People have always managed to adapt to the current situation in which they found themselves. Regardless of the shifting elements to cause new adaptations, with the passage of time anyone can find the perfect solution through which to survive. With the recent decline of the economy, it was visible that more people had to adapt to new situations in a variety of domains. One of these is the real estate market. The financial instability brought many problems for this domains, as the prices fluctuated between high and low points. The point reached now in terms of houses is probably viewed differently by all people. This is because the actual effect of the prices of the houses reflects in a way on those who have money and in another way on those who simply do not have anything. Therefore, the initiation of a new trend, that of renting houses, was no surprise to anyone. People adapted to the impossibility of paying for houses and of obtaining mortgages, by deciding to rent houses instead.
With the new trend of renting houses come numerous modifications to the usual ways we were used to. For example, people are bound to move a lot more now that they do not have the stability of their very own property houses. There are advantages and disadvantages which surface from the practice of renting houses. The advantages are that anyone can have a home without needing massive amounts of money. They can change the place they live in when they want and how they want. The disadvantage of not actually owning a property is shadowed by the many more benefits to surface out of renting. Next to the fact that the financial power of most people is really low, these negative aspects and issues tend to be ignored by many, as there is nothing else better. This new trend of renting houses is not for everyone and most will deny its existence. However, it is a trend created by young independent people, who have new mentalities and who will create whole new concepts around the idea of living.
Even though as a direct consequence of the economical crisis, house prices have shown the tendency to decrease and buyers numbers have not grown. Specialists say that the main reason why the number of house buyers in the United Kingdom remained low is linked to the harsh criterions imposed by lenders when offering loans. And since first time buyers are not able to raise the needed sums of money to be able to buy a property and have to take money on loan to make such an important investment, there is no wonder that the number of transactions closed on the houses market has decreased.
It seems that starting with the middle of April 2012 things are going to change, as the market is showing sings of revival. So, although houses prices have only increased slowly, specialists say that this evolution will produce positive results on the general economy. In February 2012, the typical houses price showed about 0.3 percent rise, compared with the figures of last year. The average price in this period of time was £166,916 for a typical house. The increase registered now actually followed a 0.5 percent fall, registered in houses costs in January 2012. However, you should keep in mind that these houses prices statistics vary from one region to another, being just average figures when referring to the United Kingdom.
For instance, the highest rise in houses prices was registered in Scotland, established at about 1.1 percent. In most regions within England, the rise did not surpass the percentage of 0.5. The biggest rise in England was naturally registered in London, the capital of the country. Despite this general evolution, which is considered to be a positive one for the general economy, European economists are still skeptical when it comes to the evolution of houses market in the United Kingdom. Most economists agree that house market activity is still low, compared with long term expectations. Still, indicators suggest that houses market may be on the right path and at the same time this fact is sustained by the prognosis which show that mortgage availability is expected to increase.
In 2010 and 2011 was a fall in the houses price, so the entire housing market had problems across UK. Although this year in March houses prices jumped and there were sold many, there are still dark clouds over this field. Economists have predicted though that houses pricing will rise by 15 per cent over the next five years, but still there are others who have a different opinion and who do not trust this forecast too much. They say that this is actually the start of a slow crash that it will not be observed by many. Nonetheless, experts claim that the houses prices will grow from 2012 to 2016 by 15%, but the pricing will be 10 per cent lower than the middle of 2010. Moreover, experts claim that the prices will be flat in 2012, there will be a 3 per cent decline this year and houses will not dip by more than 5 per cent.
Those who will want to move from their houses, will have problems as it will be expensive. There will be a stand-off between buyers and sellers, the first ones trying to rise prices and the second part to cut them. Many people ask themselves if it is reasonable to buy houses in this period of time. The houses market is still fluctuating and many of them do not know what to do, being confused about what is happening. Experts claim that if people will find a good deal and a great rate, buying houses now is a wise decision.
The reasons consist of great mortgage rates with a 25% deposit, good rates for people with 15 per cent and 10 per cent deposits. The decision to buy or not houses also depends on how long buyers plan to own the property. Buyers should also take into consideration if they will use the houses as an investment or as a home. Moreover, they should ask themselves if the houses they want to purchase suit them and if they can pay them.
As financial problems still affect many people, flipping houses are a way of making money. Flippers will have profit and also the possibility to benefit from amazing deals. They buy run-down houses, fix them and resell for a higher price and great profits. Flipping houses is one of the most popular methods of making money. If on the way of rebuilding run-down houses will be a few mistakes, this will influence the final price and so, the profit. It is very important to make the right decisions at the right time. There were created regulations for flipping houses within by the Department of Housing and Urban Development.
Sometimes, there can emerge conflicts between a mortgage originator, a closing agent and a real estate appraiser, but there are also cases of illegal flipping houses. Spotting the opportunity is one of the best ideas when flipping houses. This is a popular phenomenon in the London market and there are different opinions about this field. Flipping houses is fine if is done properly. It is true that illegal things happen, but there are also people who make great profit the right way. Generally, it is perfectly legal to flip houses, but it can also be risky. One of the main tips is to find a property that can be bought at one price and make sure you can convince someone to buy it for a higher price. Additionally, one of the tricks is to change the house by buying a property at auction, as well as finding an undervalued property.
There are lots of opportunities around, so pay attention and to speculate. It is also important to focus on the area to understand its values and potential. The best thing is to look for old houses, with cosmetic problems, faded, ugly or with a chipping paint. These problems solve very fast and easy. Moreover, take into consideration houses which smell bad inside, have stains on the wall and carpet and have holes in the walls. Stay away from major remodelling and structural problems as it will cost you very much.