Each category of house buyer, from first-time buyer or a couple downsizing to property developer or buy-to-let investor, has a different set of criteria that will affect just how quickly they sell an existing property and purchase their next one.
Buy-to-let investors fall mainly into 2 camps – those who are serious about running it as a business and those who dabble at it to try to shore up their dwindling pension plans. Those who do not fully understand the buy-to-let market can come seriously unstuck; often having invested heavily from financial reserves or even re-mortgaged their family home to start up. Problems can arise if the market takes a sudden dive, if they need to access cash quickly or if tenants do not prove to be as reliable as they had envisaged. Lenders are being much more cautious about just who they are prepared to lend to and how much exposure they are willing to risk and the buy-to-let market is an easy target to start restricting lending to. This is having a knock-on effect on rent levels in some areas; thereby making landlords reconsider whether it is still economically viable to continue offering property to let. Unfortunately as the market drops so too does the pool of potential buyers for landlords to offload excess property. Help is at hand as there are companies who will buy your investment property – even if it currently has problem tenants.Cash for Houses Dallas offers excellent info on this.
In a similar predicament are inexperienced property developers who can make the mistake of under-estimating the amount of work and cost involved in a project, especially if they have bought at auction and failed to have a survey (yes it does happen). It is all too easy for unforeseen problems to arise that will seriously affect the profitability of a renovation, particularly if you have to buy in skills. The best solution in this situation is to try to find an experienced developer or property buyer who can take that money pit off your hands and allow you to start afresh with another, less demanding, project.
First-time house buyers and those house-sharing will often over-stretch themselves in their desperation just to get on the property ladder. Lenders have in the last few years been encouraging this by offering larger mortgages than borrowers can realistically afford to repay. The awful truth of just how much it actually costs to run a home can come to light several years after they have bought their first property. The temptation to buy everything new and to want everything just right will eventually dawn once the credit card bills have reached their limit. Young people have a greater live for today attitude and the thought of putting money aside to cover contingencies just does not occur to them. So, when the boiler breaks, they lose their job or have an accident there is nothing in reserve. Admittedly they are likely to earn the least and have less spare cash to put aside but it reflects their general air of invincibility. These are also likely to be the house buyers who do not have contents insurance and only the most basic buildings insurance cover to satisfy their mortgage lender. When reality does finally hit home what are the options? Seek help from the parental piggy bank, sell on the open market, sell it at auction or sell and rent back from a company specialising in buying property fast for cash. Potential first-time buyers should think long and hard about whether having the responsibility of looking after a property is something that is right for them at this point in time. It can be a very expensive lesson to learn the hard way.
Expanding families and those down-sizing are at the mercy of very fragile property chains. There are ways of ensuring that you do not lose that perfect house just because your property will not sell or your house buyer has pulled out at the last minute, leaving you back where you started with months of worry trying to find a new buyer. The stress involved in a protracted house sale can aggravate many health issues so if your property is not shifting because of volatility in the market (we all remember negative equity) or your estate agent has over-estimated its selling price (putting off potential buyers) you could try selling it to a company that buys properties for cash. That way you get a guaranteed completion (usually in around 4 weeks) and exchange on a date of your choosing. Easy.