Tag Archives: united-states
A strong pound is encouraging British investors to buy abroad, it is claimed
A strong currency in the UK is encouraging property investors to buy real estate abroad with some 46% keen to take advantage of the current state of the Pound, new research suggests. The survey has found that 23% of respondents are considering buying property abroad in the next 12 to 18 months due to the stronger economic climate for business and residential lettings in foreign countries. The study, commissioned in the aftermath of the Conservatives securing a majority in the recent general election, shows how a combination of financial factors are persuading property investors that now is the time to seek opportunities abroad for higher returns. Almost a quarter (23%) of respondents are considering buying property abroad in the next 12-18 months due to the stronger economic climate for business and residential lettings in foreign countries. The poll commissioned by FXcompared Intelligence, the research division of money transfer comparison site FXcompared, also found that Conservatives winning the general election is also a significant factor with 20% stipulating this as a prime reason for buying abroad. Other key influences include easier access to mortgage funding, cited by 22%, while some 16% said changes to UK Stamp Duty and property tax, 14% access to pension funds and 12% better mortgage deals abroad. The poll also asked what type of properties investors were interested in and found that 19 are looking to invest in multiple properties at one location, while the same number think coastal locations offer the best return on investment. Also 25% are now focusing on bigger properties as they seek to capitalise on the current opportunities in the market especially as a stronger pound has made it more affordable. Better weather is still the main lifestyle factor when considering foreign property ownership, mentioned by 48%, but 42% said it was how easy the location of the property is to reach while 21% mentioned finding an up and coming area. ‘With unprecedented opportunities for overseas buyers given the low euro, property investors believe they can get more bricks and mortar for their money abroad. 'Over the next 12 to 18 months we could see a trend among residential and commercial property investors, focusing heavily on major European countries such as Spain, Portugal, Italy and France,’ said Daniel Webber, managing director of FXcompared. ‘Aside from the financial reasons for pursuing foreign property ownership, lifestyle choices are still playing a big role too, with better weather and transport links major factors when choosing where to buy investment property,’ he added. Continue reading
Cash sales of homes in the United States falling, latest figures show
Cash sales made up 34.6% of total home sales in the United States in March 2015, down from 39% in the same month in 2014, according to the latest data available. The year on year share has fallen each month since January 2013, making March 2015 the 27th consecutive month of declines, the report from real estate form CoreLogic shows. Month on month the cash sales share fell by 2.8% compared with February but the firm pointed out that due to seasonality in the housing market, cash sales share comparisons should be made on a year on year basis. The cash sales share peak occurred in January 2011 when cash transactions made up 46.5% of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25%t. The report predicts that if the cash sales share continues falling at the same rate it did in March 2015, the share should decrease to 25% by the middle of 2016. A breakdown of the figures shows that real estate owned (REO) sales had the largest cash sales share in March 2015 at 56.2% followed by resales at 34.5%, while short sales accounted for 31.6% and newly constructed homes 14.9. While the percentage of REO sales that were all-cash transactions remained high, REO transactions made up only 8.4% of all sales in March. In January 2011, when the cash sales share was at its peak, REO sales made up 23.9% of total home sales. Resales make up the majority of home sales at about 80% and therefore have the biggest impact on the total cash sales share. Florida had the largest share of all cash sales at 51.8 followed by Alabama at 50%, New York at 46.5%, New Mexico at 42.2% and Michigan at 41.3%. Of the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured by population, Philadelphia had the highest share of cash sales at 60.7% followed by West Palm Beach-Boca Raton-Delray Beach, Florida at 59.9%, North Port-Sarasota-Bradenton, Florida at 59.5%, Cape Coral-Fort Myers, Florida at 59.3% and Miami-Miami Beach-Kendall, Florida at 58.3%. The data also shows that Colorado Springs had the lowest cash sales share at 16.1%. Continue reading
New homes in UK seen as cramped and of poor quality, new research has found
The UK government has pledged to build hundreds of thousands of much needed new homes but it seems that this is not what home owners want with the majority preferring older properties. People think new homes are too small, characterless and of poor quality with new research finding that just 21% would actually buy a new build and 47% want a home that is 10 years old or older. The survey carried out for the HomeOwners Alliance found that 38% think that a low standard of build quality is the main disadvantage of a new home. A third were put off by the size of rooms and other dislike included the lack of character and smaller gardens. ‘We need more new homes, but they have to be homes that people want to live in, not homes that are quick, easy and cheap for house builders to throw up,’ said Paula Higgins, of the HomeOwners Alliance. ‘What we need to solve the housing crisis are quality homes of character and space, and challenge the housing industry to deliver. After the war, they built homes fit for heroes. All we want is homes fit for home owners. Homes shouldn’t be built just for a quick profit, but to last for generations to come,’ she added. There are however, positive aspects to new homes, the research also found. For example no old pipes on show and no hidden problems. And half of people believe the biggest benefits of a new build were the low maintenance costs and better energy efficiency. Kim Vernau, of BLP insurance, which funded the research, said that there is reasoning behind the perception over quality. ‘With activity in the construction industry on the increase as local authorities and developers attempt to meet the housing shortfall, there is a real risk that building standards will slip,’ said Vernau. ‘Consumers want peace of mind and reassurance that the home they are purchasing is fit for purpose and built to last rather than simply chasing a house-building statistic,’ added Vernau. Official figures show about 120,000 homes were completed last year, an increase on 2013 but still only half the 240,000 experts say are needed to deal with the UK’s chronic housing shortage. The Government has pledged to ease the supply shortage by building 200,000 cut-price starter homes. Prime Minister David Cameron said first time buyers under 40 would be able to buy these houses at a 20% discount to ensure everyone who works hard can have a home of their own. Continue reading
