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Archive for August, 2015

With Twelve Would Be Buyers Chasing Every Property For Sale How Do You Make Sure You Are First In The Queue?

Monday, August 24th, 2015

The demand for property has never been higher; agents across the country are reporting fewer properties coming onto their books. Competition between investors and wannabe home owners is leading to price spikes, gazumping and even contract races.

So how do you make sure that you are first in the queue when it comes to securing the property you want?

1. You must have your finance in place. Before you even look for a property shop around, find out how much you can afford to borrow and get a mortgage agreement in principle. Get it in writing so you can show it to estate agents.

2. Get a good solicitor in place. You need to be able to demonstrate that you can act quickly as soon as your offer is accepted.

3. Don’t make silly offers. Vendors know that prices are on the rise and will not be minded to accept low offers – in fact low offers often offend. So do your homework, check out on the property web sites how much similar properties are going for and offer a sensible price.

4. Make a friend of the estate agents. Don’t do everything on-line. You want to get to know the agent so that they will alert you to every new property that comes onto the market. Take the time to go into your local estate agents or those local to the area you want to buy in. Take your mortgage in principle and your solicitor details, even your savings statement to show you have the deposit and are able to move quickly.

5. Scour the local papers to see whether any property is being advertised privately. I bought my first house this way.

6. Be pro-active, if you see an empty property that isn’t on the market, pop a note through the door with your details and ask them to call you if the property comes up for sale.

7. Contact the probate department of local solicitors – they often have property to sell on behalf of their clients and you may get something before it comes onto the market.

8. When you view a property don’t make disparaging remarks in front of the Vendor or their estate agent. Always be polite. The home owner isn’t going to choose you over someone else if you have been rude about their home.

9. View everything that comes onto the market in your price range – you never know what you are going to fall in love with.

10. Above all don’t dither, if it’s the right property then make an offer, put it in writing and make sure the estate agent or Vendor has your contact details. Follow up your offer the next day and every day until you hear whether it’s accepted.

Interest rates – will they or wont they? Rise that is.

Tuesday, August 18th, 2015

stock-exchange-680579_1280The shock spike in inflation from 0% to 0.1% has led to speculation that a rate rise could be upon us as soon as early 2016.

Interest rates have now remained stable since March 2009 and many in the property industry are predicting a rate rise in the first quarter of 2016.

Hargreaves Landsdown senior economist Ben Brettell says: “The rise in the core (inflation) figure suggests that underlying inflationary pressures could be building in the economy, and is possibly the clearest indication yet that the Bank of England might have to raise interest rates sooner rather than later”

With many borrowers still on favourable base rate or tracker mortgages the question is whether to jump to a fixed rate now or hold on for another six months.

Some banks have already begun to withdraw their lowest-interest mortgage deals in anticipation of a rate rise, which has led to an upturn in re-mortgage applications.

However, as the lower, more attractive mortgage deals disappear, so do new buyers – nervous of all the talk of rate rises many home movers are sitting on the fence waiting to see what happens.

The general consensus is that when mortgage rates do begin to rise it will be slowly and steadily, with any temporary disruption to the property industry levelling out quickly as demand for home ownership continues at an ever increasing pace.