Being risk-averse is one of the most important qualities of a good manager; whether at the office or home level. This is a popular opinion and is recurrent in most of the social sciences textbooks in schools.

Unfortunately, I still get to see people (mostly well educated) who go as far as saving for a long time to buy a house, go ahead to pay, then go on to refurbish. Hey, you are cheating yourself.  The cause as I see – and I have been rightly justified, is that people are generally not thorough, not aware of the long term consequence of that singular act, or just damned uninterested (at the moment of purchase).

Here in the UK, it cost just as little as £200 or thereabout to get a professional opinion from a Surveyor who would go round every single detail before giving you a go. I find it difficult to understand why people in this part of the world get naive on issues like this.
Without a proper survey before buying, you might end up spending hundreds or thousands of pounds to fix damaged roofs, weak timber, condensation, dampness and inadequate ventilation, among many other defects.

A recent study released by e.surv show that 4 out of 5 homebuyers don’t have a survey carried out before they buy a house. In my day-to-day activities, I have come across many home agents and brokers that don’t help matters either; many just neglect that aspect and, technically, “lead the buyer to the hangman’s noose.”

Several awareness and educative programs like ‘Sold Subject to Survey’ campaign being carried out by e.surv gives me hope that a day would still come when UK home buyers would buy only after a thorough survey from a professional.

Countries all over the world are seeking for the simplest yet most effective means to get their economy back on track after the recent economic crunch set the world a few years backward. Residential and commercial properties market is an unquestionable means to re-fire the UK economy both in the short and long term.

Having gone through the recent proposal to the House Budget Committee by the Royal Institution of Chartered Surveyors (RICS), I cannot but agree that this sector is critical to the rejuvenation of the economy. With the value of properties in the UK worth over £4,500 billion and employment for over half a million people, it is indeed no gainsaying that this is one sector to really focus on.

The paper also highlights a detailed plan for achieving efficiency savings to the tune of £5 billion in public sector property costs, and disposals of £20 billion, over the next ten years through long term strategic planning; it also calls for the retention and development of the best hands in the public sector.

Other useful and vital recommendations from the institute include: cutting VAT on refurbishment of homes, changes to the tax system to encourage residential property investment and reinstating empty commercial property rate relief, among many others.

According to Mark Goodwin, RICS director of external affairs, ‘this Budget provides the Government with a chance to encourage growth and innovation in construction and property, providing much needed jobs, tackling the housing shortage and ensuring that businesses have a continuing supply of high quality premises. With house building at a desperately low level, it is essential that the Government takes steps to attract investment into the residential sector.’

I sincerely do hope somebody is listening and that the parliament sees it fit to apply these recommendations.

Since the opening up of the Chinese economy several years ago, many more millionaires (and there are quite a handful of them) are continuously looking for good investment locations all around the world.

No doubt London is one of the most sought after property destination of any right thinking fellow whether from Asia or North America. The Chinese are taking advantage of their strong Yuan against a weakening Sterling; they are set to take charge of the annual overseas property exhibition in places like Kuala Lumpur, Hong Kong, and Singapore.

London, you must remember, is hosting the 2012 Olympics and Paralympics, making it an attractive destination for realtors in 2011. Reports show that in 2011, around 5 to 10% of all London house sales at overseas showcases will be to Chinese buyers and about 25% of those buying at exhibitions will be looking for somewhere to use themselves. That’s quite a huge chunk I must say.

Also, the Chinese seem to have an edge owing to the fact that there is very little competition in the U.K at the moment. Another factor that would drive this move this year is the stringent property tax regime operated by the Chinese government in recent times. A wise Chinese businessman/woman would rather invest in a more secured, and investment-friendly city like London.

Interestingly, even buyers who are not millionaires or real estate professionals are now looking to buy in London, predominantly with their children in mind for study or work. Indeed, London has become the toast of real estate professionals and adventurers all across the world.

Very recently I talked about the serious ‘clash of interest’ between developers and mortgage institutions; my point then was that the mortgage houses find it difficult to appreciate the essence of energy-efficiency in constructing buildings while the former strongly desire ‘green’ houses. The good news is that many more organizations and government institutions are beginning to tow the line of ‘energy-efficiency’ crusaders.

The Association of Residential Letting Agents (ARLA) is one of such bodies – a very important one at that. ARLA is in the forefront of the crusade for highly energy-efficient houses. The recent catastrophes in many parts of the world have served as a warning call to governments and people all over the world to reduce carbon emission and adopt greener and cleaner energy sources.

The ARLA has revealed a number of ways that landlords can take advantage of the government’s new ‘Green Deal’ initiative. Apart from new developers, there seem to be a real challenge for home owners with buildings as old as 10 years and beyond.

The association advises that re-fitting or installing state-of-the-art loft and floor insulation and cavity walls would go a long way in helping to conserve energy – especially in the cold winter months. Experts in the ARLA also recommend that lagging should be installed around water pipes and boilers to minimize heat loss.

UK landlords are not insulated from the global calamities caused by the rising warmth in the atmosphere. I keep wandering what would happen to a place like Central London if the Thames River rise dramatically; the disaster would be phenomenal as seen in the movie – Flood. This is indeed a wake-up call for all existing landlords and would-be landlords to make energy efficiency a priority when building

For some people, buy-to-let is a gamble; for some others, it’s a long term investment portfolio. It could be a gamble when you are planning to make profit from the rising cost of houses foreseeable in the near future; this could however be very dangerous as seen in the last few years after the bubble burst in the continuous rise in prices.

Buying-to-let as a medium for earning regular income yearly is however seen as a good business strategy considering the fact that the number of houses available are not increasing in response to the demand from would-be tenants.

Kate Faulkner of advice site: www.designsonproperty.co.uk says: ‘This will be a good year to become a landlord. However, with regional variations on house prices you must choose property carefully; it’s important to talk to letting agents about the area and what types of property tenants want’ This point is very crucial as you would not want to buy properties that are not very high in demand in certain areas.

Following the recent slump in the prices of houses, 2011 seem to be a perfect time to put in that deposit and seek for mortgage facilities. Furthermore, with the increased competition in the buy-to-let mortgage market, most banks have reduced their fees and rates making funds more accessible.

The U.K economy is picking up very rapidly after the recession and many more people are seeking spaces for rent. Whether you are buying for profit from the price in a few years or as a constant stream of income, this is certainly a good time to buy.

Like I always advice, make sure you secure the services of an expert in real estate matters to see you through the process. Being a first-time buyer can be fun but can hurt you too. So heed my advice!

Buying into a lease can be very tricky, especially if you are not a real estate professional. Even professionals make some mistakes when buying leasehold properties for their clients. After taking a look at this issue, it becomes obvious that most people just buy ‘available’ properties without due consultations or asking the right questions. Let’s take a look at some of these mistakes and how to avoid them.

1. Buying a leased property with a short lease lifespan.

• This is perhaps the most common of the mistakes. Any leased property with less than 60 years left is not a good buy except you are able to secure a lease extension. Mortgage companies in the U.K generally resent such deals but if you insist, you are sure to get a more expensive lease extension. This in turn would shoot up your own rental fee and therefore make the whole deal unattractive.

2. Not taking note of additional charges.

• Most times, the euphoria of sealing the deal as it is makes most people forget to inquire if there are any other hidden charges  – popularly called ‘disbursements’, (there are in almost all cases). Make sure to ask for these before signing on the dotted line… not even the court can save you here.

3. Buying without surveying.

• Most property buyers are ‘penny-wise, pounds-foolish’. It is a very common mistake to not check the property thoroughly before buying. That small fee you will pay a surveyor to take a good look at the property could save you thousands of pounds at the long run.

4. Inadequate termination clauses.

• If you don’t make sure of it, the termination clause can come back to haunt you. Most managing agents require three months’ termination notice, and many also charge a termination fee equivalent to three months’ agent fees. In the worst cases, agents insist upon as much as twelve months’ notice.

5. Who pays for the upkeep of the building?

• Leaseholders generally pay service charges for the building’s upkeep; on the other hand, freeholders contract their own workmen to take care of the building. You must be very sure of where your contract places you so you don’t fall a victim of excess charges.

My advice: hire the services of a property consultant that has experience in this stuff; it would cost you a little, but at the end you would have saved yourself from all kinds of legal disputes.

With all the noise about ‘greening’ and climate change, more and more industries and stakeholders are beginning to see reasons why sustaining the earth is a viable and serious business. I think this is a good development and the rewards would come in fast in the nearest future.

A recent report from a study conducted on 600 real estate industry experts shows that ‘greening’ has become an unavoidable and very important factor for attracting financial investments in real estate. After going through the report – Emerging Trends in Real Estate, published by PwC and the Urban Land Institute (ULI), I cannot but agree more that ‘sustainability issues’ should form a basis for real estate financing.

Indeed there are several other viable alternatives to erecting buildings in whatever terrain, but the traditional lust for cheap but dying resources like timber is still limiting our capacity to explore or put these available substitutes into use. The same can be seen in the motor industry and many others.

Even though real estate developers, government organizations, shareholders, and eventual users are more open to sustainability, fund managers interviewed remain skeptical over the prospect of financial rewards from higher up front sustainable property costs.

It is this kind of ‘clash of interest’ that remains the bane of mankind from moving forward. Although it is true that ‘green’ buildings may not be attractive to financiers at the moment, the recent trend shows that there is a shift in ‘ideas’ and ‘focus’ in that respect.

Obviously, it is the real estate financier with a vision for long term profits that can see the benefits and tap into this new idea and lay a claim as ‘the first arrival’ when the time comes.

My recommendation is simple: government in the U.K and every other country should give meaningful incentives to developers opting for ‘green technology’ before and after constructing. I am aware that these kinds of gestures are already being offered in other sectors; the real estate industry should not be left out if we are to see a significant reduction in the dearth of forests and other environmentally endangered building materials.

What happens when people have the funds to buy their dream houses and the market – or government just cannot provide these houses? Chaos! The recovery of nations from the global economic meltdown presents a new challenge for the housing market in the U.K. I am not saying everybody would have ready funds or mortgage facilities to buy, but the deficit in new houses being constructed each year is quite alarming.

I stumbled on a recent report by the Royal Institution of Chartered Surveyors which shows that there is a shortage of 80,000+ houses yearly. Now consider these facts: many people are opting for buying instead of letting; many others want to be landlords – at least for the first time; the U.K is becoming a choice destination for business and leisure; influx of foreigners into U.K universities; relaxed mortgage regime; and of course the coming of the Olympic Games in 2012.

Place all these pieces together and you’ll easily see why people are in a rush to get their own homes as soon as possible. There are indeed several options proffered by all kinds of experts as the true solution to this problem.

As far as I am concerned, ingenuity and a deliberate attempt to stem the tides of traditional housing problems that plague the U.K is the way to go. Some of these problems are: long term shortage of housing, volatile prices – booms and busts in prices, and shortage of mortgage lending among many others.

Modern methods of building using recycled materials and innovative structural design not only save time, it drastically reduces cost and improves efficiency and the general lifespan and flexibility of the house.

The U.K Town Planning department must shift its focus from “just supplying” accommodation to providing functional, cost-effective, and durable housing units for the crowd waiting to open the doors to their newly acquired homes.

To do so, the challenges identified in the delivery of housing of quality, quantity, environmental sustainability and affordability must be tackled head-on. To avoid the imminent chaos and loss of valuable tax income to the government, the time to start is right now!

Selling a house can bring about all kinds of memories of the time spent there – from the happy to the sad, and even bizarre; U.K residents generally find it nostalgic to move into new homes no matter the reason. The traditional spring market for selling off properties seems to be shifting gradually, and statistics from property agents show that January has finally become more preferable to March when selling is being contemplated.

Owing to a lot of reasons, I can tell you that people now prefer to sell their house to the early birds right at the start of the year. Zoopla, a very famous property portal used by industry watchers to gauge the health of the housing market, recently reported that the number of inquiries for available houses has tripled compared to 2010’s figure. With more than a million searches for available property in the first four days of January (more than double the whole of last year’s early tally), we can say for sure say that the tide has changed.

Even though the U.K housing market doesn’t generally go into hibernation, January is a better time to place your house on the market. For one, you get more competition in the buying process giving you more room to get away with the price tag you have placed; most of the early birds are more committed and serious about buying when compared to the March/April/May callers who might have spent so much on other important family and career matters.

City bonuses are also important reasons why selling in January is more viable. City councils generally give bonuses to sellers during this period and you sure would not like to miss out – trust me they are worth it.

It is still not too late to put up that sale, make some extra bucks and move on with your life. From the crew here, we say happy selling!

Several years ago, it would have been unbelievable that a normal working class professional would be able to have enough ‘dough’ to purchase a property worth £1 million or above. Indeed we have found many buying such in recent times even without having any connection with the ‘Lords’ or ‘Royals’ – or perhaps filthy rich politicians from foreign lands.

I have read many times of sports personalities, movie and music celebrities, and other high profiled professionals buying houses worth £1 million plus, even as much as £5 million. In the 90’s it was almost becoming fashionable – and I am sure a point of discussion at parties where these people meet, to see many ‘so-called stars’ boasting about a new  multi-pounds property purchase in Buckinghamshire or London, and other choice areas.

The story is however not the same for a few years now – and is getting worse by the day. Research by Investec Specialist Private Bank conducted with estate agents, developers and mortgage brokers operating in the U.K housing market show that competition for properties worth £1 million in the U.K has fallen over the last two years, with just five buyers for each compared with eight previously. These aren’t good times I tell you.

This phenomenon has been attributed to three major factors: serious lack of finance, lack of stock, and the fear of a ‘double dip’ recession (which generally hampers consumer confidence in the U.K).

Mortgage banks and other such financial institutions are being very careful as regards providing mortgage to candidates seeking more than a million pounds for choice properties. This should not come as a surprise; lessons learnt from the American housing market during and after the 2008-2010 financial crises are still very fresh in the public memory.

I wait to see how the U.K housing market will get out of this mentality and embrace the good old days when £1 million plus houses were stiffly competed for. Surely, those were ‘the good old days!’