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News
Now is the right time to buy, Assetz claim
Now is the right time to buy their property on the market at exceeded supply for transactions
property in the UK, claim present and in addition there is a going through over the last six
property consultants Assetz. steadily improving mortgage months which is what has led to
Speaking at a presentation in market. Repossessions are low recently rising prices in many
London on 16 September, Stuart and likely to remain so due in locations. We do not see sudden
Law, chief executive of Assetz, large part to Government increases in supply, rather a
said that the situation started pressure on the main lenders. gradual recovery over the next
stabilising in September 08 as The market is characterised by two or three years. Demand in
early bulk investors entered the far better sentiment than the UK for housing however is
market.“First time buyers started September 2008 and the economy still very substantial and is solely
to return as mortgages improved has moved out of recession with held back by limited finance - a
a little in April 09,” he added. the main question remaining situation that is improving
“There are a number of positive how quickly growth will return. measurably month by month.”
drivers affecting the market,” The key factor that will affect As mortgage finance continues
continued Law. “The supply how steadily the market recovers to improve, prices will improve
shortage is likely to continue, and whether or not there will be as more buyers enter the market
both in reduced numbers of any further setback is most and to a lesser degree sales
newbuild properties and the certainly overall supply versus volumes increase. “This is what is
reluctance of many people to put overall demand. Demand has happening,” Law concluded.
Halifax International report Guernsey business flows
identifies continuing decline
down but not out
Guernsey experienced a emerging global economic
continuing reduction in both recovery. I would however
banking and investment funds caution that we are not out of the
business during the three months woods yet and I believe it will be
to the end of June. much nearer the end of 2009
However, the Island seems to be before we will be able to see
faring better than some of its proper evidence of any sustained
competitors and in addition, turnaround.”
local practitioners are reporting The value of deposits held by
increased activity in more recent Guernsey licensed banks reached
A report from Halifax Sterling and Euros, and the
months as the general economic £125bn by the end of June 2009 –
International, released on 21 significant differences between
outlook shows signs of reducing by 12.8% in the second
September, paints a gloomy buying a house in the UK and
brightening. quarter of the year, although only
picture of the current Spanish buying a house in Spain as these
Peter Niven, Chief Executive of down by 3% on the same time in
property market. “It is undeniable are unquestionably where some of
Guernsey Finance, said: “The 2008.
that the Spanish property market the greatest pitfalls lie.
global economic downturn has The net asset value of funds
has declined over the last two In order to own property in
been adversely impacting under management and
years,” notes the report. “And with Spain you must have a Fiscal
business flows for the past year. administration in Guernsey
this there have been a number of Identification Number (NIE –
With both the banking and funds reached £170bn at the end of
unfortunate expat casualties. numero de identificacion de
figures showing attrition in the quarter two – a reduction of
There have been many horror extranjeros) as well as a Spanish
three months to the end of June 3.5% in the three months to the
stories regarding people who have bank account. You should
we can clearly see that business end of June 2009 and a decrease
invested in property abroad only weigh up the risk of being a
flows were still very shaky during of 18% year on year.
to experience inconceivable currency gambler, continues the
that quarter.
difficulties from developments not report. “In recent months Sterling
“What we can take comfort
being finished on time or at all; to has fluctuated dramatically which
from is the fact that we are faring
tales of properties being subjected can have serious ramifications for
better than some of our
to threats of demolition and your property purchase: if the
competitors who have seen an
shrewd vendors taking advantage pound strengthens your property
even steeper decline in business.
of the unwary British purchaser. will cost you less, if the Euro
On top of this, practitioners are
But it doesn’t need to be like this.” strengthens it will cost you more.
reporting that they have seen
UK buyers should, however, pay Choosing a ‘fixed’ exchange rate
increased activity in more recent
very close attention to fluctuations can help mitigate this risk if you
months as confidence begins to
in the exchange rate between are not prepared to gamble.”
return slowly but surely to the
market off the back of the
November 2009 Investment International www.investmentinternational.com
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