BUYING UK PROPERTY

Buying UK property, cheap mortgages, home improvement loans, difficulty getting a mortgage, problems selling your home

The current state of the UK property market means that anyone buying or selling a property has to take particular care in making any decisions. Cheap mortgages and home improvement loans are going to be difficult to come by and many owners are going to have difficulty selling their home. Prices will fluctuate but the overall trend is likely to be down with some areas of the UK remaining stagnated.

Start of article about the UK property market.

Previous page about the UK property trends.

Buyers are likely to fall into one of the following categories.

FIRST TIME BUYERS

First time buyers have had a particularly tough time over the last decade, watching property prices rise faster then they could accumulate a decent deposit. Price increases are no longer a problem with property prices starting to fall back and this market trend is likely to continue for the foreseeable future because mortgages are going to be tougher to obtain.

Lenders with loan books full of properties that have little or negative equity will be fearful of property prices falling even further and will be trying to talk the market up. Don't get sucked into this positive PR and be panicked into buying and get as much of a deposit together as you can as quickly as possible.

Estate agents, despite their friendly attitude are not your friend. They have absolutely no interest in you as a person and are only interested in selling you a property for the highest possible price they can get. Treat estate agents with caution and don't allow them to persuade you that a property is a good bargain or that prices are likely to go up in the near future.

There are going to be a lot of first time buyer properties being dumped back on the market due to repossessions from private owners who have been unable to meet increased mortgage repayments due to fixed interest mortgages coming to an end and buy to let investors who have found themselves sitting on property portfolios with negative equity and unable to obtain the rental incomes needed to meet their mortgage repayments.

Look for properties that are for sale with vacant possession. The owners of these properties are most likely the most desperate to sell. They will be owned by people who are still having to make mortgage repayments or have handed the keys back to the mortgage companies who are only too keen to unload these properties for whatever they can get.

As property prices are likely to decline for a time, be prepared to make an offer of 20%-25% less than the asking price and be prepared to walk away if the vendor or estate agent doesn't come back with an acceptable price that isn't sensibly close to your offer.

The vendor is most likely desperate to sell and the estate agent will most likely be just as keen to get a sale at any price. If you can't get the property you want at a hugely discounted price, there will be plenty of other properties to choose from.

The more first time buyers that take this approach, the further property prices will fall and that has to be good news for all first time buyers. Finally, don't worry about buying a property and seeing it drop in value. Property is an excellent long term investment and whilst you may have been able to get it cheaper had you waited. It will increase in value in the long term and once you are on the property ladder, you will have a solid investment in bricks and mortar that will make you money providing you are patient.

Read on if you are selling a property in order to buy another property in the UK. An extra bedroom in the roof or an extension can add 11-15% to the value of your property saving you a fortune on moving. By improving your home, you can save on:

  • No conveyancing fees
  • No removal costs
  • No home information pack
  • No stamp duty
  • No estate agents fees
  • Valuation and survey costs
  • Furnishing and redecoration costs
  • Far higher mortgage repayments

Read on if you are selling a property in order to buy another property in the UK.


 

UK property market | Property market downturn | Investing in UK property market | UK property market slump
UK property trends | Buying UK property | UK property market conditions | State of the UK property market
First time buyers | Movers and sellers | Buy to let investors | Buy to sell investors

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