Thursday 9 August 2012

Demand for Property in London Increases, But the Supplying of London Property Doesn’t!


Upon conducting research of London’s property market, if fair to say the demand of purchasing property has increased, this is great news for the property market! As for the supply for these London properties, this has not increased along with the demand.   

According to Housetrack.com figures, London has seen demand rise ahead regions has risen by 9% while supply has grown by 28%. The net result has been a -0.2% to -0.5% decline in prices over the last quarter.
Now I would ask the question, why is this? Property companies within London should be looking at this as a fantastic opportunity to make money as the consumers are there ready and waiting. So why are they not selling as much as there is demand for?

Upon conducting further research, the one thing that sticks out like a sore thumb (this is just my opinion!), buyers whether they be first timers or investors, find it more and more difficult so stump up the cash needed to buy Property London, hence the statistics showing property companies not being able to supply the demand.

I am regularly in contact with people in the property industry from estate agents to property developers. They are all saying the same thing that potential clients would love to buy their properties, are able to maintain the costs of buying that property (e.g. mortgage repayments etc.), but are not able to pay the upfront fees associated with property or house buying.

Let’s take a round figure and say the average London property is £250,000 (we all know it’s higher than this!), typical residential mortgage is 15% (£37,500); stamp duty say 1% (£2500), solicitors fees (1k). These are just some of the fees and as you can see in this example, the first time property buyers have already shelled a whopping £40,000! This is before any value has been added to the house or a single mortgage repayment has been made. We have not even spoke about a buy to let investor mortgage which usually requires a 25% deposit. This example would set them back around £63,000!

How is a first time buyer supposed to get hold of that sort of money in this economic climate with jobs being cut left right and centre? As for a buy to let investor he/she buys a property this month, how long will it take for them to save that £63,000 to go out and buy again?

I have invested in property for the last 18yrs now. Through property experts and gurus, I have been exposed to the property buying secrets that have been kept at arm’s length by elite property circles.
I have that information and would like to pass this information to you Free of charge. I don’t believe that this information should be kept classified any longer, so for that reason I am letting you in on the most powerful ‘PPS’ property purchasing system known to man (and woman!).

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Graham Andrews is a powerful Property expert, online mentor and one of the UK's elite professional property investors.