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Mortgage crises drive house prices down by 20%. End of Tenancy Cleaners will be the winners

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Mortgage crises drive house prices down

If you still think that 2020 was the worst year ever, you’ve obviously slept through 2022 so far. With energy prices soaring and war-induced 40-year-high inflation, there isn’t an industry that was not hit hard by the post-covid crisis. This was not a genuine surprise, as experts had predicted high inflation and market shrinkage a year ago. However, what they couldn’t take into consideration was Putin’s imperialistic obsessions, which spiked the crises out of control and produced what we see today.

Still, a genuine surprise was the ever-climbing housing market. For seven months straight, housing prices have been going up and the market scaled by 15.5% annually by the end of July.

However, over August and September, the housing market didn’t just slow down but began shrinking. Moreover, with October passing its midpoint, the housing market decline seems to be speeding up.

Why didn’t the housing market continue to rise

There were several factors which led to the rapid rise of the housing market, despite the inflation and volatile industry. The first of many was the Covid crisis, which deterred people from spending too much. Naturally, they managed to accumulate significant capital. In addition, the high inflation introduced another factor, as it pushed those who managed to save money, to invest further and not lose them to inflation. Moreover, the pandemic made it painfully obvious what are the benefits of owning your own place, especially one outside the big urban centres. The final nail in the coffin was the relentlessly rising rent cost, which, unlike wages, rapidly increased. By June 2022, the average rental price in the UK increased up to 3.6% for a 12-month period.

All these factors pushed people to seek housing opportunities despite the expectations that the Bank of England would raise the interest rates. After all, many concluded that if they would pay massive sums each month, it’s better to make it toward their own home rather than just pay a landlord.

On the other hand, many who were saving for a second or third home were forced to choose whether to let inflation take a huge bite out of their savings or invest it in a bigger, better and newer home.

All of this drove the housing market up, but as we are preparing for the next increase in interest rates, it seems that the housing market will finally take a blow.

Why is a mortgage crisis expected?

The Bank of England announced yet another aggressive interest rate increase in November to battle the ever-increasing inflation. This might bring some peace of mind in other markets, but the increase will actually make things worse when it comes to the housing market. Private banks in terms will increase their interest rates towards their customers, so people will have to pay higher amounts to cover their mortgages. For example, the interest on two-year fixed-rate mortgages has more than doubled, rising to 5.17% compared to 2,57% in March 2021. The five-year fixed-rate mortgage has done the same, reaching 5.1% compared to 2.75% in March 2021.

This means that many won’t be able to cover their loans, as some estimates claim that millions would not be able to afford to deposit their monthly payments. On average, a person who took a £100,000 25-year mortgage at a rate of 2% pays £424 monthly. However, if the interest rate goes to 6%, as is the BoE plan for next year, this would mean that the monthly payment will rise to £644. Many won’t be able to afford this drastic change. Thus it will lead to a mortgage crisis.

From the mortgage crisis to the housing market collapse.

Since many won’t be able to afford their monthly payments, they will be forced to sell their homes. Moreover, many would try to sell their homes in panic, as they will be afraid of even higher increases next year. The significant drop in mortgage applications and the fact many landers suspended most of their mortgage products means the housing market is not just in crisis but should be ready for a free fall. High offering and low demand are usually a recipe for disaster in any market. Experts expect the real estate cost to drop as much as 20%.

According to UK’s National Statistics, the average house price in the UK was £292,118 in July 2022. If the experts’ predictions come true, soon a new home in the UK could be bought for as little as 233.7 thousand (on average)

Is there a silver lining?

It’s hard to imagine there will be any winners in this horrific scenario which is currently unfolding. However, if we have to find a bright side to this, there will be some industries that will probably benefit from the housing market’s downfall. For example, people who already have the money or can afford the constantly increasing mortgage prices will have the opportunity to get a new home with a 20% discount. Landlords will also take a significant boost from the collapsing market, as many would have to go back to renting. With the skyrocketing rental prices, this turn of events is more than welcome for many rental apartment owners.

However, the biggest winners will be the service sector, which takes care of preparing homes for sales and new residents.

End-of-tenancy cleaners will enjoy a busy winter.

EoT is an essential service when you want to let your home look stunning before selling it or whenever you are switching your permanent residence. Although the money will be tight in most cases, many would prefer to hire a professional team to prepare their homes for sale, as it will drive the price up. Moreover, an end-of-tenancy cleaning is a one-time spend that significantly increases the property’s value. For example, the price range for one of the most prominent end of tenancy cleaning companies in the UK, Fantastic Cleaners, shows that the average price for a single-bed home goes from £180 to £210, depending on the area. This is a small price that can easily increase the value of your home by up to several thousand pounds.

Moreover, storage providers, staging companies and others will also experience a boom, especially with fewer potential clients on the line. The significant reduction in demand will force sellers to upstage their competition in order to sell without drastically lowering their prices, so any trick in the book will come in handy.

There is a hard winter coming

Despite the opportunity for some home services sectors, the mortgage crisis portend one truly harsh winter. High inflation and the inability to strike good mortgage deals will force people to seek other ways to save their money, which may lead to funds draining away from the UK economy. So how will our lawmakers deal with this impending crisis? We will have to wait and see.

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Real Estate

What You Need to Know About Construction Optioneering Technology

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What You Need to Know About Construction Optioneering Technology

Construction optioneering technology is a tool that helps construction professionals identify, evaluate, and select the best options for a construction project. It is based on the concept of optioneering, which involves identifying a range of options for a project and evaluating them based on factors such as cost, time, and risk.

Construction optioneering technology typically includes software tools that allow users to input data about different options and evaluate them based on predefined criteria. This can include data such as cost estimates, schedules, and risk assessments.

ALICE is a construction optioneering platform that allows you to explore many potential ways to build your project, whether it’s during the bidding, planning, or execution phases.

Nevertheless, construction optioneering technology can provide a number of benefits.

1. Improved decision-making

One of the key benefits of construction optioneering technology is that it can help improve decision-making for construction projects. By providing a structured process for identifying and evaluating different options, it can help ensure that the best option is selected based on factors such as cost, time, and risk.

If you are considering several different options for a construction project, construction optioneering technology can help you evaluate each option based on factors such as the cost of materials, the time required to complete the work, and the potential risks associated with each option.

By providing this information in an organized and easy-to-understand format, construction optioneering technology can help you make more informed decisions about which option is the best choice for your project.

The technology can be used to simulate different scenarios, such as different building materials or layouts, to determine the most cost-effective and efficient option. The technology involves using computer software to simulate different scenarios. The software can be used to model different building materials, layouts, and other design elements to determine the best option for the project.

Construction optioneering technology can aid in making data-driven decisions by providing detailed cost analysis, environmental impact analysis, and other performance metrics.

This technology can give architects, engineers, and construction professionals a better understanding of the costs, environmental impact, and overall performance of different design and construction options. This can help them make better decisions when designing and building a building project.

2. Increased efficiency

Construction optioneering technology can help increase efficiency and productivity by streamlining the option evaluation process and reducing the time and resources required to make decisions.

Traditionally, option evaluation for construction projects may involve gathering and analyzing data from multiple sources, such as cost estimates, schedules, and risk assessments. This can be a time-consuming and resource-intensive process.

Construction optioneering technology can help simplify this process by providing a centralized location for storing and analyzing data. This can help reduce the time and resources required to gather and analyze data, making the option evaluation process more efficient.

In addition, construction optioneering technology can help to standardize the option evaluation process, making it easier to compare and evaluate different options. This can further increase efficiency by reducing the time and resources required to make decisions.

The technology can help reduce costs and improve the sustainability of building projects. By simulating different scenarios, the technology can help identify the most cost-effective and efficient option for the project. This can help reduce the overall cost of the project and make it more affordable for the client.

Construction optioneering technology can speed up the design and construction process. By simulating different scenarios, the technology can help identify the most cost-effective and efficient option for the project.

Additionally, by analyzing the potential impact of different options on the environment, the technology can help make more sustainable decisions when designing and building a building project. This can help speed up the design and construction process and make the project more efficient.

3. Enhanced collaboration

Construction optioneering technology can help enhance collaboration between different teams and stakeholders by providing a centralized location for storing and sharing data.

If you are working on a construction project with multiple teams and stakeholders, it can be challenging to coordinate decision-making and share information. Construction optioneering technology can help to facilitate collaboration by providing a platform for sharing and analyzing data in a centralized location.

This can help to improve communication between different teams and stakeholders, as it allows everyone to access and review the same data. It can also help to improve decision-making, as it allows different teams and stakeholders to contribute their own data and insights to the option evaluation process.

4. Improved project outcomes

Construction optioneering technology can help improve the overall outcome of a construction project by helping to select the best options based on factors such as cost, time, and risk.

For example, if you are considering several different options for a construction project, construction optioneering technology can help you evaluate each option based on factors such as the cost of materials, the time required to complete the work, and the potential risks associated with each option.

By providing this information in an organized and easy-to-understand format, construction optioneering technology can help you make more informed decisions about which option is the best choice for your project.

Selecting the best option for your project can help ensure that the project is completed on time, within budget, and to the desired quality standards. This can help improve the overall outcome of the project and increase satisfaction among stakeholders.

5. Reduced risk

Construction optioneering technology can help reduce risk by identifying and evaluating potential risks associated with different options.

If there are several different options for a construction project, construction optioneering technology can help you evaluate the potential risks associated with each option. This could include risks related to the cost of materials, the time required to complete the work, or the potential for accidents or injuries on the construction site.

By identifying and evaluating potential risks, construction optioneering technology can help you make more informed decisions about which option is the best choice for your project. It can also help you develop strategies to mitigate identified risks, such as implementing safety protocols or purchasing insurance.

In conclusion, construction optioneering technology can provide a range of benefits that can help improve decision-making, increase efficiency, enhance collaboration, improve project outcomes, and reduce risk.

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Real Estate

The Pros and Cons of Selling Your Home in As Is Condition

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The Pros and Cons of Selling Your Home in As Is Condition

Whether you’re downsizing or just want to start fresh in a new house, selling your home to find a new one can be a stressful process. There are a few different strategies you can use to speed up the house selling process. One of these is the as is condition sale.

What is the as is sale, and are they right for you? We’ll walk you through the pros and cons so you can make a well informed decision.

Pros of Selling a House in as Is Condition

Selling a house in as is condition has a lot of pros or advantages. Below are some of the common advantages when selling your house in as is condition.

No Repairs Needed

Selling your home in as-is condition is a great option for most people. It’s an ideal choice for those who need to sell quickly and don’t have the time to invest in costly repairs or renovations.

Quicker Sale

Another one of the main benefits of this option is that it can help to facilitate a quicker sale. The home will require much less preparation and repair before it is ready to be listed on the market, and a potential buyer may be more willing to consider it if they can also invest in and make improvements to the property themselves.

Simpler Process

Unlike staging or making repairs, a home listed as is may skip previous steps. It may be easier for a seller who is short on time or resources to list their home as is than to undertake repairs or renovations. If you’re living in Crosby, a cash home buyer found here can help you with the process.

Cons of Selling a House in as Is Condition

Selling a house as is has many pros, but it also has several cons or disadvantages. Below are some of the common disadvantages when selling a house in as is condition.

Low Price

Selling in an as is condition typically results in a lower sale price, as buyers may be deterred by the thought of having to invest money and time into repairs. As a result, homeowners may be inclined to sell for a lower price in order to attract buyers.

Less Available Buyers

The number of buyers interested in purchasing an as is home is likely to be limited. This can create issues if the market is slow, or if the owner overprices the property. Without the ability to make repairs and upgrade areas already identified as needing attention, there can be a legitimate concern that the market value of the home is lower, resulting in fewer buyers willing to pay the list price.

Less Interest in the Home

When potential buyers view the home, they might be turned off by any existing problems or the need for updating, so it’s likely that you’ll receive fewer offers. This can lead to a lower sale price if buyers aren’t incentivized to outbid each other.

Sell Your Home in as Is Condition Today

Selling a home in as is condition has both pros and cons and homeowners should weigh their options carefully. Ultimately, taking some time to consider a number of factors, from the market to finances, will help determine the best decision for you and your home.

If you need help throughout the process, don’t hesitate to reach out to a real estate professional.

Did you find this article helpful? Check out the rest of our blogs!

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Real Estate

How to Add Character to Your Home

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How to Add Character to Your Home

Every homeowner wants their home to stand out and make an impression on those who visit. When it comes to selling up, having a characterful and memorable property can be a real benefit.

In this article, we walk through some of the top things you can do to add character to your home.

Define your entranceway

The entranceway is the first impression people get of your home. It’s therefore important to put effort into making it look special. Even if you don’t have a big foyer, there are still things you can do to make the space stand out.

You could get a comfortable bench or chair to allow people to sit down to take shoes off or get an attractive looking storge unit. Having a tasteful mirror in the entranceway can also help the space to appear larger and brighter.

Colourful cabinets

Having distinctly coloured cabinets is a great way to add character to your home. Ditch the white or wood in favour of a soft, eye-catching colour. A subtle green is a good option, with green being particularly popular with interior designers at the moment.

You could keep the cabinets throughout your home the same colour or mix different colours in different rooms to create a different atmosphere as you move through the house, the choice is entirely up to you!

Replace door hardware  

You can make the doors in your home that bit more exciting by customising the handles and knobs. Instead of the dull builder grade finishes, you can install something with a bit of flare to grab people’s attention when moving from room to room.

Transparent glass/plastic knobs or elaborate antique keyholes are great choices.

Vintage carpets

A Persian rug will be bound to attract people’s attention and start conversation. The designs vary greatly and can be completely unique – the definition of character! Any vintage-style rug can be used to add contrast between new and old if you have modern furniture.

Wooden elements

Wood is a popular element to add character. It can have a calming effect by bring a sense of the outdoors inside. Wooden beams are a classic feature however wooden cabinets or furniture will help achieve the same desired effect. You can also look to include wooden features in places where wood is less common, such as bathrooms.

Chandeliers and elaborate light fixtures

No light fitting quite stands out like a chandelier. A lot of people assume that chandeliers will be expensive, however the truth is that you can get a small or large fitting made from materials ranging from the cheap to the expensive.

You can match your light fitting to the other furnishings in your home. For example, if you have glass doorknobs, a chandelier with glass elements would make the perfect addition.

This article was written by a quick house sale company We Buy Any Home. If you’re wondering “how can sell my house fast”, head to the We Buy Any House website for more information relating to all property related enquiries.

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