Recession

Recession

I am going to be brave and call it. The Recession is over, prices have fallen to their floor and we are seeing a pickup.

A number of observations have led me to this decision:

There has been a steady increase in the number of RICS Homebuyer surveys with an emphasis on a speedy service as people are keener to complete their deals.

Solicitors are having a longer turn around for paperwork as there is more conveyancing being done to the point where some firms are looking to rehire people that they let go.

The level of property on Commercial Agents’ books is falling, with fewer new instructions and this is further indicated by a reduction in the number of EPCs being ordered. 

In Ilkeston, Chartex have had three national firms interested in the same High Street unit and on Pride Park, Derby, anecdotal evidence is that office space is becoming more expensive as supply has drastically dwindled.

With all this in mind,  there are two pieces of advice that I would like to offer (on a without prejudice basis of course!); firstly, if you want to move, then you probably ought to look now as it will be more expensive in six months time. Secondly, if you have a non performing asset, contact your local commercial agent as they may well be very keen to assist you and should be able to get you a price/ rental level that you deem acceptable.

There are an increasing amount of funding sources available, and whilst the rates are (by historical terms) insulting, remember that these costs would have been extremely palatable in 2007. This flow of funds is encouraging more people to venture back out into the market. The good news is that we have not lost that habit, just having a more cautious approach.

Despite there being a large overhang of commercial property for sale, that is waiting in the wings on the Banks’ bad loan books, I don’t think that you will be disadvantaged by selling at today’s prices. Besides, unless you are trading down, selling at the lower end of a market bubble is not an issue as long as you buy something else. 

An increasingly common way of buying new assets is through Crowdsource Funding. Small amounts of money can be invested in a variety of commercial assets and you will own a few percent, depending on your stake. This limits your risk and helps you create a diverse property portfolio that is managed by professionals for you. As specialist commercial property chartered surveyors, we at Chartex can help you either buy these investments or provide the advice to sell your property in this modern and innovative way.

RICS Homebuyers Reports

If you are buying a home, then we do recommend that have a RICS Homebuyers Report of a RICS Condition Survey. All sorts of hidden problems and issues can lurk around a property and using a professional can save you far more than the cost of the survey.

Damp, wet rot, dry rot, subsidence, poor electrics, unsafe gas, drains, damage to guttering and roofs are just part of a long list of items that you may overlook when you go around a property. For example, have you ever noticed that supermarkets do not generally have ceilings?

On my last two reports, there were a couple of interesting defects; the first one looked like the balcony on the fifth floor apartment was coming away from the wall. Could have been deadly. The other was that the current owner had removed the chimney in the lounge, but not the one above, so the weight of several tons of masonry was sitting on the floor, rather than steel.

A lay person might not have noticed these, as with some professionals too. However, if a professional misses things, then you do have some comeback. Think of it as an insurance policy as well as excellent advice that might help you either renegotiate the price or withdraw from the sale (or even lease in the case of a commercial property).