Can We Get Real About U.k. Real Estate?
Because many UK real estate agents have inflated opinions of the value of some properties, local real estate is not faring well, at least according to a UK real estate report. Sales are down near 50% which means the price of homes for sale is falling. Another factor that’s contributing to this growing downward tendency is that many sellers tend to have an inflated idea of what their properties are worth and for this reason, they reject larger numbers of offers. The difference ranges up to about 30%. A seller who’s offering £100,000 for a UK Real Estate property and receives offers in the range of £70,000 is highly likely to reject them.
Sellers Are A Major Part of the Problem
The recent decline, which is occurring after over 10 years of rising prices, makes it difficult for agents, real estate brokers and financial institutions to convince owners that the values to their properties are less than they were a year ago. The decline is as steep as 20% every year. Many real estate services experts say the seller has to change: “Sellers have to understand they can’t price a property beyond what the market will bare. Not if they want to make the sale.”
Even the Most Expensive Properties Are Not Immune
Another shocking aspect of this trend of UK Real Estate is that even high-end properties designated as “super prime” are not immune. A super prime property is one worth more than ten million pounds. Every real estate agent knows that even foreign investment isn’t helping. Super prime owners are renting rather than selling, which places a glut on the rental market, pushing rental prices down.
Lenders Are Partially to Blame
Rising mortgage rates are making things worse. Consumers aren’t seeing the benefit of falling interest rates, and in fact often see loan rates rise. The banks say all the other banks are raising rates, so they can’t lower theirs. Despite this, lenders like Lloyd’s TSB and Barclays’ in fact raised the Bank of England’s new lower rate. Whether or not this is true, it’s still bad news for real estate in the U.K. And it’s even hurting news for consumers who are seriously looking to buy Real Estate.
Property Management Corporations Can Assist You
For those who don’t get maximum benefit from property investment clubs, they can always turn to property management corporations as another option. The chief benefit seekers get from these companies is the rental real estate investment experience. The rental property game offers great rewards…but some risks, as well. Both residential and commercial real estate are parts of rental investments.
Posted on: Monday, January 12, 2009 at 2:58 pm 
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