Special Edition - Freedom Portfolio

Property News Round-up:
WHAT THE EXPERTS ARE SAYING…

Is your cup half empty or half full?  Are you sitting on your hands or are you going to take a leaf out of Warren Buffet’s book and “Do Something”?!  Something we can all do is watch, listen and absorb the subtle but palpable signs of movement in the property market.  The careful property observer will already be picking up positive signs.  “Unnoticed by most”, reports The Daily Express, “the banks are beginning to lend to each other again”. 

Two weeks ago The Times newspaper reported: “Rightmove, the property website, said that a sharp fall in the number of homes coming on to the market and an increase in interest from buyers meant that an end to the house price falls was in sight - and could happen as early as the end of this year”. 

James Greenwood of Stacks Property Search & Acquisition, writes:

“In our view, NOW presents one of the best opportunities for half a generation to buy property”

Whether an estate at the top of the market, a family home or a letting unit towards an investment portfolio.  There is a widely held belief amongst buyers that, if they wait another six months, property will be cheaper.  But if this is the only reason for waiting, buyers may find they’ve missed one of the best buying opportunities in living history.

He adds, “Buying in a falling market is very different to buying in a market that has leveled off. With house prices having already fallen by 35%, and supply becoming scarcer, I suspect we will see prices stagnate in the very near future. And as soon as the graph bottoms out, the market is going to become a crowded place”.

 “We haven’t seen anything like this for years - it’s probably the best opportunity for a decade”.

Well, he would say that, wouldn’t he?  But look at the numbers:  Rightmove reported a halving of new vendors from 89,000 last January to 43,000 this month.  They also reported 429,560 buyer enquiries in the first two weeks of January, compared with 199,762 over the same period in 2008.  

Cluttons, the London-based agent agrees, reporting the busiest January in five years by the number of enquiries.

Widely renowned as the guru of the mortgage industry and expert on the housing market, Ray Boulger at John Charcol, the independent mortgage experts, says: “It’s not a gamble to buy right now – but it is a gamble to wait right now”.   The dearth of property could translate to an increase in average asking prices in the next few months.

Back in November, Location Location Location’s Phil Spencer says on the programme’s website: “Everybody is looking for somebody to call the bottom of the market. Once somebody says, ‘We’re recovering now’ I think there’ll be an almighty scramble to get involved again. What I’d really urge is: don’t wait for everybody else, if you can find a property that you like, if you can borrow the money you need to buy it, it’s somewhere you can stay in for a long time, it’s a property you can add value to, and it’s somewhere you can adapt to meet your needs as your life changes, and if you can get it for the right price then I’d say just get on and do it”.

GMTV’s Mark Heyes has already called the bottom of the market. 

The Mail on Sunday reports his purchase of “a two-year-old, two-bedroom flat for £98,000 in Ringley Lock, ten miles from the city centre, and three from Bolton. “It was on for £110,000, I initially offered £90,000 and we met near the middle,' says Mark, best known as the onscreen stylist for ITV1's LK Today and GMTV and Channel 4's She's Gotta Have It.

'Manchester was one of the first places to be hit by the property crash so I thought I could make big savings.  I managed to get a tenant in a week and it's rented out for £475 a month. With the BBC's sports and children's departments, as well as 5 Live moving to the city next year, a lot of media types will be looking for this kind of property, whether to rent or to buy..  I think in two to three years' time prices could be back near 2008 levels and that now is definitely the time to buy.'

According to The Daily Mail, Mark Heyes is not on his own.  At the other end of the market Davina McCall has just snapped up a £3.2million property.  According to Land Registry records, the sprawling estate lost 13.9 per cent of its value in the last year, and Davina has taken advantage of falling property prices to buy the new home.  A local property expert said: ‘With recovery starting to show in the property market, now is an ideal time to buy, so Davina obviously decided to strike while the iron’s hot.  This kind of estate is very rare, particularly in such a picturesque location, so I think it will turn out to be a very shrewd investment at just the right time.’

Daniel Lee, Chief Executive of Globrix says:  "Property prices are now very tempting and I am sure many buyers, having delayed for so long, will be closer to making their move.  The next few months could determine the shape of the next few years.  If rates are cut further and mortgage products become more competitive — and there are signs that this is happening — then who knows?”

Still sitting on your hands…?!

 

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The IAP Global Newsletter is for general information only and is not intended to be relied upon by readers in making or not making specific investment decisions.

Disclaimer

Comments made are based on current tax law and may, (in fact almost certainly will), change in the months/years ahead. Material supplied has been carefully checked for accuracy but no responsibility can be accepted for inaccuracies or errors or from subsequent use of this material. Specific professional advice must always be sought based on your own individual circumstances. As always, the buck stops with you. We recommend you take independent advice before making any such decision.

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