Is there any light at the end of the tunnel; in the midst of one of the worst global recessions on record is there a silver lining to this dark cloud? Every day, yet more doom and gloom is predicted for most industries, job loses being at an all time high. This is no more apparent than in the construction industry.
Building of new houses within the UK has virtually ground to a holt, developments of new houses and apartments lay empty due to the real estate recession, and loses spiral out of control.
Property developers are now left with an abundance of new houses, which in effect amount to negative capital lying dormant, losing money on a daily basis in accordance with ever falling house prices. Leaving them in a situation of clawing back finances by selling them off at a price far lower than pre recession times.
Many property development sites have now begun to offer discounts for those who can purchase property in bulk, selling four or more new houses at one time. This has opened doors for investors looking to invest their money rather than leave it in a bank account, this is very much a plus for landlords as rental property has seen an increase due to people not being able to buy. Some property developers have resorted to auctioning new houses simply to alleviate debt.
The property market, as the recession bites ever harder appears to be a no win situation for all, however is not only new houses which have been hit, many property investors have found themselves in the situation of buying property purely to renovate and refurbish before selling on, but have run out of finances before achieving this goal.
Alternatives which started to be offered to first time buyers were deals on prepaid deposits, money off on interest and shared ownership deals which would enable them to get their foot firmly on the first rung of the property ladder whilst providing part ownership of a property. However reading the small print is essential, as these schemes limit what you are allowed to do with this property as in effect you only own part.
Property developers are still offering incentives to buyers in order to sell new houses, lower or no deposits, upgrades to properties, although however appealing these incentives are they still for many remain out of reach.
Many home owners can only stand on the sidelines helplessly watching their property descend into negative equity, there only option to sit tight and ride the storm of the recession until the economy picks up, unfortunately for the construction industry riding the storm may not be an option, seeing the close of many businesses.
It must be stated though, in times of economic calm, buying new houses often saves money, buying a brand new property almost definitely ensures energy efficiency with the installation of insulation and double glazing, brand new boilers and heating systems, also providing new facilities such as bathrooms and kitchens, carpets and flooring which won't needing changing or altering for a long time.
Author Resource:-
Anna Stenning investigates the abundance of new houses now empty due to the effects of the recession on the construction industry and housing market.
![[Valid RSS feed]](http://www.freebie-articles.com/images/rss.gif "XML Feed For RSS")
Category Rss Feed
Print This Article
Add To Favorites