05 December 2008 |
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MAKE A HOUSE A HOME AGAIN |
Since the last time we were commenting in the paper at the end of July, the situation has not improved. The Stamp Duty threshold has been increased to £175,000 and interest rates have been reduced. Now we have a VAT reduction to 15%. All of these measures will influence on our spending power and consequently help the property market.
However the main problem at present is lack of confidence.
We all need to have confidence. Confidence in job security, pension funds, banks, mortgage brokers, solicitors and of course your selling agent.
It matters little whether you are selling a piece of surplus furniture, stocks and shares, used car or your home you need confidence in your agent. If you choose the right agent with a sound well established professional business you are likely to receive the correct advice.
At Pughs we have over forty years experience and have seen ups and downs before. We will offer you sound professional advice on all valuation and selling matters, but Banking, well we pass on that subject. If only bankers and lenders would not be so greedy. Too keen to lend an umbrella when the sun shines but take it back as soon as it rains. We work hard for our clients come rain or shine.
We always respect buyers and use our best endeavours to ensure that we find the right property for them. Over the years repeat business from satisfied clients has been our strength.
There could be a lot of sitting on hands if you are not dedicated to continue providing a first class service. It is therefore necessary that when times get hard you have to know your market and work hard to achieve sales through to completion. With the right price tag and a diligent agent with a profession approach, property will still sell.
Some homebuyers have unfortunately been trapped by the UNBEATABLE interest rates and borrowing upto seven times their salary. How can anyone be expected to pay this back if there are any extenuating circumstances? With the fall of some of the largest sub-prime lenders we are just starting to witness the beginning of voluntary repossessions of which there are no doubt more to come.
With a flat residential sales market the letting market continues to be strong albeit at slightly reduced rates on the pre-credit crunch levels driven by a flood of unsaleable properties coming available to rent. We have experienced a fast turn around between availability of property to rent and physical occupation. Not all tenants are renting for a short term, the majority seem happy to sit and ride out the downturn in the economy or at least pounce back onto the property market with their cash in the bank at the first sign of prices increasing again.
It is important that we all learn from this drop in the market and maybe not push the market to cause a collapse. Maybe the banks will moderate lending in order to achieve a steady and sensible market. At the end of the day most houses are homes. They are to be lived in and improved. They are not all there to make a profit from.
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