Speaker notes for Housing Economics and Housing Finance Presentation

Slide 1

The housing market is highly affected by the low rates and increased regulations in the mortgage market.

There are new rules insured via the Mortgage and Housing Corporation as well as other insurance providers in the private sector.

The rules have some effect on homebuyers since it required buyer to makes less than 20 per cent as down payment in order to success in their processes.

The maximum amortization period has reduced to 25 years. They are also able to borrow a maximum of 80% based on the homes values (Leong, 2013).

Slide 2

Stable employment rates

With stable Employment rate in UK, people are able to purchase houses and pay rent in timely manner.

UK being a developed country has stable employment rate, which makes people have confidence in acquiring mortgages.

The mortgage firms also find it secure to issue loans to both investors and house buyers.

Slide 3

Encouraging immigration policy

Immigration is highly encouraged in UK. Investors from the United States are highly encouraged to invest in the housing industry in UK. UK does not require any citizenship for one to own property. The only condition is to follow the legal emigration requirements. This aspect attracts investors from the US and beyond (Leong, 2013).

Slide 4

Diverse Investment Choices

The housing sector has various choices to invest in. One can decide to invest in condos, houses such as detached houses, apartments, bungalows, or vocational homes. Each of the choices has different benefits in terms of risks, costs, and returns.

Dues to risk of uncertainties, people may decide to invest in houses whose demand would not change with time. An example is the investment is rental houses in which investors may not be ready to withstand any future uncertainties.

The best choice in this case could be condominium investment. Many individuals would be able to afford it (UK Mortgage and Housing Corporation, 2013). UK has an increasing rate of immigrants as well as upcoming families.

This is done in order for the investors to buy undervalued housed, fix them up and then sell them for quick profits. Investors can as well rent them out to single tenants or single families.

Slide 5

Risks to Your Investment

The risk of investing in Condos include the rising ownership costs in UK.

This high cost of ownership may discourage buyers or tenants.

Besides being smaller properties that lowers the cost of investment to the investors, some of the buyers may overlook such houses.

Condos may also be limited to certain areas implying that the investor may lack the perceived number of buyers or tenants for rental investments.

As people advance socially and economically, they may be willing to look for larger and better house (John, 2013 ).

Slide 6

Opportunities and Forecasts

UK has seen some stagnating trends in the housing sector in the past two years.

This aspect has made it difficult for investors to fully restore their confidence in the housing sector investment.

The housing sector is a bit scary especially due to the unclear customer needs and expectations. Future trends seem to be attractive with sustained low rates investment.

It is also expected that there mortgage rates would decrease in the next few years

Such improvements in the employment sector depict a better chance for real estate inventors. Future trends sometimes seem to give mixed signals.

Dues to mixed trends in the market for house business and real estate investment, the market seem to be unchanging. Future trends may only be affected by increased immigration policies, mortgage rates, and population growth (Pellegrini, 2013).

References

John. (2013 , October 4). Investing in Canadian Real Estate for the Future. Retrieved from frugalrules.com: http://www.frugalrules.com/investing-canadian-real-estate-future/

Leong, M. (2013, March 16). Mortgages & Real Estate: No longer foreclosure nation. Retrieved from http://business.financialpost.com/2013/03/16/us-housing-foreclosure/?__lsa=4cd4-8e43

Pellegrini, C. (2013, September 04). Why real estate doomsayers continue to be wrong. Retrieved from Financial Post Magazine: http://business.financialpost.com/2013/09/04/canada-housing-doomsayers/

Pett, D. (2013, March 15). InvestingCanada’s source for market intelligence: Despite housing concerns, investing opportunities in Canada and the U.S. abound. Retrieved from financialpost.com: http://business.financialpost.com/2013/03/15/despite-housing-concerns-investing-opportunities-in-canada-and-the-u-s-abound/

Thompson, R. (2013, September 6). How to make money investing in real estate. Retrieved from http://business.financialpost.com/2013/09/06/real-estate-investing/