Despite going through several recessions and dips in economy this theory pretty much held true – that is up until the start of the financial crisis, when many investors and buy to let entrepreneurs well and truly had their fingers burned.

While most of us were happy to see our property increase in value over the years the credit crunch has returned the market to status quo, where our homes are once again, not an investment, but our castles.

The same can be said for most of the developed world and particularly in European countries such as Spain and France where many Brit’s have found themselves owning properties that have fallen in value over the last couple of years.

Buying abroad has always been a minefield, but the effects of the credit crunch have at least led to developers reducing ridiculously inflated prices and being more realistic about property values in certain areas.

One such development I recently came across offering property for sale in Cyprus is currently offering up to 30% off their 2010 prices to buyers willing to agree a deal before the end of March.

Interestingly the real estate agents of the Alexander Heights development are offering extraordinary deals on inspection trips that include three nights accommodation in the five star Inter Continental Hotel for prospective clients, with the agents picking up the tab.

Alexander Heights is an exclusive development set in the recently opened luxury resort of Aphrodite Hills, the first ever golf, leisure and real estate development in Cyprus.

The real estate agents require prospective clients to fill in a questionnaire prior to their trip to the Mediterranean island enabling them to design the perfect tailor made inspection visit package to suit each potential buyer.

On top of the hotel accommodation Alexander Heights will cover costs of transfers to and from the airport, a choice of a round of golf, game of tennis or spa treatment.

Special sight seeing trips and lunch or dinner packages may also be added to the free package and of course in the event of a property being purchased during the inspection trip, flight expenses will also be reimbursed.

Perhaps most importantly the company offer an attractive finance scheme to suit most purchasers.

Typically these households have come off fixed term discounted mortgage deals which were available two or more years ago.  Lenders SVRs, currently averaging [5.04%] are now well above current best buy deals and could benefit from switching to a better deal.

However in the present environment the most competitive deals are only available for loans that have low LTV ratios, typically less than 85% (meaning over 15% in equity). Those coming off special deals on to SVR, but with LTVs remaining above 85%, will be unlikely to remortgage to a more attractive rate.

The good news is that 75% of the current 2.3 million SVR mortgage payers are ‘free to move.’ These 1.7 million (21% of the total UK mortgage market) who have LTVs below 85% have over £116 billion mortgage assets and are free to move to more competitive rates that could collectively save them up to £1.8 billion a year interest payments.

There is also good news for first time buyers who will enter the market as it is starting to open up and incredibly there are deals available where as little as 10% deposit can secure a mortgage at a reasonable rate.

The bad news however is that 440,000 mortgage payers are on SVRs with LTVs above 85% (357,000 are above 90% LTV).  These mortgage borrowers, with loans totalling over £68 billion, are currently unlikely to obtain the best buy new deals due to lack of equity.

There is an easy way to find out how much you could save by switching providers, simply check out Yorkshire’s 3 Minute Mortgage Check. Eight out of ten users have found that they are able to make savings by switching their mortgage provider.

Tom Girling, Mortgage Product Manager at Yorkshire Building Society says;

“A record number of mortgage customers are currently stuck in ‘mortgage limbo’ on SVR rates that are generally far higher than best buy deals. Our analysis shows that the vast majority could make significant savings by switching to a better rate mortgage and with 80% having at least 15% equity in their home, they are free to switch lender right now.”

The results of the survey published in this months Great British Life magazine make interesting reading particularly to anyone who is considering putting their property on the market in what is still considered to be a buyers market in the UK.

The report says that based on the average house price, as reported by the Land Registry, adding an extra bedroom could increase the value of the average property by just over £14,500 while a loft conversion would increase the property value by £11,757.

Other improvements are shown in value order:

Extra Bathroom              £10,101

New Kitchen                     £ 9,605

Central Heating               £ 8,942

Off Street Parking           £ 8,611

New Bathroom                £ 8,445

Conservatory                  £ 8,280

Double Glazing                £ 6,955

Conservative Decor      £ 6,127

Landscape Garden         £ 5,961

Insulation                        £ 3,809

Wooden Flooring           £ 3,312

Alarm System                  £ 2,650

Movewithus add that the most common factors that devalue a home for potential purchasers are;

Structural Damage, Extreme Mess, Damp, Poor or Personalised Decor,  Strong and Unpleasant Odours and an Overgrown Garden.

So if you are wanting to sell your property quickly get rid of the fancy coloured walls and choose a neutral colour scheme through the house, if the outside has been overlooked for sometime there are always decent gardeners and landscapers available.

There are also four tips from movewithus to add value to your house for less than £100:

Clean it, Hide all the clutter, Freshen up the paintwork & Tidy up the garden.

It is the sixth increase in eight months in Australia and the indications are that it will remain at 4.5% for the foreseeable future, having risen from 3% in October 2009.

Australia is one of the few developed nations that have survived the credit crisis virtually intact, thanks mainly to the rich natural reserves and commodities that make up the countries strong mining industry.

The mining sector has in turn been helped by rising commodity prices and strong demand from developing economies including China.

The growth in the economy in Australia has led to the increase in interest rates as a measure to curb the increase in house prices in the country, property has increased by 20% over the last 12 months.

Moving into a house or apartment with someone who is learning to play a musical instrument can be extremely taxing to say the least.

Booming drums that shake the whole place, screeching violins reminiscent of a cat in dire distress, and out of tune clarinets are just a sample of what we might have to go through.  It is easier to deal with would be musicians who are part of your family because you can make a few rules and hope that ‘rock star hopefuls’ stick to them. If they don’t, you can, of course, yell at them.

If the music practise comes from neighbours in flats, apartments, or nearby houses, it can be almost impossible to live with. Teens using the garage next door to rehearse their heavy metal band, and would be electric guitarists can quickly make you certain that you have the very worst neighbours in the world.

It is not always easy to find out if your prospective neighbours are ‘wannabe’ musician, and you usually have to wait until you move in to discover that four times a week, the teens have a practise session and then while their parents are out, break out the beer and treat the neighbours to ’50 Cents’ at full volume. (Now there’s a musician you really would not want to live with, albeit only on CD.

There are ways to help avoid these problems, by visiting the neighbourhood at different times of the day and night before agreeing to buy a property for instance, or talking to people already living in the area.

Another way to avoid these problems in most instances is to contact a company like Sacramento Property Management and find out about the neighbourhood and your prospective neighbours before you actually decide to move. There is probably a note somewhere on their files about anything that is likely to cause difficulty, including the area’s budding musicians. They have to learn somewhere, but you don’t have to listen to it.

casa se vende

As the winter draws in and the recession bites further into our incomes, memories of summer holidays long since passed may start us thinking of next years vacation or even thoughts of a life changing experience of  a ‘better life’ overseas.

The ‘easy’ life always sounds attractive, but is the grass really greener? It is worth remembering that the credit crisis was a global phenomenon and nowhere in Europe has escaped unscathed.

The financial crisis has taken its toll on property markets across Europe and while the UK sees a minor recovery in the market, property prices in Spain for instance are still falling dramatically. That is good news if you are in the market to buy, but ex pats selling property have had to deal with a double whammy.

Not only have prices fallen but the GB Pound/Euro exchange rate has also been badly hit, leaving ex pats who rely on a UK income facing all sorts of financial problems when they come to exchange money.

It is good to know therefore that there are financial companies around who can make  international payments at better exchange rates than those offered by high street banks.

World First is the leading currency exchange broker in the UK, exceeding £1 billion turnover in 2008 representing over 20,000 private clients and 3,000 business transactions. They also guarantee the best foreign exchange rates, the fastest available international payments and boast an exceptional level of service.

At World First they also offer ‘forward contracts’ which allow you to set the sterling cost of your property up to a year before payment is due, avoiding fluctuations in currency rates.

Savings can also be made by ex pats who rely on income from the UK, World First do not charge extra for transfers made to Europe and offer the option of fixing the exchange rate of all payments from six months to 2 years in advance, a great way to manage finances with no fear of fluctuation.

alliance & leicester international

A survey by Alliance & Leicester International has revealed that a staggering 87% of ex pats are content to choose to retire in the country that they have chosen to reside in, with France (18%), Spain (13%) and the UK (12%), being the most popular retirement destinations.

With the cost of retirement in the UK estimated to hit £400,000, ex pats intend to fund their retirement in the sun through savings (27%), UK State Pension (23%) and Private Pension (20%). Property is a major source of retirement funding with 6% relying on rental income, 6% intending to sell a residential investment and 2% opting for an equity release plan.

When considering the key factors that contribute to choosing the perfect retirement destination, better quality of life was the most popular answer with 21%, but close behind is a better climate (20%) with value for money (14%) in third.

Major concerns regarding moving abroad appear to be proximity to the UK, with well over half of those surveyed choosing to live in Europe to be closer to UK relatives and friends. Health care and medical issues- in a foreign language, concerned 22% while finances and exchange rates would concern 12%.

Ten percent of those surveyed said that they would not consider moving abroad because of family ties in the UK. Also their lifestyle allows them to take summer vacations as well as the opportunity of skiing holidays in the winter months.

Lynette Byrne, Head of Marketing at Alliance & Leicester International, commented:

“It is interesting to see that many UK expats have settled in their new home, with 87% of UK Expats intending to retire abroad.  However, while some Expats might prefer life outside the UK, they are still very attached to friends and family thus settling in European destinations that are only a low cost flight away.

This research really highlights the international nature of society today and raises some interesting questions as to how people are going to manage their finances and protect their savings against interest rate fluctuations.

Expats who bank with Alliance & Leicester International can choose to hold their savings in a sterling, US Dollar or Euro account giving them not only access to ‘Best Buy’ rates but also the opportunity to shield their retirement cash from currency fluctuations.  They can also be safe in the knowledge that they can access their money using internet banking 24 hours a day no matter where they are living.”

law society

As divorce rates amongst the over sixties continue to soar, the Law Society warns potential divorcees to take legal advice or risk not having enough funds to see out retirement.

As the so called ‘Saga divorces’ have increased dramatically over the last ten years, the Law Society stresses the importance of the financial implications of separation for those approaching retirement and to urge those seeking divorce to get professional legal advice before proceeding.

With falling property prices and reduced assets following the credit crunch, pension funds could be hit. Confounding the problem is that older people have fewer opportunities to build up capital again after a divorce.

Law Society President, Robert Heslett says:

“Divorce at any stage of life is undoubtedly a stressful experience, but for the over 60s, bigger estates, complicated pension funds and less working years to build up assets again will exacerbate this stress.

A solicitor is the only professional who has the qualifications and foresight to work towards a fair settlement in complex divorce cases. It is especially important for those who have little experience of the financial side of their lives to seek reliable advice on getting what they need.”

The society also warns those considering divorce in later life to factor in the possibility of one or both parties needing specialist care or health treatment in the future and to make provision for this.

A total of 13,678 people over 60 were divorced in 2007, up from 12,636 the previous year and from 9,052 in 1997.

With all the concerns about pensions and divorce rates among pensioners, why not treat yourself to a relaxing cruise holiday now?

With the advice available via a range of resources, including Government help and advice from organisations such as Citizens Advice Bureau, households can get help to avoid the trauma of repossession.

At the start of October the government launched a new campaign that encourages people who are having difficulty keeping up their mortgage repayments to visit the website mortgagehelp.direct.gov.uk or to call the National Debtline on 0808 808 4000, to find out about the comprehensive range of support the Government has put in place at every step of the repossession process.

The video below offers help and advice from experts within the industry and also looks at some case studies:

credit card debt down

There was a surge in mortgage approvals for house purchases in September, reaching the highest figure for 18 months and once again surprising the financial ‘experts.’

The number of mortgages approved for September was 56,215, rising from 52,970 in the previous months and well above economists estimates of 54,000.

While consumer confidence in house purchases currently increases month to month, unsecured borrowing has fallen dramatically, recording a downward trend over the last three months.

In fact consumers repaid £262million of their loans in September, following a figure of £373million being paid off of unsecured loans and the like in August. Consumers are also holding back on credit card debt, borrowing a net £79million on their cards, the lowest since December last year.

It could of course mean that the general public are preparing themselves and their finances for the Christmas period by paying of their current debts early.