Then I read the end for real estate investments in the UK, I see the headlines, as you might expect and a 10, 20, 40% drop in market value of homes in the coming weeks. All experts say that the British economy is in crisis, we can go into a recession and interest rates should be reduced. I wonder, are the same experts that have claimed last year that the economy was overheated and inflation was a problem and we had a spectacular rise in interest rates.
I do not claim to be an economic expert, but I think the end result will not be as bad as people think, are things rarely as good or as bad as that policy makers would have us believe.
But what about the current state of the property market in the UK? There is a demand for single family homes at competitive prices and affordable housing under £ 90,000 the development of well designed. Above average apartment price is still hard to sell, the developers cut their prices drastically. However, this is probably less with the market and more to do from the design.
Some developers have great difficulty selling their homes. However, well designed and competitively priced developments are sold. What will be difficult to sell poorly designed developments with poor development of presentations more intensified.
I have some sympathy for the developers here, as it the last drops of high land consumption and values squeeze through planning policies to achieve high density housing is required. Yes, yes, it seems UK developers produce expensive slum in the future. Normally these types of property are not purchased by individuals, but are supported by housing associations.
It is hardly surprising that these developments of high-density housing will be rejected by the home buyers. The last straw is usually high maintenance costs by nearly 20% are used on the mortgage, to buy these properties.
As an alternative to the apartment two bedroom properties are more popular than flats. In recent years, many planning approvals have been revised to reflect the changing requirements and planning for the re-design offers half on some Web sites are not uncommon.
We read the headlines, the housing market collapses. Therefore, any logically sensible developers will be taken off the market? Perhaps to some extent are developers continue in their plans for the future, but the number of planning applications has not decreased significantly in recent months and is usually the same as last year. The granting of planning permission does not necessarily lead in the design, but there is no evidence of a significant loss of confidence.
It might be useful to say that things have cooled and a good dose of realism came to the market, but it’s not a bad thing, given the huge rise in property prices in recent years. Ultimately, there is an enormous range of goods, so it is not very favorable for a majority of the population.
So, what are the long-term prospects for the housing market in the UK? Price Water House Coopers search with various scenarios, a growing market in a declining market. I think the most likely outcome is that some short-term reduction in property prices and a recovery in the coming years. Therefore, a huge collapse of the market may be unlikely, and certainly not at the level below the first quarter of 2006, the prices, but certainly there is little reinforcement of the potential capital value of properties in the UK in foreseeable future. Income first-time buyers must make up the current rate of pay rises, which could be up to 10 years for real estate in the UK, so affordable in price relative to income, as it was in 1997.
So, although the UK market is unlikely that it hardly has a sparkling reduce investment opportunity, but a perfect time for those who want to buy a house. In every market there are good chances and developers will continue to make good. Developers or renovators poor of the existing property will not be secured by a rising market when they make their development right.
So what are the alternatives for real estate investors? places to see are the growing economies, Brazil, Peru, China, Russia and other parts of Eastern Europe. These countries are currently in remediation and natural capital on the backs of their growing economies.
Russia is developing rapidly and have good properties, has increased ten times in the past four years. The wages should continue strong growth and rising prices.
What is the country with the strongest growth since the house price last year? Bulgarian property prices have risen 30% this year since EU accession in January 2007. Foreign Investment in the low prices attracted foreign and Bulgarian workers forced to send home salaries to Western economies are property values.
This market has changed somewhat in recent years, the proportion of buyers from the United Kingdom in particular looking for cheap properties for serious investors looking for high quality properties in good locations. The upward trend in house prices in these countries should be continued.
