Property Solutions

Signs of growth within the Portuguese property market

Posted on March 31, 2014 at 1:33 pm

Image The valuables market in Portugal is strengthening at the back of a more stable economy with prices now rising after reaching their bottom last year, this is claimed.

With the economy recording a diffusion of one.1% within the second quarter of 2013, the primary increase since 2010, the valuables market is determined to profit as overseas buyers see prices are good for getting investment properties, in step with Luke Smith, managing director of Crystal Investment and Real Estate.

‘The Portuguese property market is undoubtedly in recovery having bottomed out year ago. Prices are rising steadily, but are still far from their 2007 peak.  However, that indicates it’s a good time to speculate in property,’ he said.

‘Despite the actual estate decelerate, Portugal remains highly attractive to tourists and retirees alike with its castles, wines, ancient ruins, and cobblestoned streets. It prides itself on having a quieter, more civilized pace of life than its neighbour, Spain,’ he added.

He also mentioned that the price of living is comparatively affordable and overall costs are below in other parts of Western Europe. He advises will be buyers to seek around for deals. For instance there are one bedroom apart-hotel properties in Portimao at the Algarve  500 metres from the beach on offer for €58,000 to €73,000.

Meanwhile, Algarve property portal Meravista is reporting strong growth after its first eight months in business and now has greater than 14,000 properties listed on its website with a 3rd of local Algarve property agents.

The property search portal includes detailed information on regions within the Algarve starting from styles of properties to local food, festivals and lifestyles. Visitors can look for houses, apartments, land or commercial properties to purchase or rent. The blog and knowledge sections provide visitors with pointers on buying property abroad and on what to anticipate from a move to Portugal.

Meravista is likewise set to launch a Portuguese language version of the web site, with four further European languages, French, Dutch, German and Spanish, to follow.

Meravista founder, Anita van Huson, says that the Algarve has a colourful expat community and is popular among British buyers both for holiday homes and as a retirement destination.

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UK private residential rents set to extend by 16% in next five years

Posted on March 29, 2014 at 7:03 am

Image Residential property rents around the UK, that have been rising since 2010, are expected to rise by 16% by 2018, based on a brand new report from Knight Frank.

It points out that the pace of growth as been more modest since early 2012 but there’s room for rental inflation as earnings growth starts to realize momentum around the UK within the coming years.

There have been speculation that the support offered under the united kingdom government’s popular Help to shop for scheme can have a major negative effect at the rental market but Knight Frank thinks demand for rental properties will remain high.

‘While taxpayer subsidies for mortgages may weigh on rental demand and rental growth in some areas over a higher two years, high demand for rental property, especially in and round the main urban centres, will mean continued growth within the sector,’ said Liam Bailey, global head of residential research.

‘Rising rates of interest will put some further upward pressure on rents from 2015 to 2016, as affordability levels for home ownership are eroded. Our view is that rental growth from 2016 may begin to outpace house price growth, driving yields, and attracting additional buy to let investment,’ he added.

The report shows that the personal rented sector has doubled in size around the UK since 2001, and now accounts for almost five million dwellings, or 17% of total housing stock. If this trend continues, the scale of the sphere will swell to 6 million in 2017.

According to Bailey the world itself is likewise more likely to develop within the next five years, with a step up inside the delivery of specifically designed rental blocks, not like much of the present stock that is primarily aimed toward owner occupiers.

‘These new blocks, backed by institutional investment, may be more similar to the brand new modern purpose build student property accommodation being inbuilt university towns than many rental flats currently out there. The apartments are designed specifically for rental accommodation and should include quite a number amenities attractive to tenants. The delivery of enormous scale private rented units may also help boost housing supply, and cement the rental sector as a first-rate component of the UK’s housing stock,’ he explained.

The report also points out that during central London, prime rents have underperformed the national average, with an overall decline of one.7% within the three hundred and sixty five days to October 2013. ‘The weakness of the financial sector in 2011 and 2012 have been the principle reason behind this downward movement of rents. Our view is that rents will start to rise modestly in prime central London in 2014, as renewed job creation an optimism, especially within the City, creates increased demand from tenants,’ Bailey added.

Meanwhile, a separate piece of study means that the price of renting in London is over 200% dearer than the typical for the full country. The analysis from property firm Move with US says that the common cost of renting a property increased by just £7 or 0.75% in October.

Advertised average rents in London increased by 1.47% or £32 and are £42 down on last year but are approximately 209% dearer than the remainder of the rustic.

The report also shows that within the first 1/2 the year, both the South East and East Anglia experienced consistent growth in average advertised rents to the level that they became a more viable and profitable alternative for investors than the London property market.
 
While average rents in either one of these regions remain strong, at £1,145 and £889 monthly respectively, the markets seem to have settled somewhat as we approach the tip of the year with minimal declines of 0.13% and zero.6%.

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Posted in Property Solutions

Estate agents within the UK seeing the return of sealed bids as property demand hots up

Posted on March 25, 2014 at 5:59 pm

Image With demand for properties increasing within the UK in recent months sellers are using sealed bids as some way of maximising the worth in their property based on estate agents.

But this may prove daunting for buyers, especially first time buyers who’re more likely to be unfamiliar with the practice whereby sellers ask for bids to be submitted in sealed envelopes.

Now for the primary time ever the National Association of Estate Agents (NAEA) has issued guidance on the way it works to prevent confusion among buyers and sellers. It points out that the best bid won’t necessarily be chosen as other factors may be taken under consideration reminiscent of moving date.

Sealed bidding is a technique often utilized by people wishing to sell a property where high levels of interest are either anticipated or already being achieved as a way to sift out the time wasters and find buyers which are committed and willing to switch quickly on the best price.

‘The confidential nature of the method can mean that homes can opt for greater than the vendor anticipated.  However, for first time buyers or people who are unfamiliar with the sealed bids process, the entire situation could be daunting due to its semi secretive nature,’ said Jan Hÿtch, president of the NAEA.

‘There are a couple of inside tips though that could we will suggest to support those considering buying by this process. Buyers often think that if the valuables goes to sealed bids the best bidder will win, but inviting bids doesn’t mean the top offer always secures the valuables,’ she explained.

‘The process involves assessing your complete information available to locate the customer that has demonstrated the strongest and most reassuring ability to proceed and complete a sale with none trouble. With a view to have the proper chance of succeeding on this situation, buyers might want to be ready prematurely with their finances and paperwork all so as,’ she added.

The advice from the NAEA includes being open about your situation and talent to buy. Buyers should present their offer in a sense that demonstrates a commitment and skill to replace quickly.
 
The bid should include a listing of items that you simply have already got in place reminiscent of a credible solicitor or conveyancer, a mortgage in principle letter out of your lender, and a surveyor on standby, all of so one can demonstrate how serious you’re in securing the valuables. This could make your bid more attractive, whether it isn’t the best, the information say.

It also means that to circumvent ending up making an identical bid as some other person, try using unusual numbers like £200,103 rather than £200,000. It will sometimes make the variation between a successful bid and a tied situation in order to delay the sales process further.

It is smart to get as much information as possible from the agent with a view to assess how likely it’s that your bid would be successful. Agents is probably not ready to discuss the opposite bids but they are able to give a demonstration of the way many bidders there are or even the strength of different bidders. In case you don’t ask you don’t get, so don’t be frightened to invite.

Buyers also are advised only to bid the quantity they’re able to afford and are comfortable procuring the valuables, as opposed to the cost they believe you are going to be had to secure the valuables. Offering a worth you can’t afford will only induce a sale that’s unlikely to head through, or one which you would regret.

Timing will also be important. Buyers don’t are looking to miss the bid deadline, but equally it will be important to not submit a bid too early. Best advice is to submit your offer in advance of the deadline and deliver the offer in person. If this isn’t possible, always confirm with the agent that the offer have been received.

If the valuables has gone the best way of sealed bid, it has probably received numerous attention from buyers. This also implies that the vendor could have plenty of offers to study and examine. This will take a number of days.
 

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Posted in Property Solutions

US home prices still rising as demand fails to slow

Posted on March 23, 2014 at 4:11 pm

Image Existing home sales within the Country declined for the second one consecutive month in October but constrained inventory signifies that home prices continued to look double digit year on year gains.

The latest data from the National Association of Realtors shows that total existing home sales fell 3.2% to a seasonally adjusted annual rate of five.12 million in October from 5.29 million in September, but are 6% higher than the 4.83 million unit level in October 2012.
 
Lawrence Yun, NAR chief economist said that sales have remained above year ago levels for the past 28 months and a flattening trend is anticipated. ‘The erosion in buying power is dampening home sales. Moreover, low inventory is holding back sales while jointly pushing up home prices in a few of the country. More new home construction is wanted to assist relieve the inventory pressure and moderate price gains,’ he explained.

The national median existing home price for all housing types was $199,500 in October, up 12.8% from October 2012, that is the 11th consecutive month of double digit year on year increases.

Distressed homes, that’s foreclosures and short sales, accounted for 14% of October sales, unchanged from September and well below the 25% recorded in October 2012. Portion of the gain in median price is from a smaller share of distressed sales.

Some 9% of October sales were foreclosures and 5% were short sales. Foreclosures sold for an ordinary discount of 17% below market value in October, while short sales were discounted 14%.

Total housing inventory on the end of October declined 1.8% to two.13 million existing homes available on the market, which represents a five month supply on the current sales pace. It was 4.9 months in September. Unsold inventory is 0.9% above a year ago, when there has been a 5.2 month supply.

The median time on marketplace for all homes was 54 days in October, up from 50 days in September, but well below the 71 days on market in October 2012. Short sales were available to buy for a mean of 93 days, while foreclosures typically sold in 46 days, and non-distressed homes took 53 days. Some 36% of houses sold in October were available to buy for only a month.

Data from the NAR’s listing site shows the tightest inventory conditions are in Oakland, California at 30 days with San Francisco, San Jose, Denver and Stockton-Lodi all on 48 days.

NAR president Steve Brown believes that credit remains unnecessarily restrictive. ‘Although mortgage rates of interest are still historically affordable, some financially qualified buyers are being denied a loan,’ he said.
 
‘The risk averse nature of lending is also impacting small builders who’re unable to get construction loans, even if they see strong local demand. We simply must reverse the pendulum swing back toward the center to present more creditworthy borrowers access to safe and sound financing,’ he added.

The NAR data also shows that first time buyers accounted for 28% of purchases in October, unchanged from September, but down from 31% in October 2012, while cash sales comprised 31% of transactions in October, down from 33% in September. Individual investors, who account for a lot of cash sales, purchased 19% of houses in October, unchanged from September.

Single family home sales fell 4.1% to a seasonally adjusted annual rate of four.49 million in October from 4.68 million in September, but are 5.2% above the 4.27 million unit pace in October 2012. The median existing single family home price was $199,500 in October, up 12.7% from a year ago.

Existing condominium and co-op sales rose 3.3% to an annual rate of 630,000 units in October from 610,000 in September, and are 12.5% above the 560,000 unit level a year ago. The median existing condo price was $199,200 in October, that is 13.1% above October 2012.

Regionally, existing home sales within the Northeast declined 2.9% to an annual rate of 670,000 in October, but are 11.7% higher than October 2012. The median price within the Northeast was $247,300, up 7.4% from a year ago.

Existing home sales within the Midwest slipped 1.6% in October to a pace of one.22 million, but are 8% above a year ago. The median price within the Midwest was $154,700, that is 9.3% higher than October 2012.

In the South, existing home sales declined 1.9% to an annual level of two.06 million in October, but are 7.3% above October 2012. The median price inside the South was $171,500, up 12.9% from a year ago.

With constrained inventory, existing home sales within the West fell 7.1% to a pace of one.17 million in October, and are 0.8% below a year ago. The median price inside the West was $284,800, up 17.2% from October 2012.

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High awareness of UK govt’s Help to shop for mortgage guarantee scheme, research finds

Posted on March 21, 2014 at 12:40 pm

Image The early launch of the assistance to purchase mortgage guarantee inside the UK has seen it overtake Help to shop for equity loans in relation to public awareness, in step with new findings from the Mortgage Advice Bureau.

The research comes because the latest figures show that both schemes are proving well-liked by home buyers with thousands securing loans inside the first four weeks of the mortgage guarantee scheme alone.

More than one in three adults, some 37%, had heard of the equity loan scheme in September, compared with 32% for the mortgage guarantee. Since then awareness of Help to Buy’s second phase has leapt to 43% following its launch in October, while the extent of popularity for the equity loan scheme has remained the identical.

The research also found that the notice gap is much more pronounced among people seeking to get a brand new mortgage inside the next year, with the guarantee enjoying 52% awareness compared with 41% for equity loans.

Help to purchase equity loans come in exclusively for brand new build properties, while the guarantee supports mortgages of as much as 95% on either new build or existing homes.

‘The Help to purchase mortgage guarantee has enjoyed the lion’s share of attention in recent months, but let’s not forget the equity loan scheme has made an incredible first impression with arguably the most important initial impact of any government housing scheme in recent memory. The arriving of the guarantee now means buyers have two government assisted routes to assist them secure a mortgage on a newly built home,’ said Andy Frankish, new homes director on the Mortgage Advice Bureau (MAB).

‘Buying a brand new home with an equity loan is definitely a unique proposition to a 95% mortgage and demands specialist advice, that’s why MAB refers all interested parties to its dedicated brokers who deal exclusively with new homes. What we’ve seen in its first six months is that the equity loan scheme has made new properties affordable to thousands of folks at very competitive rates, giving homebuyers extra incentive to think about some great benefits of buying new,’ he explained.

He also stated that the development industry is primed for a return to growth because of Help to purchase. ‘What’s needed now’s lenders’ continuing support for the recent build sector as much as 2016 and beyond. This would be vital to sustain the appeal of latest builds, support the development recovery and provides Britain the recent homes it must satisfy home owning ambitions,’ he added.

Figures from the united kingdom government show that 18,050 reservations were made within the first seven months of the assistance to Buy  Equity Loan scheme. Within the first six months of the scheme 5,375 sales was completed.

The figures also show that the typical price of the properties sold under the scheme inside the first six months was £197,167, compared with the common house price within the UK of £247,000 in August 2013. Also the vast majority of completed sales were to first time buyers, representing 92% of total sales and 71% of sales were made with a 5% deposit.

over 2,000 offers were made during the Help to shop Mortgage Guarantee scheme within the first month because it was launched, three months prior to schedule.

House builders are using this momentum to construct more homes. Taylor Wimpey who revealed this week that they’ve fully sold their completions for 2013. Overall over 900 house builders have registered for the scheme, 94% of which can be small and medium house builders.

Paul Smith, chief executive offiver of haart, said that the figures for the soak up of the primary stage of Help to shop for are really encouraging especially for first time buyers.

‘The early introduction of Help to Buy’s second Guarantee phase at first of October is proving to be a true fillup to the valuables market because it allows movement in any respect rungs of the valuables ladder, including both older and new homes. Coupled with continuing low rates of interest and powerful mortgage deals, sellers should pay heed and capitalise now at the very high levels of demand. Buyers are ready and watching for properties so there isn’t any better time to sell,’ he explained.

Frankish referred to that the recent scheme is operating around the country, not only in London and anyone weighing up the appeal of Help to shop for can have the benefit of clear, consistent messages about what deals can be found and whether or not they qualify for the scheme.
 
‘The government ought to be applauded for taking the initiative to rebuild confidence and capacity within the new homes market. The truth that a developer like Taylor Wimpey has already sold 30% of the homes it plans to construct next year should spur developers directly to add weight to the momentum and take the availability of housing to the following level,’ he added.
 

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