever). As this gradually happens companies will begin to reemploy workers again - but it will be slow. As more people become employed, they will have more money to spend and so make more purchases, including purchases on houses.

If property prices follow what happened in the 1990's downturn, property prices are likely to bump along the bottom of the trough with rises and falls for a few months yet.

If you find the right property and can buy now, then buy. Or if you can't buy now, then save hard for a deposit, be in secure employment ready to get a mortgage, or if you are self-employed make sure you keep up to date with your paperwork - the mortgage company will want proof of your earnings. Speak to a mortgage broker or bank now and find out what you are going to need in order to secure a mortgage. And if you can, buy before early 2010. From early 2010 and as the Spring sales start to go through house prices may then be on a slow but sustained rise. Just before Christmas is usually a good time to buy - people want their property sale out of the way before the Christmas holiday.

However, opinions vary! Analysts expected house prices to fall in May and they rose. Some analysts believe that house prices will be on the up by the end of this year, others expect them to continue falling until mid-2010! It's a guessing game and house prices are only one part of the wider UK economy and the global credit crunch.

1 In 5 House Buyers Are First Time Buyers

2009-05-22T11:19:00.001+01:00

Six months ago mortgage lenders demanded high deposits and impeccable credit references and as a result first time buyers were all but out of the market. However, things have changed...

According to the mortgage broker, John Charcol, just over 20% of purchasers using their services in April 2009 were first time buyers.

Lenders are beginning to lower their requirements for first time buyers. HSBC are now beginning to require only a 10% deposit for first time buyers and since just last week, Lloyds are offering 95% mortgages (ties attached).

There are also a number of government backed schemes offering shared ownership schemes, very low interest loans for people earning less than £60,000, key workers or council tenants, and plenty more initiatives to help first time buyers. Be aware of what is on offer and make the most of them!

Plus of course house prices have fallen since last year by around 15% and are thought to be nearly stabilising at the bottom of the trough. Although they are expected still to fall they are not expected to fall much further.

And interest rates are the lowest they have ever been. Fixed deals are attractive and the monthly mortgage repayments are a lot cheaper than it was just a couple of years ago. They are likely to be cheaper than rental payments and take much less of your monthly income.

It's a good time to buy. There is not much supply on the market with would-be sellers keeping out of the market, or renting out their properties, but if you can find the property you want then go for it. There will after all be some new properties coming onto the market from probate, divorce or job relations. And remember that sellers want a first time buyer - no chain and therefore the transaction should be straight forward.

The economy is in recession and unemployment is expected to continue to rise this year, possibly by another one million according to leading economist, David Blanchflower. With this, housing activity is expected to remain subdued for the rest of the year. If you want to buy a place, and you find what you want then go ahead - make the most of the low interest rates and low prices.

But if you do not find what you want don't feel you have to rush to get something. Any housing price increases will be slow - the economy needs to recover and unemployment needs to be falling which won’t be happening until next year at the earliest. And as that happens more houses will come onto the market making it easier for you to find what you are looking for.

Keep a keen look out and good luck.

Renting Out Your Property – New Landlords

2009-05-16T00:46:00.000+01:00

The credit crunch and subsequent sinking of the property market has brought reluctant landlords into the letting arena. Here is a guide of what you need to know as a new landlord.

If you can’t sell your house or if you don’t want to sell it at a rock bottom price (especially if you’re not buying somewhere else) then you may have to become a landlord. This scenario is not uncommon for those whose employment relocates or those who have new commitments outside their home area.

The tricky start is that you already have a property to rent. Professional landlords buy a property having researched the local area and know what their target tenants are: students near a university, professionals near the city, etc. However, as your starting point is your property you will need to research what tenants are likely to be attracted to your house and then mould your property accordingly.

Contact your mortgage provider to check whether you need to switch to a buy-to-let loan or whether you can continue with your current mortgage. You will also need to notify your insurers who will need to change the policy.

Remember that you will need to cater for periods when your property is empty and you are not receiving the rental income to cover the mortgage. To cover void periods you will need to have an income of around 125% of your mortgage payments. This figure also needs to cover gas and electricity safety certificates, repairs and maintenance.

You may need to be flexible on the rental payments – it’s better to have good tenants at a slightly lower rate, rather than an empty property, or tenants that say they’ll pay but then don’t pay.

If you are redecorating your property to rent out, make it neutral, do not personalise it. You need to prepare your property to be run as a business. In your mind, change the word “home” for “property”. It will help you become detached from your old home and help you run your property cost effectively.

If you are adding or changing fixtures do it properly and use good quality materials. People don’t want to live in shabby accommodation and remember that you are competing for a good tenant. Good tenants want good accommodation. The better quality fixtures will also last longer and so lower your maintenance costs.

When you choose tenants and if you are not using a letting agency you should vet your tenants (or pay for the service through the National Landlords Association). Be sure to get references from tenants and check them.

Always treat tenants and potential tenants with respect: get back to their enquiries quickly and politely, repair what needs repairing. Maintaining a good relationship with tenants is a business solution and makes the whole process less stressful and easier to manage. In turn, however, do not let your tenants pay rent late – you need to have clear boundaries and once they’ve paid their rent late once, it could easily happen again.

If you don’t want to manage the property, then consider using a lettings agency which will cost you around 10-15% of the rental income. However, if you do this, make sure you keep an eye on the agency and check that they are doing their job in getting back to the tenants as you would like them to. Check what the contracted tie in is, as if you’re unhappy with their service, you might then want to do the job yourself and do it according to your own standards.

You need to know the rules and regulations regarding health and safety, insurance and tax. For tax you may need to use an accountant for the first year or so to know what you can and can’t claim for.

The key to renting out your home is to view your property as the tool for business. Look after it and attract and maintain good tenants. Do your homework, be prepared to put some time and energy into the business and make it work.

Mortgages Become More Available

2009-05-11T19:59:00.001+01:00

Having a mortgage approved is getting easier with more mortgage products available and now smaller deposits are required. Good news for house buyers and house sellers.

There are at last signs that the mortgage market is beginning to ease its grip on its very restrictive lending criteria. There are now 7% more mortgage deals than in the previous month and there are now just under 100 deals that require a 10% deposit. The number of mortgages that require a 15% deposit has risen from 209 in December 2008 to 272 in May 2009 and there is similar jump for 20% deposit loans. Figures from the Bank of England show that mortgage approvals rose by 4% in March 2009.

These are small changes in a slumped market and in a time of recession, but at least these changes are moving in the right direction. They show that the banks are gradually beginning to lend again, and to lower the demands on their borrowers. As this continues and more buyers are able to enter the market house prices will begin to bottom out which will bring at least some stability to the market.

However, with continued rising unemployment, the news is not all good. House prices are still expected to fall this year, with some economists predicting a fall of another 6%. Having said this, estate agents have seen a continued increase of interest from potential buyers and sales levels have risen through February, March and April this year. This is somewhat unsurprising with house prices haven fallen so far and low mortgage rates together with it being Spring time, traditionally the busiest time for estate agents.

If you are considering getting a mortgage now, you would be wise to consider getting a fixed rate. The Bank of England is expected to keep interest rates at a record low 0.5% for some time to come. However, once the rates start to rise again they could rise quite quickly and those stuck on variable rates could see a sharp increase in their monthly payments.

Borrowers already show that they have this in mind: five-year deals are now more popular than two-year deals. Though when choosing your mortgage remember to compare the redemption penalty period as well as the mortgage length and rate. Often, with the longer fixed periods you have a longer fixed redemption period. So you need to consider and plan how long you expect to stay in your property. It is sometimes possible to move your mortgage with you if you do move within your fixed period but not always, and you may still have to pay a hefty fee.

The housing market is still in the doldrums and will be for sometime. However, with price falls slowing, record low interest rates and mortgages beginning to ease, buying property is becoming more attractive to mid to long term investors and to individuals whose employment prospects are safe.

Buying A Property - Prepare well

2009-04-20T23:19:00.000+01:00

When you’re looking at a property to buy make sure you’ve done your homework. And the key homework to do is to arrange a mortgage.

Know your budget. You need to list accurately your incomes and outgoings. Keep a record of what you spend and on what for a few months to really get to know where your money goes. The idea of guessing your outgoings and incomes could get you in trouble in the near future if you then get a mortgage, the rates go up and you don't have enough of a safety cushion to cover the extra costs. Or your newly bought house has unexpected outgoings and it's you paying for the costs and not the landlord. You need to have enough money for the mortgage and "the extras". Remember property has ongoing costs such as interior and exterior maintenance through general wear and tear, garden maintenance and the dreaded unexpected problem.

Check how much you have saved for a deposit. Despite all the doom and gloom in the media some mortgage providers now offer mortgages where a 10% deposit is needed. HSBC has recently announced that they will making £1bn available to housebuyers with deposits of 10% at a two-year fixed rate of 4.99%. Other 10% deposit deals offer a rate of around 6%. Compared to the previous average required deposit of 25%, a 10% is more achievable even to first time buyers even it requires a top-up from the Mum & Dad Bank. This lowering of deposit shows that banks are beginning to be confident that house price falls are bottoming out and there is less risk of the property falling into negative equity.

Looking for a new home is exciting so enjoy looking at properties on the internet and check how much properties are in your desired area. Become familiar with the price brackets of what you are looking for. This is the easy bit and looking at the photos and imagining yourself there is the fun part. You could use search engines such as www.wheresmyproperty.com and there are many others out there. Once you know how much property is and how much your deposit is you can work out what mortgage you would require.

The crucial part of buying property is currently getting the mortgage. Speak to a mortgage adviser and check what you will need to provide. Mortgage providers may require proof of your income so that means that your payslips, P60s and if you're self-employed, your tax returns, need to be available and in order. Be 100% above aboard about your earnings and make sure that your earnings can be verified with paperwork. If you don't have these the income can not be put into the equation meaning you get a smaller mortgage, even if you could afford a bigger one. Get a mortgage in principle before looking at properties so you know that when you do look at a property you know that you could buy it.

Having a mortgage approved is currently the big issue when buying a property. Properties are generally easy to find, sellers are desperate to sell and there aren't many buyers around. Do it right and you can make the most of the property downturn.

UK Housing Market Update

2009-03-02T17:14:00.001+01:00

There has been much doom and gloom about the housing market in the news but with it there are also opportunities for some buyers and sellers. Here we round up the latest news on the housing market and look at whether it is yet a time to buy.

According to the Land Registry, house prices in January were down by 15.1% since the same time last year. Every region in England and Wales has seen property prices fall by at least 12% in the last year. Buyers are waiting until they see that the market has bottomed out, and with the waiting, house prices are expected to continue falling for the next few months. There are however signs that the freefall may be easing and soon may have reached the bottom.

For example, with prices in prime spots in London being down up to 20% compared to the March 2008 peak coupled with the weak pound, buyers from overseas are seeking to pick up a bargain. The window of a strong euro against the pound and the security of bricks and mortar in prime location adds further appeal. Although Londoners themselves may object to property being snapped up it will be one small prop to help stabilise house prices. Importantly, according to TimesOnline, cash sales, which are not recorded in the statistics produced by Nationwide or by Halifax, now account for a whopping 40 per cent of transactions as buyers turn to property as a more lucrative alternative to low-paying deposit accounts.

Mortgage availability is beginning to see change. In January, mortgage approvals held steady at 31,000. Although this is half of what it was last year, they have averaged 31,000 for the last six months. Mortgage lenders typically want a deposit of 20% of the purchase price which is a hefty sum to secure. Saving for a deposit takes time and in this time house prices fall. However, Northern Rock will soon begin to offer some 90% mortgages. The Bank of England is expected to lower base rates again and is also likely to increase the amount of money in the British economy, both of which will improve the supply of funds for mortgages.

The current low interest rates, although will not lead to a sudden housing market revival, do make loans more affordable which will be another positive support for both new and existing borrowers. According to Halifax, mortgage payments have fallen from 31% of gross earnings for a new borrower in the first half of 2008 to an estimated 21% in January 2009. The house price to average earnings ratio has decreased to an estimated 4.48 in December 2008 from a peak of 5.84 in July 2007; a fall of 23%. The long-term average is 4.0. Potential buyers are noticing the opportunity: according to the Royal Institution for Chartered Surveyors enquiries from new buyers rose in January 2009 for the third successive month.

Of course, there continues to be pressure on incomes with rising unemployment and the negative impact of the turbulent financial markets on the availability of mortgage finance, but the update is that there are signs that the freefall on house prices and drought of mortgage availability is easing. As such, it could be wise to buy before house prices reach bottom as with low prices, low interest rates and increased mortgage availability an eventual recovering economy could bring house prices to rebound sharply.

The 2009 Property Investors

2009-02-07T13:44:00.000+01:00

When the property marketing was booming prior to August 2007 many new property investors entered the buy-to-let market, buying one and two bed properties with easy-to-get mortgages. The market has now dramatically changed and here we look at the predictions for the buy-to-let market in 2009.

Firstly there is a new type of landlord - homeowners who are unable to sell their properties are renting them out. The homeowner may set their rental cost at only the amount that they need to cover the mortgage rather than on market rates and also at a rate that will as good as guarantee a tenant. The condition of homeowner property is also generally of a very high standard and as a result this new competition drives down previous market rates. This generally affects larger, family properties rather than smaller flats.

Availability of finance is dramatically reduced and as a result the profile of a property investor has changed. Prior to the credit crunch no deposit was needed - a mortgage could be given on the expected yield provided the rental yields were 125% of the mortgage repayments. Now, a standard 25% deposit is required and the applicant must have a good credit history. When mortgages were easily obtainable, buyers could turn around a property quickly i.e. buy, renovate and sell on at a profit, and then repeat the process, cashing in not only on the price increase due to the renovation work but also on the cash increase from the rising property prices. Now, the profile of the property investor will be someone who has cash for a sizeable deposit, a good credit history, and someone who is willing to hold onto the property for a few years waiting for the property market and economy to turn around.

And for the newer property developers? Well, for some who kept securely on top of the figures or those that did not overstretch themselves then they should survive the downturn. But for those novice property developers who perhaps bought property without fully researching the possible pitfalls, well, they could be in trouble. If they were assuming to sell on their property quickly and at a profit, they are likely to be selling it at a loss, if they can sell it at all. Or, possibly they are unable to rent out their property and need to cover the mortgages themselves. Or they have taken on too many properties and find that their own employment is at risk and their main source of income will not be the safeguard it was. Or they were keener to buy a set number of properties rather than buying property that met strict criteria i.e. properties that would yield a set positive cash flow each month. Or they have come to the end of a mortgage deal and now the mortgage rates for buy-to-let are less favourable. The list could go on...

However, for the property investor who ticks all the right boxes 2009 could be a good year. The key is that you are credit safe in order to secure a mortgage. If you can secure a mortgage or have enough cash, then you will be able to find some bargains, particularly in the latter half of the year as the recession continues to bite. If you are thinking of buying an investment property you need to consider the five following points:

1. Consider it to be a mid-long term investment - the property market is likely to fall and then stabilise for a few years before rising again.
2. Your expected rental yield has to be realistic and has to cover the costs of the mortgage, insurance, maintenance costs and void periods.
3. Although interest rates have fallen again, they will go back up at some point - you need to factor this into your costs, or choose a mid to long term fixed rate mortgage to avoid unfavourable rate changes.
4. Research and know where you want to buy property and be sure to stay within this patch - your rental yield depends on it.
5. Always make a low offer when purchasing, stick to your figures and know your limits.

2009 could be a great year for property investors providing you research, plan and take care at every turn.

Want to Buy Property In 2009?

2009-01-30T15:48:00.001+01:00

If you are thinking of buying property in 2009 you will hear differing views of when to buy. Here we look at the views expressed by leading economists together with a recent report from the National Association of Estate Agents.

The housing market and general economy continues to fall, yet the National Association of Estate Agents (NAEA) has reported that in December 2008 there was a slight increase in activity with potential buyers and sellers tempted into the market, possibly by successive interest rates. There was a rise in both those looking to buy a house and the number of new properties that came on the market. First time buyers, having been priced out of the market for so long, bought 10.8% of the properties sold. In addition the average number of sales made per agent held steady in December even though this is traditionally a quiet month. Some agents reported a small rise in house prices which the NAEA suggest may indicate that the rate at which prices are falling had slowed in some areas, rather than that the prices had reached a trough. The number of house hunters rose from 186 to 200 and the numbers of properties agents had on the books rose from 87 to 100. The number of sales agreed per agent held steady at 6.

However, in comparison, early in January this year the Financial Times reported the views of over 50 economists. Over 60% believed that 2009 would not be a good year to buy property, whilst the remaining economists believed that, particularly towards the end of the year, it could be safe to buy a property. There was an interesting mix of views regarding the housing market. On the side that believe 2009 will be a year to buy property the reasons given were that buying real assets such as property would be protection against a decline in currency. Interest rates are expected to remain low throughout the year and by the end of 2009, although lending will remain tough, there may be more credit available if the government steps up its intervention. Some economists believe that the market will have bottomed out by the end of 2009 and some buyers will then be enticed back into the market by the combination of low prices and low interest rates.

For those against the idea of buying property in 2009 the key belief is that property prices will remain simply too high in comparison to earnings and credit availability. Some economists expect property prices to continue to fall into 2010 and bottom out during that year - Capital Economics expects prices to fall a further 20%, Global Insight 15% and JP Morgan 10%. However, one economist predicts that the house price falls will continue into 2014. Factors to support the continued falls are ongoing credit restrictions, still stretched affordability, rising unemployment with a shrinking economy, and the negative expectations and fear that the market will continue to fall.

As a whole there seems no rush to buy property. The country is in recession, 2009 will see rises in unemployment, lending is expected to remain constrained and as a result the demand will be low. Of course some people will have to move house due to personal reasons and the desire for home ownership and the personal benefits that owning your own home can bring. Over the next year or so property sold at auctions and that are in need of repair will be sold at very low prices and bargains will be easily found, providing you can get the finance. Transactions will therefore continue to trickle. Post-recession and in the years of economic recovery we could see a housing boom due to an undersupply of housing, increasingly affordable property and a new, more secure banking system.

If you buy in 2009, offer low and assume to hold your property for some time.

Should You Buy Property In 2009?

2009-01-23T21:50:00.001+01:00

If you are thinking of buying in 2009 you will hear differing views of when to buy. Here we look at the views expressed by leading economists together with a recent report from the National Association of Estate Agents.

The housing market and general economy is still falling, yet the National Association of Estate Agents (NAEA) has reported that in December 2008 there was a slight increase in activity with potential buyers and sellers tempted into the market, possibly by successive interest rates. There was a rise in both those looking to buy a house and the number of new properties that came on the market. First time buyers, having been priced out of the market for so long, bought 10.8% of the properties sold. In addition, the average number of sales made per agent held steady in December even though this is traditionally a quiet month. Some agents reported a small rise in house prices which the NAEA suggest may indicate that the rate at which prices are falling had slowed in some areas, rather than that the prices had reached a trough. The number of househunters rose from 186 to 200 and the numbers of properties agents had on the books rose from 87 to 100. The number of sales agreed per agent held steady at 6.

However, in comparison, early in January this year the Financial Times had asked the question “Will 2009 be a year to buy property?” and gathered the views of over 50 economists. Over 60% believed that 2009 would not be a good year to buy property, whilst the remaining economists believed that, particularly towards the end of the year, it could be safe to buy a property. There was an interesting mix of views. On the side that believe 2009 will be a year to buy property the reasons given were that buying real assets such as property would be protection against a decline in currency. Interest rates are expected to remain low throughout the year and by the end of 2009, although lending will remain tough, there may be more credit available particularly if the government steps up its intervention. Some economists believe that the market will have bottomed out by the end of 2009 and some buyers will then be enticed back into the market by the combination of low prices and low interest rates.

For those against the idea of buying property in 2009 the key belief is that property prices will remain simply too high in comparison to earnings and credit availability. Some economists expect property prices to continue to fall into 2010 and bottom out during that year - Capital Economics expects prices to fall a further 20%, Global Insight 15% and JPMorgan 10%. However, one economist predicts that the house price falls will continue into 2014. Factors to support the continued falls are ongoing credit restrictions, still stretched affordability, rising unemployment with muted economic growth, and the negative expectations that the market will continue to fall. And of course, with the recession biting potential buyers may delay buying due to fears of their job security.

As a whole there seems no rush to buy property. The country is in recession, 2009 will see huge rises in unemployment, lending is expected to remain constrained and as a result the demand will be low. Of course some people will have to move house due to personal reasons and the desire for home ownership and the personal benefits that owning your own home can bring. Transactions will therefore continue to trickle, but the idea of buying a property as a good investment i.e. the buy-to-let market, is some way off. However, post-recession and in the years following economic recovery we could see another housing boom due to an undersupply of housing, increasingly affordable property and a new, more secure banking system. During 2009 property sold at auctions and those that are in need of repair and renovation will be sold at very low prices and bargains will be easily found. If you buy in 2009, offer low and assume to hold your property for some time.

First Time Buyers Watch The Market

2009-01-12T12:57:00.001+01:00

With the property market still falling first time buyers should be watching the market closely. Here we look at what first time buyers should be looking for.

First time buyers have been priced out of the property market for a number of years. Now with house prices having fallen last year on average (and remember regions vary considerably) by 16% and the market still falling, first time buyers should be watching the market closely. To buy when the market reaches it's trough will be a lucky swoop. More likely, you will buy when the market is still falling or when it has started to rise and a race to snap a bargain may have started.

The earliest prediction for prices to reach the trough is in mid-2009 so this is your target date to know what you want and be a position to buy. Some predict that prices will reach the trough by the end of 2009 and then the market will recover in 2010/2011. No one knows when the market will bottom out but it's a good idea to be prepared and if you do find your perfect property but the market is still falling then you have the option to put in a very low offer. Sellers will accept a deal they are happy enough with.

Viewing property properly takes experience. First time buyers should begin now to look at property details and start viewing properties. You need to develop a keen eye and at the same time be able to relax in a property so that you can imagine yourself living there. The more properties you view, the better idea of your priorities for you and your family. Your priorities are likely to evolve as you view more properties.

Even though prices are thousands of pounds lower than at the property peak in 2007 buying a property will still be the biggest single investment you are likely to make in your life time. You need to get it right. You need to view a property as your home and it needs to match your lifestyle. If it doesn't match your lifestyle you are likely to get itchy feet soon after moving in and then you may want to move again resulting in more stress, more costs and general mayhem. You need to think it through and it's useful to have a rough plan of what you want from a property and when you want it. For example, ask yourself the following questions:

1. How long do we want to live in our new house?
2. How many people will be living in this property and where will they sleep (consider a growing family, elderly relatives or lodgers)?
3. Is there space for everyone to have enough of their own space (key for a growing family)
4. Do we need our own parking space(s)?
5. Would we be happy to have a property that needs work? Would we want to do the work ourselves or would we want to get tradesman in?
6. What sort of neighbourhood would we like to live in?
7. What do we need easy access to? What access is good enough?
8. What jobs are we expecting to do and can we reach them easily enough?
9. What's our dream home?
10. What's our budget!

Budget - there's a buzz word. Cash for mortgages are currently limited though they are still available. You need to focus on your loan-to-value ratio and try to save for a good deposit. Although there are 21 mortgages currently available if you have a 5% deposit you will you have to pay a higher interest rate. A deposit of 25% will get you a much better deal. The bottom line - keep saving. You’ll need a deposit plus moving costs plus some initial settling in costs.

First time buyers will be glad they didn’t buy in 2007. Maybe this year will be their year.

The Housing Market: The Winners and Losers

2008-12-19T20:51:00.000+01:00

The housing market crash has it's winners and losers. Which one are you?

By mid 2007 house prices were still rocketing with the early predictions for 2007 to be that house prices would continue to rise possibly by around 10%. That was before sections of the investment world realised that their money had been invested in the US's collapsed housing market. With that realisation, money was pulled out of the system and lending came to a near standstill. We know the rest of the story.

First time buyers had been priced out of the housing market and were fearing that the longer they out of the market, the harder it would be to buy their own place. Family members would contribute to a deposit, friends could co-own a property with a shared mortgage, or people decided saved and rented meanwhile. Now, with house prices set to fall further in 2009 affording a house will become easier. In fact, according to The National Association of Estate Agents (NAEA) the proportion of first-time buyers entering the housing market in November 2008 increased for the third month in a row. First time buyers accounted for 10.4% of all properties sold, up from 8.3% in August.

Cash buyers are the next winners. Cash buyers will be able to buy a property without having to secure a mortgage and will be the crème-de-la-crème of buyers, so sellers will be more likely to lower their price even more to secure them.

Investors buying property at auctions to renovate or to let out are winners too. As reported in the Guardian, the average price of a house sold at an auction has fallen by 31.1% in the three months to November, compared with the same period a year ago. This is more than double the falls reported by Halifax and Nationwide.

Homeowners wanting to move up the property ladder could also be winners. Assuming a mortgage can be secured, the percentage fall in higher priced property will equate to more money in your pocket.

The main losers are those that bought at the height of the property boom and now are facing negative equity for a number of years. For some homeowner, the recession and the expected redundancies may equate to mortgage payments being unaffordable. As such, house repossessions are expected to rise by 67% from 45,000 this year to 75,000 by the end of 2009. This includes homeowners and landlords whose rental income no longer covers the mortgages.

In terms of life satisfaction, sellers waiting to sell are losing out on a daily basis. They want to move house, yet are stuck where they are until they find a buyer. In the meantime the value of their property is falling and they are losing money. Estate agents are trying to drum up business by holding a high-street end of year sale. Yet, moving over Christmas and the holiday season is historically a quiet time for estate agents and the housing market in general.

The housing market is likely to continue falling in 2009 and may bottom out by 2010. A slow recovery is expected and banks, adverse to risk, are unlikely to lend at the levels seen in 2007. Property will be in comparison, cheap and more affordable. Borrowers will be low risk and able to pay either fairly small deposits with a higher interest rate or larger deposits with a lower interest rates. As a result the market and prices will be more secure and making money on property will be through long term investment or property renovation.

If you are thinking of buying or selling now, or in the near future, review your options carefully and work out how you can be a winner.

Property Market Update And The Consequences For Selling Property

2008-12-12T23:51:00.000+01:00

Here we give an update on the UK property market and on what you need to consider if you want to sell in the current market.

Firstly let's briefly look at what’s happened to the property market. In the summer of 2007 property prices reached their peak and mortgages up to then, had been easily agreed with 100% mortgages readily available. At this time 40% of the money that the banks lent to companies and consumers came from big financial institutions, often overseas and known as wholesale sources. According to BBC's Robert Peston, the ratio of our borrowings in the UK (including consumer, corporate and public-sector debt) to our annual economic output rose to just over a record-breaking 300% (or over £4000billion) which is similar to the US's ratio of debt to GDP. In August 2007 the wholesale sources became aware that much of their money had been invested in the US housing market which had already collapsed and saw that their investments had turned seriously sour. Unsurprisingly, they wanted their money back and didn't want to lend more. When the banks paid the money back, some banks almost collapsed and were only saved by bails out of billions of pounds of taxpayer’s money. And at the same time, the sources of funds for borrowing dried up. It's a time of unprecedented change in the global economy.

So now the UK banks have less money to lend to businesses and consumers, in the way of mortgages, and only customers considered risk-free are approved. With far fewer mortgages being made available there are less buyers. With less buyers, the property prices drop and when the price drops buyers who can secure a mortgage want to wait until the prices have bottomed out, and with the property prices still falling banks are not keen to invest in them.... and so the downward spiral continues. A global recession is nearly upon us and more companies are likely to need government bailouts. Unemployment will rise and tax revenues will shrink. It’s a gloomy outlook.

So with this backdrop it is not a good climate to sell a house.

As a seller, do you really need to sell your house now? Check your reasoning - do you need to sell your house or do you want to sell your house or is it a mixture of the two? Sit down and carefully go through the reasons why you are selling. Can you delay selling your house until the economy and property prices have turned around? Although lending will not return to the heyday of the previous years, stability will come, and those buyers currently waiting to buy property will then buy and prices will begin to rise again. In addition, because prices have dropped homes are becoming more affordable with the average house price to earnings ratio being 4.56 in November 2008 compared to 5.84 in July 2007. This will support the housing market when it returns.

But when will it return? According to the pre-budget report credit conditions will stabilise "beyond 2009" so that may mean early 2010 (though predictions vary). The worst time to sell could be in about 6 - 9 months time which will be when house prices have fallen further, sellers will be afraid of how much further they will go and the country is likely to be in the midst of recession. If the market begins to recover from 2010 house prices will then slowly go up from a peak to trough fall of around 20 - 25% (though again, predictions vary widely).

If you have to sell now, be aware that buyers are waiting to snap up a bargain and offers will be low. Be realistic from the outset about what you are prepared to accept and have a time line of when you need to sell by. Neither of these can be guaranteed of course but by thinking through them you will be better prepared to price your property accordingly. This may save you months of waiting and gradually lowering your price. Obviously you don't want to do this especially is that would mean getting into negative equity. But if you need to sell then you need to consider that you could be better off taking a low offer before the market bottoms out. You need to work out your figures and price accordingly. Speak to your estate agent (and others) and ask what other properties in your area are going for. Gather as much information as you can to make a decision.

Selling and moving house is a very personal decision and many areas of your life are affected. Decisions may include wanting to downsize to lessen the pressure of outgoings, or to emigrate, or start afresh elsewhere. Moving house often signals a new chapter in your life and it’s worth remembering that the reasons for wanting to move may outweigh the reasons for needing to move.

Selling and pricing your property to sell may be a difficult decision to make in the current market but a low priced property will attract the buyers that do, after all, exist and who are watching and waiting for the right opportunity.

Choosing An Estate Agent

2008-12-08T20:16:00.000+01:00

When you sell your property you want to be with an estate agent who you can trust. Here we look at what you need to know to choose your agent correctly.

Like every business some estate agents are great, some mediocre and some wanting top dollar at every opportunity. Be wary and ask the right questions when you choose your agent. Prepare yourself with a list of questions to ask and have a pen handy to jot down their answers - be professional and take your time. It is very costly to buy and/sell a house and you want to keep your costs as low as possible.

Check the commission rate the estate agent is offering. Some will want 2%. This is high in the current market and you must shop around to get the lowest rate. Some will offer 0.75%. You need to haggle and if you are not used to this, remember, it doesn't need to be uncomfortable. You can be upfront and simply state that you want the cheapest commission rate you can get.

The tie-in to the contract must be in your favour. You do not need to go with the agent who has a tie-in after a certain amount of time on their books. In fact, when you sign up with an agent you may be able to give in your notice at the same time. That gives you, say, 4 weeks with one agent and you can renew the contract if you are comfortable with them. Or, after 4 weeks, you can advertise your property with another agent. Again, this is something you can haggle for. This can be a point where people, especially first time sellers, overlook. If you know what to expect you know how best to handle it. Do not simply take the agent's first offer as one that you need to accept. Remember that you are the customer and every estate agent will want your business. Aim for a renewable contract of four weeks with no tie-in and give in your notice as you sign up so that you can renew after four weeks if you are suitably happy with the agent. Speak to the agent about this and again, you can be upfront about it.

Be wary of any fast-track scheme for an additional charge where your property is "fast-tracked" to potential buyers. Surely an agent of merit should be selling every property as well as they can. Ask exactly what you get out of any deal and decide whether it is worth paying out extra for.

Another expensive part of the house buying and selling process is the legal fees. Again, you need to shop around for both a recommended solicitor and one that charges a reasonable amount - often around £500 to £600. You do not need to use any in-house solicitor that comes with your estate agent. A solicitor local to your home is handy so that you can speak to them in person if any complication arises and for when you need to sign papers (though this can be done via post). Buying and selling a house can be stressful and there is often a lot of paperwork to-ing and fro-ing from your solicitor. Being able to have a personal relationship and being able to pick up the phone and speak to them directly can make the process of buying and selling a house less stressful and altogether easier for some people. Or, you could choose to do your legal work via an online company. If that suits you then it may be cheaper. Your estate agent may be able to recommend a company to you.

If you are selling and then buying a property you will need to secure a mortgage. Some estate agents have mortgage brokers within their agency and they will be keen for you to use them but be aware that they may be limited to the mortgages offered only via the estate agency they work for. When finding a mortgage it may be useful to get advice from an independent mortgage broker and also straight from high-street banks as at the moment some banks are offering better deals when you go direct to them.

Check that the estate agent can accompany all viewings. It is best for you to be out of the way when a viewer comes, especially for the first viewing. For the second viewing it may be beneficial to meet the potential buyers briefly so that you can have a personal relationship, which could smooth the way for exchange and completion. However, it is best to let the potential buyers have privacy and space in your property so that they have the opportunity to imagine themselves living there. Ensure that your estate agent is a good salesman and points out the good aspects of your property. You may say, "Surely this is obvious!" but it's so important and some agents can point out the disadvantages of a property!

When choosing an agent ask to view the brochures of their current houses for sale to see how they market property. Also, ask what websites their properties appear on as Internet exposure is very important in finding a buyer. When you have decided which agent to go with, then check everything they do. Check that their photos both in the brochure and on the Internet show your house to it's full potential. Check the wording of the descriptions, ask to change the wording as appropriate - always remember that you are the customer and you will be paying thousands of pounds for their services. You need to make sure that they are working as hard as they can and efficiently as they can to sell your property. Check on their progress and keep in contact with them on a regular basis.

In the current climate, you need the right estate agent and you need to maximise the potential of every viewing. This is your job and remember that you need to prepare your property for each viewing.

Good luck with the sale of your property.

Waiting to Buy A House?

2008-11-28T21:42:00.001+01:00

Are you waiting to buy a house? Maybe it’s your first property, or maybe you’ve been renting and are judging when to buy. Here we look at what you need to consider when choosing when to buy.

Property prices fell by just 0.4% in November 2008 compared to 1.3% in October which makes an annual fall of 13.9%. Having waited for one year you have saved thousands of pounds. If you wait you could save yourself thousands more, possibly…or could you then miss out? Is the small fall a sign that the property market is beginning to bottom out?

The factors for a property price are a simple jigsaw: Supply + Demand + Mortgage

So let’s look at all of them in turn:

Supply: At the moment, there is plenty of supply. Houses are staying on the market for months. New developments are particularly in supply as possible new sellers are staying out of the market where possible.
Demand: There is not much demand because property prices are falling. A recession is almost here and unemployment is going to rise. Moving and buying property is expensive.
Mortgage: This is the giant and the reason why property prices have risen so much in recent years and subsequently fallen. To secure a mortgage banks need to lend to each other. As banks have massively shrunk their lending, mortgages are now much harder to secure – mortgages are being approved at less that half of last year’s level. Without a mortgage most people can’t buy a house. Until this changes the lack of mortgages available and being approved will continue to feed the low demand which will keep property prices down, and with a recession, higher unemployment and more repossessions, prices are likely to keep falling.

Affordability has of course improved which will encourage some new buyers to look at the market. Many are still waiting to see how much further prices will fall.

However, it is worth looking at property and making preparations. You need to be ready. As soon as banks do start lending (and this may be forced on them by the government), prices will level for a while and then gradually start to climb. Looking at property also helps you to decide exactly what you want. And if you find your perfect home you may want to buy now rather than risk losing it. Remember if you want to buy now or buy soon, make a low offer.

If you are thinking of buying property you need to prepare:

Your finances need to be in order. What deposit do you expect to have?
How much do you want to spend on a mortgage? What mortgage can you get? Speak to a mortgage adviser or look online. How much do you want to spend on making your house your home? Be realistic – moving house and owning a home can be expensive.

Your employment needs to be secure. The economy is shrinking, and huge companies are failing. How safe is your job? What would you do if you lost your job? Do you have savings to fall back on? If not, you may want to consider keeping some of your deposit as an emergency fund.

Finally, look at property, revisit your figures and wish list and revise all preparations. You may only buy in a year’s time but you may buy in 3 months time. The key is to keep researching and be prepared for your perfect – and well-priced - property.

The Importance Of Your Garden When Selling Your Home

2008-11-22T22:20:00.001+01:00

Over 80% of buyers have reported that having an outside area or garden is the most important feature when house hunting. Here we look at how to make the most of your outside area and make your property stand out from the crowd.

In the UK gardening is a national passion and should not be overlooked when attracting potential buyers to your business proposal. Buyers can be put off by poorly maintained gardens and it shows a general lack of care for your property. Unless your property is priced to renovate, this is not an attractive proposition.

Firstly you need to view your outside as an extension to your house – another room for a particular purpose. Generally it would be an area to relax in, entertain friends and play with the family. It could also be an area for hobbies such as gardening and vegetable growing.

The front garden will be the area that a buyer will see first. If it has a lawned area ensure that it is mowed and has neat borders. If it is gravel check that there is enough gravel to make an attractive covering. Old gravel can sometimes be thin enough to show unattractive mud patches or have weeds growing through. Borders need to be weed free and you could have wood chip amongst the main shrubs and flowers to avoid more weeds growing. This would help to keep the garden low maintenance. Pots and hanging baskets with colourful seasonal flowers can add warmth and a welcoming atmosphere to your house. Remember, first impressions count – you need to make the best impression you can.

If you want to add a lawn to the garden you could either sow seeds or lay turf. Laying turf is more expensive but immediately improves your garden. Remember you will need to water a new lawn in the early morning and late afternoon to avoid scorching it. You will need to mow it about once a week between March and October and when you mow, it needs to be dry. Remove the cuttings and trim the edges to keep it tidy.

In choosing your flowers try to ensure that you have colour throughout the year and shrubs should be low maintenance. Examples are lavender which is a perfumed shrub with flowers in the summer. Its delicate leaves add shape and interest to the garden throughout the year. However, do be careful where you position it as it attracts bees. Bay trees or box topiary at the front door or at carefully placed points in the garden adds a sense of care and tidiness – again this encourages the feel-good factor. Evergreen shrubs are useful to give shape and definition in the garden throughout the year. Add seasonal interest and colour with bulbs and bedding plants. Herbs in pretty pots show an interest in cooking and well-being, which could add to the attractiveness of your house and lifestyle.

Define a sitting area with an inviting table and chair set. Position benches and arbours carefully so that you show how inviting the outside area is. Storage benches can be useful not only for relaxation but to tidy away garden toys or unsightly clutter.

A shed is generally welcome and can be painted or stained to make it more attractive.
You want to remove any clutter, tools or bikes from the garden to create a smooth, uninterrupted line. Investigate bin tidies or trellis to hide away any bins. The eye will be immediately drawn to protruding objects and any mess. Keep the buyers eye on your lovely garden and keep it interested.

Ask your estate agent to view your garden and ask how it can be further improved. If you are targeting a specific market you will need to cater for their needs accordingly.

A garden is like another room to your property. Treat it with the same care and turn it into an excellent selling point, one which your potential buyer will remember positively.

Decorating Your Property To Sell

2008-11-14T14:33:00.000+01:00

If you want to sell your property then you need to consider decorating in a specific way in order to gain the best price. Here we look at the do’s and don’ts of property décor for the house seller.

The key factor to consider when you want to sell your property is how to make your property as attractive as possible to as many potential buyers as possible. You must see your property from their point of view. This is not as easy as it sounds as it requires you to depersonalise your own much-loved space. However, you need to try to recreate your property as a blank canvas so that the potential buyer can more easily imagine themselves living in your property.

For the wall colour plain, neutral colours are recommended. However, avoid brilliant whites as they generally appear to be too clinical and technical and lack the softness which a homes wants. Light colours will create an illusion of space and calmness and they will reflect the natural light whereas dark colours will absorb the light and make the room feel smaller. Also they won’t clash with any furniture that the buyer will be wanting with them – if they like your property they will imagine where their furniture will sit and how it would look. Some house stagers recommend that the whole house is decorated in the same colour to create a feeling of more space. However, if the shades are all light and neutral then it may be beneficial to demark the different rooms subtlety by a slight variation in colour.

Preparation is the key. Remove all curtains, blinds and cover all furnishings. Fill in any cracks or holes with appropriate polyfiller. You can use a knife to do this but sometimes just a finger is the easiest way so that you can fill in the smallest holes. Try not to add too much filler as sanding down to create a flat surface afterwards can be tricky. Dust the walls lightly to remove dust, grime and cobwebs. If you are painting straight onto plaster you will need a primer coat first.

Buy good quality paint. Cheap paint will mean that you have to do more than two coats of paint. It could drip and spoil other spotless parts of the room. Use masking tape to make an easy straight line and remember to peel it off before the paint has properly dried but not too soon after fresh paint. If you peel it straight away it would scratch and mark the new paint. If you wait too long it could bring the paint off as you peel the masking tape away. For the ceiling line use a small brush to get a neat finish. Remember to paint along the edges with a brush first to make a border so that the roller will go over the border and the finish will be more uniform. This avoids a thick border of brush strokes.

Talking of brushes, again use good quality brushes. The cheap brushes will lose their bristles and you need to stop painting to remove the unsightly bristles from the wet paint. The whole job will take much longer and will be frustrating. One useful tip is if you’re having a break from painting and you have paint on the brush seal the brush in a plastic bag to prevent it from drying. This even works overnight so in effect you can just stop working at night and start again in the morning without having to clean the brushes.

Likewise for rollers – buy good quality. They will have a thicker pile and so will be able to hold more paint. As a result they are less likely to drip paint down your walls.

You need to paint at the right temperature. If you paint and it’s too cold the paint will take longer to dry and will collect dust. If it’s too hot it will dry too quickly and may crack. There should be guidelines on each tin.

After the paint has dried be ruthless in your inspection and touch up as necessary with a small art painting brush. This extra attention to detail will create a professional look and will create a very clean finish.

And remember to wear clothes that can get paint on. In the ads the happy young couple always wear spotless, trendy clothes but be realistic - you will get some spots of paint on you and you don’t want to have to stop painting to quickly clear it up. Wear old clothes or overalls and wear your normal clothes whilst you have a glass of wine to celebrate a job well done.

10 Top Tips To Add Value To Your Property For Free

2008-11-10T20:22:00.001+01:00

If you are selling your property then you will want the best price you can get for it without having to spend a mint to get it. Here we look at the ways in which you can add value to home without spending a penny.

Have a clear out. You will want to create an illusion of having ample space and you need to create as much space as possible. Having messy piles around the house, although may feel cosy and homely to you, will indicate that you don’t have enough space and that your house is simply too small to accommodate you. If it’s too small for you it could be too small for your potential buyer. Also, without the clutter your buyer will be more easily able to imagine how their own furniture and belongings will fit and suit each room. If they can imagine this then your property will memorable.

Keep your house tidy because first impressions count. A messy or unclean house will make the house uninviting to live in. Remember people viewing your house must want to actually live there and spend tens of thousands of pounds on it. Unless your buyer wants to renovate or update a house, which is the minority of buyers, they will not want to imagine themselves living in an unclean house. Of particular importance, are the bathroom and the kitchen. They have to be sparkling, ultra-hygienic with no unsavoury odours. Each viewing is a potential sale and tedious though it may be, clean thoroughly before each one. Also remember that if you indicate any lack of care, buyers may quickly take the view that you have not cared for the property and therefore there may be maintenance problems lurking which buyers will not find attractive to deal with.

When you have a viewing take any pets out or leave them with the neighbour. Some buyers will not be bothered by pets and it may be a common interest but other buyers will certainly find this a turn-off. Pets can mean that dirt is being brought into the house, fleas could be around, lingering odours, hair and fur on the floor and furniture and even droppings (here we’re talking house rabbits, birds in bird cages, or pet hamsters and gerbils being petted out of the cage). The only exception is fish in a fish tank!

Get rid of any house smells. Scents are evocative and are remembered. Top smells to get rid of are smoke, pets and some cooking. Avoid using air-fresheners – they can have the effect that you are trying to hide something. Baking bread, cake and coffee smells are inviting and attractive to buyers as they evoke relaxation and general good times.

When you have a viewing insist that your agent accompanies the viewer and be sure you are out of the house. The potential buyer will then feel more relaxed and uninhibited. They will be able to talk freely and imagine themselves more easily living in the house. They will be able to sit down in the lounge and get a real feel of the house without feeling they are intruding. If they want to ask any questions of you, then that can be done at a later date. You will also avoid answering any difficult questions such as why you might be selling and in fact, some sellers are prone to point out the defects of their house! Of course, this needs to be avoided at all costs.

Most buyers apparently decide whether they like the property in the first 15 seconds. You therefore need to ensure that your property is inviting from the outside. Tidy the front, have flowers in pots and hanging baskets, move any car out of the driveway. Hide any unsightly bins and have any lights on if it is likely to be at all dark. Have a foot mat on the outside – it shows that you don’t want dirt in the house. Make sure it is clear that this house is cared for and well-maintained. Many potential buyers do an initial drive-by to check out the house before viewing it and you need your property to pass this initial test.

Time your viewings carefully. Avoid the school runs, market days, bin-collection days and any days where traffic could be a problem. You do not want the sale of your house compromised by factors outside your control.

Before your first viewing ask your agent for their opinion on how your house can be made more sellable. You can ask friends but having their opinion could be awkward and possibly unwelcome – it’s better to keep it to the professionals.

The best time of the year to sell your house is in the spring, and secondly the autumn. If you sell at the best time of the year there will be more buyers and so you’ll get a better price.

Ensure that the property details from your estate agent such as photos and descriptions do justice to your property. Many photos could be improved upon, descriptions can be wrong and can undersell your property. For example, a garden could be described as a courtyard, a bedroom could be described as a box room. Check your property details, do not solely rely on your agent and take the initiative to sell your property in it’s best light.

Spending a small amount of time to improve the desirability of your property will attract more potential buyers. You want them firstly to be interested in the property details, then at the outside of the property you want them to want to come inside. Once inside you want them to want stay inside and live there. You need to make sure that they are given the opportunity to imagine themselves living in your property. If they can do all of these things then you are more likely to receive an offer which should take you to the crucial sale.

Make Your Property Your Home

2008-10-26T21:26:00.001+01:00

With house prices continuing to fall and a recession looming here we look at your property, not merely bricks and mortar but your property being your home for you and your family.

Buying a property is likely to be the largest investment you will make and your largest asset. If you bought at the peak of house prices in 2007 then you may be despairing at the almost daily reports of house price falls, repossessions on the rise and the likelihood of negative equity. If you are thinking of selling and moving on, it is likely that you may choose to delay putting your house on the market and instead, choose to get more satisfaction from your current property. It may be helpful to take a step back and look at your property in terms of how to make it your unique home for you and your family.

What makes a house a home? Owning a property gives you the freedom to make your house into the home that you want it to be. A home is so much more than just property - it can support you in what you want to do and provide the space that your family needs. A home can increase your sense of well-being and happiness. Let’s look at how to change your property into your perfect home.

Firsly, arrange your home to match your priorities.

An upstairs room would generally be a bedroom but you could furnish it to make into an office or study. You could use it to work from home or help you study the course you've always wanted to do. You can decorate your new study accordingly without any need to confer with a landlord or wait for any approval to install new phone lines. You have the freedom to make it into what you want it to be.

A bathroom need not only be functional but also can be a place to relax and indulge in luxury. A new bath, shower, dimming lights and decor to meet your moods can be added to match your style and taste. Or simply, upgrade your bathroom by decorating it - it doesn't take an expensive refit to lift your property to the status of Home.

A loft can be converted into another room, sometimes with an extra shower room, or even two rooms. You may also be interested in extending your house. It could be more cost-effective to convert or extend rather than move. You can prioritise your use of space according to your own interests. If you have a separate dining room you could make this into a playroom for your children. Or you could use it as your own hobby room or a music or movie room. And in doing so, you can add your own specific detail and requirements that will increase your attachment to your home.

Secondly, maximise the outside space to create your own oasis. Again, let the garden mirror your interests and priorities. Consider and make a choice. For example, you could have a safe play area for children, a neat wood pile for a cosy fire, a space for your bikes or motorbikes, a space for animals, a small or large plot for vegetable growing, for flowers, or simply a patio with pots for easy living.

If you have plans to sell in the future then make the most of your property now. By making your property your home, you will enjoy your time more and as a bonus you are likely to increase it's value and make it more appealing to would-be buyers in the future.

How Far Will House Prices Fall?

2008-10-12T01:21:00.001+01:00

With the financial markets plummeting and the banks in turmoil property prices are continuing to fall. But how much will they fall? Here we look at a range of predictions from the experts.

According to Nationwide, property prices slid 1.7% further in September 2008, the eleventh consecutive month of falls with an annual change of 12.4%. According to Halifax, house prices fell by 1.3% with an annual fall of 12.4%. The Halifax and Nationwide data is taken from the survey prices when mortgages are approved.

If however you view the Land Registry statistics in August 2008 the annual fall was only 4.6%. Why the big discrepancy? There are a number of reasons: the Land Registry uses the prices of what houses actually sold for, not for what they were valued at, they do not include Scotland and Northern Ireland and there can be a time delay of 3 months in the Land Registry receiving the data. It also only records the houses that have been sold and bought at least already once since 2000.

So let’s look at what the experts are predicting for house prices:
On the relative optimistic side, the mortgage brokers, John Charcoal, expect house prices to fall by 15% maximum. The estate agency, Savills, expect prices to fall 25% in total by the end of 2009 and to stabilise in 2010. Howard Archer, chief economist at Global Insight expects house prices to fall 18% in 2008 and a further 15% in 2009. Capital Economics expect that the fall will be 35% from the peak in 2007. Nationwide do not provide a percentage figure but predict that there is “little to suggest that the market will turn around quickly”.

How far house prices will fall depends on a number of factors. Crucially, banks are not willing to lend to each other and as a consequence banks will lend their precious cash only to the lowest-risk customers. With fewer customers coming into the property market, the property market will continue to fall. The public that can buy are generally postponing buying property until the market has bottomed out, and in doing so house prices fall further.

So what will happen after the fall hits the ground? With interest rates likely to be cut to 3.5%, and food and fuel prices coming down affordability should be easier. Once the banking crises rides itself out with the losers having lost and the winners having survived, will property prices rise and if so, when?

Savills predict that house prices will start to rise in 2011 reaching 2007 peaks by 2012. The National Housing Federation predict that prices will rise by 25% by 2011. You could argue that they both have particular interest in the prices rising and so are taking an optimistic view. However, also the Centre for Economic and Business Research believe that prices will rise by 30% rise between late 2009 and 2012 due to a shortage in new build.

This financial crisis is global. It is likely that there is worse to come before the market stabilises and when the recovery comes it will be within tighter boundaries of regulation and responsibility. This may make it a slow but, hopefully, a safe recovery.

The Property Market And Gazundering: What It Is And How To Avoid It

2008-10-12T01:13:00.000+01:00

With property prices falling gazundering is becoming more common. What is it and how can you avoid it?

With property prices falling and still expected to fall further, sellers are desperate to secure a sale on their property before their property loses more value. They want to sell their property fast and it doesn’t take a canny buyer to know this.

So whilst just last year the art of gazumping was common pace – that is when a sale has been agreed but then the seller breaks the agreement and takes a higher bid from another seller, now gazundering is becoming more common. In Scotland, they have tackled the problem of both gazumping and gazundering by making the agreement legally binding once an offer is accepted. Unsurprisingly, estate agents are keen to bring the law to the rest of the UK but there are no plans for this at the moment.

How common is it?
According to the Yorkshire Bank one in three buyers would consider gazundering. The estate agents, Cluttons, have said recently that gazundering takes place in around 30% of property transactions.

What exactly is it? Imagine your property is on the market and you have a buyer. Fantastic. Sure, you’ve taken an offer but you’re happy you have a buyer. The legal work is done, the survey work is done, you’re ready to exchange and get that signature, when the buyer suddenly claims that they’re not going to go ahead with the purchase unless you drop the agreed price by, let’s say, £15,000. Or significantly more. You’ve been gazundered.

So what do you say? By not accepting the lowered price you’ve lost your legal fees, any costs associated with the purchase of another property, very likely your next property, your all-important buyer and you have to start the whole process again from scratch and all in the time whilst property prices are expected to fall further.

Some buyers may even make offers on two properties and only go ahead with the one that has come down the most. This is entirely legal of course, even good business practice for the buyer, but frustrating, and some say, immoral. Gazunderers are most likely to be developers or landlords who do not have any emotional attachment to the property – they are more likely to want to bag a bargain. Also, gazundering usually takes place on a Friday – the low offer is made, and the seller wants the deal clinched before the weekend – so is more likely to accept the offer.

How can you avoid it?
There are a number of ways to attempt to avoid it.
Firstly, on the outset when you put your property on the market, set your price to be realistic in the current market. If you overprice it you are more like to be gazundered. Secondly, the seller can insist on non-refundable deposit of 2-5% on the outset of agreeing a price. Thirdly, a legally binding contract can be signed agreeing that the property will be bought for the agreed price, subject to the survey, and a date set for exchange of contract. In a falling market you want the exchange to be as quick as possible – before the market falls further. Finally, keep your property on the market until contracts have been exchanged so that you are maximising your chances of having another buyer in the wings.

Remember, if your buyer wants to gazunder, you do not have to take the lower price. You can accept, or renegotiate or simply refuse and start over. It’s not ideal, but it is a choice.

Moving House? Stressed?

2007-03-06T22:26:00.000+01:00

Moving house is thought to be one of the most stressful things you can do. Here we look at why it's so stressful and what you can do to lessen the stress.

At first selling a house can be quite exciting - getting the house ready, having valuations, haggling to get the cheapest commission rate. Even the first few viewings can be exciting. The stress may start to kick in after you've had a few viewings and no one offers a penny, but they do offer suggestions on what's wrong with your property! This may not be encouraging and the first thoughts may be "who is going to buy THIS house?". Do not even go there, you bought your house so someone will like it. It only takes one buyer - give each viewing your best shot and if it's a little untidy then remember that viewers often get a feel of the house as soon as they walk in. It doesn't need to look perfect but try to make it welcoming. Assume someone will like it eventually - afterall you can't force someone like it so being stressed about it won't help.

You might feel excited even when the phone rings - is this a viewing? Could this be the one? Can you accommodate the viewing and have time to sort the house enough or get your teenager out of bed, pack off young children, take the dog out. This is all a nuisance and time-consuming. Let's face it - more demands on ever precious time is stressful.

So AVOID it! If you can't make the viewing time, then say so. Make sure you look after yourself enough to be able to do what you need AND make the house presentable.

Another stress is likely to be from having seen your dream home and not being a position to make an offer on it. Some say, don't even look at other houses until you have an offer on yours, but this is unrealistic. You may need to look at other houses to know what is on offer and the more houses you view the more informed you are of what properties are on the market and for what price. Also your criteria of what you need is likely to change as you look at more properties. So LOOK and be informed. And if you find your dream house, well, cross your fingers.

Sometimes when a seller puts their house on the market, they start to see the flaws in the house and the reasons for wanting to move become more apparent - a negative feeling about your own home is not pleasant. Remember why you bought it and what you liked about it. Getting it ready to sell might work the other way - you might end up wanting to stay.
If your property ends up stuck on the market for months you then need to decide whether to drop the price - depressing and stressful especially if dropping the price is going to effect your options for your next property. However, on the up side, you're more likely to sell and get moving.

Let's go to the point where someone puts in an offer. Now it's serious. How much do you haggle? How much are you willing to come down? This can be stressful. But again avoid the stress. A good deal is where both parties are happy. Way up the pros and cons of what you want to accept and take time to make a decision. Take advice from your agent.

Now being under offer you've passed the first hurdle - congratulations and that's the first stressful episode over. Now the solicitors and surveyors are involved. Will anything come up in the survey - most surveys sound very negative and frightening yet in discussion with the surveyor it usually seems okay. Will your buyer pull out? Will someone in the chain pull out? Why does it all take so long? Yet more queries?

Ultimately the sheer uncertainty can be very stressful. The way to avoid the stress is to dissociate yourself as the majority of the work is now out of your hands. Keep in regular contact with your solicitor and know what is going on. Answer any queries promptly.

You get to exchange and you decide to go for it. Contracts are exchanged and you have a completion date. A major sigh of relief. You can now open your first bottle of champers.

Then comes the work of organising removals, packing and arranging redirections and change of address. To avoid stress take it slowly, write lists and take time over it. Start as soon as you have exchanged so that you keep your tasks under control and there's no last minute rush. Know where you want your furniture to go and make a plan or drawing so that you can easily direct the removal men.

On moving day, have help. Even if you have professional removals you may find it supportive to have a good friend with you. In your car, take a box with your favorite beverage, perhaps the kettle, tea bags, cups, milk and a packet of your favorite biscuits so that when the removal men go you can sit down and relax.

You're in. Unpack as time permits and get to know your new house.

To view your next property visit http://www.wheresmyproperty.com.

The opinions expressed are those of the author and the material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

House Prices in 2007

2007-01-16T20:44:00.000+01:00

Here we discuss where house prices are going in 2007. Whether you are a first time buyer or a seasoned property developer it's useful to know what lies ahead.

Quite simply, house prices are expected to rise in 2007. How much varies according to which survey you read. Halifax bank predict house prices to rise by 4% whereas the building society, Nationwide expect prices to rise between 5-8%. The research group, Lombard Street Research, however predict prices could rise by 15% - quite a difference to 4% but bear in mind that this research group correctly predicted a price growth of 10% in 2006 whilst other surveys predicted a growth of only 2 - 4%.

Interest rates went up on 11 January to 5.25%, the third increase in six months and more
increases may follow with some experts suggesting that interest rates could rise to 6% this year. Every 0.25% rise equates to the average householder with a mortgage of £100k paying an extra £16 per month. However whether this will effect the housing market is questionable - many economists were surprised that the two interest rises in 2006 did not appear to slow down the house prices as expected.

Some mortgage lenders have moved with the price growth so that borrowers can secure mortgages up to 5 times their salaries and interest only mortgages are becoming more popular. Conditions for first time buyers are likely to worsen during 2007 and as a result of yet higher prices compared to salaries.

Factors supporting the prediction of price growth in 2007 are bumper city bonuses underpinning the prices in London and the South East, a strong economy, low unemployment, a growing ageing population, an increase in the number of single households and a continued shortage of supply. Factors that could slow the house price rises are increases in interest rates, over-stretched affordability and a slowing global economy.

Another factor in the market has been the public speculation that prices will continue to rise. If this changes to the view that interest rates will go up and the housing market will slow down, potential buyers may wait to see if there is a slow down and by doing so, create a slow down and a subsequent fall in prices. The predictions for 2007 are that housing prices will continue to rise. Watch closely.

To find a property visit http://www.wheresmyproperty.com/.

House Prices Rise Again In December 2006

2007-01-09T21:01:00.000+01:00

House Prices Rise 0.8% In December 2006

The asking prices of residential property in the UK in December 2006 has risen by an average 0.8%. Other surveys show that in the same period house prices have risen by 1.2% (Nationwide), or in contrast has fallen by 1% (Halifax).

According to http://www.WheresMyProperty.com, the average asking price for UK residential property rose by 0.8% in December 2006 to £207,933. This brings the rise over the last 6 months to 5.9%, and a rise of 13% for the year.

In December 2006 the average asking price for a detached property was £284,629, a semi-detached £189,600, a bungalow £222,824, a terraced £156,349 and a flat £169,829.

The average asking price in London for December 2006 rose by 1.4% to £348,546 which brings the rise through 2006 to 17.3%. The top five areas with the highest rises were Kensington and Chelsea (+5%), Ealing (+4.1%), Bromley (+3.5%), Hammersmith and Fulham (+3.5%), Kensington and City of Westminster (+2.9%).

House prices are still expected to continue to rise in 2007 albeit at a slower rate as interest rates may rise in next month and households have higher utility bills than the same time last year. However, the economy is growing, employment is rising and there is an ongoing lack of supply.

7 Top Tips For Buying Property

2006-12-19T11:30:00.000+01:00

When buying property go through the following checklist to make sure you make the right decision.

1. Check the neighbouring properties: Is there a pub nearby? Closing time and sunny weekends may be noisy, busy and a general disturbance to your peace. It might not be just revellers or drinkers being rowdy on a Saturday night, but general noise such as the pub door banging shut, the delivery vans and the hubbub of a pub garden.

2. Check the road at rush hour and school-run time. Is it near traffic-lights? Will it effect your school-run or journey to work? How noisy is it? How safe is it for the children? Are there pavements?

3. Are there railway lines or tube lines nearby? Open tube lines can smell and railway lines can be noisy throughout the day and night.

4. Is it near a telephone mast? Telephone masts and possible related health scares are often in the news. Even if they are not a health-risk they are unpopular with residents and therefore whether or not you are concerned about them they could devalue a home if others are.

5. Is it near a school? Schools can be a blessing for some but a nuisance for others. Increased traffic, waiting parents and increased litter can be a bore especially if you are at home during the day.

6. What are the neighbours like? Knock on a few doors and ask about the neighbourhood. Do they like living there? Not only will you gather more information about the neighbourhood but also check on whether you will get along with them.

7. Return to your property at different times of the day and night on a number of days to check what is going on in the neighbourhood. Hopefully it will suit you but there is a small chance that you might discover something that you simply don't want.
Always remember when buying property it's the house AND the location that you need to consider for yourself and for resale.

To find your new property go to http://www.wheresmyproperty.com the UK Property Search Engine listing around 900,000 properties from 1000s of estate agents.

New Year New Direction Into Property Development

2006-12-19T10:31:00.000+01:00

The turn of a new year is a time for many people to reflect on where their life is going. If you want to leave the rat race and get into property development then here's how to get started.

Firstly plan what you want rather than want you don't want. By knowing what you want you can make steps to achieve it. And remember to check that your goal really is achievable.
Property development is popular and achievable for many. It can be done whilst you keep your day job and if you're hardy it can be done whilst you live in the same property. You can set a budget to suit your income and you should quite accurately be able to forecast costs and expected profit. You can choose the level of development you want to do. Full scale renovation of a cosy thatched cottage or a lick of paint to a modern house, or midway between the two: new bathroom, new kitchen and redecoration.

To find your property to develop you can use sites such as http://www.renovatealerts.com. This website continually searches the internet for properties in need of updating or renovating. Every few days they send subscribers an email containing links to new properties that come on the market in their allocated area. All the UK is covered and subscription is only £10 or £20 monthly. There is no minimum or maximum price for a property so all properties are included.
Start by knowing your budget, both for purchase price and work.

Once you have found your property, budget for the work that you want to do. Be careful to know your limits and hire in tradesmen as necessary. Stick to a time plan so that you again can keep to budget (especially in view of any mortgage repayments for the property). If you are developing for profit then keep the redecoration colours neutral, modern and plain so that the property will appeal to a large market. Be careful not to get personal with a development property - your own unique personal taste is likely to be more expensive than neutral choices and is likely to appeal to fewer buyers.

Assuming you achieve your goal in developing your first property there will always be more properties in need of developing. With the housing market expected to remain strong in 2007 it could well be a good time to take the plunge.

7 Tips On Having Your Property Valued

2006-12-16T09:26:00.000+01:00

One of the first tasks to sell your property is to have it valued. Here are some tips to help you make the right decision.
1. Do some homework. Go online and check for free what prices properties in your area have recently gone for. You are then on a more even keel with the estate agents valuing your home, have a better idea of what to expect and can question their judgement.
2. Choose a number of agents to value your house. I suggest around 6; 3 agents limit you and you need to be happy with the agent you use and get the lowest commission you can.
3. Prepare for the valuation: clean and tidy. Present your house as if the valuer is a viewer. You want the estate agent selling your property to love your house, to believe in it being an excellent purchase and easy to sell. After all if the agent selling the property isn't interested in it how will they enthuse viewers to become buyers.
4. On the valuation day, be alert for unprofessional conduct. Is the agent on time? If they are late, do they apologise? Is their lateness a sign of disorganisation and inefficiency? Property is big business and you want your transaction to be with the best.
5. Ask the valuer about what marketing they offer: on what websites do their properties appear, what newspapers do they advertise in, how many offices do they have? All play a crucial part in the selling of your property.
6. How do you feel with the agent? If you feel uncomfortable it's possible that viewers will too.
7. How efficient and keen are they to sell your property? How soon will it take them to have your details ready and viewers lined up? How soon do they contact viewers after a viewing? How long is their contract? The shorter the better so that if you are not happy with their service, you can change agents within a few weeks not months.
Essentially each agent will want to market your property and make the sale. The decision on who to give the business to is down to you - be prepared, ask questions and get as much information as you can to make the right decision.

To find your estate agents in your area and your next property go to http://www.wheresmyproperty.com

House Prices Continued To Rise In November 2006

2006-12-14T21:59:00.000+01:00

The asking prices of residential property in the UK in November 2006 has risen by an average 0.4%, down from 1% the previous month.

According to http://www.WheresMyProperty.com, the average asking price for UK residential property rose by 0.4% to £206,382. This brings the rise over the last 6 months to 7.5%, and a rise of 12.1% for the year so far and 13% over the last 12 months.

In November 2006 the average asking price for a detached property was £282,942, a semi-detached £188,109, a bungalow £221,786, a terraced £155,449 and a flat £168,620.
The average asking price in London for November rose by 0.9% to £343,880 which brings the year so far to a huge 15.8%. The top five areas with the highest rises were Camden (+3.6%), Brent (+3.4%), Bexley (+3.3%), Hammersmith and Fulham (+3.2%), Kensington and Chelsea (+3.1%).

House prices are expected to continue to rise in 2007. Interest rates may have peaked at 5%, the labour market is stable, the economy is strong and there is a continuing demand for property. Affordability seems to be the main factor that could stem growth, but with the wide choice of mortgages such as interest only, part repayment/part interest and 30 year terms
there is flexibility to suit different budgets.

WheresMyProperty provides up to date asking price analysis for the UK and has around 900,000 property listings from 1000s of property websites. For more information visit http://www.wheresmyproperty.com.

Home Information Packs

2006-11-26T13:16:00.000+01:00

It was great to get a comment - thank you to the anonymous person- it took me by surprise that anyone had found this blog and gave good food for thought.

Sure I think it could work both ways. Buyers will want a Home Information Pack and Home Condition Report if they are available. But surely sellers, especially in areas where demand outstrips supply, will want to avoid extra costs (though I would assume any extra cost would simply be added onto the asking price) and avoid extra work and stress. It also depends on the property: if the property is thought to be desirable then sellers may not believe it's worth their while to pay out for a Home Information Pack. Therefore if they are thinking of selling in 2007 they may want to sell it before June. I also believe that generally people are scared of change and new initiatives.

If more property than usual comes on the market in Spring then buyers will be able to take it either way. More choice, lower prices and they'll have the survey done as at the moment. Or buyers can wait and feel reassured because they have the Home Information Pack and therefore there shouldn't be any nasty surprises further along the buying process.

Personally if I were a seller I would market a property now or if it were in another week's time I would wait until the New Year. Then being a buyer I would prepare to buy a property in the Spring when the supply is traditionally good and could be even better in 2007. If I failed to buy a house then, I would welcome the information in the Home Information Packs but the Home Information Packs would not delay my decision in buying a house. After all the Home Information Packs give more information a house but do not guarantee that the sale will go through.

An Unusual Christmas Present: Finding a Property to Renovate

2006-11-22T12:41:00.000+01:00

Do you have friends who talk about one day doing up a property? Do they show you pictures of old barns and even have the books on how to do it up? I do and though I share their excitement I wish they'd get to the next step of looking at properties and getting on with their exciting ideas. Here is a suggestion of an excellent Christmas present to give them.

Renovate Alerts is an online company that finds properties that range from needing cosmetic updating to a full scale renovation. Having found the properties Renovate Alerts email subscribers alerts which links the subscriber to the property details on the estate agents websites. So your friend would only get properties that require work and are ripe for their DIY enthusiasm. Alerts are sent out every few days and contain only properties that are new to the market.

The cost of this unusual present would be either £10 or £20 per month per region and each region covers a large area e.g. Wales, South, Scotland, Greater London, etc. So you could give an original, thoughtful present of £10 or £20 and start your friend on a new line of investigation and even a new career in property development!

The subscription is on an ongoing automatic monthly basis so if you want to give your friend just one month then do remember to email Renovate Alerts to cancel the subscription after the first month.

Here is some feedback that Renovate Alerts has recently received from satisfied customers:

"Your service is excellent, and I will recommend you to other people"

"Your website is amazing. I am in the process of purchasing 2 properties as a result. I have started a new business.."

It should at least give your friend something more to go on. A subscription to Renovate Alerts is surely more exciting than chocolates, pens or socks. In fact you might find it so intriguing you subscribe for yourself!

For more information and to see a sample of a live alert visit: http://www.renovatealerts.com.

Now is a good time to sell - just

2006-11-19T12:52:00.000+01:00

If you are thinking of selling your property now is a good time to put it on the market. But only if you are quick. Currently there are not many properties on the market and buyers are serious. People do not want to be hassled with viewings during the Christmas period but people are still keen to buy if the right property comes up. So they'll be no time wasters.

Although it's a good time to sell the best time to buy will be in March or April next year as traditionally this is the time of year when more properties go on the market. But even more property is expected to go on the market in Spring 2007 because sellers will want to sell their property prior to having to prepare and pay for a Home Information Pack which will be compulsory from the 1 June 2007.

Sell now if you can - get serious viewers, make the most of a a shortage of properties, avoid the overload of properties in Spring next year and avoid the HIP.

Will November's interest rates effect house prices?

2006-11-15T20:52:00.000+01:00

Well, frankly, no, a rise up to 5% it's not enough to stop people buying house and is in itself very unlikely to effect house prices. One agent expected that potential sellers are more likely to put their house on the market sooner rather than later before more increases in interest rates deter buyers. Having said that the economy is expected to remain in good shape through 2007 so increases in interest rates are expected to be small.

House prices are still expected to rise in 2007 but affordibility, higher interest rates and lower returns on investment property is expected to slow down the general housing market.

Halloween Castle

2006-10-31T09:32:00.000+01:00

It's Halloween so I searched for a castle on http://www.wheresmyproperty.com in Scotland. Could be fun and spooky living in a castle at Halloween. And lo and behold one came up near Glasgow - Grade A listed 16th century castle, 6 bedrooms, needs restoring - or to keep any ghosts maybe I'd just live it as it is. And only £750,000. Sounds exciting. I could put Halloween pumpkin carvings in all the windows......

And house prices for the moment - I'll look at that tomorrow to see what happened last month. Probably a price rise.

Getting on the property ladder

2006-08-16T14:48:00.000+01:00

If you are not yet on the property ladder then the high house prices must be frustrating. If however you are then though the mortgage repayments might be high compared to your earnings you have a good investment: one paper yesterday said that house prices would rise by 70% over the next 14 years. It did not say how or where they got that forecast.

If you are not on the property ladder then here are some suggestions: work out your finances - it's amazing how many do not know how much money they are spending every month. See an independent financial adviser: they're free, convenient and will at the very least, share their ideas with you. Some mortages can be 100% with no deposit required: the interest rate is usually higher but this might outweigh the negatives of renting. Some mortgage companies offer to lend you 5 times your salary. Talk to relatives and even friends about possible shared ownership: if you do this, be sure to have a clear understanding who owns what are who has responsibilities for the upkeep of costs.

If you can afford to buy then I would. If you can rent a room out - you can rent a room out and charge £4250 per year and not pay any tax on it: see http://www.direct.gov.uk for details. This would probably pay for at least half your mortgage. Sure, you might not really want to share your new home, but it's definitely worth considering.

You could even use a loan to pay for a deposit: You would need to check out the figures properly and be sure to be able to pay all interest payments.

Talking of interest payments, you can choose to have an interest mortgage of course. If you do not plan to ever pay off the loan then this would definitely makes owning a home much cheaper.

Anyway, just a few ideas for the day.

Buying property

2006-08-15T11:55:00.000+01:00

This is the launch of my new blog. My aim is to blog about all aspects of buying and selling property and also want to include some aspects of renovating and investing.

Buying property is almost a hobby in the UK. If it is not a hobby then it's a going concern with property prices high compared to earnings and property viewed as a safe investment plan. This goes hand in hand with the lack of pension provision from the state, reductions in pension in private companies as well as the difficulty of first time buyers getting on the property ladder. Home Improvement has also gained in popularity over the last few years with a huge surge in TV programmes. I'll be talking about all this, pointing you to useful websites that I've found and commenting on what to watch out for in general.

Bye for now.