Archive for March, 2015

London Again!

Thursday, March 19th, 2015

Welcome to London, where homes earn more than their owners. The capital and the south-east dominate the list of house prices versus earnings over the past two years

Homes have earned more than their homeowners for the past two years in one in five local authorities – almost exclusively in London and the south-east – according to analysis by Halifax.

Here at Four Corners Properties we always advise invest in your property! Any Improvement will give you good returns.

91aa27ea-6ef2-463a-a8f3-4a273e98c1c4-bestSizeAvailable

The London borough of Hammersmith and Fulham has seen the biggest explosion in house prices relative to pay, Halifax said. Average prices there have gone up nearly £200,000 over the past two years, while households in the area have had median earnings totalling £56,698 over the same period.

Hammersmith is one of just two areas where houses have earned more than their occupants for the past 10 years. The other is Hackney, another London borough.

The figures reveal a deep north-south divide. Of the 73 local authority areas where homes have earned more than their owners over the past two years, 68 are in London, the south-east or the east. The Cotswolds and the Leicestershire areas of Melton and Harborough were the best “performers” outside of the south.

Islington in London tops the table for house prices versus earnings over five years. Householders in the borough typically earned £135,457 in the five years from 2010-2014. Meanwhile, the average home in Islington soared in price by £258,498.

Every one of the 23 local authority areas where homes outstripped homeowner incomes over the past five years were in London and the south-east.

Outside of the capital, Elmbridge and Mole Valley in Surrey, and South Buckinghamshire are areas where homes have earned more than their owners.

Halifax acknowledged that the huge house price gains have benefitted some, but left others struggling.

“This is good news for some homeowners. At the same time, it is challenging news for many looking to buy their first home in such areas, with prices being pushed out of range for many young people,” said Halifax housing economist Martin Ellis.

This is good news for some homeowners … [but] is challenging news for many looking to buy their first home in such areas
Even in parts of the capital with less salubrious reputations, house prices have earned far more than local wages. Brent, which encompasses Wembley Stadium and has been named as one of the worst areas in London for child poverty, came in the top 10 areas in the UK for house prices outstripping earnings. Over the past five years the median household in the borough earned £108,825, or little more than £21,000 a year, but the average house price in the borough has gone up by £156,731.

But recent data from the major indices tracking house prices show that much of the heat in the 2014 market has now dissipated. Halifax said house prices fell nationally by 0.3% in February, cutting the annualised growth figure to 8.3%. London was the only place in the UK where more surveyors reported price declines than increases in February, according to the Royal Institution of Chartered Surveyors.

Separate figures from the Council of Mortgage Lenders show that loans advanced to first-time buyers tumbled again in January, while lending to landlords increased to new highs.

There were 19,000 loans advanced to first-time buyers during the month – down 27% on December’s figure and by 14% compared to January 2014, the CML said. Meanwhile, there were 18,200 buy-to-let loans in January – up 6% on the previous month and up 12% on the same period in 2014.

Source The Guardian Newspaper

How To Make £150,000 on a Property: without finishing it, buying it or living in it

Monday, March 2nd, 2015

Investors start flipping Battersea Power Station flats – and they’re not even built yet!

We at Four Corners Properties are always advising our customers that their money is always save and productive when they improve their homes. When you put money in your property you are not spending money you are investing it.

Upmarket apartments in the new Battersea Power Station development, which are not even built yet, are already being sold on at a 40pc mark-up, fuelling fears that investors are “flipping” the flats and pushing up prices.
An early-bird investor who reserved an unbuilt flat in the south London scheme two years ago is understood to stand to make about £150,000 by selling the apartment on the market.
The two-bedroom, two-bathroom flat in Faraday House is part of phase one of the residential conversion of the prestigious landmark and is expected to be completed by next year.
The investor is thought to have put a 10pc or 20pc deposit down in February 2013 to reserve the apartment with a £722,000 price tag, as part of a flurry of property companies and investors who snapped up the first 600 homes.
The property has now been put on the market by the estate agent Chestertons, with an asking price of £865,000.

A second flat also appeared on the Chestertons website this week. This property was reserved at a value of £711,000 and is also on the market for £865,000. It is unclear whether it was reserved by the same investor.
This reignites concern that homes built in the early phase of the huge project, were mainly reserved by investors – who have waited for the market to pick up before “flipping” them – and overseas buyers.
A private buying agent said: “This is not illegal, but at a time of huge pressure for new housing for Londoners and with house price inflation pushing home ownership beyond the reach of many, there must be a question mark over this kind of naked profiteering.”

Another professional, central London buyer told the Telegraph: “I saw a round-robin email very recently asking for buyers for a Battersea Power Station flat that was bought by an investor in phase one but who cannot pay the second deposit [she said two 10pc payments were to be made for this apartment a year apart].”

Battersea Power Station Development Company’s chief executive, Rob Tinknell, said last year that phase three was marketed to British buyers first.
A spokeswoman for the company said: “We launched phase one at Battersea Power Station over two years ago and we are pleased to see that the early pioneer purchasers, who helped to get this project off the ground have experienced good levels of growth.
“Of the small number of resales – we are finding that the majority have been to local purchasers. We have made every endeavour to attract owner occupiers to this mixed use new urban quarter. The size of the new homes, the interiors and the top class amenities mean our homes are desirable places to live.”

Source: Anna White, Property Correspondent, The Telegraph