Q&A: How to manage your property finances after the credit crunch
The credit crunch has had a big impact on the property markets and has created both challenges and opportunities. One of the biggest frustrations which it has resulted in has been the lack of mortgage availability for even buyers with a relatively good financial record.
Property expert Nicholas Leeming gives his advice:
For those looking to buy a home now could be a good time if you can get your finances in order.
There is a large stock of property for sale and, as the months progress, there will be more vendors prepared to discount their guide prices. This cycle in the market brings opportunities for buyers who understand that the long term fundamentals of property ownership remain positive, even if short term comment in the press is negative.
So what should you do if you want to buy a home and make the most of this opportunity?
First of all get your own property (if you have one) valued and be realistic about the net proceeds that this will realise. It is a brave person in any market who commits to buy without having agreed the sale of their own property first, so look at renting as an interim solution. Then do your research on what funding options may be available to you. If you need a mortgage then spend time in looking at what offers are out there....but it is not just the rates that you should check, it is the terms such as the deposit and income cover which can be just as important. With satisfaction on this front you should be ready to start your search.
Needless to say the internet is one of the most efficient ways of finding property and is the best research tool.
When looking at property think carefully about how the building society or bank will look at it for security purposes and will an independent valuer confirm the level that you are proposing to bid. Also will the lender require additional work to be done to the property which may be expensive to carry out. Without a mortgage offer being confirmed you may not get very far with your purchase and you may land up with some hefty abortive costs!
The general advice to property buyers in the light of the current credit crunch is to do you homework in advance and be sure that you do not expose yourself to unnecessary financial risk. There are opportunities in the current market as well as challenges....make sure that you make the most of it!
