Posts Tagged ‘credit crunch’

Self builders are likely to build over 20% of new homes this year as big developers batten down the hatches and smaller developers go out of business. This means anyone thinking of building their own home has never had a better opportunity to build a property from scratch, or use timber frame kits to help create a bespoke home.

Before the credit crunch, building your own home in the UK would have cost around £300,000, with the land costing around £150,000 and the rest spent on labour and materials. The property would then typically be worth around 30% more than the cost to build, so once built it would be worth around £390,000. Whereas now, costs of the land, labour and materials have all fallen, making self build a really good value option to buying an already built home.

Here are the top five reasons to self build in 2009:

1. Land prices have fallen by 15-50%

As developers have cut down the number of properties they are building due to the credit crunch, it means there is less competition for buying land and smaller, local developers in particular are not buying land as they have in the past, so there are more plots available and there are less buyers competiting to purchase. So grab a land bargain!

2. Builders, electricians and plumbers are readily available!
Remember, trying to find a good builder or sub contractor in 2006 or 2007, it was almost impossible? However with the recession, many tradesmen have been laid off by big developers and are now free to work on residential projects.

3. Bargain basement building materials:

Due to the fall in property prices, demand for bricks, timber frame kits, tiles, cement, boilers and radiators has fallen so much that you can purchase materials for 25% or less than you would have had to pay during the ‘good times’.

4. Timber frame kits:

If you want a quick build, you can now buy or have a bespoke timber frame kit, which can allow your self build to be eco friendly and help to fix over 40% of your build costs.

5. Secure instant equity in your new home!
In 2009 most people are worried about buying a new home in case prices fall more and they end up in negative equity. However, as self build’s are typically worth 30% more than the cost of building, depending on what you build and how much you pay to build it, you are less likely to end up in negative equity than if you bought a new or second hand home.

To find out more about self build visit our Develop and Build section and take a look at our eBook and factsheets. Do you have a property question you want an unbiased and independent answer to? Call us on 0845 838 1763.

I have been a consultant to the property sector for a number of years and been renovating properties for over 20 years. I have also written a number of books, including four for Which? – Buy, Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook.

I am currently one of the top property experts in the UK and regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express as well as featured on a number of local BBC Radio stations.

Contact me at Designs on Property on 0845 838 1763 or visit our website and my blog using the links below:-

http://www.designsonproperty.co.uk/

Author: Kate Faulkner
Article Source: EzineArticles.com
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During this credit crunch time, “I want to sell my house” is the cry of many a householder for various reasons. Whether your wanting to move to a bigger, or smaller house, if you’re relocating, or if you have mortgage arrears that are spiraling our of control, selling your house is going to be a major part of seeing your goal realized.

Having spoken with a number of estate agents and property buyers, including estate agents in London, here are the main points you want to consider when its time to sell your house:

1. Determine where you want to go. What’s you’re ultimate goal in selling the house? What will you achieve by selling the house? It always helps to write this down and have it in a prominent position in your home, so you are reminded of your goal. Determining what this goal is will also help you decide how much you need from the house sale to achieve your goal. “Sell my house for the highest price I can get ” is not really a goal because even if you get the highest price for the property, will that help you achieve your goal? How much do you really need from the sale of the house?

2. Get your house valued. This will help you determine How much you can reasonably expect from the sale of your house in the current climate. In this current “credit crunch” environment get 4 maybe even 5 estate agent valuations. This is because house values can fluctuate with each agent, so you want to get a good idea of the average price you can expect to sell at. Do your own research by talking to your neighours, either those who are selling, or those who have moved into your immediate area, and ask them what value was placed on their house.

3. Determine the right estate agent to work with. You need to work with an estate agent who is going to be proactive in selling your house. He or she will need to be looking for people who want to buy houses like yours, and this will mean you discussing your requirements with them. If the estate agent knows what you need to achieve, he can try to find buyers that meet that criteria.

4. Make your house presentable! First impressions are key to a succesful house sale. You may need to spend some money in making your house “look nice” for a potential buyer, but you should certainly make the effort in terms of “elbow grease”. This will include giving some areas a lick of paint to make areas more clean looking, decluttering flat surfaces like shelves and cupboards, and ensuring that each room has an air of spaciousness about it. Give high priority to your front garden or balcony, if you have one. Even before a prospective buyer sets foot over the threshold of you door, they will have made a buying decision based on the impression given at the front of your property. Probably the best way to prepare is to go around the house, making a list of all the things that would turn you off buying the house. Then plan for a seven to ten day clean up, dealing with all the areas that you can manage. This will make a significant improvement on your ability to sell your house, and the price that you will get for it.

5. No Offer is a silly Offer! Even if the offer is below market value, once it actually meets your own criteria in terms of what you need, then you’re a winner! Unfortunately, the market is shrinking all the time, and so are property prices with it. This means, If you know what you need from the sale of your house, and you achieve it, then you are in a better position than some who are holding out for as much as they can get, yet seeing that amount dwindle away on a daily basis.

Colin Baptiste has a keen interest in property investment in the UK. Many people in todays credit crunch are asking how do I sell my house in this current market? Visit his site and get a Free Report on selling your house

Author: Colin Baptiste
Article Source: EzineArticles.com
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Ethical investing is a bit of a buzz word. Get ethical and make money. However when you look behind the buzz there are powerful reasons why you should consider ethical real estate investing in 2008 as one of the best investments you can own. Because ethical real estate investing is still investing, and you need to make a good profit. Ethical investing should be high profit investing so that everyone, including the investor, wins.

Real estate investing in 2008? Haven’t you got to be kidding I hear you ask? Real estate investing in 2008 is dead. Prices are crumbling and real estate can’t be given away. There’s Florida McMansions on eBay for starting bids of $1.

Don’t let that put you off, real estate investing in 2008 is alive and well, if you do it right. Note I said that have to do it right. If you don’t then you can get burned.

Can you do it right on your own? Yes, if you’re really good at it. However there’s a far better way to do it through a publicly traded US company run by one of Americas most respected businessmen, investing in socially conscious real estate.

Socially conscious real estate investing? What’s that?

I’d like to show you one of the best ethical real estate investments that you can own in these hard times.

It’s ethical real estate investing that offers benefits to other people as well as the investor, specifically the people who live in the investment properties and the community.

Let me explain further. One of the best real estate investment opportunities is investing in average homes for average Americans in who live in average suburbs in those cities that go together to make up our country. Homes with values of $100,000 or less, that millions of people live in right now. Homes that are STILL in demand even in the middle of the credit crunch, because – people still need to live in them.

Imagine a company that selects the most promising suburbs for investments, buys large numbers of homes in those suburbs from government our councils at well below market, invests in those suburbs by building social resources like parks and playgrounds and other improvements to improve the overall living standards of those who live there, and refurbishes the houses they buy to a high standard.

All this increases the attractiveness of the suburb to live in, and at the same time increases the value of the homes in those suburbs.

They then sell those homes to investors at well below market value, organize the loan, provide the tenant, guarantee the repayments of 2 years, and the investors profit.

And the local community profits big time too, because of the renaissance created by the newly refurbished homes and community facilities, so everyone wants to live there.

It’s socially conscious real estate investing on steroids. The investor profits, the local residents benefit, and the tenants of the properties benefit.

It’s real and it’s available right now for ordinary investors, or IRA or 401k investors, from a respected US public company.

Want to know more about profitable, ethical Real Estate Investing in difficult times? Visit Peter’s Website Win-Win Real Estate Investments and find out more about no money down real estate investing at http://win-winrealestateinvestments.com/

Author: Peter Alderton
Article Source: EzineArticles.com
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A lot has been said on how the sub-prime crisis and the ensuing credit crunch have impacted new construction projects on timelines. That said, building design work has never stopped for a moment, what with architects and building designers working overtime to come up with modern and trendy designs for the latest building projects. The result – You could find a lot of modular building systems and eco building products showing up on the design sheets.

Here, for your information, are top 7 building design trends in 2010

1. Safety and security clearly top the list - If the September 11 attacks brought about a positive enforcement to building structures and their safety, it is in the fact that safety and security took precedence over other parameters in building designs. More stringent codes for building standards ensured that buildings were completed to be proof from wind, earthquake, other natural disasters and man-made catastrophes too.

2. Priority to accommodate the need for updated information systems - A lot of lessees have been demanding the need of increased bandwidth in their buildings. That’s probably why you would find developers working overtime to look at the wiring and ducting of the building. This may eat up some space, but developers and building designers aren’t willing to compromise on this aspect.

Increased electrical capacity, fiber optics connectivity, and the heating and air conditioning mechanisms are the need of the hour.

3. Green buildings, of course - More and more designers and developers are working on how buildings could get green. Energy efficiency and cost savings in energy is driving a lot of designers to work on green designs. Given the fact that these buildings provide fresh air, closer connect to nature and a whole host of other benefits, developers seem to giving a lot of importance to this aspect too.

4. Light, ventilation, space and other natural elements - No tenant today wants to move into a room that is congested. People just don’t want to be stifled for space, which has forced designers and developers to make sure that the rooms are spacious enough and well-ventilated. A lot of buyers are paying attention to the configuration of the rooms. Ones with more columns are seemingly getting rejected on count of them eating up some space.

5. Enforcing the brand of the company, key too - The focus on having their office space as a way to reinforce the company’s brand has forced a lot of buyers to look at buying properties that fulfill these conditions. The subtle message delivered by the brand identity does enough to motivate employees and also strike a good relationship with clients too.

6. Collaboration works even in this day of telecommuting - Although telecommuting seems to be more of a trend what with about 40 Million telecommuting from their homes, latest building projects seem to address the face-face interaction aspect. As a result, you would find a lot of building design work revolving around having dens, meeting places in offices.

7. Creating comfort at workspace - Some years back, offices were more of recreational areas than being strict office spaces, by the traditional stretch of imagination. Agreed that the dot-com bubble bursting has had its own effect on some business owners, but the fact that some recreational space does wonders for employee motivation hasn’t been lost on business owners. As a result, you would find a lot of buyers looking for these facets to be integrated in their office spaces.

Apart from eco building projects and modular systems, you would find that buyers of today are increasingly sensitive to the price they pay. Most importantly though, they also wish to have full value for the price paid.

Will Andrews is a Building Design and Engineering Consultant with more than 10 years of experience in the Building Design and Construction Industry. For more details about any building products information please visit at- Building Products Directory.

Author: Will Andrews
Article Source: EzineArticles.com
Provided by: Guest blogger

Come on, 5 million of you watch Grand Designs when it’s on, yet only 15,000 people a year make the effort to build. Reasons given for not building are mainly ‘I can’t find a plot’ or ‘I can’t afford it’ or ‘I don’t want to build it myself’. Well the credit crunch has taken all of these reasons to NOT build your own home away!

I Can’t Find a Plot!

Unlike the property market which the Royal Institute of Chartered Surveyors (RICS), has just reported a shortage in the supply of homes to buy, according to self build specialist BuildStore, the number of plots of land for sale is on the rise!

From the start of 2009, almost six thousand new plots have been added to the land finding service Plotsearch database. Since the database began nearly 10 years ago, Plotsearch has just recorded over 9,000 plots being available – that’s a 45% increase since 2007 and the highest number of plots ever recorded.

Latest government news suggests property prices have risen by 6% (versus a poor year last year though) while the cost of land has FALLEN by 7%. So what would you prefer to do? Moan about the cost of a new build and how much developers make in a year or two years time, or buy land while it’s available and build your own. Most self build projects are worth 30% MORE than it costs to buy the land and build.

I Can’t Afford it

If you can afford a home that’s already built with a 25% deposit, then I’m sure you can afford some land and the build costs with only a 5-10% deposit? Lenders will offer you money UPFRONT to buy land and pay builders as they know that when you’ve finished, the equity in the property is likely to be at least 25% as most self builds are worth 30% more than they cost to build.

And, don’t forget you’ll pay less stamp duty, particularly if you buy before Xmas. Over 63% of plots advertised by BuildStore (owner of Plotsearch) are currently under £175,000, but when the stamp duty is re-introduced at £125,000 on 1st January, then the number of plots that don’t incur stamp duty will fall to 47%.

Who actually Builds a Home Themselves?Self build is really a daft phrase as hardly anyone builds a property with their own bare hands. Don’t forget the properties you see on ‘Grand Designs’ are just that and most self built properties are ordinary 3-4 bed homes that you’d see a developer selling. It’s just that people employ an architect and either work with a builder that does everything or contractors that carry out all the work.

Some people buy into a ‘kit’ which helps if you are on a budget as you can fix 40% of your costs from the start of the build and build the property a lot faster so you don’t have to pay out quite as much on mortgage fees.

So, think you can’t self build, come on, why not at least start looking? You might be spending next Xmas in your dream home that YOU designed. Let’s face it that’s a much nicer thought than watching other people on telly building and living in their dream home – isn’t it?

I am one of the UK’s top property experts being regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express and have appeared on BBC2, featured on BBC Radio 4, Channel 4 and a number of local BBC Radio stations.

I have been a consultant to the property sector for a number of years and renovating properties for over 20 years. I have also written a number of books, including four for Which? – Buy, Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook. For answers to all your property questions, contact me at Designs on Property on 0845 838 1763 or visit our website and blog using the links below:

http://www.designsonproperty.co.uk
http://factsnotheadlines.blogspot.com

Author: Kate Faulkner
Article Source: EzineArticles.com
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As a property investor, I’ve been renting and developing properties since 2005. Even though this is a relatively short period to establish a career, especially one in property, I have seen and learned more than I could ever have imagined.

When times were good, prices were rising and everyone wanted to buy. There were many property investors that bought property assuming that house prices would continue to rise forever and didn’t really consider the consequences if they didn’t. There where a good number of property investment companies that led you to believe this to be true, however they had ulterior motives and certainly couldn’t predict the future! The result was uneducated property investors sinking their life savings into what they felt were sure deals to make money. I know of one property investor I met, who had bought nothing but newly built flats. The problem with this was that the rental income was very low due to the huge number of flats coming onto the market at once. He managed, by refinancing, to purchase 30 flats, none of which made him any money! His strategy was to remortgage one of his flats every three months, as they went up in value, to cover the losses from the others. Guess what happened when house prices stopped rising? He lost them all!

This is a rather extreme example of how some people most definitely didn’t benefit from the ‘credit crunch’. However, as much as there are casualties there are always winners in these situations and it is good to asses both to see how we might be able to apply these lessons to our own lives.

A large number of property investors took a more calculated approach to investing in property and actually made sure from day one that they were going to have sufficient cash flow to cover all expenses. These property investors might have done their sums when interest rates were around the 5% mark. These calculated investors weren’t to know what the ‘Credit Crunch’ would do for them! Those lucky to be on tracker rate mortgages found their mortgage payments dropping month by month as the Bank of England base rate was continually lowered to 0.5%. It’s stayed there since March 2009, resulting in these lucky investors having extremely low interest payments and great monthly cash flow.

You are probably wandering how as a naive property investor I faired in all this turmoil. If I am honest, like many others, I didn’t see the ‘Credit Crunch’ coming. I also didn’t realise quite what an impact it would have on the economy and everyone around me. I am pleased to say I didn’t gamble away my life savings, but nor did I see a huge benefit from the lower interest rates. That said, if interest rates hadn’t been lowered I would have definitely gone bankrupt! I found myself in a position of survival, where I have some really dud properties, which I could do nothing with as they were in negative equity. There a few that still don’t make a profit and a few that through the lower interest rates cover these losses.

You may not be a property investor but the same lessons can be learned from the residential market. It’s all about supply and demand. The key to being able to benefit from today’s property market and any other is; being in control. This means that you are able to make the call whether to stick or twist! If you are forced into a situation, you are very unlikely to come out of it well. If you have a nice expensive house with a high mortgage, you lose your job and are forced to sell, are you going to get the best price for your property? You have left yourself in a venerable position where you don’t have the flexibility to benefit from the situation.

If on the other hand you have plenty of savings because your mortgage is affordable, you lose your job, are you as venerable? You leave yourself with a choice, a choice which could make or save you lots of money. You are not desperate to sell, so you won’t be giving your property away. You have time on your hands, so you might be able to make some improvements to the house, start a business, the choices are endless.

Only you know how to stay in control of your own personal situation. It is well worth taking the time to think of the worst case scenario, plan for it, and then live your life content knowing that you have covered your own back.

Your work may not have been affected in any way by the ‘Credit Crunch’ and you might still find you can relate to the two situations above. Whatever your circumstance you need to make sure you plan for the future with a good education and a good understanding of the choices you make.

This leads us on to today’s market and is it a good time to sell?

Is NOW a good time to SELL?

This question is one many people will be asking themselves and one which I intend to help you answer. Before I begin, I am not going to give you a definite Yes or No, so don’t get your hopes up. I don’t know your situation and at the end of the day it’s your choice. What I will do is open your eyes to the possible outcomes and help you realise the consequences of your actions.

The first thought to investigate is your reason for selling. Are you being forced to sell or are you trying to chose the best possible time to move?

Possible reasons to sell

- Up sizing
- Down sizing
- Moving to a different area
- Job relocation
- Move near to family
- Pay off debts

These are just a few of many reasons that people chose to put their property on the market. What we need to ask ourselves is how these motives affect our selling strategy?

Up Sizing

If you are looking to Up Size now is a great time to be moving.

Why?

It’s all do to with the percentage difference between the property you are selling and the one you are looking to buy. If we look at the typical flat in Forest Hill, SE London, I know that the value of a 2 bed property dropped from an average of about 250,000 in mid 2008 to about 200,000 in mid 2009. The first thought for the owner is likely to be; ‘I’ve just lost 50,000 how can we possibly sell’. In some respects they are right, why sell a property for much less than it has recently been worth? In this circumstance we need to look further as we need to know what they are looking to achieve by selling.

They want to buy a 4 bedroom house also in Forest Hill as they love the area, but have outgrown their flat. Over the same time period 4 Bedroom houses have dropped from about 700,000 to 400,000! Wow, what an amazing difference is just one year. Now that we have seen the whole picture we realise that the couple could make a 50,000 loss on their flat, but at the same time they will have just saved themselves 300,000 on the property they are looking to buy!

Do you think this couple should sell? It’s a bit of a no brainer! This is a chance of a life time to Up Size and one that won’t come around very often.

Down Sizing

For the opposite reasons given above, you may think that selling now could be too costly. You have to asses your reasons for down sizing and look at the overall picture. If you can’t afford to keep your existing property then you may be better selling, enabling to clear debts and give you piece of mind. If you are just looking to move for a change, you need to asses the finances and be conscious of how much there is to lose.

Alternatives

Many people who have been force to move against their will or wanted to sell but could justify it have looked for alternative solutions. One of the most common is to move out and put the property up for rent. Although this might not be the best long-term solution, it may well enable you to continue with your plans. If you are able to let your property and cover the overhead, this could move you from a position of being forced to sell, to one where you are back in control and able to make choices.

Conclusion

We have seen examples of some of the winners and some who haven’t favoured so well in these hard times. One thing is for sure is that we can all learn a lot from this recession. We changed into a country who want everything yesterday and live for today. This mentality was great a couple of years ago, but to stay in control, these days you need to plan for the future.

Should you sell now?

This question has to be answered by you, as you are the only one that knows the true extent of your situation. However, I hope I have shown you how you can benefit from falling house prices and given you some ideas of your own. The current market is definitely improving and there are plenty of buyers looking. If you are flexible and willing to wait for the right buyer and the right price, then why not put your property on the market and see how you get on. At the end of the day you need to be the one in control, you will then be sure to come out a winner.

Eaton Properties are a local independant Estate Agent based in Forest Hill (SE23) South East London, covering areas such as, Dulwich, Crystal Palace, Sydenham, Peckham, Brockley, Catford, Lewisham as well as many more. We pride ourselves on being a trustworthy estate agent, delivering to a standard, not to a price.

http://www.eaton-properties.com
info@eaton-properties.com

Author: Ryan Eaton
Article Source: EzineArticles.com
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