photo credit: eNil

If you’re hoping for a major drop in the price of property abroad, you could be in for a long wait. That’s the claim made by one overseas property expert, who believes that UK buyers have high expectations that property prices in foreign climes will fall, but are going to be disappointed when they don’t.

“The current credit crunch is giving the UK buying public expectations of dramatic price reductions, but this is a misconception with the overseas high end market,” said Serge Cowan, managing director of Unique Living.

“The world is a big place, the UK market - although important - is not essential, so buyers holding back or expecting major price falls in overseas property hot spots (marketing at £500,000 or above) are going to be disappointed.”

Instead of pinning your hopes on unrealistic aims, Serge suggests that buyers would be wise to look to regions where growth is still strong. “Even though they may lose on the conversion, they gain on the capital growth,” he explains.

One region he highlights as being a good example of an area where there are prices for all budgets, plus steady capital growth and good possibilities for renting is the French Riviera. The Cannes Film Festival and the Monte Carlo Grand Prix alone bring a multitude of wealthy people desperate for accommodation.”

Technorati Tags: real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

photo credit: ceonyc

Today the BBC is running a story about a mortgage broker called Isah Attayi who has been banned by the Financial Service Authority (FSA) for trying to fraudulently obtain mortgages for both himself and his clients by exaggerating his income.

In February, the Council of Mortgage Lenders (CML) warned of the scope for fraud by unscrupulous professionals in the property industry who tried to cash in on the demand for newly built city-centre flats.

As a property investor this is something that you at the very least need to be aware of. You will probably be in contact with a number or mortgage brokers that you use on a regular basis. Mortgage brokers tend to be like the sea, which comes in and goes out with the tide. This means that they all are good on their day – then their not so good, then they are good again.

Mortgage rates and deals change all the time. Suddenly one broker has a product from a lender that can’t be got elsewhere – because it’s exclusive. That’s why serious property investors use a bunch of brokers.

So why do you need to be careful? Many brokers fill out the forms for the applicant. If you’re a big investor this is a service you will insist on, otherwise you might as well apply for the mortgage yourself, after all – who wants to spend their life filling out forms? So you need to be absolutely sure that the information they fill out about you is exactly right and consistent. People make mistakes, they forget, they don’t understand.

Imagine for a second that you send the office junior out to get sandwiches and your only instruction is ‘get me anything but nothing that contains nuts’. The chances are you’ll be the one with the peanut butter and jelly sandwich.

Technorati Tags: mortgage, mortgage finance, mortgage fraud, business, real estate

photo credit: Chrispitality

I read this article today in the Telegraph about how the top end of the new homes for sale property market is alive and kicking. Apparently its revival is only paralleled by the top end ‘Super House’ buying that last occurred in the 60’s.

So why is this? When the man in the street is feeling the pinch, the super wealthy are out spending money like it’s going out of fashion. I suppose the keyword is credit. Most of us use credit in some form or other for everything from buying the groceries to holidays.

This means that the moment interest rates change, 99% of us are affected, and if the interest rate moves north – we all have to tighten our belts. This doesn’t apply to the super wealthy – because they don’t live on credit – which is probably a lesson to us all.

It’s a lesson that it’s taken me a long while to learn, but I think I’ve got it now. The ease with which we obtain credit makes us by things that we would never buy if we had to pay with cash that we saved.

As property investors we need to be much more thrifty and careful with our money. It’s a valuable lesson that we can learn from the Asian Community who don’t generally waste money the way the rest of us do.

When I look back at the money I’ve wasted over the years on credit and credit cards, I could retire. My advice – a) stop wasting money on things you can’t afford, b) use the credit crunch as a massive lesson that will make us all change our behavior and c) save your money – then buy a big house for cash. Then you’ll be credit crunch proof.

Quite how that all fits in with OPM – Other Peoples Money – I’m not sure as when it comes to a credit crunch it appears that it’s best to use your own.

Technorati Tags: UK property, UK real estate, real estate, real-estate, homes, new homes for sale