Top 5 Trends To Expect On Real Estate Business This Year

If the U.K. economy is to witness a rocket rise in 2017, then we can expect the real estate to act as the major propellant.

Generally, housing can be counted said to compose up to 15% of GDP. Well, it may not have done much lately. This is because in the wake of the real estate bubble, standards of lending have remained pretty tight, since the cautious property owners who survived the crisis recently have become reluctant to taking the plunge into their operations once again.

However, there are some visible signs that these trends are yet to change. Here are some key trends that will redefine the Real Estate business this year;

 

1.     Rising rates of mortgage

Statistics predict that there will be a rise in rates as 2017 wears out. This will cause mortgage rates to rise, possibly making it a tall order for prospective tenants to be able to easily afford their ideal homes. As a matter of fact these rates have already started shooting up. This trend shouldn’t startle you too much, on the other side mortgage interest rates are also expected to decently increase anyway. This will still be a great deal when compared to historical norms.

2.     More mortgage credit

In as much as rates may rise, mortgage credit will however be likely more widely available as a result of looser lending standards. Perhaps lower fees will be charged on first-time homebuyers.

To add to this, beginning 2017, governmental mortgage companies will begin backing larger mortgages for the first time in a very long time- thus making it for buyers in expensive markets to completely finance their purchases.

 

3.     More new homes will be put up

 

Recent data on construction of new homes showed that builders pulled back on new projects late last year.  In overall,  the trends in home construction is quite positive, the average annual rate of new groundbreakings was at 1.163 million in 2016, up about 5% from 1.108 million in 2015.

This is expected to continue this year since property owners will be motivated by higher wages and increased demand from buyers.

 

4.     Continued rise of medium-sized cities

That’s why more young people find themselves attracted to medium-sized cities. These cities may not possess the same professional opportunities like their counterparts but still provide housing affordability. Some cities have seen building permit issuance rise over the past six years since they attract younger adults who seek cheaper residential houses and lower asking prices. This trend is expected to continue this year.

 

5.     Foreign buyers aren’t moving an inch

One huge trend that has been driving prices way beyond the realm of affordability in major cities like New York and London is the influx of foreign property buyers in the real estate business. Lately, there has only been an increase to this, propelled by buyers from countries like China who seek safer places to bank their wealth, far from the slowing economy of the homeland, where repressive financial policies make it difficult to get decent returns on.…

Everything About Commercial Property

Almost any sort of property, no matter whether it is residential or commercial, can serve as one of the best investment opportunities. However, it is important to note that commercial properties offer more financial rewards in comparison to residential properties like single-family homes and rental apartments. But, there are always certain risks involved. It is only because of this reason that understanding the advantages and the disadvantages of making commercial property investments is necessary. A clear understanding of this subject will help you in making right investment decisions. The very first thing that you need to understand is what is commercial property?

Commercial Property

Commercial property refers to industrial buildings, warehouses, apartment buildings, office buildings and retail buildings.

What is it?

It also includes mixed use buildings where the property might have a complete mix of apartments, office and retail.

The Benefits of Investing

There are subtle distinctions in managing each of the different types of commercial properties.

Professional Relationships

The owners of small businesses take great pride in their businesses. They make the best efforts on protecting their businesses.

Commercial Property

The commercial property owners are not individuals but LLCs operating the property in the form of business. This is the reason why the tenant and the landlord have more business to business customer relations helping in keeping interactions courteous and professional.

Income Potential

One of the best reasons for investing in commercial property is the income potential. Different commercial properties have attractive annual returns that are usually between 6% and 12% of the purchase price depending on the location investing in commercial property.

Properties

Commercial properties are used only during the day when they are used for work. This means that if you are the owner of a commercial property, you would not have to worry about midnight calls from tenants looking repairs.

Public Eye

They do this because it has a positive impact on their business. This way it helps the commercial property owners as they do not have to worry about maintaining and improving the quality of their properties.

Public Eye

The tenants in commercial properties have good interest in taking proper care of the property and in maintaining the store. Therefore, the commercial property owners can remain assured of making a good income from their properties.

 Conclusion

These are some unique advantages of owning commercial properties making such properties a useful venture for people.

Sale your property

You can have several reasons why you should sell your house. To make sure you will have best value for your house try PropertyCashBuyers company who built the team of professional real estate agents and lawyers to help you sell your house fast and avoid waiting for your property to be sold on open property market.