Wednesday, January 27, 2010

UK Property Market Outlook

So I read it in order for real estate investments in the UK, I see the headlines and you wait for a May 10, 20, 40% fall in the value of the property market in the coming weeks. All the experts say that the British economy is in crisis, you can go into recession and interest rates should be reduced. I wonder are the same experts who said last year that the economy was overheating, inflation is a problem and we had a dramatic increase in interestrate.

I do not pretend to be an economic expert, but I think the end result will not be as bad as you think, things are rarely good or bad, as the owner of authors would have us believe.

But regarding the current state of the housing market in the United Kingdom? The apartments are still a demand for family accommodation at affordable prices and competitive under £ 90,000 for the development of well designed. Above the average price of apartments are still hard to sell, developers are reducing theirprice increase. However, it is probably less to do with the market and more to do with the design.

Some developers have great difficulty in selling their property. However, well designed and competitive price are the sales growth. What becomes increasingly difficult to sell poorly designed with the concepts of development of poor design more intensified.

I feel a certain sympathy for the developers here, as they have to squeeze every last drop of value from the highlands andapplied for planning policies to achieve high density housing. Yes, in fact, it seems that developers in the United Kingdom producing expensive neighborhoods in the future. Usually this type of housing are not purchased by individuals, but are made by housing associations.

It is striking that these offers of high-density apartments are rejected by buyers of real estate. The high cost of maintenance is generally high, the addition of nearly 20% in the upper part of the loan to buy the common elementsproperty.

As an alternative to home ownership two bedroom apartments are more popular. Recently, many planning approvals have been revised to reflect changes in demand and planning for the re-presentations of work by the middle of some sites are not uncommon.

So read the headlines that the housing market is collapsing. Therefore, any logically sensible developer should then be withdrawn from the market? Perhaps, to some extent, developers are seeking more in their futureprojects, however, the number of applications for development has not reduced significantly in recent months and is generally the same as last year. The issuance of the permit are not necessarily the result of the construction, but no sign of a significant loss of confidence.

It might be reasonable to say that things are cooling and a good dose of realism is to enter the market, but it's not a bad thing, given the huge increase in property prices in recent years years. The fundline is that there is a disposition of property, is just not very convenient for large segments of the population.

What are the prospects for longer-term housing market in the United Kingdom? Price Waterhouse Coopers has conducted several scenarios for research, a growing market in a declining market. I think the most likely outcome is that some price reductions in the short term and then retrieve the property for years to come. Therefore, a huge drop in the market canunlikely, and certainly not to a level lower than in Q1 2006, the price, but certainly there is little potential for property values to increase the capital in the United Kingdom for the foreseeable future. Income first-time buyers need time to recover at the current rate of wage inflation, which could take up to 10 years for property in the UK to be more accessible in terms of prices compared to income, as it was in 1997.

Thus, while the United Kingdom market is unlikely that the collapse of investment is unlikely to offer a needleopportunities, but a perfect time for those who want to buy a family home. In every market there are opportunities and good developers will continue to do well. Developer poor or restoration of existing assets will not be saved by a growing market, if they get the wrong development.

What alternatives are there for real estate investors? Places to look are the growing economies, Brazil, Peru, China, Russia and other areas of Eastern Europe. These countries are also naturalis undergoing redevelopment and investment in the back of their growing economies.

Property in Russia is booming and good have increased tenfold in value over the past four years. Salaries are soaring and the price growth is likely to continue.

What was the country with the strongest growth in house prices last year? Property prices in Bulgaria rose by 30% this year, since it joined the EU in January 2007. Foreign investment is attractedlow prices and Bulgarian workers abroad who send high wages in Western economies are forcing property values.

This market has changed a bit 'in recent years, particularly from the United Kingdom in search of buyers of cheap goods for serious investors looking for a high value of quality properties in areas well. The price of the house upward trend in this country seems to continue.

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