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MARKET GOSSIP

Higher Rents And Higher Demand Throughout 2011 & 2012
According to buy-to-let lender Paragon, nearly one third of all landlords have increased their rents in response to “significant tenant demand” for rental property. Paragon recently released data showing a growing demand for rental property reported directly from landlords. The group says that private renting is a growing component of the UK housing market and that their data shows there is a need for more private rental properties to meet the growing tenant demand.

Nigel Terrington, Chief Executive of Paragon Group said: “The sector’s importance to UK housing continues to grow as increasing numbers of people opting to rent privately rather than step on the housing ladder. Demand for privately rented property is at an unprecedented level and far outweighs supply.”

Also a recent report in the Independent stated that at present almost one in every six homes is rented. However… 6 out of 10 ARLA (Association of Residential Letting Agents) offices believe that the rise in demand for rental property will outstrip supply this year, causing more landlords to enter the market.

This is great news for landlords because tenants are more likely to stay in their property and according to the RLA (Residential Landlords Association) over half of tenants (52.6%) are expecting to pay higher rental prices over the next 12 months, as stock shortages worsen.

High House Prices “a curse for the young”
Housing minister Grant Shapps has called for an era of housing stability and says it’s “horrendous” that house price growth has way outstripped earnings over the last ten years.

He added that home ownership should no longer be seen as a long-term investment. In a recent interview he suggested that the Government could assist in limiting house prices by supporting home building and called for a “rational” market.

He said that the Government supports peoples’ dreams to buy a home and that they believe a house should be thought of as a home and not necessarily as an investment for the long-term. He added that it is “horrendous”that the average first time buyer is 36 years old before they can purchase a home without the help of their parents. Until then, the options are either living with parents or visits to the letting agents to rent a house.

He said that: “The main thing everyone requires is a roof over their head and when that basic need becomes too expensive for average citizens, something is out of kilter. The answer is house price stability.”

Interestingly, Liberal Democrat peer Lord Oakeshott named our astronomical house prices a “curse for the young”, saying that, “we must end our unhealthy obsession with owner occupation for all” and that we should make renting a house long-term “a flexible, accessible option.”

REAL ESTATE INVESTMENT
If you have some extra cash with you and you are looking for various ways to invest it so that you can get good returns then you should probably go for real estate investment. There is absolutely no other option which provides more yield and return then this option.

The recent recession no doubt has hit the market very bad, still with signs of recovery now being seen in the economy, there is enhanced investor confidence in this sector. Leaving this phase aside, investment in real estate is considered as among the most stable form of investment, if you are able to maintain your property well, these are of great value. In terms of return, you can make a lot of money through this.

The reason why it is considered as a good investment option is because it helps in developing the discipline among the investors. Also, it is something which cannot be liquefied easily. So if you are able to manage the investment properly then you can be assured of earning a stable income. Thus, for many these strategies are effective.
Majority of the times investing in real estate is highly beneficial. As you are aware of the laws of the land as well as the locality, getting into construction becomes much easier for you. If you have some local connection with you then things will becomes a lot easier for you. If you want to go for a real estate agent then there is absolutely no harm in it.

If you invest locally, it will provide you with an opportunity to understand some of the fine nuances of the community. Local investment can work wonders for you. A little research will obviously be good to you. You just need to have the appropriate amount of know how with you, which will help you to understand the property situation as well as market better.

Undertake various researches to solve many problems that help in answering many questions. To avoid any future consequences, you should not negotiate with your real estate agent.

If you want to build a brand new home in your new property then do inquire about the appraisal of the house. If you need any assistance then look for a financial service provider. The housing markets keeps on changing frequently and thus you need to make sure that you remain updated, as far as this sector is concerned.

Article Source: http://EzineArticles.com/6110227

What You Need To Know When Negotiating The Purchase Of A Home
Shopping for a new house is always exciting. However, it can also be tiring and overwhelming. A lot of haggling is usually involved so it’s best to always have a friend with you when you shop.

Buying a house is just like buying any other thing. Before you even start checking out the houses for sale, you first need to set a budget. Aside from the budget, there are also a lot of things you need to know. The more information you have, the better chance you have of getting a great deal.

To help you negotiate for a good price, you need to find out about the market value of the houses in the area. It would also help if you can find out about the difference between the selling price and the acquisition cost of the property you’re interested in.

If you’re not sure where to get the information about the acquisition cost, consult with an expert. Hire the services of a real estate agent. Having a professional on your side can be especially helpful when it comes to putting in a number of bids for new homes.

A real estate agent can help you negotiate for the right price when you buy a house. He can also provide you with information as to how long a particular property has been up for sale. However, there are also plenty of online resources that can give you this information and tell you other history about the property you are researching.

In addition to hiring a real estate agent, there are also things that you can do yourself. To help you negotiate for a good price, check the property very well. Bring a house inspector if you must. An inspector will be able to ensure that there are no major issues to worry about and that the home is safe to live in. He or she can also determine if there are flaws, which could affect the actual purchase price of the home.

If you plan to bring your spouse with you when you shop, both of you must put up a united front. When it comes to the price, discussions between you and your spouse must be kept to a minimum. Don’t let the seller see you arguing about the price.

A seller who is privy to your personal circumstances might take advantage of that information. Never let the seller know what you’re thinking.

Article Source: http://EzineArticles.com/?expert=Randall_Spitz

5 Ways To Find Lease-Option Properties
You’ve decided you want to buy a home creatively and you are looking for a flexible seller that would allow you to buy on a lease-option. Maybe you don’t quite have the 20% down that many lenders are asking for these days. Maybe you had a recent financial challenge that bruised or destroyed your credit and you need time to improve it. Or, perhaps your financial challenge led to a bankruptcy, foreclosure or having to sell your last home on a short sale. Regardless of the reason, you realize that getting back to being a home owner is an important next step and that buying a home on a lease-option is a way for you to do it right away.

Now that you have decided to do it, how do you find a seller that is willing to do a lease with an option to buy? There are 5 ways to find lease-option properties.
Contact Sellers Advertising They’d Do A Lease-Option

The most obvious choice is to contact sellers that are already advertising that they would sell on a lease with an option to purchase or similar flexible buying method. You will find that a large number of the sellers that are advertising and offering this solution are going to be investors. Many of these investors have purchased these properties from sellers on lease-options themselves and are now offering it to you at a higher price and usually higher monthly payment than what they paid by going direct to the seller, but they are often very knowledgeable and easy to work with. Some of the sellers will not be real estate investors, but will be the seller that actually lived in the property and realize the benefits to them and to you of selling to you on a lease-option. These can be great sellers to work with, but many times you will need to bring in a real estate professional and/or a lawyer to help you properly and legally structure the transaction if neither of you are trained and have experience setting up a lease-option.

Contacting sellers that are already advertising is just a small portion of all the sellers that would actually consider selling to your creatively.

Contact Sellers With Properties For Sale
Some sellers that are advertising their properties for sale and do not specifically state that they would consider a lease-option actually would consider it. This is especially true once they have had their properties on the market for a period of time and have not received the offers they expected. If you would like to have a higher percentage of sellers that say they would consider it, call properties that have been listed for sale for 60, 90 or even 120 days. The longer they’ve had their property for sale without an acceptable offer, the more likely they will be to consider something creative like a lease with an option to buy. Also, properties that are vacant where the seller may be making two mortgage payments also tend to more likely to accept offers were you rent the property and can close on the purchase later.

In these cases, you know the seller wants to sell and you are really trying to see if they would consider the lease part of the transaction. In our next method of finding these types of properties we are going to be coming at the challenge from the other angle by finding landlords that have already said they are looking to rent the property and ask them if they would also consider selling.

Contact Landlords With Properties For Rent
Some landlords that are advertising their properties for rent would actually consider or would even prefer to sell the property. Some landlords are only renting because they couldn’t sell their property in a timely fashion and could not afford to make payments on the property while it sat vacant. You can contact landlords and ask them if they’d consider selling the property too.

Have a Real Estate Agent Do The Work For You
Calling sellers and landlords is time consuming even if it is worth it. There are a few great real estate agents that are knowledgeable and willing to do this work for you while representing you as a buyer in the transaction. Some will charge you an up front fee for this type of work that you will often get back many times over by the negotiating and deal structuring experience they bring to your corner by representing you. Some will do it without an upfront fee and will be paid a commission on the sale in the same manner that most real estate agents are paid on more traditional transactions. From my experience, there are probably only about 1 or 2 real estate agents out of 100 that really have the knowledge to work on creative transactions with you, but finding one is an immensely valuable resource that you should rely heavily on.

Marketing To Have Sellers Contact You
Many real estate investors understand the amount of work that is involved with finding sellers that would sell creatively. Many of these investors are willing to put out marketing to have sellers that are more likely to do a transaction like a lease-option contact them directly instead of doing the manual labor of contacting many sellers and landlords. They are often willing to spend $1,000 on marketing to have the sellers come to them instead of expending $1,000 of their valuable time sifting and sorting through sellers and landlords that may or may not be interested. By putting out marketing they end up talking to a very small number of sellers that are already willing and eager to work with them on something more creative in a win-win transaction.

Conclusion
Whether you decide to focus on the easy-to-find already advertised properties or you decide to do the extra work to get what will often be better deals by calling sellers or landlords yourself I think you will find that a little bit of extra work up front is definitely worth the effort as you go down the road of home ownership. Of course, hiring a real estate agent to do the work for you is an easy decision and a smart one. They do the work often for a nominal up front fee or sometimes a fee that comes from the transaction itself. Or, if you’re willing to invest a little money to save yourself time and you want to do it yourself, you can always put out some marketing to get sellers to come to you.
No matter which method you use, I commend you for taking the step to own your own home. Go for it.

Article Source: http://EzineArticles.com/6113866