According to recent figures from the Nationwide House Price Index, prices are rising at their fastest rate in three years; a 0.4 per cent rise in May was followed by a 0.3 per cent rise in June and the year-on-year rise is 1.9 per cent.
Brian Murphy of the Mortgage Advice Bureau (MAB) offers a good summary, ‘Homeowners will be delighted to see a third month of house price increases in Nationwide’s figures. Potential buyers will be comforted by the fact that mortgage rates are still heading in the opposite direction. As property becomes more desirable by the week, falling fixed rates mean they can still enjoy exceptionally low interest on their loans for increasingly long periods of time.’
‘This golden age of rate reductions is coaxing more borrowers through the door and, with the guidance of specialist brokers, there are plenty of favourable deals to help them contend with rising prices – especially as lenders are playing their part with some offering low-product fees. The onus is now on the government to put more faith in property and act now to increase housing supply.’
The Land Registry is providing its historical ‘price paid’ data records available free-of-charge. ‘The downloadable information will give users access to one of the world’s largest property datasets, consisting of prices paid in over 17 million residential cash and mortgage sales in England and Wales.’
‘The first phase, released on Friday, includes records of sales at full market value lodged for registration between January 2009 and January 2012. The remainder of the data covering the period January 1995 to December 2008 will be released by November. Collectively, this represents over 17 years worth of ‘actual’ information on the country’s housing market.’ Visit LandRegistry.gov.uk to find out more.
Aldermore’s 75 per cent loan-to-value, two-year fixed rate BTL mortgage product is now available at 3.98 per cent. The 80 per cent LTV product is available at 4.48 per cent. Limited edition term variable rates are also available as part of the buy-to-let range at 3.98 per cent for up to 65 per cent LTV and 4.28 per cent up to 75 per cent LTV.
Saffron For Intermediaries has reduced the rates on its Buy to Let Light Refurbishment mortgages. For landlords buying or remortgaging a property which requires refurbishment work to be undertaken before being let, highlights include: rate cut from 5.89 per cent to 5.23 per cent (SVR minus 0.16 per cent), for two years from completion: available to 75 per cent LTV of the end value of the property, up to £500,000: for purchase or remortgage: 2.5 per cent arrangement fee and 2 per cent ERC in the first two years. As always, talk to your broker.
We’d make an educated guess that for every 100 Brits buying in the US, some 60 to 80 of what we’d call amateur investors (i.e. they buy one or two starter units) go to Florida, and, as often as not, Orlando. According to data from Florida Realtors, the market is on the move.
‘Home sales continue to increase, it’s taking less time for sales to close, and median sales prices are on the rise. This (June) is the seventeenth month in a row that we’ve seen the statewide median sales prices increase year-over-year for both single-family homes and for townhome-condo properties.’
‘The numbers continue to move in the right direction. We remain concerned about the rise in the percentage of sales accounted for by all cash buyers. These numbers understate the true condition of the market in that a great many sales are conducted directly with the financial institution holding the property and thus do not appear in the Multiple Listing Service. But those crying doom-and-gloom who read this growth in investor activity as the sign of a new bubble are far off-base and simply don’t understand the texture of the current market.’ More to come.
We say it time and again; when investing overseas, do think ahead, looking at as many ‘what if?’ scenarios etc as you can think of. Take Singapore as an example – very popular with some members. Its central bank has set new rules so that (local) borrowers can use only 60 per cent of their monthly incomes to service borrowings.
So what? Doris Tan, Head of International Residential Sales at Jones Lang LaSalle says, ‘The impact (on the local property market) will be great as there is a large number of people who want to be owners of private residential property. However, with the introduction of a lower overall quantum and more difficulty to qualify for a loan, it will definitely affect sales of both local and overseas properties.’ Food for thought? Will local buyers be pulling out of those ‘luxury’ two bed apartments that overseas buyers go for? Which way for prices then? Who will buy from you when you want to exit the market?
Have to say we have lost count over the past decade of the number of investors who have pulled out of a deal at a late stage because their budget did not extend to cover closing costs. Checking should be part of your early-stage due diligence.
Knight Frank’s latest Buying Costs report sets out the purchase costs and annual charges for a non-resident buyer purchasing a new-build property above US$3m (£2m) in 15 global cities. Okay, it’s not in the ballpark range of most IPA buyers but it makes interesting reading nonetheless. Non-residents can expect to pay 25 per cent on top of their purchase price when buying a $3m home in Hong Kong, for example. Check before progressing!