It can be difficult to predict what the future holds for the property market. Investments in property has seen a positive year where the number of properties for sale and property prices have stayed fairly stable despite these uncertain economic times. The Bank of England's base rate is expected to stay at 0.5 per cent as it has done throughout 2011. If this remains the case it will help to keep the housing market stable.
Those looking for BMV type properties, need to research the area for their property investment. Areas hardest hit by recession are unlikely to see lots of people willing to move and, whilst there may be properties for sale you need to consider whether you will get a return on your investment. Other areas of the UK, particularly the South East and London are likely to hold their prices well due to higher employment levels and more amenities which make an area more attractive to buyers.
Despite the weak economic growth expected and mortgage pressures experts predict some good points for the year ahead. With fewer and fewer new homes being built the low supply with high demand of new home seekers will help to keep the property prices stable. The current low mortgage rates are ideal for property investment; it also means that home owners are using less of their disposable income to pay their mortgage. This means that there are less forced house sales due to people not being able to keep up repayments on their mortgage; this is the most common cause of properties being sold at BMV. An increase in forced sales is usually one of the causes in falling house prices and an increase in BMV properties.
In the coming year there is unlikely to be an increase in the number of first time buyers. With rising unemployment and many facing an uncertain financial future many people are being put off investing in their first home, choosing to wait until their own futures are more certain. Therefore those looking for property investment or overseas properties are unlikely to face much competition for property with more BMV properties available.
Should the problems with the European economy worsen with prospects of a second recession for the UK, our economy will also get worse along with a fall in house prices. This property price fall will mean that it is likely that more properties will be sold at BMV, particularly if the number of forced sales increases.
The economic problems faced by Europe may cause the UK to go into a second recession. Should this happen a fall in property prices is likely as financial insecurity increases. Some experts have suggested the fall in value may be around five per cent, others slightly more. If this happens, the amount of BMV property is likely to increase as people find it harder and harder to sell their properties due to low buyer confidence.
Many people will be put off buying UK and overseas properties due to the economic situation and the high deposits required from sellers. This in turn will create more BMV properties. For those with financial security along with mortgages available at low rates, it can be an ideal time for property investment.
With sellers unwilling to drop prices and buyers able to cherry pick from a range of properties and unwilling to pay over the market value, many property sales are at a stalemate. If the area is not right then the houses are sitting unsold. If you are looking at buying a property at BMV you need to be sure that the property would eventually sell at a higher price than that which you paid for it. Whether you are looking for UK or overseas properties you should also consider the length of your investment. With prices static it may be some time before you see a return on your investment.
Those looking for BMV type properties, need to research the area for their property investment. Areas hardest hit by recession are unlikely to see lots of people willing to move and, whilst there may be properties for sale you need to consider whether you will get a return on your investment. Other areas of the UK, particularly the South East and London are likely to hold their prices well due to higher employment levels and more amenities which make an area more attractive to buyers.
Despite the weak economic growth expected and mortgage pressures experts predict some good points for the year ahead. With fewer and fewer new homes being built the low supply with high demand of new home seekers will help to keep the property prices stable. The current low mortgage rates are ideal for property investment; it also means that home owners are using less of their disposable income to pay their mortgage. This means that there are less forced house sales due to people not being able to keep up repayments on their mortgage; this is the most common cause of properties being sold at BMV. An increase in forced sales is usually one of the causes in falling house prices and an increase in BMV properties.
In the coming year there is unlikely to be an increase in the number of first time buyers. With rising unemployment and many facing an uncertain financial future many people are being put off investing in their first home, choosing to wait until their own futures are more certain. Therefore those looking for property investment or overseas properties are unlikely to face much competition for property with more BMV properties available.
Should the problems with the European economy worsen with prospects of a second recession for the UK, our economy will also get worse along with a fall in house prices. This property price fall will mean that it is likely that more properties will be sold at BMV, particularly if the number of forced sales increases.
The economic problems faced by Europe may cause the UK to go into a second recession. Should this happen a fall in property prices is likely as financial insecurity increases. Some experts have suggested the fall in value may be around five per cent, others slightly more. If this happens, the amount of BMV property is likely to increase as people find it harder and harder to sell their properties due to low buyer confidence.
Many people will be put off buying UK and overseas properties due to the economic situation and the high deposits required from sellers. This in turn will create more BMV properties. For those with financial security along with mortgages available at low rates, it can be an ideal time for property investment.
With sellers unwilling to drop prices and buyers able to cherry pick from a range of properties and unwilling to pay over the market value, many property sales are at a stalemate. If the area is not right then the houses are sitting unsold. If you are looking at buying a property at BMV you need to be sure that the property would eventually sell at a higher price than that which you paid for it. Whether you are looking for UK or overseas properties you should also consider the length of your investment. With prices static it may be some time before you see a return on your investment.
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