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Benefit From The New Property Boom

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Make sure you benefit from today’s property market boom!

Yes, you read right, we said today’s property market boom and no, we aren’t mad either. Not since 1995 have the conditions been better for investment into the property market. For the past three months we have seen an exponential increase in the number of distress sellers coming to us wanting a fast sale and prepared to offer dramatic discounts to achieve one. We have calculated that over 1.5% of the entire UK market is approaching us to sell fast which is what we call a boom!

Like the jungle, where there is prey there will also be predators which is why we are being inundated with prospective property investors eager to profit from this rare and temporary opportunity.

You could even say there is a bit of a feeding frenzy going on, it has been hard to keep up with the enquiries from new potential buyers which are coming in at the rate of over a thousand per week. Which is why it is so necessary for us to be able to sort the wheat from the chaff, in other words to establish with a potential purchaser that they are not only serious about buying property but that they also have the means to do so.

Because Choices have been around since 1989, we have been through a major property correction before so we are in a position to compare the current market with the last downturn and realise that the two are very different indeed.

In the first part of the 1989 downturn, literally thousands of properties flooded onto the market, of course they didn’t sell because prices were falling.

The main reason was that in 1989 there was no lettings market to speak of, many people not only found themselves in negative equity, they were also forced to stay put in often unsuitable accommodation (imagine that brilliant one bed flat being not so brilliant five years later when you are married with a two year old child and another one on the way).

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The buy to let finance tap

The reason they had to stay put was because banks and building societies did not offer buy to let mortgages. It was only once it was realised that these people caught in this mortgage trap could be released by allowing them to rent their small flats and buy houses on new mortgages that the market decongested itself and things started to move again.

This whole process took six years to occur, so the market fell from 1989-1995 from where it began its recovery which you could say ended in 2007. In the current downturn, the first thing we notice is the lack of property coming on to the general market (as opposed to the distress market we referred to above) far from coming on in a flood, a trickle is the best word to describe the numbers of new properties being put up for sale.

What this means is that people would rather hang on to their properties if at all possible rather than sell them at rock bottom prices. This urge to hang on is so great that we are even seeing people who have to move renting their homes rather than selling them and then becoming tenants themselves in their new locations.

From a distance it is easy to see how the overall shortage of property has converted demand for accommodation from the ownership to the rented sector. This supply demand imbalance has therefore replaced increased property prices with increased and increasing rents. As the rents go up, so the attractions of buying will become greater, the longer the credit crunch goes on the higher the rents will rise. Eventually money will become more freely available, or the market will find other ways of compensating.

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For example, the biggest drag on sales has been the withdrawal of 100% mortgages and the consequent exit from the market of first time buyers which has in turn has had a knock on effect up the property chain. It is easy to imagine a scenario in which wealthy baby boomer parents decide to give their offspring the deposit they need to get started, particularly if they see prices at a low level and rents at a high one.

If on the other hand, the current credit crisis were to ease faster than is being predicted and there was a return to easier credit, one could predict that with a low supply of property available not able to cope with a sudden increase in demand, that prices would rebound faster than buyers could react.

Add to all this the fact that new building has come to a virtual halt which will lead to even greater supply side pressure down the line and one conclusion comes easily to mind, make hay while the sun shines.

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It's time to make hay

In the midst of all this we are practising what we preach; we are indeed making hay while the sun shines. We are responding to demand by savvy investors by extending and improving our services all the time. For example we have recently gained access to unsold post auction properties and persuaded several auctioneers to consider offers subject to mortgage in certain cases.

If you are serious about buying property as an investment and don’t want to miss out on the current boom in distress sales you need to act now. Becoming a member of Choices Acquisitions starts at £250 plus vat, a very small price to pay in order to gain access to the wealth of information and advice you will receive, not to mention the opportunity to buy property at well below market value and give yourself a head start with your plans to achieve financial security.

Kind Regards

Choices Property Acquisitions & Investments

01342 840 000

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Friend of mine told me that Miami was now at a bottom and now is the time to buy :lol::lol::lol: I soon managed to persuade him otherwise.

Why can't people just accept that it's over. Full stop. HPC is happening, there is a lot further to go, HPI will not be around for a very long time. We will have inflation in the prices of necessities (food, energy) and deflation in the price of non-necessities (housing - as a purchase, entertainment, crap etc,.) How this all ends, I don't know.

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Quote: "In the first part of the 1989 downturn, literally thousands of properties flooded onto the market, of course they didn’t sell because prices were falling."

I had my first house in the West Country in '88 and this is blatantly untrue. Prices were still rising in '89 as people rushed into the market after the double MIRAS warning debacle. They began to fall after that, substantially in 1990 after IR went to 15% plus.

Edited to add: I meant mortgage rates, the BoE rate peaked in Oct '89 at 14.88% (!!). Had to look it up.

Edited by Stourbridge Baggie

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  • 399 Brexit, House prices and Summer 2020

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