Property Market Crash : Is the UK on the verge of one? | George Martin Jr

Everything you read concerning the property market these days seems to mention a property market crash around the corner.The world of finance seems to be headed for murky waters and many UK property investors and people who are potential homeowners are trying to determine whether it would be a smart idea to hold back for a little while and avoid buying UK property for the moment.What this article will do is examine the current state of the financial market and advise on whether this is the worst time to buy property in the UK considering the rumoured property market crash.The aim of this article is that after going through, the reader should have a much more pronounced understanding of the existing financial climate and how money can be made from it.The rate at which the sub prime financial crisis is proceeding in the world has surprised a whole lot of investors and financial organisations. A lot of people are aware of the fact that the happenings in the U.S economy had a lot of implications for people in the rest of the world but the extent of those implications are only just becoming really evident.A huge panic has ensued among lenders in the United Kingdom and no one is giving explicit details as to how hard they have been hit. Banks have deviated from the norm of lending to each other as freely as they used to because they are all very concerned about the condition of the finances of one another and the lack of clarity concerning the existing situation.In terms of details fueling the rumours of the property market crash, the big banks and lending institutions appear to be those who have been seriously hit by the situation. A number of these institutions have admitted openly to the situation and are currently asking for help from shareholders a number of other institutions have attempted to weather the storm by going solo.The Bank of England is seriously intent on preventing a property market crash and keeping the mortgage market stable and the economy moving forward. The confusion which exists as far as the Bank of England is concerned, is only going to be detrimental to the state of the British economy. In order to try and stabilize things they have decided to make the sum of 50 billion pounds available to lenders with the hope of curbing the problem.In the chaos, certain things have become evident, one of these things is the fact that it is currently apparent that banks and other lenders have been run in a manner that has not been so financially savvy. The various criteria which have been previously set aside in the past in order to benefit from the purposes of lending have vanished and people have had to ask themselves on what basis these criteria were laid down in the first place. Further adding to the conditions spearheading the rumours of a property market crash is the fact that 100% plus mortgages have more or less been abandoned.Big players involved in the buy to let mortgage market have shelved most of their mortgage products and are now laying down stringent rules such as a requirement that investors should have maintained their existing property for a period of 6 months before being permitted to remortgage.A lot of property investors are finding out that life is difficult due to the fact that they are seeing it is a difficult task to locate mortgage products which make the issue of buy to let investment a financially viable one. This only adds to the condition making things look like a property market crash is imminent.Surveyors aren’t making the situation look any better; they seem to be devoid of a plan and are not able to value properties in the right manner considering the existing condition of things. In a stable market these surveyors were rather confident of their valuation positions but this current phase of instability seems to have put their valuations on the same shaky ground. Surveyors are being cautious not to overvalue properties and with this state of caution, they are undervaluing properties.Off plan property investors are evidently those who are worse off since surveyors tend to maintain an increased level of caution when dealing with things that they are unable to get comparables for. Properties which were purchased off plan previously and are currently coming to completion have turned out not to be valued at what they were projected to be.This is a very smart question and with the currently existing speculations about an impending property market crash, a lot of investors seem to be pondering in a bid to get answers to this question.The more experienced of the lot however, are rather used to seeing these sort of situations and they don’t bother with speculation concerning what is happening in the property market. All such investors do is that they focus of purchasing BMV properties based on what they can afford and which will provide a good rental yield. By doing this, these investors remain ahead of the trends in the market.Such investors are sure that they can purchase these properties for about 4-6 times or less of the current available local salary and by so doing and also by getting a reasonable rental yield which makes them winners over the long term.Despite all this, if you are seeking to buy properties in areas where the property prices are more than 7 to 10 times the level of local affordability, then you are asking for trouble.These are wonderful times for the UK property investor who is thinking with the right frame of mind. This is also the time to go back to basics and learn the essentials concerning the art of property investing. **Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.

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