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Category: News

The risks of service accommodation property investment

Serviced Accommodation, or serviced accommodation properties, is one of those terms that you tend to hear quite often. However, more often than not, people do not really understand what is meant by the term serviced accommodation property. They tend to be confused because they simply do not have a proper definition. According to Property Investments UK, serviced accommodation refers to fully furnished properties which are available for short or long-term let. Investing in such properties can seem like a good idea, but there are risks. Let us, therefore, briefly have a look at some of those risks.

One risk when it comes to buying a serviced accommodation property is that it requires a lot of effort. For people with a full-time job, it would be almost impossible to go through the proper procedures which are required in order to purchase such a property. Moreover, it quite often requires a team of people rather than a single individual.

Furthermore, when investors rent such properties, it seems that their returns aren’t quite what they expected them to be. Thus, we see that the return profit may not be quite worth the hassle of purchasing such a property. The reality for most serviced accommodation owners is that their property loses value overtime, so the hassle becomes even more apparent (and the risks are even greater).

These are just a few of the risks associated with purchasing serviced accommodation properties. They should always be considered before purchasing such a property, because you want to minimise your chances of losing out. Nonetheless, people do purchase said properties, and end up doing quite well. In order to succeed, you must simply plan well, research well, and execute well.

Fixed Mortgage Rates Continue to Fall

As a kid you tend to focus on the simple pleasures that life has to offer. You enjoy being outside, playing with toys and hanging out with your friends. As you move closer to adulthood, however, you have to start to focus on slightly more complex things. One of the things that you have to focus on is mortgages. Mortgages are complicated things that the vast majority of people have to worry about. One particular type of mortgage is a fixed mortgage. As of late, fixed mortgage rates have fallen and continue to do so. Let us, therefore, explore what this means and the effects that this could have on the wider world.

Before we start, however, I’d like to offer up a simple definition for a fixed mortgage. A fixed mortgage is a mortgage which guarantees that your mortgage rate will stay the same until the mortgage period ends. This period can be any amount of time, but typically is between 2-10 years. According to the Chelsea Building Society, fixed mortgage rates have reached record lows of 1.84%. One contributing factor is the low interest rate set by the bank of England.

Another contributing factor is the vast amount of competition which has led to some mortgage firms lowering their prices. As such, people have decided to purchase fixed mortgages whilst they can. These purchases are also partially made due to anxiety because of the possibility of higher mortgage rates in the future. 

In conclusion, I hope to have briefly explained what fixed mortgage rates are, why they are falling and the effects that this could have. In order to save money on your mortgages, you should use comparison sites; however, ensure to be careful when doing so.

Is increased portal choice benefitting investors?

An investor’s job is to find a property which he or she believes will best suit his or her interests. By investing in such a property, he or she may receive more money from potential renters which is wholly beneficial. What is more, an investor may invest in the perfect holiday home, which is (once again) wholly beneficial. The question is, however, is increased portal choice benefitting investors? One could argue that by having a wider portal choice, an investor will be able to reach a larger audience. This would, therefore, enable them to find more people looking to buy or sell a property. I agree with this point and would therefore like to briefly explore some of the other benefits of having an increased portal choice.

An investor looking to sell a property will benefit from an increased portal choice because his or her property will be advertised across multiple platforms. This means that it will be advertised to more people, hence giving it a better chance of being sold. The same can apply for people looking to rent properties which they have invested in.

Many people make the mistake of only browsing through a few portals. By using multiple portals, you will be more likely to find the perfect property. It’s just like when you’re looking for the perfect pair of trainers; you wouldn’t just browse through a single website. Instead, you would look at a wide variety of sites in order to find something that suits you. The same can be said for investors looking to buy or sell a property. In conclusion, this is just a brief explanation of the benefits of an increased portal choice. It gives you more freedom to manage your investment opportunities, so I would highly advise you to take this. Nonetheless, ensure to do your research so that you can find a set of portals that suit you best.

Germany on the brink of a recession and how will this effect the housing market?

Germany has always been renowned for its economic strength. Though it may have struggled post-war, the German economy has been strong, largely due to its wide array of businesses. As of late, however, the German economy seems to have taken a turn for the worse. It seems that Germany may be on the brink of a recession which could lead to major problems within the country. This is, of course, alarming for people within Germany; however, it is also problematic for those people that rely on German goods. It could also have adverse effects on the German housing market. Let us, hence, briefly explore why Germany may be heading towards a recession and the effects that this could have.

According to the Guardian, a lack of business confidence is one of the contributing factors towards a potential German recession. A lack of business confidence will mean that fewer people will invest in German companies, hence meaning that firms may have to shut down. This will increase unemployment and may potentially decrease consumption within Germany. Consequently, the level of economic activity will decrease in Germany, thus meaning less growth. These are the steps that would lead Germany towards a recession.

As a result, fewer people will feel wealthy enough to invest in houses. Therefore, the German housing market will suffer, and property prices will become threatened. Affordable housing is key when looking to maintain stable house prices, however this is not possible during a recession. What is more, government intervention may also decline during a recession, so the housing market could take a further plunge.

I hope to have briefly shown you the dangerous effects that a German recession could have. In order to avoid such a thing, it is essential to boost economic activity, but this is tricky to do when your economy is already on the decline. We must simply hope that the German government can come up solutions sooner rather than later.