For both the property market and the general population, the current credit crunch is having a significant effect on both the housing market and the livelihood of citizens. Many residents, as well as foreigners, have made good investments on property and can now be considered as having increased their wealth, while those who have make bad decisions and have not timed the market will have to face financial difficulties regarding the cyclical situation within the current property market.
With UK property prices mirroring the fall in the US market, and the continuing effects of the global credit crunch, the debt burden for many consumers is overwhelming, and many are looking to dispose of their properties in an already distressed market. Unfortunately, the bad news for the UK housing market will keep coming, and is unlikely to change for some time to come. Fortunately, there are certain opportunities created in this type of market that can be taken advantage of, without having huge amounts of cash at your disposal. For many people facing the dire consequences of home repos, they really dont have many alternatives in terms of disposing their properties. However, there are options available to these consumers, and many savvy investors are taking advantage of such type of distressed sales. The concept is the sale and rentback of the property, where the current owner sells his property to the investor, with the proviso that it will be immediately rented by the previous owner, namely the concept of rentback. Sale and rentback can be a very effective strategy for such consumers to not lose the house over their head, yet remain in the property. The concept is simple: the current owner can sell and the investors can rentback to the previous owner on an Assured Shorthold Tenancy, whilst the investor also enjoys a lower property purchase price compared to the market value. The pros for the previous owner include not tarnishing their credit record, as well as negating the need to move house. However, you must keep in mind that sometimes the tenant is only provided with a limited tenure tenancy, so you have to be ready if the landlord only provides you two months notice when they want to seek possession of the property.
Facing repossession or eviction as well as facing mortgage payments or other outstanding debt that need to be paid as soon as possible are the main reason for people taking this option. The previous homeowners will be able to survive the critical situation and will also get a bonus benefit, their neighbour or friends will not realise the crisis, and they continue to live in the same house. As we all know, financial problems can be quite problematic and embarrassing and it is the savvy investor that can take advantage of this current market turmoil to make huge profits when the cycle turns. Furthermore, what many people are not aware of is that these properties can actually be purchased with no-money down. Sites such as WealthPillar.com have a wealth of knowledge regarding this option, and can also offer the solution for many seeking to become successful property owners. With such sites, you will learn about the principles of successful property investing and the latest investment models which virtually guarantee 100% property occupancy and no void months. If you have ever wondered how to make motivated sellers contact you, this website will also tell you the three proven systems and processes and help you generate 80% of your property leads.
In real estate investing, the crucial thing in determining if your investment will be successful or not is by identifying early if the property you are assessing has the potential for profit even before you set your foot through the door. Real estate investing has always been the most effective way at creating wealth, and finding no money down purchases from rentback customers can provide the lucrative opportunity you have been waiting for to take advantage of the current UK housing market