So I haven't written here in a while... largely because I have just been sitting back and taking everything as the property market has seemed to have gone down and down. For many people, being approved for a mortgage is no longer an option, let alone purchasing the house of their dreams. So what now?
Credit card market collapse and mortgage company collapse has left many on the brink of poverty. In the UK, two of the high street banks have merged to avoid collapse. In the USA, it is being left up to the government to rescue the errant banks, one of which currently has $5 billion in unpaid credit card debt. Of course, the collapse of the Lehman Brothers is only expected to be the first, so what can you do?
Well, first things first, if you have any debt at all then the best thing for you to do is strive to clear it. Depending on the total debt you have, this could take quite a while but it is essential if you wish to be approved for a mortgage. If you want to invest in the near future and can be approved for a mortgage then waiting it out for a few more months could indeed see you pick up a bargain.
Wherever possible, borrow only the money you absolutely need. If home improvements can wait then make them wait. If you can pick up a cheaper home in the same area then do so. This may sound like general advice but the economy at the moment demands the use of common sense... so use it when you can!
Thursday, 25 September 2008
Friday, 5 September 2008
Home Staging Tips For The Credit Crunch Seller
The house market in the UK has undoubtedly fallen off in recent months as a result of the banks' reluctance to lend money in the form of mortgages. This is also true in the United States. That is not to say that they are not lending money but there are nowhere near as many opportunities to borrow as there were before. As a result, the need for house staging has really increased.
House staging is effectively dressing your home for prospectives buyer to encourage them to put an offer in for your home. However, a high nuber of people think that it is either a waste of money or too expensive for them to even consider. Neither is true. It is a proven fact that house staging can help to sell your home and also a proven fact that it is possible to stage your home on a budget. As such, the following tips should help to give you ideas to help you stage your home and sell it as quickly as possible:
* Work with what you have. Choose the best pieces of furniture in your home and showcase them. If you do this and place them well then your home can look like a showhome in minutes. Hide away the old and battered furniture and bring the newer and more stylish pieces to the fore.
* Clean your home from top to bottom, including areas that you do not think people will look. You can guarantee that people will look under the sinks, under the mat, on the skirting board and so on if you do not clean every single inch of your home. You would be surprised how much dirt will put people off!
* Use the natural light to the best effect. Invite the light into your home and the rooms will automatically look bigger than they actually are. This illusion of space will make your home more attractive.
* Give the walls a lick of paint. It is no use making your furniture sparkle if the walls are dirty and scuffed. Adding a coat of paint will cost you very little but will undoubtedly perk up your rooms.
* Declutter your home. There is nothing better to make your home look small and cramped than clutter. Decluttering your home will enable people to imagine themselves and their stuff in it and that is the biggest selling point of all!
House staging is effectively dressing your home for prospectives buyer to encourage them to put an offer in for your home. However, a high nuber of people think that it is either a waste of money or too expensive for them to even consider. Neither is true. It is a proven fact that house staging can help to sell your home and also a proven fact that it is possible to stage your home on a budget. As such, the following tips should help to give you ideas to help you stage your home and sell it as quickly as possible:
* Work with what you have. Choose the best pieces of furniture in your home and showcase them. If you do this and place them well then your home can look like a showhome in minutes. Hide away the old and battered furniture and bring the newer and more stylish pieces to the fore.
* Clean your home from top to bottom, including areas that you do not think people will look. You can guarantee that people will look under the sinks, under the mat, on the skirting board and so on if you do not clean every single inch of your home. You would be surprised how much dirt will put people off!
* Use the natural light to the best effect. Invite the light into your home and the rooms will automatically look bigger than they actually are. This illusion of space will make your home more attractive.
* Give the walls a lick of paint. It is no use making your furniture sparkle if the walls are dirty and scuffed. Adding a coat of paint will cost you very little but will undoubtedly perk up your rooms.
* Declutter your home. There is nothing better to make your home look small and cramped than clutter. Decluttering your home will enable people to imagine themselves and their stuff in it and that is the biggest selling point of all!
Wednesday, 6 August 2008
Lou's Weekly Tip #5: Compare, Compare, Compare
So maybe I should call these tips my monthly tips or something because I haven't had much of a chance to do them for the past month or so! I know I'm rubbish but I have a good tip for you now...
Like any financial product, you should compare different types of mortgage from different providers before committing to anything starting now. With the state of the economy in absolute disarray at the moment, there are very few good value deals to be had. Interest rates are high and the availability of mortgages is well down on that 12 months ago. However, if your finances are healthy then they are there for you.
Comparing different mortgage providers rates is obvious really because you do not want to pay any more money out than you have to. However, you should look at the various mortgages to see what types of deal you can get. There are fixed rate mortgages, variable rate mortgages, interest only mortgages, part and part mortgages... and the list goes on. Choosing the right one to suit your circumstances is essential so be aware of that and get advice if you need to.
Wednesday, 23 July 2008
Why UK House Prices Will Go UP Over the Next 5 Years!
I was having a look around the Internet tonight and found an interesting property article by a guy called Ross Taylor. It was published on the 16th, so a week ago. I read it and it makes a lot of sense, but I'm not entirely sure that I agree with him, given the mortgage rates that are available at the moment. They price most people out of the market and NOT the house prices.
Anyway, I thought I'd post it to see what you think.
Many uninformed people may feel that the fall in UK house prices will make it easier to get on the housing ladder but in reality it is more difficult now than ever before. The reason is simple: banks do not want to secure their assets against property at the moment and therefore, in a nutshell, do not want to lend mortgages. Today, even if you had a big deposit, perfect credit and no debt you'd still pay more for your mortgage than someone with no deposit whatsoever would've done 9 months ago. Now that is absolutely scandalous!
The real killer though is the fact that no-one whatsoever is mentioning amidst all the credit crunch hype. This fact turns everything you may read in the papers on its head. This fact is that in July 2007, the government announced that 5 million new homes were required in the UK in order to meet housing demand. The drivers behind this demand were: more immigrants, more adults, more pensioners and more single-person households. Fact: housing demand is there. The other side of the coin is that since the Credit Crunch has kicked in most builders have slowed down production meaning that targets, which were already being missed, are now miles off.
Fact: housing supply is not there. Now correct me if I'm wrong, but the Credit Crunch hasn't stopped immigration. It hasn't stopped pensioners wanting to maintain their own independence in their old age. It certainly hasn't stopped divorces - if anything, it has contributed to a few. Therefore demand has continued to steam ahead whilst supply has been stopped at source. This situation will build and build like a boiling pot until such time as mortgage criteria is eased - which must inevitably happen. At this point I strongly predict that house prices will rise faster than ever before. The winners will be the investors who can move quickly, not the pub "know-it-alls" who pass comment after reading out of date hyped-up newspaper nonsense. The money-men who will have amassed huge portfolios when property was under priced will triumph. Should this occur, it is likely that the owner occupation rate in the UK will drop from 70% to nearer 60% as is the case in mainland Europe. A lot of people will make a lot of money but as a First Time Buyer with the dream of owning your own home it will be more difficult than ever to get on the ladder. It is sad to think that home ownership, the vehicle behind the economic boom of the last 15years, will now be out of reach for millions.
However, it doesn't have to be this way. Although the numbers have changed, the principles remain the same. Prospective First Time Buyers must take this chance now as the window of opportunity is going to reduce year after year as we creep towards the continental model.
Look at the current UK property market as if it was a big clothes shop. Would you buy the fashions when they were priced at their peak, or would you wait until the sale was on? Well the sale is well and truly on at the moment. Find yourself a bargain and wait for the day when house prices go up and beyond anyone's wildest expectations. That day may be a lot closer than you think.
Uncommon Advice
Article Source: http://EzineArticles.com/?expert=Ross_Taylor
Anyway, I thought I'd post it to see what you think.
Many uninformed people may feel that the fall in UK house prices will make it easier to get on the housing ladder but in reality it is more difficult now than ever before. The reason is simple: banks do not want to secure their assets against property at the moment and therefore, in a nutshell, do not want to lend mortgages. Today, even if you had a big deposit, perfect credit and no debt you'd still pay more for your mortgage than someone with no deposit whatsoever would've done 9 months ago. Now that is absolutely scandalous!
The real killer though is the fact that no-one whatsoever is mentioning amidst all the credit crunch hype. This fact turns everything you may read in the papers on its head. This fact is that in July 2007, the government announced that 5 million new homes were required in the UK in order to meet housing demand. The drivers behind this demand were: more immigrants, more adults, more pensioners and more single-person households. Fact: housing demand is there. The other side of the coin is that since the Credit Crunch has kicked in most builders have slowed down production meaning that targets, which were already being missed, are now miles off.
Fact: housing supply is not there. Now correct me if I'm wrong, but the Credit Crunch hasn't stopped immigration. It hasn't stopped pensioners wanting to maintain their own independence in their old age. It certainly hasn't stopped divorces - if anything, it has contributed to a few. Therefore demand has continued to steam ahead whilst supply has been stopped at source. This situation will build and build like a boiling pot until such time as mortgage criteria is eased - which must inevitably happen. At this point I strongly predict that house prices will rise faster than ever before. The winners will be the investors who can move quickly, not the pub "know-it-alls" who pass comment after reading out of date hyped-up newspaper nonsense. The money-men who will have amassed huge portfolios when property was under priced will triumph. Should this occur, it is likely that the owner occupation rate in the UK will drop from 70% to nearer 60% as is the case in mainland Europe. A lot of people will make a lot of money but as a First Time Buyer with the dream of owning your own home it will be more difficult than ever to get on the ladder. It is sad to think that home ownership, the vehicle behind the economic boom of the last 15years, will now be out of reach for millions.
However, it doesn't have to be this way. Although the numbers have changed, the principles remain the same. Prospective First Time Buyers must take this chance now as the window of opportunity is going to reduce year after year as we creep towards the continental model.
Look at the current UK property market as if it was a big clothes shop. Would you buy the fashions when they were priced at their peak, or would you wait until the sale was on? Well the sale is well and truly on at the moment. Find yourself a bargain and wait for the day when house prices go up and beyond anyone's wildest expectations. That day may be a lot closer than you think.
Uncommon Advice
Article Source: http://EzineArticles.com/?expert=Ross_Taylor
Thursday, 26 June 2008
Lou's Weekly Tip #4: Research The History Of Your Property
One thing that many people forget to do when they look at a new property, whether it is a new family/second home or an investment property, is do their research on the property's history. It is imperative that you do because you never know what may have been in place of the house in the past.
I got the inspiration for this tip from my mother-in-law. Her home is subsiding at the moment because it was built on a drained marsh. It was built in the 1940s so the methods of draining old marshes and pits were not as advanced as they are now. Technology has a lot to answer for! However, you wouldn't know there was a marsh there if you looked at any of the other home in the area. There are only one or two that are subsiding. It may be that other homes have been underpinned or otherwise stabilised, but that does not take away from the fact that all buyers should investigate the land and other factors that could determine how good the investment would be in the future.
This is just one example of what factors may affect the sale. In some countries this is covered because sellers are legally obliged to disclose such information. However, if you are investing in property abroad then it may be a little more difficult. This is why the Internet can be a very handy tool in property investment!
I got the inspiration for this tip from my mother-in-law. Her home is subsiding at the moment because it was built on a drained marsh. It was built in the 1940s so the methods of draining old marshes and pits were not as advanced as they are now. Technology has a lot to answer for! However, you wouldn't know there was a marsh there if you looked at any of the other home in the area. There are only one or two that are subsiding. It may be that other homes have been underpinned or otherwise stabilised, but that does not take away from the fact that all buyers should investigate the land and other factors that could determine how good the investment would be in the future.
This is just one example of what factors may affect the sale. In some countries this is covered because sellers are legally obliged to disclose such information. However, if you are investing in property abroad then it may be a little more difficult. This is why the Internet can be a very handy tool in property investment!
Tuesday, 10 June 2008
Protect Your Investment With Cheap Home Insurance
Cheap home insurance is a major product on the financial market today. Gone are the days when only the affluent could afford home contents insurance. Today, various forms of home insurance are indeed available for all, regardless of income and class. You could actually wind up paying just a few pence for your peace of mind every month. This is largely thanks to the offers that make cheap home insurance just that!
There really is no excuse not to look into cheap home insurance. There are hundreds of providers of home contents insurance within the UK alone and the majority of the currently have various offers on in an attempt to attract those individuals that do not have insurance and actively denounce it as a waste of money. Of course, the offers are also designed to lure people that have chosen different providers to them upon renewal, but new business can be extremely lucrative for the customer, as well as giving the average homeowner or tenant peace of mind for the duration of the policy.
Relevant offers that actually apply to cheap home insurance include cash back offers, matching cheaper quotes that you get elsewhere on a like for like basis and various introductory rates, amongst others of course. There are similar offers available on most insurance products these days, including car insurance, but offers on home insurance are often more publicised.
The best of the offers out there is probably the matching of a competitor’s quote for home contents insurance that has similar features to the more expensive quote given by the provider in question. This is essentially what on a like for like basis means. You can get everything you want in one little package as a result of this offer. This can save you over a hundred pounds and get you the provider you want as well as the cheap home insurance to suit you.
There really is no excuse not to look into cheap home insurance. There are hundreds of providers of home contents insurance within the UK alone and the majority of the currently have various offers on in an attempt to attract those individuals that do not have insurance and actively denounce it as a waste of money. Of course, the offers are also designed to lure people that have chosen different providers to them upon renewal, but new business can be extremely lucrative for the customer, as well as giving the average homeowner or tenant peace of mind for the duration of the policy.
Relevant offers that actually apply to cheap home insurance include cash back offers, matching cheaper quotes that you get elsewhere on a like for like basis and various introductory rates, amongst others of course. There are similar offers available on most insurance products these days, including car insurance, but offers on home insurance are often more publicised.
The best of the offers out there is probably the matching of a competitor’s quote for home contents insurance that has similar features to the more expensive quote given by the provider in question. This is essentially what on a like for like basis means. You can get everything you want in one little package as a result of this offer. This can save you over a hundred pounds and get you the provider you want as well as the cheap home insurance to suit you.
Monday, 9 June 2008
Lou's Weekly Tip #3: Double Check Your Finances
Financing any property investment can be difficult. As a result of the credit crunch, lenders are restricting their lending and refusing to give a mortgage to even financially sound individuals if they feel there may be problems in the future.
As such, it is important to double check your finances if you are thinking of investing in property. With house prices crashing, there has never been a better time to invest if you are financially sound. However, with the economy predicted to get worse in the near future, you should only invest if you know that new property will not cause problems for you into the future.
Caution is a principle to value at the moment.
As such, it is important to double check your finances if you are thinking of investing in property. With house prices crashing, there has never been a better time to invest if you are financially sound. However, with the economy predicted to get worse in the near future, you should only invest if you know that new property will not cause problems for you into the future.
Caution is a principle to value at the moment.
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