Enable's Independent Financial Advisors understand that a home to live and grow in is vital to well being. But making that step up from a first-time buyer to a second home has risen almost threefold in the last decade. And in our experience parents like to help their children take steps forward.
A resent, Lloyds TSB report found the price difference between a typical first-time buyer flat and the semi-detached home desired by many "second steppers" has risen from £14,000 10 years ago to almost £41,000.Researchers said nearly half of first-time buyers live in flats, which average £148,502 in value. The typical price for a semi-detached house, the type of property often favoured by second steppers, stands at £189,312, meaning they face a 27% premium to trade up.Second steppers in the South East face the biggest percentage premium at 52%, equating to almost £85,000 to make the jump to their second home.
Stephen Noakes, Lloyds TSB mortgage director, said: "Second steppers face a number of tough challenges and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home. Parents have long been helping to fund their children's first home but many are now having to provide further support as they move up the ladder."
Enables Independent Financial Advisors can help you or your children to plan for your next big step with mortgage and savings advice.
Showing posts with label house buy. Show all posts
Showing posts with label house buy. Show all posts
Tuesday, 18 September 2012
Tuesday, 12 June 2012
Property investment.....what you need to know
In 2007, property investors had a roller-coaster ride. As a result, many surviving investors gravitated towards the high-end, prime or luxury market, particularly in coveted areas with low supply such as central London. But remember real wealth management can be global and long term. Most financial portfolios will contain some property and at reputable wealth management providers like Enable our IFA’s can advise.
Another part of the world where property is at a premium is Hong Kong which remains the world’s most expensive place to buy a home, and prices have gained more than 78 per cent since early 2009 on record low mortgage rates and an under-supply of new units.
Closer to home – and in spite of the fact that properties worth more than £2m are now subject to 7 per cent stamp duty, a rise of 2 per cent from the Budget in March – the number of transactions in the UK remains largely unaffected. There were 1,518 property sales worth at least £2m in 2011, a rise of 5 per cent from 1,442 sales in 2010 and the highest number in this price bracket since records began in 1995. Purchases of properties topping the £2m mark were also 2 per cent higher in 2011 than at the peak of the housing market in 2007. In addition, the number of properties selling for more than £5m rose by 22 per cent from 128 in 2010 to 156 in 2011, providing further evidence of strength at the top end.
Another part of the world where property is at a premium is Hong Kong which remains the world’s most expensive place to buy a home, and prices have gained more than 78 per cent since early 2009 on record low mortgage rates and an under-supply of new units.
Closer to home – and in spite of the fact that properties worth more than £2m are now subject to 7 per cent stamp duty, a rise of 2 per cent from the Budget in March – the number of transactions in the UK remains largely unaffected. There were 1,518 property sales worth at least £2m in 2011, a rise of 5 per cent from 1,442 sales in 2010 and the highest number in this price bracket since records began in 1995. Purchases of properties topping the £2m mark were also 2 per cent higher in 2011 than at the peak of the housing market in 2007. In addition, the number of properties selling for more than £5m rose by 22 per cent from 128 in 2010 to 156 in 2011, providing further evidence of strength at the top end.
Wednesday, 11 January 2012
So what’s happening in China...
China held its once-every-five-year state meeting on the direction of its financial markets this week-end and the decisions the country’s leaders take are likely to have a large impact not only on their domestic market, but also the global economy so at Enable our experienced financial advisors will be looking at the financial news to keep track of events.
It has long been the case that many of us within the financial sector hope China will continues to liberalise its economy, but that it also takes measures to prevent a domestic economic slowdown that would damage any attempt to stabilise the Eurozone.
According to Yao Wei, a Hong Kong-based economist with the French Bank Societe Generale: “The progression of the reforms will determine whether China can avoid a hard landing in this decade.”
At the last Financial Work Conference, held in 2007, China’ Premier Wen Jiabao expanded the management and use of the country’s giant foreign exchange reserves, setting up the China Investment Corporation which has now one of the largest sovereign wealth funds.
For this years conference there are a number of factors we hope the Chinese politicians and regulators will consider. They lack a strong regulatory framework for local governments and have a shadow banking system, a euphemism for black market lending, that is spiraling out of control, and many businesses need to find alternative financing methods aside from bank credit. Enable reputable IFA’s of Bishop’s Stortford look forward to following events in the Chinese economy for their clients.
It has long been the case that many of us within the financial sector hope China will continues to liberalise its economy, but that it also takes measures to prevent a domestic economic slowdown that would damage any attempt to stabilise the Eurozone.
According to Yao Wei, a Hong Kong-based economist with the French Bank Societe Generale: “The progression of the reforms will determine whether China can avoid a hard landing in this decade.”
At the last Financial Work Conference, held in 2007, China’ Premier Wen Jiabao expanded the management and use of the country’s giant foreign exchange reserves, setting up the China Investment Corporation which has now one of the largest sovereign wealth funds.
For this years conference there are a number of factors we hope the Chinese politicians and regulators will consider. They lack a strong regulatory framework for local governments and have a shadow banking system, a euphemism for black market lending, that is spiraling out of control, and many businesses need to find alternative financing methods aside from bank credit. Enable reputable IFA’s of Bishop’s Stortford look forward to following events in the Chinese economy for their clients.
Tuesday, 22 November 2011
Rental Properties - your rental portfolio
The new from the Association of Residential Lettings Agents (ARLA) states that increased demand for rental property is sparking a renewed interest in the PRS in parts of the UK. If you are looking to invest in property achievable rent levels on residential property have risen in the last six months, according to 60 percent of ARLA member agents, and have outperformed other investment classes consistently for the past two years.
The average period for which a rental property is empty in between lets is just 2.7 weeks per year, down from an average four weeks two years ago. Ian Potter, Operations Manager at ARLA, said: “Three quarters of our members are reporting that demand for rental property is outstripping supply and, with rental returns currently at 5 percent, anyone thinking about investing a property to rent could be well-placed to consider their options in the coming months.”
“Our research shows that prudent landlords are moving quickly to expand their portfolios, with almost a quarter (23 percent) reporting that they have bought properties in the last year. The most popular regions for investment are the North West, Midlands and Central London. In contrast the Rest of London saw the fewest landlords buying property.
Reputable IFA’s like Enable of Bishop’s Stortford could help you look at your investment portfolio with a view to a buy to let mortgage even if it was appropriate to your means and plans. Not everyone is cut out to be a landlord, but at the same time a good letting agent should be able to help you navigate the market should you choose to invest.
The average period for which a rental property is empty in between lets is just 2.7 weeks per year, down from an average four weeks two years ago. Ian Potter, Operations Manager at ARLA, said: “Three quarters of our members are reporting that demand for rental property is outstripping supply and, with rental returns currently at 5 percent, anyone thinking about investing a property to rent could be well-placed to consider their options in the coming months.”
“Our research shows that prudent landlords are moving quickly to expand their portfolios, with almost a quarter (23 percent) reporting that they have bought properties in the last year. The most popular regions for investment are the North West, Midlands and Central London. In contrast the Rest of London saw the fewest landlords buying property.
Reputable IFA’s like Enable of Bishop’s Stortford could help you look at your investment portfolio with a view to a buy to let mortgage even if it was appropriate to your means and plans. Not everyone is cut out to be a landlord, but at the same time a good letting agent should be able to help you navigate the market should you choose to invest.
Safe as houses...
Recent industry data seems to indicate that buy to let property investment continues to be one of the best ways to invest at the moment.
Statistics from the Halifax reveal house prices increased by 1.2 per cent in October with the average home in the UK now valued at around £163,311 and the rental market has continued to go from strength to strength as first time buyers struggle to get on the property ladder.
Almost four million homes were designated in the Private Rented Sector (PRS) in 2010, providing homes for one in six households and the Countrywide agency says rental properties now take an average of just 12.7 days to be let, with an average of five prospective tenants competing for each property.
Ray Withers, director of buy to let experts Property Frontiers, added: “With demand outstripping supply in the buy to let market, those with enough capital to invest in the growing buy to let arena are benefiting from some of the highest monthly returns on record.”
Perhaps unexpectedly the North West has enjoyed a 20 percent rise in rental rates this year alone and in Liverpool demand is outstripping supply probably due to the reduction in home ownership and the number of new homes being built (well below the Government target of 250,000 per annum). Meanwhile, demand for accommodation in and around the city centre also continues to rise as more students and young professionals enter the area.
Independent Financial Advisors like Enable of Bishop’s Stortford can help you look at your investment portfolio.
Statistics from the Halifax reveal house prices increased by 1.2 per cent in October with the average home in the UK now valued at around £163,311 and the rental market has continued to go from strength to strength as first time buyers struggle to get on the property ladder.
Almost four million homes were designated in the Private Rented Sector (PRS) in 2010, providing homes for one in six households and the Countrywide agency says rental properties now take an average of just 12.7 days to be let, with an average of five prospective tenants competing for each property.
Ray Withers, director of buy to let experts Property Frontiers, added: “With demand outstripping supply in the buy to let market, those with enough capital to invest in the growing buy to let arena are benefiting from some of the highest monthly returns on record.”
Perhaps unexpectedly the North West has enjoyed a 20 percent rise in rental rates this year alone and in Liverpool demand is outstripping supply probably due to the reduction in home ownership and the number of new homes being built (well below the Government target of 250,000 per annum). Meanwhile, demand for accommodation in and around the city centre also continues to rise as more students and young professionals enter the area.
Independent Financial Advisors like Enable of Bishop’s Stortford can help you look at your investment portfolio.
Tuesday, 6 September 2011
When to buy a house - Safe as Houses
In the news recently the National Housing Federation’s independently-commissioned Oxford Economics Report predicts: Home ownership in England will slump to just 63.8% over the next decade - the lowest level since the mid 1980s – locking an entire generation out of the housing market. According to a new study, huge deposits, combined with high house prices and strict lending criteria, have sent home ownership into decline in recent years and the downward trend will continue for the foreseeable future.
The Federation warned the housing market will be plunged into an unprecedented crisis as it forecast steep rises in the private rental sector, huge social housing waiting lists, and a house price boom – all fueled by a chronic under-supply of homes.
According to Oxford Economics, who were commissioned to produce the forecasts:
In England, the proportion of people living in owner occupied homes will fall from a peak of 72.5% in 2001 to 63.8% in 2021.
In London, the majority of people living in the capital will rent by 2021 with the number of owner occupiers falling from 51.6% in 2010 to 44% by 2021.
The North East will be the only English region to see any increase in owner occupier numbers over the next decade, rising marginally from 66.2% to 67.4%.
The average house price in England will meanwhile rise by 21.3% over the next five years from £214,647 in 2011, to £260,304 in 2016,
As investors what should you do? If you own a property hold on to it if you have the capital maybe buy to let is not such a bad idea again? Enable IFA's in Bishop Stortford can help you talk through what to do.
The Federation warned the housing market will be plunged into an unprecedented crisis as it forecast steep rises in the private rental sector, huge social housing waiting lists, and a house price boom – all fueled by a chronic under-supply of homes.
According to Oxford Economics, who were commissioned to produce the forecasts:
In England, the proportion of people living in owner occupied homes will fall from a peak of 72.5% in 2001 to 63.8% in 2021.
In London, the majority of people living in the capital will rent by 2021 with the number of owner occupiers falling from 51.6% in 2010 to 44% by 2021.
The North East will be the only English region to see any increase in owner occupier numbers over the next decade, rising marginally from 66.2% to 67.4%.
The average house price in England will meanwhile rise by 21.3% over the next five years from £214,647 in 2011, to £260,304 in 2016,
As investors what should you do? If you own a property hold on to it if you have the capital maybe buy to let is not such a bad idea again? Enable IFA's in Bishop Stortford can help you talk through what to do.
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