The industry has many problems

Something which is of concern to prospective homebuyers and investors in this industry as well as economic experts is the sharp rise in property prices within the UK. This has resulted in a very high average cost for properties with in the UK which are making the prospect of ownership almost impossible for a very large number of people. It is not only residential homes which is affected by this trend because the cost of parking space with in London has absolutely gone through the roof because of the rising demand for such properties. Economists who are analyzing the current property situation with in London are all coming to the conclusion that property is in this city will eventually only be accessible to the most affluent citizens. This is certain to place a lot of pressure on the middle to lower class citizens and according to statistics less than 10% of available properties are falling with in the financial means of single people. Even families where both spouses are employed will find that the options are limited when it comes to obtaining property in certain parts of London.

Property in London are becoming extremely exclusive

Some of these exclusive areas include Camden, Westminster, Kensington and Chelsea. The property prices in these areas are making it virtually impossible for lower income people to be able to afford these properties. According to accumulated statistics the property prices is in London has recently arisen 50,000 pounds in a single month. The problem is that most perspective property buyers are seeing salary increases that are only a fraction of the increases which are seen in the property market. The average salary earner simply cannot compete and therefore an increasing number of these people will be unlikely to be able to afford the kind of homes which they are dreaming about. The problem is not only affecting property purchases but this problem is also affecting those people who are renting. In order to be able to honor exorbitant mortgage payments property owners are left of no other choice but to increase the rent of those properties. This is resulting in a vicious circle which may not be broken for some time if ever.

What would be the effects on coming generations?

When looking at current trends it may be reasonable to assume that unless a major change takes place the current trend is likely to continue for many years until some kind of ceiling is reached. The problem is that it is a little difficult currently to predict when exactly that ceiling will be reached and meanwhile the situation for prospective buyers will continue to deteriorate and likewise the pressure on those who are renting properties will likewise become increasingly burdensome. Millions of young children may never be able to grow up in the typical family home which has been the good fortune of previous generations. To effectively address the current situation may not be an easy endeavor especially since the most affluent and those with the most influence in society are actually benefiting from the situation. Just like the potato famine in Ireland, people were slow in implementing changes because although people were dying the benefits to landowners was considerable. Sound a lot like the Biblical god of money, Mammon.

Investment Property in Spain

Property remains a lucrative investment

Although there may be many people who will question this statement after the events of 2008 and 2009 which has led to a situation where over 4 million homes has been foreclosed upon in only three years in the US property market the truth is that statistics over the last hundred years will prove comprehensively that as an investment choice property are still the preferred method of investing. In fact the preference for property investment goes back thousands of years and in those times it was predominantly the affluent and the wealthy that were property owners and it was only in modern times that it was possible to obtain financial assistance in buying a property which has eventually allowed the lower classes to become property owners.

There are some important rules when purchasing

In order to ensure that your Spanish property investment will be worthwhile and profitable it is very important to never pay too much for a specific property. Those people who are paying too much for a property will encounter many problems down the line for instance wherein they are trying to sell the property or when they are trying to refinance or when they are using the home as security against an additional loan. These people will find it impossible to recover their original investment since they will mostly be left of no other choice but to sell for less than the original investment. In the same way using the home as security for finance may be significantly more difficult because of the size of the mortgage and the pressure which it is exerting upon their financial management. This may not leave a lot of leeway as far as additional finance is concerned. Most property experts are advising property buyers to negotiate the prize at least 20% below the value of the property, however this in not always easy and property in Spain is already at a low.

Current economic pressure

Most economies are still recovering from the last recession and therefore many financial institutions and banks are still maintaining strict mortgage policies in order to protect the property industry against further decline. This is making it more difficult for perspective property buyers to obtain adequate mortgages in older to invest in the market. Although there are many financial institutions that are doing what they can to stimulate the property market with things such as residual discounts, extremely low mortgage fees and in some cases free arrangement fees, but there will still be many buyers that may not be able to qualify for a mortgage loan. However for those people with a stable income they should remember that it is important to never accept the first mortgage which is offered to them but rather they should shop around until they are absolutely positive that they have found the very best mortgage option available.

Excellent opportunities could be found

For those with the financial means do not act rashly but rather be patient and wait for opportunities to present themselves. There are many people who are left of no other option but to sell because of financial difficulties and it may be possible to negotiate a very favorable deal. Because of the recession many financial institutions had to foreclose on Spanish property owners and now they are sitting with properties on their books which are difficult to get rid of and this is another opportunity which should be considered.