Energy waste has become a major global concern, and governments try to implement new energy saving rules for households. As a direct response to this concern, UK authorities are reported to be working on a plan, which will have homeowners pay stamp duty penalties for homes which are not sufficiently insulated.

These rules apply both to individuals who buy such homes and to those who already own a home with poor insulation systems. The tax could rise significantly, and ministers hope that with the new enforcement homeowners will start receiving the wake up call and start making heir homes more efficient.

In most homes the following carry the main source of energy escape:

• Boilers – especially old heating boilers are not at all efficient. A modern condensing boiler instead, will capture more heat than the regular old ones, and there will be no heat losses.
• Windows- you need to insulate your windows so that you will save on the heating cost. For old houses where window insulation is almost impossible and inefficient, changing them for double-paned windows is highly indicated.
• Loft insulation – if you lose heat due to faulty loft insulation, you might be faced with a very costly heat bill. Make a one-time investment, which will bring you quite some savings in the long term.

Buyers of homes with ineffective insulation systems will possibly pay 0.5% more stamp duty. However, if you believe that such a home is an affordable deal to you, you should always estimate the insulation costs as well before making any decision. This Governmental proposition could become law somewhere in the next two years, and it is a section of the “Green Deal” initiative. It was developed to help people sustain the financial needs for transforming their homes into energy saving establishments, through proper insulation systems.

The environmental challenge that most governments face includes how to reduce their own energy bill. A properly insulated home requires less energy to stay warm and cool when necessary. Less energy use means less fuel resources needed, which in turn means less funds required by the country to the bill.

For more Energy saving tips that you can put into effect in your home, check out the enigin blogs!

ShareThis

All those first timers who are unable to come up with the deposit themselves or from their mom and dad are forced to rent or stay in their parents’ place for up to ten years longer than their middle class counterparts. This was the claim recently from one of the national largest building societies and through independent financial advisors. All of this stemming from regulators desire to tighten up on lending rules in the financial sector.

The Financial Services Authority rules now require that every lender must apply greater caution when trying to ensure that the borrower is financially sound and can afford the loan. For instance, when an interest alone basis mortgage is taken, the calculations of the lender must be done using the guidelines of traditional repayment mortgage. Moreover, self certification mortgages are not going to be allowed anymore and every borrower must furnish proof of their income.

This will result in the following happenings-

It will not be easy for borrowers to obtain fast track mortgages as they will have to go through an elaborate documentation process. This will make the process much longer, so no longer a ‘fast track’.

It will become difficult for self employed persons to avail home loans.

With the lending criteria being tightened the end result has seen a two tier home market develop.

A recent survey revealed that the average age of all those who can rely on the property of their parents is 27 while the average age is 37 years for those who do not have rich parents and are availing home loans. Today, many first timers manage to get some gift or loans from grandparents and parents and are actually able to own property.

Most persons who want to buy a home will need to come up with 15% of the price and without this they may not be able to take advantage of lower interest rates.

In spite of regular fluctuations in real estate prices, many people have managed to accumulate sufficient property and wealth. The barriers to home loan are established to protect the consumers from excessive borrowing. With the regulation of the mortgage market, the consumer has access to actual money and not risky lending. It is impossible for the regulatory authorities to predict the future but it is not wrong to take the precautionary measures well in advance.

ShareThis

Equity Release

has become a buzz phrase for many older persons over the age of 50. But before you consider any equity release scheme here are some points to keep in mind-

ShareThis

If you are quite bothered about investing in properties at reasonable rates then you have a right to being that way! With the global crisis having it advent in the property market it is difficult these days to find the best investment properties.

The Empty Homes Agency (EHA) is a charity organization set up in the early 1990’s to earmark the number of empty households in this country. The number is alarmingly high given the ongoing housing crisis or these houses could also have been snapped up by canny investors years ago looking for home equity release. Those looking for a house would not occupy properties that have not been inhabited for a long time owing to the time and money that goes into repairing the place!

Many such properties can be found since most of them would be deserted with no obvious indication of being put for sale. It is easy to assume that such properties cannot be purchased because the owners cannot be contacted. This is where the EHA comes in, suggesting potential investors dig a little to discover the identity of these owners. Another good idea is to leave a note about your contact details on the doors so that the owners may contact you. Enquiring of the local residents and shopkeepers can also be done.

Another great place to search for investment properties at reasonable prices is at the property auctions. Many home owners use these auctions looking to sell their properties to the highest bidder mostly due to other compelling circumstances. Chances are high for locating a good property at these auctions since mortgage providers would have re-possessed a property which may be damaged to such an extent that owners have little time or money to even make amendments to the property. Local estate agents can be found in the Yellow Pages and other local directories and is a good place to look. It is not advisable for an inexperienced investor to participate in an auction without a clear understanding of the legal issues that are a part of it.

Keep in mind that finding good investment properties will take some time and will require careful thought.

ShareThis

In the normal world of the free market system it is easy to see and believe that what really governs housing and property prices will be the demand and supply that exists in the market. Yes that’s what happens in a perfect world.

When you look are the housing stock not only in this country but any other first world country across the EU what you will find is that the demand for housing always outstrips the supply. So what really determines the prices? What other factor works along with the whole demand and supply scenario? Well the answer is not going to be as simple as saying demand and supply, but one of the key factors is the access to credit.

Let’s face it demand and supply may seem to determine housing prices (from a economics point of view) but if people cannot access credit no matter what the price property and housing sales will not go up, at least not significantly.

Another very important factor is earnings or wages. If people are not earning enough money to be able to pay rent or service a home, the market will be seriously affected. This has given rise to the whole phenomenon of multi-occupancy households, which has gone up by just over one million.

People are now in a type of bidding war for properties that are being rented for little to nothing or being sold for well below where they are worth, as can be seen in London when looking at Hounslow flats and houses for rent.

The Global financial crisis that hit the world recently and the effects of which is still lingering throughout the country had its advent in the property market. It was not the demand or supply that caused it, nor was it the prevailing prices in the market. It had in part to do with credit and by loans, primarily to the persons looking to purchase property.

Although the statistics say that the increase in housing prices has a lot do with supply and demand forces, and I agree in part, other factor play a greater if not an equal role I believe. So let’s not oversimplify the whole property market and what the prevailing prices will be. People will or will not buy based on what they can afford.

ShareThis

A person who is more than 50 years of age looks for a tension free life where he will have his own home without any financial burden, and that’s why most of the retired people opt for the home equity release scheme. Before delving into the benefits of home equity release, let us first understand what a home equity release is.

A home equity release is a scheme under which a person above 50 years can get a loan on the basis of his home equity. Here, the retired person can either take the loan in one shot or can even take the loan on a monthly installment. The borrower won’t have to pay back the loan or the interest, as once the borrower passes away the home will be sold off and the lender will get back his money.

Some of the benefits associated with this loan are, firstly the borrower can get a monthly income if he chooses to receive the loan in monthly installments. The borrower doesn’t have to opt for the refinance mortgage scheme, even if the interest falls down.

Secondly, the borrower, after getting the loan, can still enjoy the ownership of the home till his death. The best thing of home equity release is that even if the real estate sector faces a huge downfall still you won’t face any problem, as you will be protected by the no negative equity guarantee.

Moreover, with home equity release you don’t have to face the burden of a real estate tax. Also, here you don’t need to worry about the repayment of the loan.

Home equity release is more like a monthly income where you can get the loan in the form of a monthly installment. So, every month you can get a monthly income with the help of which you can solve all your financial problems. Therefore, with the benefits of the home equity release you can lead an independent life even after your retirement.

ShareThis

Homebuyers usually are at a loss when it comes to choosing the type of loan they want to take out when purchasing a house, particularly first time buyers. Fixed and variable loans have always left us in a spin, which one is better?

Now HSBC have launched a new type of loan designed to provide the best of both. The new “Split-loan” allow their customers to partially fix their mortgage while having the rest on a standard variable rate.

The new split loan allows customers to fix 25%, 50% or 75% of their loan for two years, leaving the remaining portion on a tracker. The ranges of these loans. A spokesperson for HSBC state that “The loan is designed to appeal to customers facing the dilemma of whether to keep tracking to preserve the flexibility to make overpayments, or benefit from the security of locking into the historically low fixed mortgage rates.”

However this loan may also be hard to understand, as with home equity release, the rate of the loan, depends highly on many factors like the value of the property, whether the repayment is interest only or capital repayment, the type of buyer, and how much of the loan is fixed.

If you borrowed £100,000 for a £150,000 fixed at 25% with a mortgage plan of capital repayment for 25 years, you would pay 2.49%. If you increase the fixed percentage to 50% you have to pay 2.69%, the split loan is still tailored to different buyers and properties like a standard loan.

The fixed and tracker loans will have the same interest rate when the loan is arranged, however the tracker loan’s interest rate could change before the mortgage loan is drawn down as this is linked to the Bank of England’s base rate. The rates given in the above example are the initial rates, the tracker rates will change during the course of the loan.

HSBC have an innovative split loans mortgage calculator so you can easily calculate how much interest you will pay and if the split loan mortgage is right for you. There is a non-refundable booking fee of £999.

ShareThis

When you hear words like equity home income plans, lifetime mortgages and home reversion plans, don’t be confused. Baffling and different as they might sound, these terms refer to the same thing – home equity release schemes. Now you must be wondering what on earth that is! This is actually a simple concept which is kind of opposite to the idea of a mortgage. It is actually frustrating to possess money and yet not be able to spend it and it is estimated that people over 65 years have a ridiculous 50% wealth tied up in property!

The process itself is simple. After the age of 60, you can receive money from a lender as your retirement income in return for a pre-determined share in your property. Home equity release schemes work in two ways depending on which scheme you prefer for yourself. These are:

· Reverse mortgages – these schemes let you borrow against the value of your property. Repayment needn’t happen before you move or die. Interest keeps adding on though!

· Home reversion schemes – with these schemes, you can sell your entire home or part of it at a discounted rate. Depending on your age, you can borrow anywhere between 15 and 40 percent of the value of your house.

If Baby Boomers are wondering what implications home equity release has for them, then they be rest assured that the news is good. Certain baby boomers find themselves attached to where they have lived all their life. In such case, releasing some of the equity in their family home can help them maintain their desired lifestyle. Also, baby boomers have lived a life better that that of their preceding generations and their most valuable asset is their home. In such a scenario, most of their money is blocked in the property and releasing equity can help them live in splendor.

Getting the aid of independent lawyers for sound financial advice, choosing the most appropriate products and assessing future needs beforehand will ensure that you make the most of home equity release.

ShareThis

When considering buying a piece of commercial property one of the challenges you may have is determining if it is worth the price being quoted. Since owners have the right to set the prices for their properties, it is up to the buyer to decide if they are willing to pay the asking price. Thus the question most property buyers will have will be how to determine is a piece of commercial property is worth its price. This might be a tough question but truly to be honest it is not actually impossible to determine. And this could be affected by the current rates of morgages and equity release schemes. Here are some things to consider.

The first and the foremost thing to consider whether the property is worth its price is the location of the respective property. Keep in mind the properties that are located in prime commercial areas will certainly fetch a higher price than those not in a prime area. The property should have easy access to roads and other amenities. It should also be easily accessible itself.

The size of the property is also important. Depending on its location, and other things, the larger its size the more expensive the property.

They type of commercial property will affect its price. There are certain types of properties that will command a higher price. If the property comes with certain facilities such as a water tank, air-conditioning system, or a water heater it will add to the overall cost.

Another good way is to look at the properties for sale section of your local newspaper. Chances are you will get an idea as to the price range you can expect to encounter.

One good source for prices is real estate agencies. They will normally have a listing of commercial properties and many will put them and their prices on their website. You can even go out and have a look at some of the listed properties so that you can have a better idea of what prices fit what properties. You should always be cautious of taking the advice of your real estate agent. Remember they are in the business of selling properties so do your own homework.

ShareThis

Renovations are never fun or easy and they often lead to stress and disappointment. However, if you complete the proper renovations, you may well see a rather substantial return on your investment.

If a quick sale is what you are aiming for, there must be a reason that patience cannot be taken. Perhaps you need the money more than you need the new luxury bedding? Perhaps a family problem is the root cause. Whatever the situation, a quick sale will usually result in less money than you’d earn if you took the time to properly attack the market. However, there are slight renovations you can make to your home to diminish the chance of limited return.

There are two ways to renovate a home that can benefit its resale value: Aesthetic renovations and Necessary renovations.

With regards to aesthetic, in most cases you will be able to conduct the renovations quickly, cheaply, and on your own. These types of renovations include re-flooring. This can be done on your own with a little guidance from your local home accents shop. Carpets, tiling and hardwood floors are easily installed even by the most inept handyman. And one of the biggest benefits of such is that you can save a lot of money by eliminating the need to hire. If you have the time, this is definitely the best option. Save money with limited difficulty.

The main concern when dealing with Do-It-Yourself projects is the need to pass safety codes. Prepare yourself before conducting any renovations to your home.

Necessary renovations are where your wallet may be hit the hardest. This is because these types of projects (which include new roofs, walls, windows, foundation work, etc.) require you to hire a professional, which will surely create financial headaches, especially considering you are need of fast cash. However, the benefit of necessary renovations is that the resale value afterwards is much greater than that of simple aesthetic fixings.

Consider what you need to create a larger resale value before starting any renovations. Make sure to realize that many renovations are unnecessary, hence will cause little to no increase in your home’s resale value. Keep this in mind especially in today’s real estate market in the UK.

ShareThis