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Remortgages The Real Key To Property

June 9, 2009Article by Ray Withers

If you are a sensible UK property investor, in the past you have always ignored the hype and followed the evidence. It’s even more important you do that now – because on the one hand the eternal optimists are screaming out that the property crash is over, while on the other, the pessimists are shouting out to look out for the buffers the runaway property train have not hit yet.

The real key to the market is remortgages are down 63% year-on-year and remortgages unlocked the capital that the Bank of Mum and Dad dole out to give their children a leg up the property ladder. Refinancing is also how most investors raise the deposits to buy more property. The strategy is now out of most people’s reach because falling property prices have eaten in to great chunks of equity that make the properties unmortgageable under the new no-risk lending regime.

The fact is, if you have a squeaky-clean credit record and cash in your hand making up at least 25% of the value and have found a distressed value property you want to buy, and then you might, just might get an elusive loan to finance the rest.So has the property market hit the bottom or is it on a ledge with a way still to fall?

If one of the property gurus forecasting how the market will move now knew, surely they would have seen the slump coming – so you are just left with your own opinion, because in reality no one else knows anything more about what’s going on than the average investor.For below market value property take a look at The Shrubberies Mews Townhouses, Southwark, London – this is another exclusive development of a small, gated community of just eight townhouses from Oxford-based specialist investment consultants Property Frontiers.

The developer is offering a massive £75,000 on the certified valuation – bringing the asking price down to just £300,000.

  • The houses are open plan on the ground floor and have two double bedrooms and a family bathroom upstairs.
  •  Again, they are a short walk from local shops and stations. The City and West End is within easy reach by train
  •  Gross yields of 6% at £18,000 per year are expected from the development. This developer is selling at more or less the price of the land plus building costs to clear the properties from their books. Independent valuers have certified the property prices.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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