Can You Afford Your Home Loan?

Or is your Home worthy of the loan?

It seems that Mark Carney, Governor of the Bank of England is keen to correct some mistakes of the past. His proposed cap on home loans may mean that you will undergo strict affordability checks before approval is given.

But whilst the BBC strongly debates the current status of the UK property market (bbc), Dawson & Associates asks a more pressing question.

Not, Can You Afford Your Home Loan? But rather, Is You Home Worthy of Your Loan?

Whilst many people are now fighting to make the most of the widely talked about “housing bubble”, the BBC reports that it could be a dangerous situation to get yourself into if unprepared. We agree that impulse property purchases that are encouraged by a fast-moving market carry a high level of risk.

Campbell Robb, Chief Executive of Shelter states that it is the government not the individual investor who is at fault in the current circumstance.

“Successive governments have failed to build the number of homes we need and now we’re reaching boiling point,” says Robb. He explains that the housing shortfall is what is pushing up the house prices. Therefore, buyers have no choice but to stretch their budgets and act extremely quickly if they are to secure a suitable home or a desired investment.

This pressure of a quick purchase is what often leads to key steps being overlooked in the property purchase process. Dawson &Associates believes that whatever the market, the basic rules remain. Whether you are given a big or a small loan, a government-backed helping-hand or if you just spot an opportunity in a growing market, THE FIRST THING TO DO IS CAREFULLY CONSIDER THE PROPERTY ITSELF!

Dawson and Associates provides accurate, informative reports that are easy to understand and clearly outline whether the potential investment is in a good condition and is legally sound. We can assist you in making the right decision BEFORE IT IS TOO LATE!

Please call us at any time for free initial advice.

For more information, please feel free to contact usdirectly.

Students are the Best Tenants!!

The Telegraph has just reported that students make the best tenants. Some of us may find this surprising. After all, surely they are prone to irresponsible behaviour, house parties, lower hygiene standards and break-ins. Well, I guess those small inconveniences are worth it when the rental yields are so much higher. Also, it is generally the parent that guarantees the rent payment so shortfalls and delays are less likely.

Image and Source Information: GVA Research Report, Who Owns Student Housing?

In general, student rentals start at no less than £100 per week. In London, this of course increases to £178 per week. And with university applications on the increase (3.1% in 2013) these figures are only expected to grow.

But how does one look into purchasing or renovating a property for student let purposes? Importantly, Dawson & Associates reminds you that a House in Multiple Occupancy (HMO) license is required. It means that the property is intended for the residence of 3 or more people who are not from the same household. In some cases, even if the house is small or you intend to home less than 3 people, you may still need this license.

Although obtaining the license should be a fairly straightforward matter, there are restrictions and conditions that must be adhered to. Dawson & Associates recommend professional advice on these matters if you are to save time and expense. With a professional eye, it is easy to see whether a property is suitable… AND whether it is likely to provide good return on your investment.

If you get it wrong, not only will rentals be harder to come by but the fines can be up to £20,000 so a little planning from the start is very worthwhile.

Having been in the property business since 1970, Dawson Surveyors’ services are not only knowledgeable and reliable but also very conclusive. It is essential that any property project is undertaken considering all building, conversion, legal and financial aspects. We offer free initial advice that will help you to decide whether to take a potential property investment any further.

For more information, please feel free to contact usdirectly.

Property Construction Projects that Add Up!

It is reported that a villa construction featured on C4’s Grand Designs 10 years ago is now available for sale at £5,000 less than the build cost. This is shocking news for other budding property developers who may feel that the current and much property celebrated boom/ bubble is a fine time to look to invest in projects from the ground upwards.

http://www.telegraph.co.uk

The question must be asked…

Should a property built from scratch provide significant profit margins at time of resale? And is it worth the effort required?

Dawson & Associates provide both expert design and construction services. We are also independent chartered surveyors and therefore have expert knowledge as to the value and condition of a potential project. Only with this professional advice can you be sure that you are making the right decisions.

Your potential building project should be considered in terms of all exterior and interior requirements. Required building licenses should also be thoroughly investigated. It is important to be clear about what your project would involve from the very outset. For example, is it…

•        A conversion
•        A change of use
•        A refurbishment

Or will it require additional:

•        Maintenance works
•       Disabled adaptations

Setting a realistic budget is essential but the hard work really begins when you are expected to keep to that budget at all times. Costs can escalate from the smallest items, such as door-stops to huge issues such as uncovering areas of damp.

In general, the properties featured on Grand Designs are said to have made a pleasing profit. Savills have blamed the disappointing financial loss of this particular property on uncertainties in the Scottish market that would, therefore, not affect the rising cities such as London or Bristol.

Please contact us at any time for a free consultation onyour property project.

Will Sealed Bids Help or Hinder UK Property Purchases?

The Telegraph reports this week that with the UK property market showing signs of the anticipated property boom coming to fruition, sealed bids might be the fairest way forward for prospective buyers.

This fingernail-biting process functions on secrecy. It means that the interested parties write down their offer and hand it over without any knowledge of what other interested parties might be prepared to pay.

What are the upsides for the purchaser?

The highest offer may not be the one that is accepted as the bidder is given the opportunity to provide details of their buying/financial position (speed and solidity of the offer will play a part in the decision-making process).

Your offer should be one that you have carefully considered to be within your reach. Sealed bids should mean that you are making a carefully considered offer that you can afford based on your current circumstances.

What are the downsides for the purchaser?

Sellers don’t like any offers that are “subject to…” so you need to be 100% sure beforehand that you are happy to progress. It is essential that a thorough property survey is carried out prior to the submission of a bid. Do not let the pressure over-rule good judgment and make an offer that hasn’t considered the possible requirement for future construction or maintenance works.

Sealed bids do involve a lot of game-playing. You don't want to act too quickly, nor too late if you are to get the best response.

Dawson Surveyors are property professionals and are therefore fully qualified to provide independent advice and valuations on your prospective property. We help you to make the right decisions.

Contact us now.

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