The unfortunate truth about stock
The time has come to accept that it just isn't worth buying stock units unless you are prepared to put in a huge chunk of deposit. Changes that have taken place today in the Lloyds Banking Group have stopped remortgaging any properties that you haven't owned for at least 6 months. This has effectively means that you are going to have to put in the full deposit on each of your stock properties.
As usual rather than providing some notice the backs have simply changed the rules and done so retrospectively meaning that some mortgages have been pulled. Total disregard for the people that give them the business. Appalling I have to say.
So this effectively means that off plan property that we have slowly integrating is now squarely on the table. Stock cannot be relied upon for the time being. So if you are looking at a property, it's time to look to off plan property.
Buying off-plan property the way of the future (well at least for the next 5 years).
More and more off plan property is becoming the way to take advantage of the property. This has become more and more the norm. New developers every day are coming to us and presenting property that they are planning to build. Just like above where if we want to take advantage of the discounted properties we have to put up with the extortionate mortgages. So too in off-plan property, do we need to consider the same problems.
The main criteria that you need to consider is:
1) Be prepared to input at least a 10% deposit on an exchange.
2) In 2009, make sure the completion date is late 2011/2012 or later. Unless you can seriously justify it.
3) Ensure that the property has NHBC or Zurich equivalent.
The bottom line is that off plan property is here to stay, and you need to consider it as it's an awesome way to make fantastic money through a property.
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