You think the property market here is bad, take a look at Spain. The Motley Fool runs an article that states house prices in Spain have crashed 35% over the past 12 months, ‘… four times faster than in the UK, and haven't stopped plunging yet. This spells disaster for an economy where investment in housing is worth 10% of GDP and employs 13% of people in the private sector…’.
I suspect the same is happening in Bulgaria and probably other popular UK second home/investment locations. Indeed, I know a man who purchased a number of properties in Bulgaria during what appeared to be a crazed building site bonanza. He remarked at the time that ‘it was just like Spain many years ago’ and his eyes had those pound note signs. Well it maybe like Spain sooner than he thinks.
Anyway, bargains to be had and I share the motley fool comments that whilst not for me, there may be some bargains, but remember their tips:
* Don't buy off-plan. As things stand, your home could never be finished, but your deposit might be.
* Buy in the centre. By choosing an established location, you're slightly less likely to fall foul of planning disputes (although no guarantees...).
* Seek out an independent lawyer, one who will check your property is legal, and won't be torn down next month. I would add to this that property contracts abroad (especially Bulgaria) are not worth the paper they are written on. In other words approach on the basis that you probably won’t have any legal recourse should it all go wrong so be very sure!
• Wait. This market has much further to fall, which means time is on your side. Then wait some more.
Tuesday, 12 August 2008
Action today, innovation tomorrow
The government released a paper in July to address the housing market decline and provided it with a punchy title, action today innovation tomorrow.
There is no explanation within the introductory text as to what this means. Innovation tomorrow, what innovation, there is no mention of innovation anywhere in the document. Perhaps as it will be tomorrow they did not feel the need to mention it. Can there be any worse example of the misuse of the word 'innovate'. Oh well, so what action can we expect to see?
Ummmmmm, well, yes, sifting through the waffle it would appear to conclude that the answer lies in building more houses and then offer schemes for the growing armies of lazy non workers (a norker - a new term to go viral) so they can afford nice apartments on the riverside. Brilliant!!
If the government's objective was to drive house prices down so we can all afford them then they are on the way to achieving the first part of that objective, but I suspect the current climate wasn't quite what the they had in mind.
As always this document is just another waste of tax payers money, typical government hype and a smokescreen to avoid the real issues, such as Stamp Duty!
I eagerly await the innovation report...... tomorrow.
There is no explanation within the introductory text as to what this means. Innovation tomorrow, what innovation, there is no mention of innovation anywhere in the document. Perhaps as it will be tomorrow they did not feel the need to mention it. Can there be any worse example of the misuse of the word 'innovate'. Oh well, so what action can we expect to see?
Ummmmmm, well, yes, sifting through the waffle it would appear to conclude that the answer lies in building more houses and then offer schemes for the growing armies of lazy non workers (a norker - a new term to go viral) so they can afford nice apartments on the riverside. Brilliant!!
If the government's objective was to drive house prices down so we can all afford them then they are on the way to achieving the first part of that objective, but I suspect the current climate wasn't quite what the they had in mind.
As always this document is just another waste of tax payers money, typical government hype and a smokescreen to avoid the real issues, such as Stamp Duty!
I eagerly await the innovation report...... tomorrow.
Monday, 11 August 2008
Rightmove share price
I know we have some city analysts on board so perhaps someone can explain what is going on with the rightmove stock. It has steadily decreased for the past 12 months from highs of £6.30 in 2007 down to £2.20 odd the other week and then miraculously it has jumped back up by over 55% this month to £3.44 today. I say miraculously for as far as I can tell there was no news, no announcement, so what happened? It certainly isn't down to positive news from estate agents and/or the housing market.
Anyone??
Image - from the FT
Wednesday, 6 August 2008
Landlord advice from Belvoir Lettings
Our friends at Belvoir Lettings asked if they could post on our blog.
We said we would be delighted and proprietor of Belvoir Bolton, Mike Stuttard, identifies the top five things that can go wrong for landlords, plus explains what they can do when the worst happens…
What can landlords do when things go wrong?
Even the most straight-forward of lettings agreements aren’t without their potential problems. Plan early for pitfalls to minimise financial risk and maximise long-term gain.
1. Evicting bad tenants
Question:
When a good tenant turns bad, what are a landlord’s options and how can they evict them?
Answer:
It is important not to let matters drag on once rent becomes late. Obviously legal action cannot be taken until the rent becomes two months in arrears, however, all necessary steps should be taken beforehand to contact the tenant and find out what the situation is.
Make sure that all the correct notices are issued if the landlord wishes the tenant to leave. It is recommended that Rent and Legal insurance protection is taken out at the outset and this will cover the rent and legal costs should an eviction become necessary.
2. Avoiding the ‘void’
Question:
How can landlords minimise the potential for long ‘void’ periods on their properties?
Answer:
Nobody has a crystal ball but there are ways to reduce the possibility of void periods. It is important to make sure that the property is in a good condition. First impressions are extremely important in the lettings market and a property that looks good on entering will get the tenant interested. Avoid poor decor and damp, keeping the interior neutral wherever possible. Also, make sure that the property is competitively priced. The price may change depending upon market conditions - be prepared to be flexible.
Consider offering incentives, too - for instance 50% off the first month rent. And, always consider offers from prospective tenants. Don't just stick to the advertised price - the market can be a buyer’s market for tenants who have many properties to choose from.
3. Dealing with rent arrears
Question:
How can landlords deal with rent arrears and what systems can they put in place to minimise the risk?
Answer:
There are several things a landlord can do to help avoid rent arrears. Make sure that steps are taken sooner rather than later if a tenant is late with rental payment and make telephone calls if the rent is more than five days late – never let the matter drag on until the rent is more than one month late.
Ensuring that rent is collected by standing order, rather than waiting for the tenant to pay by cash or cheque, is also a good way to help guarantee regular payment - and remember to take out good Rent and Legal protection insurance before your tenant moves in too.
4. Money management
Question:
What can landlords do to help manage their outgoings and deal with fluctuating interest rates?
Answer:
Fixing the interest rate on their mortgage is an obvious way to reduce fluctuations, plus keeping void periods to a minimum is also recommended. If you keep tenants happy they probably won’t want to leave in a hurry!
Look to review the rent each anniversary. Nevertheless, it is not always the case that rent increases annually - this may make tenants look elsewhere for alternative accommodation.
5. Dealing with damage
Question:
How can landlords deal with damage to their property and minimise their financial loss?
Answer:
It is always recommended that landlords have sufficient buildings’ insurance cover in place. This should include malicious damage cover as well as cover while empty for longer than 30 days.
Landlords are also recommended to have some contents cover to include items such as floor covering and appliances.
Having a dilapidation bond is also important, together with a robust inventory/statement of condition for the property in case there is a dispute at the end of the tenancy. A good lettings agent will be able to provide insurance cover and prepare inventories for you.
Thanks Mike
We said we would be delighted and proprietor of Belvoir Bolton, Mike Stuttard, identifies the top five things that can go wrong for landlords, plus explains what they can do when the worst happens…
What can landlords do when things go wrong?
Even the most straight-forward of lettings agreements aren’t without their potential problems. Plan early for pitfalls to minimise financial risk and maximise long-term gain.
1. Evicting bad tenants
Question:
When a good tenant turns bad, what are a landlord’s options and how can they evict them?
Answer:
It is important not to let matters drag on once rent becomes late. Obviously legal action cannot be taken until the rent becomes two months in arrears, however, all necessary steps should be taken beforehand to contact the tenant and find out what the situation is.
Make sure that all the correct notices are issued if the landlord wishes the tenant to leave. It is recommended that Rent and Legal insurance protection is taken out at the outset and this will cover the rent and legal costs should an eviction become necessary.
2. Avoiding the ‘void’
Question:
How can landlords minimise the potential for long ‘void’ periods on their properties?
Answer:
Nobody has a crystal ball but there are ways to reduce the possibility of void periods. It is important to make sure that the property is in a good condition. First impressions are extremely important in the lettings market and a property that looks good on entering will get the tenant interested. Avoid poor decor and damp, keeping the interior neutral wherever possible. Also, make sure that the property is competitively priced. The price may change depending upon market conditions - be prepared to be flexible.
Consider offering incentives, too - for instance 50% off the first month rent. And, always consider offers from prospective tenants. Don't just stick to the advertised price - the market can be a buyer’s market for tenants who have many properties to choose from.
3. Dealing with rent arrears
Question:
How can landlords deal with rent arrears and what systems can they put in place to minimise the risk?
Answer:
There are several things a landlord can do to help avoid rent arrears. Make sure that steps are taken sooner rather than later if a tenant is late with rental payment and make telephone calls if the rent is more than five days late – never let the matter drag on until the rent is more than one month late.
Ensuring that rent is collected by standing order, rather than waiting for the tenant to pay by cash or cheque, is also a good way to help guarantee regular payment - and remember to take out good Rent and Legal protection insurance before your tenant moves in too.
4. Money management
Question:
What can landlords do to help manage their outgoings and deal with fluctuating interest rates?
Answer:
Fixing the interest rate on their mortgage is an obvious way to reduce fluctuations, plus keeping void periods to a minimum is also recommended. If you keep tenants happy they probably won’t want to leave in a hurry!
Look to review the rent each anniversary. Nevertheless, it is not always the case that rent increases annually - this may make tenants look elsewhere for alternative accommodation.
5. Dealing with damage
Question:
How can landlords deal with damage to their property and minimise their financial loss?
Answer:
It is always recommended that landlords have sufficient buildings’ insurance cover in place. This should include malicious damage cover as well as cover while empty for longer than 30 days.
Landlords are also recommended to have some contents cover to include items such as floor covering and appliances.
Having a dilapidation bond is also important, together with a robust inventory/statement of condition for the property in case there is a dispute at the end of the tenancy. A good lettings agent will be able to provide insurance cover and prepare inventories for you.
Thanks Mike
Buyers need information - Agents need to tell the truth
1000watt have an excellent post that emphasises the point of agents being open and not hiding information. It comes down to asking whether 'you' would want this information before buying a house and the answer is always going to be yes. Hiding information from buyers is akin to a second hand car salesman not mentioning that the car is in fact two crashed cars glued together.
1000watt make the point that the Internet can provide a plethora of information that is useful when buying a house, but it is even easier than that. Simply taking 50+ pictures of all rooms (not just the one the agent thinks looks nice) is easy. Take pictures of outside space, local amenities, anything that may be of interest. I may visit a property because I have seen a picture of a lovely little deli in the village, or it is explained to me that the house is next door to a football stadium, I may love football or may hate it. Either way, I want to know.
I have been banging on about a blog for every property for some time and this is a perfect example of where agents can easily make a difference.
In this current climate, you need to stand out, so stand out for telling the truth and providing information that the buyer actually needs.
1000watt make the point that the Internet can provide a plethora of information that is useful when buying a house, but it is even easier than that. Simply taking 50+ pictures of all rooms (not just the one the agent thinks looks nice) is easy. Take pictures of outside space, local amenities, anything that may be of interest. I may visit a property because I have seen a picture of a lovely little deli in the village, or it is explained to me that the house is next door to a football stadium, I may love football or may hate it. Either way, I want to know.
I have been banging on about a blog for every property for some time and this is a perfect example of where agents can easily make a difference.
In this current climate, you need to stand out, so stand out for telling the truth and providing information that the buyer actually needs.
Tuesday, 5 August 2008
Poll results - who is to blame for housing slowdown
The votes are in and with equal resentment you say the banks and George Bush are responsible for the slowdown in the housing market.
With a massive 60% of the vote each the bankers and George Bush were well ahead of estate agents and the government with only 20% of the vote.
With a massive 60% of the vote each the bankers and George Bush were well ahead of estate agents and the government with only 20% of the vote.
New Poll - are HIPs a waste of time?
Need we say more.
This month we ask whether HIPs are a waste of time, yes or no?
This month we ask whether HIPs are a waste of time, yes or no?
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