| |
| |
|
Nationalrealtyresource.com
|
| Home | Find a topic | Links | Guest Book |
| Welcome |
|
|
|
The Perils of the Property Ladder: Has Anyone Noticed the Silence?
There was a time when every conversation was focussed on property and every other TV programme was about property makeovers. Everybody wanted to get into property and those already on the ladder seemed fixated on becoming wealthy overnight. Remember those media-nominated millionaires who bought property for thousands and sold it for a million? How excited we all were, rich - with hardly any effort. But recently it's been rather quiet. Those who have yet to buy their first home have become sceptical, if not bored by chasing impossibly affordable homes and those who have bought property have become nervous, if not by the commentary that house prices are falling, but by the fact that they have bought property on top of other debts and the realisation that repayments are becoming more difficult. According to the Department of Trade and Industry, bankruptcies are still on the increase, up almost a third on the previous year. In the latest debt statistics by Credit Action, UK economist Vicky Redwood from Capital Economics states that the level of personal debt is at breaking point: "It is unlikely that the numbers have peaked but we estimate that households must be feeling the pain of borrowing too much. People are paying the equivalent of about 20 per cent of their disposable income on interest and debt repayments - the highest since 1990." In a survey by the Citizens' Advice Bureau (CAB), the three most common reasons for debt problems were quoted as: * Sudden change in personal circumstances - resulting typically from job loss, relationship breakdown or illness; * Low income - the consequences of living for a long time on a low level of income; and * Over-commitment - in some cases related to money mismanagement. It is the third reason that is often highlighted in the context of mortgage borrowing. In a press release regarding the Chancellor's proposals to introduce cheaper mortgages, Keith Tondeur, Director of Credit Action warned that: "At first glance the offer of help to first time buyers sounds useful. However this scheme comes at a time when after several years of steep rises the market is cooling. One question that we should be asking is whether this is being done to keep the housing market buoyant so that people feel confident and therefore keep on spending". "House prices are undoubtedly too high for many people to afford which explains why numbers of first time buyers have been falling, with the average age of a first time buyer rising sharply. This scheme could therefore, if care is not taken, create a false market and lead to first time buyers taking on a large amount of long term debt that they could well struggle to repay." The seduction of the property market may cause a vicious circle of debt: if people borrow more than they can afford, they may damage their credit record if repayments cannot be met. An adverse credit record will brand the borrower "sub-prime", and is likely to prompt less favourable credit options later in life. It is true that products such non-standard mortgages, adverse loans and adverse credit cards serve a purpose, but their rates will always be less favourable than standard products. In addition to self-inflicted debt, it is also possible for your credit record to be manipulated by other parties. In June earlier this year, Callcredit issued a warning to guard against identity fraud when moving house. "Homeowners who fail to check their credit file before they move and register themselves on the Electoral Roll once they have moved are at risk from: * Identity fraud - a fraudster could obtain enough financial information about you from your rubbish to run up debts at your old address without your knowledge. People who just cut up cards and don't tell their lender are particularly at risk from this type of fraud. * Credit refusal - a person's credit history has to add up to the lender when you apply for credit, if you don't appear on the Electoral Roll at your current address it will make it more difficult to get credit." If you're thinking about buying a house, try the following sites for starting your own detective work in finding a good mortgage: * Make sure your credit record is in good shape: ( http://www.checkmyfile.com/ ) * Don't be lazy, shop around for the best mortgage: ( http://www.moneynet.co.uk/ ) Make sure you keep your finances flexible; ensure you know what you can afford and for how long you can afford it. What was the best mortgage, current account, ISA account five years ago, may not be performing as effectively now. About Rachel: Rachel writes for the personal finance blog Cashzilla: http://www.cashzilla.co.uk Cashzilla is a personalfinanosaurus. "Rachel" means sheep in Hebrew: "little lamb" or "one with purity". Cashzilla means financially savvy with great fiery ferocity.
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
10 Top Considerations For Those Buying Property Abroad Are you one of a growing number of people considering buying a second home in the sun, an idyllic home from home abroad or a lucrative investment property overseas? If so you're not alone! Statistics show that globally we're all on the move with a recent survey by YouGov revealing that 55% of adult Britons were "seriously considering settling in another country" and the British Centre for Future Studies predicting that by 2020 one tenth of the current British population will be living or working abroad!Add to this the fact that there was a 250% increase between 2000 and 2004 in the number of Britons buying property abroad solely for investment purposes, that over one and a quarter million Brits own second homes in Spain and France already and that the Office for National Statistics in the UK recently revealed that 200,000 Britons go overseas yearly with the intention of remaining for at least twelve months, and you can see that the passion for buying that dream home abroad is universal.But what's fuelling this ever growing interest in the overseas property market?Well, despite reports to the contrary the UK housing market is seemingly ever on the up and those Britons who're acquiring massive levels of equity through their residential property are considering selling up, buying abroad and establishing a pension fund simply on the back of what they have left over from their house sale. Youre Not Paranoid: The House Really Hates You If you've just bought a house, you may be able to relate to a fascinating essay in Maya Angelou's book, Even the Stars Look Lonesome.When Ms. Foreclosure Foreclosure under a mortgage requires a court ordered sale conducted by the sheriff or other court-appointed official. Foreclosure process is called judicial foreclosure. Home Warranties: Are They Too Good To Be True? What is a 'Home Warranty?'A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. Real Estate Investing - Finding Cheap Houses Real estate investing expertise can certainly accommodate the luxury home market. In some ways, the upper end of the housing marketplace produces easier success than the lower end. Investing in Residential Real Estate: Achieving Positive Cash Flow When investing in real estate, it is highly desirable to achieve positive cash flow on a month-to-month basis. This is true even if you are counting on property value appreciation to supply the bulk of your desired return on investment. You Dont Need Health Insurance! Seems almost every situation in our lives is centered on communication. Good or bad, the way we express our thoughts, wants, and needs to each other determines how we live, love, and learn together. A $100,000+ Discount On Miami Condos By this point and time, many people have heard about buying preconstruction condos and some of the amazing profits that have been generated by these investments. What many people don't understand is that there is another way to play the preconstruction investing game, especially for those investors with solid financial resources. Buying a Home with Zero Down Payment in Irvine, CA Years ago, the only person that could buy a home in Irvine with zero down payment using a new purchase money loan were Veterans of War (called a VA loan). In the past several years, there has been an explosion of new loan programs designed to fit most any buyers circumstances. Strata Title Hotel Investments Want to know why Strata Title Hotel Investments can be a "Hell Hole" for the unwary?Hello, Colm here .. Odors Can Make or Break The Sale of Your Home It's amazing how important the sense of smell is to many people. If you're selling your home, and this applies across the board to houses, townhouses, condos, apartments, or whatever, you need to be aware of the power of odors. Why Commercial Real Estate is the Hottest Retirement Asset For small business owners, commercial real estate investment is the hottest new retirement asset. If your mind has already jumped to "REITs" - or shares in Real Estate Investment Trusts - think again. Selling a House is Easy The thought of selling a house strikes fear into most people. The contracts, the legalese, the exorbitant costs - they all conspire to make the experience unpleasant at best, and a nightmare at worst. Advantages to Buying or Owning a Condominium Condos have become an increasingly attractive home ownership option for singles, young couples, families and retired couples (that's just about everybody!). A condo is a viable option for anyone who wants to own a home without the worry of repairs, maintenance and dreaded chores like snow shoveling. What is a Home Inspection? Any Sally and Sam Homebuyer can look at a home and decide whether it is attractive. They might notice it is freshly painted in pleasing colors, has the requisite number of rooms, a cook's kitchen and is located in a location with top schools. Selling Property - Valuing Your Property Selling property privately has many advantages over using an estate agent. However estate agents can provide useful local information not available from the internet. FSBO: For Sale By Owners Chapter IV [part 1] Like a monarch, Red Haring reigned in the deep leather seat of his KenWorth cab-with its king-size sleeper. The 400 horsepower Caterpillar diesel engine droned apathetically as Red downshifted for the parking lot to his favorite Boise, Idaho roadside diner. Juggling The Day With A Deal Doing deals with sellers is why you went into lease purchasing. Again, using organization and time management is very important here. Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. Real Estate Tax Incentives Lower Your TaxesTax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income.
|
| |
| |
|
Home | Guest Book |Site Map | Recommended Resources | Search Powered By: TJTMEDIA |
| © 2006 |
