I might not be fond of media headlines that are aimed at selling newspapers or securing viewers, but I also know that there are lots of programmes and reports out there that are really helpful to the general public.
Want to know what's worth watching? Visit my views on the current TV programmes and keep up to date with what's on telly daily with our Property Planner!
In the meantime, here's some of this week's best articles (well I think so!)
Telegraph:
Renting property: How much would you pay to rent this home?
Wednesday, 18 February 2009
What is the definition of the 'Property Market'?
Currently, headlines and press releases either say the property market is going to fall by another 30% this year, or that prices will stablise. What's actually happening?
To answer this question we need to understand what the 'property market' actually is. The most regular consumer media reports concentrate on the buying and selling market, reporting the property price reports such as Halifax and Nationwide.
Buy to Let is still written about, and in the current climate, coverage is usually about people who have lost money, rather than those that have made and continue to make a fortune.
Overseas is a popular subject, but this is declining or showing people who have bought second homes abroad 'in trouble' as their purchase or sale has gone wrong due to the credit crunch.
However there is much more to the 'property market' than these three popular subjects. In fact it breaks down into at least 8 key markets:-
Buying and Selling a Home
Renting and Letting
Residential Auctions
Commercial
Land and Self Build
Property Investment
Home Improvement
Overseas
For a monthly update on what is happening in all of these markets, visit our Property Market Update.
No time to visit the update? Here's a brief summary for you:-
Buying and Selling
This is a market that's dangerous to generalise comments in. However, transactions are still down by around half, but signs are, since January 2009 that there are more buyers around, sellers are being more realistic on prices and less properties are coming onto the market, so supply and demand is starting to balance out. Some areas and property types are already showing signs of short supply. However this market cannot recover fully until the mortgage lenders start lending again.
Renting and Letting
This had a storming year in 2008 until October 2009, when too many properties that had been up for sale turned to renting. This caused some areas to go into oversupply and rental income began to fall slightly. However January seemed to generate more interest from tenants and property rental volumes are up, even if rental prices in some areas need to remain competitive to secure tenants.
Residential Auctions
A great market to look at to see what's really happening now and if interest in the general buying/selling market is about to rise. Currently this market is 'flying' with great deals being done, albeit that values are down.
Home Improvement
This market always thrives when people buy properties and when people have tried to sell their property but then decide not to, they normally spend money on their own to improve it. Consequently, sales were down in 2008 and will continue to be low in 2009, however as people decide not to move, there will be some improvement.
Land and Self Build
Residential land sales have declined due to a lack of city bonuses and mortgage lenders tightening up their lending criteria to self builders. However for those with the cash, this is probably one of the best years to self build. Land prices and competition for land has reduced and won't recover while the building industry is on its knees. Workers are readily available due to the lack of industry jobs and materials are easier and cheaper to come by.
Commercial
Despite few headlines featuring commercial property, especially small properties under £300,000, this market has actually performed and suffered more than the residential market! However things are starting to recover as rental income can, in some cases, deliver a higher return than the costs you incur.
Property Investment
This market is currently booming with people buying property at properties up to 50% below their true, current value. Rental demand is up, albeit there is some property oversupply. Meanwhile renovating for profit is a little too tough to predict success unless you are a professional. Property syndicates and funds are giving mixed performances and some investors are looking overseas to investments at land purchase level, rather than buying individual units.
Overseas
This market is suffering on two fronts. Buyers have dried up with the UK credit crunch, while those trying to sell are struggling and have flooded the markets - particularly the sun, sea and sand holiday homes - with stock. This reduces prices and makes it tougher to sell.
On the other hand there is still money to made from emerging markets, as long as people are careful with the investment they are making. Looking for deals that rely on local demand rather than a second home market.
To answer this question we need to understand what the 'property market' actually is. The most regular consumer media reports concentrate on the buying and selling market, reporting the property price reports such as Halifax and Nationwide.
Buy to Let is still written about, and in the current climate, coverage is usually about people who have lost money, rather than those that have made and continue to make a fortune.
Overseas is a popular subject, but this is declining or showing people who have bought second homes abroad 'in trouble' as their purchase or sale has gone wrong due to the credit crunch.
However there is much more to the 'property market' than these three popular subjects. In fact it breaks down into at least 8 key markets:-
Buying and Selling a Home
Renting and Letting
Residential Auctions
Commercial
Land and Self Build
Property Investment
Home Improvement
Overseas
For a monthly update on what is happening in all of these markets, visit our Property Market Update.
No time to visit the update? Here's a brief summary for you:-
Buying and Selling
This is a market that's dangerous to generalise comments in. However, transactions are still down by around half, but signs are, since January 2009 that there are more buyers around, sellers are being more realistic on prices and less properties are coming onto the market, so supply and demand is starting to balance out. Some areas and property types are already showing signs of short supply. However this market cannot recover fully until the mortgage lenders start lending again.
Renting and Letting
This had a storming year in 2008 until October 2009, when too many properties that had been up for sale turned to renting. This caused some areas to go into oversupply and rental income began to fall slightly. However January seemed to generate more interest from tenants and property rental volumes are up, even if rental prices in some areas need to remain competitive to secure tenants.
Residential Auctions
A great market to look at to see what's really happening now and if interest in the general buying/selling market is about to rise. Currently this market is 'flying' with great deals being done, albeit that values are down.
Home Improvement
This market always thrives when people buy properties and when people have tried to sell their property but then decide not to, they normally spend money on their own to improve it. Consequently, sales were down in 2008 and will continue to be low in 2009, however as people decide not to move, there will be some improvement.
Land and Self Build
Residential land sales have declined due to a lack of city bonuses and mortgage lenders tightening up their lending criteria to self builders. However for those with the cash, this is probably one of the best years to self build. Land prices and competition for land has reduced and won't recover while the building industry is on its knees. Workers are readily available due to the lack of industry jobs and materials are easier and cheaper to come by.
Commercial
Despite few headlines featuring commercial property, especially small properties under £300,000, this market has actually performed and suffered more than the residential market! However things are starting to recover as rental income can, in some cases, deliver a higher return than the costs you incur.
Property Investment
This market is currently booming with people buying property at properties up to 50% below their true, current value. Rental demand is up, albeit there is some property oversupply. Meanwhile renovating for profit is a little too tough to predict success unless you are a professional. Property syndicates and funds are giving mixed performances and some investors are looking overseas to investments at land purchase level, rather than buying individual units.
Overseas
This market is suffering on two fronts. Buyers have dried up with the UK credit crunch, while those trying to sell are struggling and have flooded the markets - particularly the sun, sea and sand holiday homes - with stock. This reduces prices and makes it tougher to sell.
On the other hand there is still money to made from emerging markets, as long as people are careful with the investment they are making. Looking for deals that rely on local demand rather than a second home market.
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