Tag Archives: property

A solution to the housing crisis that doesn’t cost councils a penny?

The housing market is in crisis with many first time buyers locked out of owning and, in many areas, being able to rent property at affordable levels. As a country, we also have a homeless problem with a shocking lack of care for the mentally ill and, our military veterans.chris matterport me

Various solutions have been tried over the years and charities have also played a vital role in alleviating some of the need. For years there has been much hand wringing and blame-gaming by politicians for who is at fault but, the problem stubbornly remains.

Owning a home of ones’ own is not a human right but, having a secure place to call home is.

I believe there is a solution that has been staring us as all in the face for many years and it does not require any additional spending.

Local government (councils) currently sit on, and annually invests in, billions of pounds worth of investments, predominantly in stocks and shares for their pension funds. This is almost always invested in major companies who have little to no local connections or interest in the well-being or growth of the area and people whose money they have invested in them. Neither is there any guarantee that these investments will provide any return and, may even lose money.

However, if local and national government were required to use a minimum of 50% of existing pension funds and new contributions to invest in their own local housing needs, this would have immediate, medium and long term benefits. This investment would be in the form of, but not limited to

  • Making means-tested local authority buyer property deposits available

  • Building new, and refurbishing existing vacant property stock, means-tested, short to medium term social housing

  • Building flats and help centres for the homeless to be leased to and run by homeless charities at nominal rates

Making means-tested local authority buyer property deposits available. This would operate by offering qualifying local residents secured loans for private property purchase to be used as deposits. Deposits would be up to ten percent of the purchase price and would be based over a ten-year period. The homeowners would make affordable capital repayments with no interest over the first 10 years (e.g. £20,000 loan = £83.33 per month for 10 years) guaranteeing local government a minimum return on their investments and a source of income.

Any remaining initial loan amount plus interest would be repaid in whole or in part on the sale of the property (most buyers move home 2 to 4 times in their lifetimes though this figure varies) or, become due after ten years. The interest rate would be calculated as a percentage rate of the median house price inflation over the term of the loan for the Council area as a whole as using ONS or HM Land Registry figures. Homeowners who did not need or want to move after the ten year period would have a commercial interest rate calculation made for the previous ten year period (set against Bank of England rates) which ould be payable as a lump sum or, spread over a further ten year period at a variable current rate of interest.

To protect the homeowners and facilitate the flow and turnover of housing stock, the maximum chargeable interest would be capped at a set amount of any house price inflation. To ensure council pension investments were assured of a return (unlike at present), the minimum interest payable would be at an agreed minimum percentage; (for example, this could be set at 1% below Bank of England Base rates over the period.

Building new, and refurbishing existing vacant property stock, means-tested, short to medium term social housing. Self-explanatory. Councils would again have funds available to invest in their local housing needs to bring back derelict and unused housing stock into use and, to build new housing stock for social rent.

Building flats and help centres for the homeless to be leased to and run by homeless charities at nominal rates. Not only is looking after this countrys’ homeless a moral imperative, there are also sound financial reasons to help people back into society and a secure home. By utilising existing pension funds and contributions to invest in these buildings, existing expenditure on policing and emergency accommodation can be utilised elsewhere or, saved.

If implemented, I believe the above innovations would build happier communities and good, better-maintained cities, towns and villages. The positive consequential advantages would be many. A happier society tends to be healthier, crime drops, jobs are created and wages increase.

From purely a cold investment point of view, the above paragraph outlines how I believe this will help ensure local property prices remain stable and grow, bringing in good returns for the pension funds who have invested in them. The greatest returns though are for our society.

My partner mustn’t know you’ve been here…

The Christmas period is a happy time for many and for making new friends and entering into new relationships. Sadly, it is also (and not entirely unrelated in some cases) a catalyst for the end of relationships too.

shutterstock_397156225If you are going through a break-up (or are planning to), for whatever reason, and there is property involved (and always if you have children), try to aim to keep it as civil as possible. It will cost you a great deal less in stress and money in the long run (and your children will thank you at some point too)! This is advice born out of both painful personal and extensive business experience.

As agents, we are often asked to discreetly give an opinion on price prior to the other partner even knowing the relationship is about to end.

A good agent will always be discreet but, the chances are your neighbours will spot a stranger coming to your door and will drop you in it, usually at THE most inappropriate time. “Morning you two, I saw you had a friend popping in this morning. Is it family?”

the-office-awkward-e1502860025367

awkward

If we are invited in once the split is advanced, we often find that one partner will always angle towards the lowest valuation possible and the other, the highest; dependent on who hopes to buy out the other/ stay in the home.

This often causes even more pain and anguish as you now both have a new cause of tension: whose agent/ valuation is right?

That said, divorce lawyers will often suggest that each party obtains their own valuation. The cynics amongst us, may believe that this is designed to stir up more angst and expensive legal work but that is pure speculation. Cough.

If lawyers are involved, from experience, it is better for both people to ask for their respective lawyers to commission an RICS surveyor to give an opinion on value and any obvious defects in the property with both people agreeing to abide by that surveyors value but, to set the marketing price at a set figure above the surveyors valuation (e.g. 5% – 10% to allow for negotiation and surveyors being, occasionally, cautious). The cost of the surveyor split two ways will be FAR cheaper than the cost of one or two letters between lawyers as each side battles it out to try to win the ‘whose value is right argument’.

Once you have a mutually acceptable figure, we would advise you choose a good agent, who will accompany every appointment. Both people agree to ensure the home is in a presentable condition and that they leave the house empty while viewings are taking place (so no one can accuse the other of trying to affect the viewers’ decisions about a property).

wigradiusimagesAll agents must, by law, check to see if anyone else has a financial interest in a property and, must also treat each person equally. If you have a court order giving you control over the process, the agent will need to take a copy of this.

It’s also vital before you put your home on the market, that you both agree who is taking what in terms of curtains/ carpets etc. and anything from the garden etc. and that this is given to the agent. At PDQ, we ask all of our clients to complete a legal Property Information Questionnaire and the Law societies Fixtures and Fittings list to give to potential buyers to a) eliminate confusion and potential arguments over what is being sold/ left with the property and, b) to speed up the sale process once a sale has been agreed.

Useful links

Relate Relationship support for everyone

Gingerbread Legal issues during separation

Book a property appraisal appointment with PDQ

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Purplebricks and its finance company have liabilities in perpetuity – Emoov collapse should sound alarm-bells for investors and business partners

“Consumer watchdog Which says 5000 sellers could be affected by the collapse of Emoov” https://www.propertyindustryeye.com/consumer-watchdog-which-says-5000-sellers-could-be-affected-by-collapse-of-emoov/ Source Property Industry Eye (PIE)

Purplebricks share price continues to nose dive
Purplebricks share price continues to nose dive

The collapse of eMoov into administration again demonstrates the fundamental flaw in the call-centre estate agency business model but, it also highlights a severe problem for Purplebricks and the few other remaining call-centre agents that has been alluded to before but, in a different context. Their contract binds the companies to deliver the contracted service in perpetuity.

As the PIE story demonstrates, Purplebricks* consumers who have paid for a service upfront or, deferred payment, are now entitled to that cost being refunded or, tfor the customers to enforce the contract for eternity. 

Given the consistent and dramatic share price fall over the past year, its continued ‘shyness’ in substantiating many of its bold claims (88% listing to sold by Michael Bruce CEO on Radio 4 MoneyBox) and, its inability to provide a shred of evidence to repudiate Anthony Codlings damning Jefferies report which stated that Purplebricks sells (completes on) at most 51%** of all of its clients that it takes circa £1,300 from on average.

This means that Purplebricks has an exponentially increasing exposure to clients who can contractually demand their money back/ enforce the marketing and support package in perpetuity (allowing for ever increasing Rightmove charges and LPE retainers etc. Either Purplebricks and its finance company must hold sufficient and ever increasing cash reserves to be able to meet this contingency or, they face a potential charge of selling services they do not have the ability to provide as contracted.

See also

https://blog.pdq-estates.co.uk/2018/05/08/are-purplebricks-set-to-repay-millions/

https://blog.pdq-estates.co.uk/2017/12/12/purplebricks-and-the-case-of-the-regulators-who-wont/

https://blog.pdq-estates.co.uk/2017/08/24/attempted-intimidation-by-a-plc-or-fair-comment/

*Stock market ticker PURP #PURP Social media @PurplebricksUK @purplebricksAUS @PurplebricksUSA

**believed to be a ‘safe’ conservative figure to keep Jefferies lawyers happy

“Domestic abuse. It affects everyone”

In my Twitter feed this morning, I received the following link and excellent article about domestic abuse which I share below, along with some thoughts and advice of my own.

Domestic abuse: not just a tenant issue From Inside Housing @insidehousing ABUSE-MIN

The above article is a powerful and pertinent piece that is, statistically, almost certain to affect or have affected everyone at some point in their careers (even if they may be unaware of it) either directly or, via a family member, colleague or friend.

“Domestic abuse will affect 1 in 4 women and 1 in 6 men in their lifetime.”

Every victims’ experience will be unique but there are some common factors they may well experience. It is a deeply humiliating, often terrifying and usually dis-empowering act/ pattern of behaviour perpetrated on the victim that often leaves long-lasting emotional and physical wounds. It happens to men and women almost equally and people in same-sex relationships.

If you recognise the behaviours listed below either as someone on the receiving end of abuse or, as a perpetrator, seek help. It is out there.

Some facts surrounding abuse in the UK

Source ‘Living Without Abuse lwa.org.uk

Domestic abuse:

“Will affect 1 in 4 women and 1 in 6 men in their lifetime

Leads to, on average, two women being murdered each week and 30 men per year

Accounts for 16% of all violent crime (Source: Crime in England and Wales 04/05 report), however it is still the violent crime least likely to be reported to the police

Has more repeat victims than any other crime (on average there will have been 35 assaults before a victim calls the police)

Is the single most quoted reason for becoming homeless (Shelter, 2002)

In 2010 the Forced Marriage Unit responded to 1735 reports of possible Forced Marriages.

In addition, approximately 400 people commit suicide each year who have attended hospital for domestic abuse injuries in the previous six months, 200 of these attend hospital on the day they go on to commit suicide”

What is abuse?

Official UK government definition:

Domestic abuse in a relationship: recognise it

There are different kinds of abuse, but it’s always about having power and control over you.

If you answer yes to any of the following questions, you might be in an abusive relationship.

Emotional abuse

Does your partner ever:

  • belittle you, or put you down?
  • blame you for the abuse or arguments?
  • deny that abuse is happening, or play it down?
  • isolate you from your family and friends?
  • stop you going to college or work?
  • make unreasonable demands for your attention?
  • accuse you of flirting or having affairs?
  • tell you what to wear, who to see, where to go, and what to think?
  • control your money, or not give you enough to buy food or other essential things?

Threats and intimidation

Does your partner ever:

  • threaten to hurt or kill you?
  • destroy things that belong to you?
  • stand over you, invade your personal space?
  • threaten to kill themselves or the children?
  • read your emails, texts or letters?
  • harass or follow you?

Physical abuse

The person abusing you may hurt you in a number of ways.

Does your partner ever:

  • slap, hit or punch you?
  • push or shove you?
  • bite or kick you?
  • burn you?
  • choke you or hold you down?
  • throw things?

Sexual abuse

Sexual abuse can happen to anyone, whether they’re male or female.

Does your partner ever:

  • touch you in a way you don’t want to be touched?
  • make unwanted sexual demands?
  • hurt you during sex?
  • pressure you to have unsafe sex – for example, not using a condom?
  • pressure you to have sex?
  • If your partner has sex with you when you don’t want to, this is rape.

Have you ever felt afraid of your partner?

Have you ever changed your behaviour because you’re afraid of what your partner might do?

If you think you may be in an abusive relationship, there is help available.

English National Domestic Violence Helpline

0808 2000 247

Do I need listed building consent to erect a timber garden shed/ studio?

An interesting discussion/ training session in the office today.

 
A potential buyer wants to erect a wooden studio (large shed) on a property we are selling.
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The property itself is Grade 2 listed which would normally mean planning permission would be required* however, the land the shed would sit on is not attached to the property or its immediate surroundings but, is accessed via a shared path and a 30 yard/ meter or so walk.
The legal definition of curtilage** suggests to us that the land does not form part of the curtilage of the main property. Accordingly, it does not form part of the listing in our opinion and, so, the shed/ studio will not need planning permission as long as it complies with the other permitted developments. Outbuildings are considered to be permitted development, not needing planning permission, subject to the following limits and conditions:
Please note: PDQ are not lawyers and we have advised the buyer to consult with their legal advisors to verify this opinion and would advise readers in a similar situation to take independent legal advice before proceeding with any actions that may incur cost or time.
If you need advice on a property you are thinking of selling or developing property in Mid or West Cornwall, give us a call or drop us a line below. Before employing any agent, always ask to see their CV. Here’s mine
Director
PDQ Estates Ltd

*References:

Planning Portal

Local Government Lawyer

Does your agent knows the AIDA principle?

better at attracting views rightmove

From 10% – 1,173% more interest with PDQ than other similar listings

If you are selling a property, it’s key that you present your home in a way that will help it sell and, that your agent then knows how to present it to potential buyers that will find a buyer at a great price in the shortest possible time (before it goes stale on the market). This is where the AIDA principle comes in.
 
ATTENTION – The property must be advertised and presented in a way that catches a potential buyers attention
INTEREST – Having caught the attention of a potential buyer, their interest must be piqued as to potential buyer benefits and how the property and its features might fit with their needs, desires and aspirational lifestyle.
DESIRE – The potential buyer develops a positive emotional interest in the property.
ACTION – The potential buyers forms a purchase intention, compares with other similar properties, potentially books a viewing and, ultimately, makes a purchase.
 
Every property will sell if it is presented well and priced commensurate with the market and any special buyers*
 
*A special buyer is one that might pay above what the market might be expected to stand due to a non-market-related need, often personal or, financial (such as a ransom strip etc.)
 
As can be seen from the attached graphic, taken today from Rightmove, all of our clients’ homes are achieving a minimum of 10% more interest on Rightmove than similar properties advertised with our competitors.
 
“Where your home is number one not one of a number”
01326 561561 | 01736 339143

3 Things your agent might not be telling you about your Rightmove(tm) report.

Rightmove admin report.png

If you are selling your home with an estate agent who advertises with Rightmove, the chances are, you may receive a report like the one to the left here. (If you haven’t, it may be time to change agents)

These reports can be a useful tool for good agents to advise clients on property interest, identify problems and develop new marketing strategies if required.

Many agents, however, just send them out to clients with no explanation or follow up call to explain what each of these lines and number actually means. At PDQ, these charts, along with other useful information, gets fed back to all of our clients once every week when we make our weekly progress and review calls.

  1. “Does a drop in interest mean I’m less likely to sell?” – Not necessarily. The golden fortnight is the first two weeks of marketing will give a good indication of whether a home is likely to sell with your current marketing plan. However, as long as the ‘property views’ line is at or above the line for the ‘similar properties’ (homes like yours on with other agents on Rightmove) it suggests that your home has a certain something that makes it special. This may be price, good photographs, a good description or a combination of factors.
  2. “My home is below the line for branch average, does this mean the agent is doing a better job for other home-owners on their books?” If your home is below the branch average, it may just mean that the other properties are of a more popular/ sought after type than yours (e.g. there may be nothing wrong with your home but the agents other properties may have a real ‘wow’ factor that means more people click on them). However, it may also mean that a review of your properties photographs and description might be in order (e.g. did your home receive a Friday afternoon write-up, with the photos taken by the board man?).
  3. “My home is receiving incredible interest, way above average, but no one is viewing? I don’t understand!” A nice problem to have but it spells trouble. If a home is receiving lots of views but no one is booking viewings it almost always means one of two problems – The property is overpriced – the agent isn’t converting enquiries into viewings (possibly a combination of both of these issues). People usually have a written or mental ‘yes’, ‘no’ and ‘maybe’ pile when house hunting. If a property looks gorgeous but people aren’t booking viewings or asking for more information, it suggests that they are clicking through to look at the property (triggering the data spike on Rightmove) but then discarding the property into the no or maybe pile. Why? It looks great but, when they look at the property in more detail, there is a mismatch between how the property is described, its size, location and/ or its price. In blunt terms, it doesn’t represent value for money. However the problem may be that your agent is receiving email and phone enquiries but is failing to convert these to viewings, either because they are failing to contact the interested buyer back or, are somehow managing to put them off when they do call. If you suspect that your agent isn’t converting leads, you may wish to ask a good friend to secret shop the agent posing as a potential buyer using the Rightmove link and, also, a phone call to the office.

“A good agent will always talk through issues or perceived problems with you honestly and should be like your best friend who tells you what you need to hear and not necessarily what you want to hear.”

If the agent is at fault, a good one will own up, apologise and work to find a solution. If the problem is with the property or its pricing, they will work with you to find a solution that will help your home sell at the best price it is likely to in the current property market. Most homes that sell, find their buyer within the first couple of weeks. That is not to say that they all sell within that fortnight but that is when the peak activity is likely to be.

You can book an appointment for our property experts to visit your property and discuss your moving needs and goals and to formulate a strategy to achieve those goals 24 hours a day, seven days a week using this link or, you can call us on 01326 561561 – 01736 339143

You can also browse our current clients properties for sale and lease and book viewing appointments 24/7 here (please note, some clients use our ‘discreet marketing service’ so will not be publicly visible. To access these properties, you will need to register on our buyer list)

See also:

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