With the current price crash within the property market there are a couple of things that has seen a rise of a result of this, the two main ones that I will be discussing in this article are the rise in renting and house auctions.
Renting
People who cannot get a mortgage or have defaulted on their mortgage have been forced to rent until there situation improves. This has been good news for property management firms who have seen a big rise on people looking for rented accommodation. This has also helped private landlords to keep their property occupied. This can usually be a problem for private landlords as they need to have their property occupied to pay of their investment. This has made buying property to rent a more attractive option for investors as this can now be less of a risk. This however does not help in them receiving a mortgage for their property as banks aren’t lending with confidence at the moment.
House Auctions
More and more people are defaulting on their mortgage perhaps due to unemployment issues or similar financial constraints. Although the interest rate is very low at the moment this still does not seem to be helping everyone. It is said that in the last three months of 2008 has seen a rise of 16.3 percent in property auctions. Auctions hold a few advantages for people wanting to buy a home. One being the saving made on the actual cost of the home. Further savings can be made on administration costs.
More costs can be saved because you don’t have to deal with an estate agent which can result in saving in securing the property. The rise of people attending auction has also seen a rise. However this could work against you as more people are bidding on the home, this could make acquiring said house more expensive if there are a lot of competitive bids.
With every down turn in an industry there are winners and losers. In many cases the customer can make great savings, however with people’s budgets being so tight they just don’t have the money to take advantage of the situation. If you do have some saving and you can get a mortgage then now is most defiantly the time to buy.
If you want to rent though I would check Grant Management's website they have lots of flats to rent in Newcastle and also lots of flats to rent in Stirling
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