No matter what social occasion you find yourself at this week, sooner or later someone’s going to bring up the issue of house prices.

It seems to be a national obsession. When they were going up, those who already had a house were rubbing their hands in glee at the thought of all the money they had already made, while those who hadn’t yet bought looked on in despair.

And now prices for countrywide property are levelling out a little, homeowners are a bit less smug… while the poor first time buyers just keep scanning local newspapers and property portals, in the vain hope of one day spotting a cheap property.

The reality is that even with prices slowing down, property is incredible expensive in the UK.

A new piece of research released in the last week by RICS, the Royal Institution of Chartered Surveyors, shows that the affordability of property has gone down by a staggering 351 per cent in the last 12 years.

The reality is that affordability problems are at an all time high, affecting countrywide property. A couple who are on a low wage – known as lower quartile where the household income totals £26,595 after tax – currently have to spend an average of 40% of their household income, just to pay the mortgage.

This is just under the record of 47.8% which was set in the first quarter of 1991, but still higher than is comfortable for many families.

And the situation is worse if you are a first time buyer. To get on the property ladder, a lower quartile couple will have to save up to 104% of their joint take home pay.

To make that figure seem more real, that means saving just under £28,000 for the up front costs of buying a house. That includes the deposit, fees and stamp duty.

Of course, this is a national piece of research, and figures will vary across countrywide property depending on the local markets. But it still makes scary reading, especially if you are looking for your first home and only have a few thousand pounds put aside.

Let’s take a closer look at the RICS figures for countrywide property across the UK. Unsurprisingly, London is still the hardest place for a low income couple to buy a house. And when you’ve bought your home, you have to spend just over 50 per cent of your monthly income paying the mortgage, according to the figures.

The situation isn’t much better in the south east and south west, where couples still have to save more than 100% of their combined take home pay to buy property.

In the north east the percentage of salary needed to pay the mortgage each month drops down to 29%.

So what effect does this have on countrywide property repossessions? As you would expect, RICS expects them to continue to rise. It believes that throughout 2008, 123 homes a day will be taken back by the lender.

There is one piece of relief on the horizon that could have a positive effect on mortgage payments. It’s looking likely that the Bank of England will lower interest rates later this week.

In fact it’s virtually guaranteed. The Monetary Policy Committee that looks at all the economic factors each month is due to meet on Thursday.

It made a cut in December. And a Reuters poll of 60 economists last week predicted another cut being “almost certain” this week. It’s thought the cuts are necessary to stop an economic slowdown from turning into a proper recession.

Whether you’re trying to get your first home or just pay the mortgage on your existing one, that’s sure to be a relief.



Repossession

There could be numerous reasons why you might need to get a quick sale on your home. However your options for selling quickly are somewhat limited. You could try to sell by advertising the property yourself or you could out the sale in the hands of an estate agent. Either of these options will usually provide anything but a quick sale. Your home could be on the market for many months, thats even if it sells at all. Of course you will have had to payout fees to put your home on the market with an estate agent and these do not come cheap.

There is another option that can guarantee a fast home sale and that is by looking online with a specialist company that offers to buy your home for cash and to provide a sale that can take just a couple of weeks or less. With such a company you could apply online using the form provided and after leaving just a few details we will get back to you with a quote as to how much we would pay for your home. If you are happy with the deal and we are too someone will value your home and then provide a written quote. You could then have a sale and get cash in hand from the sale which allows you to get on with your life.

One of the many circumstances that you might be able to benefit from a quick sale is if you are going through a divorce. Divorce is a very stressful and life changing thing to deal with especially if you have to sell the family home due to having to split the sale proceeds between the partners. If this is the case things can be a whole lot easier if you can sell the property quickly and then set about rebuilding your life. However when selling this way if one partner wanted to remain in the property they could choose to look at a sell to rent option which would allow you to sell and then rentback.

You might also need to sell your home quickly if you are emigrating and wish to leave with cash in your pocket from the sale and with no loose ends that would mean you having to come home to tie them up. By selling to a company offering a quick sale you would not have the worry of paying out to put your home on the market with an estate agent and having it stand there for many months. You would know within 24 hours whether this was a suitable option for you to take.

You could also take a quick sale this way if you wanted to get your hands on a large cash sum and do not want to take out a loan or you were not able to get one. You could choose to sell your home quickly to free up the equity in it and pay affordable monthly rent that would allow you to remain in the property as a tenant with the option of being able to buy back in the future.



Sell House Quick

Secured loans can be an efficient short or long-term funding solution for UK homeowners. If you are in need of money and have equity in your property, you are eligible to apply for a secured loan. Secured loans are sometimes called “second mortgages” as they rank after your mortgage as security to the lender. Secured loans must be registered as a Charge on your property title at the Land Registry.

Why seek a secured loan rather than an unsecured loan?

The strong growth in UK house prices over recent years has meant that many homeowners have built up substantial equity in their properties. Secured loans are simply a flexible way for homeowners to release some of this equity. Compared with an unsecured loan, a secured loan has a lower interest rate as you are putting your home up as security. The lender will be very confident that the loan will be repaid. Another advantage is that secured loans offer more flexible terms of repayment than unsecured loans. For example, the loan term can be for a longer time period enabling your monthly repayments to be kept down. Secured loan terms can be from 3 to 25 years – it can sit alongside your mortgage if you wish or you can pay it off sooner. If you’re in need of a large sum of money, a secured homeowner loan can range from £5,000 up to £1 million. Unsecured loans are normally capped at £25,000.

What can I use a secured loan for?

A secured loan can be used for any purpose. A secured debt consolidation loan can help you refinance expensive debt, such as credit cards or bank overdrafts, on to a much lower interest rate. A secured home loan can be used to finance substantial home improvements to add value to your property, such as an extension or a new kitchen.

Why choose a homeowner loan rather than a remortgage?

A mortgage is your cheapest form of borrowing and if you want to raise a significant amount of money it is therefore logical that you should first consider a remortgage. However, your current mortgage may be arranged on advantageous terms or have an onerous early redemption fee. Redeeming your mortgage may just not make financial sense. In these circumstances it may be wise to leave your mortgage alone and use the flexibility of a secured loan, especially if the interest rate is only a little higher than your mortgage rate. Finally, a secured loan can be completed in less than 20 days – somewhat faster than a remortgage – and at a lower cost. Remortgaging normally requires that you pay certain fees, such as a discharge fee, a valuation fee, a title insurance fee or an administration fee.

Can I safeguard my loan or mortgage payments against unforeseen events?

You can take out payment protection against specific events, such as unemployment, sickness or disability through Payment Protection Insurance (PPI). Remember that PPI is not always suitable for your individual circumstances and independent advice should always be sought before buying this product. Should the insured event take place, the policy will cover your payments for a fixed period of time, such as 12 months. You should also consider buying sufficient life assurance such that in the event of the death of the household’s main bread-winner, the loan or mortgage will be paid off by the insurance company.

How can I apply for a secured loan?

You have the choice of going direct to the lender or going to an intermediary, usually a finance broker. If you have shopped around and know what you want, you can apply direct to the lender via phone, internet, post or walk into their branch office. If you prefer to seek the advice of a finance broker you may benefit from their expertise in deciding what product and which lender is most suitable for you. This will be particularly true if your circumstances are unusual and you require a specialist product. It is also possible that a finance broker can find you a better deal as some products are only available through intermediaries.

How long does the secured loan application process take?

Depending on circumstances and personal needs, you may obtain a secured loan within 2-4 weeks. But, of course, each case is different. Normally, the consent of the first mortgage lender is required to register the secured loan on your property title and so the lender is unlikely to proceed before consent is obtained.

What factors may negatively influence the secured loan application?

When you apply for a loan it is normal that you will be asked to consent to a search at a Credit Reference Agency, such as Experian or Equifax. The purpose is to avoid fraud and for the lender to assess your credit worthiness. Some factors may have an adverse effect on the secured loan application, such as:



Bankruptcy or Individual Voluntary Arrangement

Low income or self-certification of income

Mortgage or rental arrears

Frequent job changes

Frequent address changes

High indebtedness

Court judgments



But even with a poor credit record, you have a good chance of obtaining a secured loan providing you have plenty of equity in your property. However, you may be asked to pay a higher interest rate if your credit score is low.

Is it important to seek independent, impartial advice?

There are literally thousands of loan and mortgage products available. As we only tend to purchase financial products infrequently, you will not know which products are available or suitable without a serious research effort. For this reason, we believe that most people should seek independent, impartial advice, especially as mortgages and secured loans normally represent a substantial commitment. This should not cost you any more as the advisor is normally paid directly by the lender.

What are the drawbacks of a secured loan?

Although there are many benefits of a secured loan, there are some drawbacks that should be mentioned. In cases where a borrower fails to repay a loan, the property could be taken into possession and sold. Borrowers can also be tempted to borrow large sums for long periods without appreciating the commitment to repay a significant amount of interest, even when interest rates are low.

For more information, please visit http://www.burtplan.co.uk



Repossession

You have probably heard the buzz words “buy-to-let” recently. So many people are deciding to try their hand at renting property as an investment.

The problem is that most of them don’t know how to go about this the right way.

Times have changed and investors need to learn new strategies to experience success. The good news is that I’m going to let you in on an important secret. You can use this information to turn your rental properties into a lucrative investment.

Are you curious yet?

Well, read on

First, I’m going to discuss some of the current changes in the 2007 buy-to-let market.

I know you’re anxious to find out the secret, but I don’t want to make it too easy. Besides, it’s important to know about these changes; they play an important role in the world of buy-to-let investing.

The current high property demand has been influenced by the following factors:

High European Divorce Rates

Fragmentation Of Families

Property Shortage

Increasing UK Population

Less Council-owned Properties

Mobile Workforce Expansion

Huge Increase In Immigrants From EU Countries

Very Low Interest Rates

More Lenders Offering Buy-To-Let Mortgages

This has resulted in a huge increase in the price of UK property. In fact, prices actually doubled from 1998 to 2002!

Renting property as an investment also involves many costs such as maintenance, service charges, furniture, property tax, tenant deposit schemes, property management and buy-to-let house insurance. Every investor who chooses to play the buy-to-let game has to pay these costs.

So what is the main difference between successful investors and ones who fail?

Location! Location! Location!

I can’t emphasise this point enough. Many people purchase local property for convenience. Unfortunately, this isn’t usually the best choice.

Experienced investors are more interested in an area where the numbers stack up for the investment rather than owning a property near to where they live.

So what’s the big secret?

Consider investing in Northern England and Scotland!

The reason is simple: prices in these areas are currently below the national average with yields of approximately 7-8%.

In this part of the country property is still affordable for first-time buyers.

Also the enlargement of the European Union has fueled demand for rent. A large number of people from Central and Eastern Europe have recently moved to Scotland. As you can imagine, this is great news for the buy to let investor as demand for property exceeds supply, fueling the capital growth.

Did you know you can still buy a one bedroom flat for 45,000 pounds with a rent of 300 pounds per month giving you a healthy return of 8% yield.

I have personally moved all my property portfolio from the south of the country to the north because of the high capital growth anticipated for at least the next five years.



Passive Income

Property like always has been an important source to support life in any form. It supports life not only in the direct form but also in the indirect form. The direct form of the property would include property consumption as residential usage in form of houses, apartments, floors, villas and various other structures that are employed in the form used to living. The next form is the commercial usage, which is used for carrying any trade in form of warehouse, trade, office purposes and other forms that can be used with the motive to earn profits. However to perform all the above tasks one needs to posses land or the property. With the increasing rates and the time of recession has prevented people to consider huge investments or even any investment in property or otherwise. Hence there is an alternative proposed by the experts or people with the space in form of property called as Rent. To is now an alternative that everyone who needs the property being considered in across various fields.

These fields extent themselves from the residential to the commercial form, and to do so one can contact various property brokers and agents that are in the market with the expertise helping the clients find the right property for their needs. They also specials in dealing with the renting contracts, these contracts range from a yearly base to the bi annually based. While renting the house with the owner, the client needs to fix various rules and regulations that abide the renter in the course of stay with them. These norms may range from the usage of the property like not nailing on the walls, painting and paying for the damage created by the renter during the stay in the property. Restrictions of parties and other things that may harm the rights of the owner or the property while it is being rented to the renter in the due course of time of stay in the property. While these are the rules that abide the residential property there are4 different rules that abide the commercial property, while renting a commercial property the renter faces a contact that is typically only for an year which can be considered to extent after the completion of an year. Various rules and regulations that may imply to the commercial property are, in course of ceiling or any other problem related to business creating problem to the property would be handled by the proprietor. As on leaving the property the paint and the other repair charges are owned by the renter and among various others rules that the owner and the renter can think of while they get into they contact with each other during renting of the property.

To make the contacting even more smoother there are various agents and brokers that have appeared in the market helping the easy transactions of the property on rent and are aware about the contracts that exists between them while the parties get into relating for property between each other. Another factor that one might keep in mind is the advance that the owner demands in the course of renting to make sure that any harm caused to the property is recovered from the advance, which is usually an amount resulting to the two months of the rent. Keeping all these regulation no doubt the rent of property in India has created and bless to the people who cannot buy the property and help them serve all the purpose that they would want with out paying a huge amount that cannot be afforded.



Repossession

Hey, wait a minute! In recent months, the national media has dwelled on the collapse of the subprime mortgage market and the surge of foreclosures. But there is another side to this story that should also be considered.

The Mortgage Bankers Association recently released its National Delinquency Survey and the numbers are not what you may think. True, the rate of loans falling into foreclosure last quarter was the highest in the survey’s 54-year history. 8.4% of subprime loans were more than 90 days late or already in the foreclosure process. That statistic is sobering, but it misses the point. If 8.4% are seriously delinquent or in foreclosure, 91.6% of the sub-prime borrowers are current with their loans and making their mortgage payments on time. They are enjoying the benefits of home ownership. Those borrowers were given the opportunity to own (rather than rent) because of the availability of sub-prime loans and have successfully taken advantage of that opportunity. For them, the “American Dream” has become a reality.

Of course, 8.4% default rate is high, but unanticipated financial problems happen. After all, people don’t buy homes, take out loans, and then intentionally default. Usually something serious happens to disrupt the natural process. Commonly, it is loss of job, divorce, medical catastrophe, or some other unanticipated financial emergency that causes people to default. Keep in mind, though, you don’t have to a sub-prime borrower to have financial problems. Prime borrowers also default on their loans and lose their homes in foreclosure (no one is immune in this market). Sure, the percentages are higher for sub-prime borrowers, but they are typically in a more vulnerable financial situation. Of course, they have a higher interest rate and pay a larger mortgage payments every month, so cut them some slack. Regardless, the solution is not to cut-off subprime lending, but rather to embrace these borrowers’ unique needs. Particularly now, lenders need to offer delinquent homeowners programs to restructure their loans and avoid foreclosure. Let’ look at why.

Delving deeper into the MBA survey, we discover several surprising facts. For example, the surge in sub-prime foreclosures last quarter was driven by four large states, California, Arizona, Nevada, and Florida. If it were not for the avalanche of foreclosures in those four states, there would have been an overall drop in the rate of foreclosure filings nationwide. Thirty-four states actually reported a decrease in the rate of new foreclosure foreclosures in the last quarter, and the remaining states (other than those four) reported only a modest increase.

There is also a wide divergence between fixed-rate and adjustable-rate loans. The delinquency rate for prime fixed-rate loans was essentially unchanged from the previous quarter and the rate for sub-prime fixed rate loans actually fell! In contrast, the rate of delinquency for prime adjustable-rate mortgages increased 36% and sub-prime adjustable-rate mortgages increased 227%.

Clearly, adjustable-rate mortgages (“ARMs”) are the culprit and present a unique problem. But there is nothing wrong with ARMS, provided they are utilized responsibly. They have benefits you can’t find with fixed-rate loans. They have lower interest rates and correspondingly lower monthly payments. They allow borrowers to qualify for loans they would not otherwise receive (of which the vast majority successfully pay each month). Plus, it just doesn’t make sense to obtain a 30-year fixed rate loan, when in reality most people sell or refinance their homes every 5-7 years.

Nationwide, California leads the way with over 17% of all sub-prime adjustable rate mortgages. Similarly, California has over 19% of the foreclosures for sub-prime ARM loans. In fact, the same four culprits; California, Nevada, Arizona and Florida, have more than one-third of the nation’s sub-prime ARMs, more than one-third of the foreclosures started on sub-prime ARMs, and most of the nationwide increase in foreclosures.

Another factor to consider is the distinction between owner-occupied and investor (non-owner occupied) borrowers. A majority of the delinquencies and foreclosure starts can be attributed directly to non-owner occupied loans. This is because investors are notorious for defaulting on mortgages when the market dips and they see the value of their properties evaporating. Further exacerbating the problem, investors’ share of defaulted loans was 32% in Nevada, 25% in Florida, 26% in Arizona, and 21% in California. Yep, those same four states. Those rates are high compared with a rate of only 13% for the remainder of the country. And those percentages will certainly increase as property values continue to decline.

One more thing. The media has been quick to blame mortgage brokers for “forcing” borrowers into sub-prime adjustable-rate loans. I laugh every time I hear that. Anyone who has ever been a mortgage broker knows that you can’t force a loan on borrowers, prime or sub-prime. It doesn’t work like that anymore. Homeowners are more sophisticated than ever before. They have access to the internet, television and the mass media, and analyze available loan programs. They understand the difference between fixed-rate and adjustable-rate loans, between amortized and interest-only payments, and between “stated” and full documentation. They shop and explore alternatives. Ultimately, they select the loan they want, not their mortgage broker. Regardless of what the media says, that process works successfully for the vast majority of American homeowners.

All tolled, the sub-prime mortgage crisis is bad, but not nearly as bad as the media would have you believe. If you dig deeper into the survey, and segregate the four problem states, subprime ARMs, and investor loans, you will discover that with the vast majority of American homeowners, default and foreclosure are not issues. At least not yet.



Quick House Sale

llowances are typically a part of the expatriate package. Although in the past companies would cover the entire rental amount, the trend now is for expats to be allocated a certain percentage of the total yearly accommodation cost, with the balance being paid for out of their salary. Other fees to bear in mind when renting include a security deposit, possible car parking fees, monthly utilities, municipality charges (typically 5% of the lease), and a 5% commission fee if the services of a real estate agent are used. Maintenance of the property are covered by the landlord. Tenants are not allowed to make changes to the structure of the property inside or out without the permission of the landlord.

Moving to a foreign country can be intimidating and finding the best place to rent can be daunting. Dubai’s expatriate community is steadily increasing and demand for rental properties is high. Unfortunately for tenants, this has resulted in skyrocketing rental costs. About half of UAE residents spend about 40% or more of their salary on accommodation expenses. Despite the costs, most expatriates, mainly in the UAE for short-term work contracts, opt to lease rather than invest in the real estate market. To the relief of many of those looking to rent property in Dubai, the government has imposed legislation stipulating that any rent increase shall not exceed 7% of the annual lease price. There are also several new property developments underway that should take some pressure off the market in the near future.

The lease will often be made up between the landlord and the renters company/sponsor. If an expat signs the lease himself he must have a residence visa or at least a letter from his employer stating that a visa is in process. The normal duration of a lease is one year. Unlike in many other countries where rent is paid on a monthly basis, Dubai’s entire year’s rent is paid upfront, most commonly with 4 or 3 checks. For example, in the case of bi-annual payment, the first 6 months of the lease are paid for immediately with a current dated check, while the remainder of the year is paid for with a post-dated check. (Short-term furnished monthly accommodation in Dubai is available but it is often more costly.) It is important to understand that once the lease is signed, the tenant is tied to the contract. In order to terminate the lease the tenant would need permission from the landlord. That being said, the rental laws in Dubai actually favor tenants. Landlords cannot force a renter to leave without a very good reason (such as wanting the property for their own personal use). Even if the lease is only for a year, as long as the tenants do not break any aspects of the contract, the lease is presumed to be renewable. The Municipality has a special section in place, the Dubai Rental Committee, to oversee any disputes between landlords and tenants.

After cost, location is usually the biggest decider in determining where to rent. Dubai is split in two by the Creek with Deira (or “Old Dubai”) on one side and “New Dubai” on the other.

The decision for where to rent is based on factors including accessibility to work, schools, shops and hospitals. Some of the most popular locations to rent include:

* Bur Dubai: located near Bur Juman Shopping Center and offering reasonably priced apartments.

* Downtown Deira: reasonably priced low-rise apartments are readily available in this neighborhood, although if work or schools are located on the opposite side of the creek the traffic can be a nightmare.

* Satwa: a nicely located area situated between Sheikh Zayed Road, Bur Dubai and Jumeirah, offering low-rise apartments and reasonably priced villas.

* Garhoud: located near Dubai International Airport and offering low-rise apartments and townhouses at reasonable rents.

* Mirdiff: a newer development consisting mainly of villas located past the airport.

* Jumeirah / Umm Suqueim: is ideally situated near the beach, parks, and schools, this is probably the most popular area for the European and Local communities, offering upscale villas and townhouses.

* New Dubai Developments: including The Greens, Arabian Ranches, The Lakes, The Meadows, Emirates Hills, and Dubai Marina and located near Dubai Internet City. Many offer gated, family friendly communities with access to swimming pools and other recreational amenities.

Those searching for Dubai property for rent can find extensive listings in the local classifieds such as or direct from property developers such as zoozi.com by going directly to their rental page on http://www.zoozi.com/dubai-classifieds/classifieds-navigation/index.aspx?id=RENT; or by finding an agent. The search for the perfect place to lease can be time-consuming and may seem overwhelming.

Quick House Sale

If you look out for various loan options that are available in the UK, you are most likely to encounter to find innumerable loan options stumbling upon you. But, how are you going to find the one particular loan option that would be most suitable for you .For homeowners, one of the most popular loan options is secured loans available in the UK. This loan option offers you astonishing features along with some requisites.

You need to furnish valuable asset like your house, jewellery, financial papers as collateral in order to obtain these loans. It is always better to opt for secured loans as these loans bear lower interest rates and also the term for which you can get the loan is longer. However the condition for such loan in U.K. is to have a security as collateral against the loan borrowed.

There are a few benefits that these loans in U.K. offer. If you are having a valuable property like house then you can avail nearly 125% of the value of the security. Since this is a secured loan it bears the lower interest tag. You can apply for any amount varying from £7500 to £250000.

Nowadays even secured loans online in U.K. have become popular. There are a large number of lenders for this type of finance however, you must find out a reputed lender who has a good reputation in the market. This loan is very convenient as it can be applied directly to the online lenders. You are required to provide all the relevant information in online form and the verification work will take some time. After this lenders will reflect back with their offers and all you have to do is to choose the most convenient of all.



Repossession

Foreclosure is a legal term predominantly on the minds of many American homeowners. The average American family works hard to afford a home in which their family can live comfortably. Most families do not have the cash up front to pay for their dream house in full. They will seek a loan from a financial lending institution such as a bank or a mortgage company to purchase this home.

To secure the loan, these financial lending institutions must be certain that they will get back their money back. Since a good paying job does not guarantee that a loan of this magnitude will be paid back, they require what is known as collateral, an asset they may seize in lieu of payments if the loan is in default ( no longer being paid back ).

Normally the home that is being purchased with the loan is put up as collateral and if the mortgagor ( person seeking the loan ) does not pay back the loan to the mortgagee ( money lender, borrower ), the house goes into foreclosure. The money lending institution may obtain a court order to proceed with the foreclosure and repossess or seize the house in lieu of repayment of the loan.

In some instances the financial lending institution may attempt foreclosure on a home or other property, but if the borrower repays the loan, a court of equity may rule in favor of the borrower who at that point will be able to keep the home or property in question.

The contract between the financial lending company and the borrower is called a mortgage or deed of trust. When a contract has been entered, effectively the lending company has agreed to give the borrower a certain sum of money in which to purchase the said property. The borrower agrees to pay this money back ( signs a promissory note ). The contract will also stipulate that a lien will be placed on the property meaning that the financial lending company has a right to seize the property ( repossess it ) if the loan is not repaid in the time frame that is stipulated and according to the conditions set out in the contract.

The process of foreclosure is used in any contract whereby real estate, homes, farms, land, and other immovable property has been obtained through a mortgage, and the mortgage holder has defaulted on the payments.

Judicial Foreclosure is available in all the American states. When the borrower defaults on the loan, the property is sold. The proceeds from the sale of the property first goes to repay the regulate on the existing loan, then to any other lien holders, and finally to the borrower if any proceeds are left over. All transactions are done legally through the court system.

Foreclosure by power of sale is sometimes added as a clause in the mortgage contract that defines the foreclosure procedure without court intervention. This procedure follows the same order as the Judicial Foreclosure irregardless faster since the courts are not involved.



Quick House Sale

There are now increasing numbers of people going to show houses and more buyers are finding the confidence to sign an offer to purchase homes. This could very well be a sign that the worst of the property \’crash\’ is finally behind the South African property market and that growth in the residential property sector is a possibility.

For the most part, South African estate agents and franchises are generally optimistic that the current status of the real estate market is starting to change for the better.

When the recent declines of the South African property market are taken into account, there are now indications of a more positive swing in sales trends. South Africa seems to be transforming for the better since the property market slump.

There are numerous contributing factors that are responsible for the revival of the South African property market. Primarily, it appears that the interest rate cycle has peaked, with rates now potentially holding steady and even decreasing towards the second quarter of 2009.

The fact that the cost of oil has decreased significantly has also boosted consumer confidence, which previously had been severely shaken by the volume and extent of the petrol price hikes in 2008.

Adding to this, the news that a long-awaited negotiated political settlement in Zimbabwe is on the horizon has created a sense of optimism. The spree of xenophobic violence experienced in South Africa in May last year, has for the most part been resolved. Also, the electricity supply appears to have stabilised which has created great optimism.

One must also take into consideration that the severe winter weather experienced in the Western Cape during 2008 had a negative effect on the property market. Pleasant and warm spring and summer months seem to have a positive affect on the property market.

The 2010 FIFA World Cup is also just over a year away from kicking off – and this is yet another factor in favour of the South African economy and property market.

Potential buyers should make their property purchases now as the chances of property prices declining any further in the future are highly unlikely. Prices will begin to rise again sooner rather than later as indicated by previous trends in the market.

However, by the same token, individuals selling their property should be realistic with regard to their asking prices and refrain from overestimating returns.

A number of property experts predict that the expected increase in income per household, which is pivotal to the strength of the residential property and mortgage market, could undo the misfortunes of the ailing residential mortgage market. This means that after sharp year-on-year declines since mid-2007, the value of new mortgage loans could return to positive year-on-year growth, towards the second half of 2009.

These points are indicative of a revival in the South African property market.



Quick House Sale