and it is time for reflection. This time last year I had never heard the term 'credit crunch' and recession wasn't even suspected and I was searching for my first development property. I made an offer on a place last December, but the full building servey showed up so many issues it would have been a money pit and so I pulled out.
I started the year full of optimism. I found a house that was sorely in need of some TLC and the mortgage was no problem to sort out (though it took slightly longer than expected because they were so 'busy' at Natwest).
I am ending the year in a very different world! People are loosing their jobs and house prices are tumbling, so impecable time as usual! However, I am hopeful. The falling house prices are largely a byproduct of no money circulating round the system. The original inflating pressure on house prices was the lack of housing stock and this problem has not gone away. Infact, with building working stalling on many sites, this can only get worse. Once the money starts to flow again houseprices will begin to recover. So I just need to hold on until then. I have a tennant at the moment who pays the mortgage and then some... so as long as it stays full and I keep working hard things will eventually come good.
So this Christmas I shall be raising a glass to the future and hoping that by 2010 I will be ready to take the plunge and do it all over again! Courage friends and may Santa bring you the 2009 you wish for!
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About Me
- Sarah Payne
- Sarah Payne. I am a creative creature that feels the need to make stuff constantly. Whether that means making textiles, beaded jewellery, a meal or a mess I am always up to something. I demonstrate sewing and quilting skills for Create and Craft UK and US shopping channels. Website: www.sarahpayne.co.uk Twitter: @sezpayne Facebook: @sarahpaynequilter
4 comments:
I am not sure I agree with you completely but I do think you have done the right thing. I shall be sorry if you wait until 2010 for your next development. Do you not think there is further opportunity in 2009?
Happy New Year and good luck in your property investment.
Are you on a different timezone? I didn't really post my comment at 2:48 - it was more like 10:48.
Looks like some agrees with you.
I think that there will definately be opportunities in 2009, however, financing those developing opportunities will be my problem. All my available funds are currently tied up in the Rushden property and I am loath to take on further debt. My current levels are manageable (coupled with my falling mortgage payments) and I think I will leave it at that.
My reasons for going into property was to build up funds to undertake my own first self build property. I was in a position to afford the house, or the land, but not both.
However, the economic downturn may work in my favour! Plot prices have fallen by 20% in 2008, and build costs by 10%. On the other hand, lenders are still keen to lend on 90% of the land costs and 90% of the build costs - simply because on completion the loan ends up at closer to 60% LTV of the completed build. So it will cost me less in the long run anyway, and as I intend to live in the property for a number of years the resale value will not really be a consideration!
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