-
“The part of the course I enjoyed most was talking with successful people that change your opinions - I know I can do it, the Property Mentor system works. Just do it!”
Alen Kokumbayev, Property Mentor course graduate 2010Read More Testimonials
Property News
Number of property owners paying into a pension has dropped by 8 percent as more turn to property ...
London properties continue to defy the odds rising by 2.8 percent during 2011 compared to the rest ...
New study reveals that the number of new buyers entering onto the property market has fallen by ...
Property News Archive
Property Articles
If you want to live the high life in the uber cool, ultra modern Notting Hill bachelor pad that Robbie ...
The demand for rental accommodation is now so high that demand by far outstrips supply. Prospective tenants ...
According to recent reports there could be some real bargains to be found in Newtownabbey in County Antrim, ...
Property Articles Archive
Hard Times Ahead For Off-Plan Property Investors
The future is looking pretty bleak for property investors/homeowners who invested in off-plan properties during 2007. Hit by falling property prices, many are no longer able to get the mortgages originally agreed by lenders and are now facing the prospect of either defaulting on their deposits or having to fulfil the short fall from their own savings.
However, this doesn’t appear to be enough for some property developers who are pursuing homeowners and taking them to court for defaulting on their agreements.
It is believed that in London alone over 300 legal claims have been made by Berkeley Homes, Ballymore and Telford Homes against homeowners who have walked away from their deposits. Unsatisfied, these property developers are pursuing them asking them to either fulfil their contracts or pay them thousands of pounds in damages.
One such case involves Steven Dowd, who after securing two 90% mortgages on 2 flats (one a £415,000 flat, the other a £375,000 flat) is now facing damages of up to £100,000 after he tried to walk away from the deal when his mortgages fell through.
Reported to have dropped 40% in value the most lenders would give him was a 75% LTV.
Yet the most interesting aspect to this story is the difference in property price falls…
Compared to the rest of London which has dropped 14%, developers such as Berkeley are reporting property price drops of up to 40%, a clear indicator that many developers overestimated their property values back in 2007.
Faced with such hardship it is not surprising that Dowd has now started a collective campaign for buyers who have been confronted with similar situations. Aimed at supporting owner-occupier buyers who are facing thousands in damages, this campaign aims to offer companies such as Berkeley 13 options to help resolve this issue.
However, it is undeniable that hard times are ahead for homeowners who have been caught up in these schemes. According to Estates Gazette, Berkeley alone signed over 3,300 contracts with homeowners, 85% of which were off-plan.
More about the author of this article
Stephen McIntosh, Property Mentor Delegate
With a £40k passive income per year Stephen McIntosh knows that property investment is one of the most exciting and achievable ways to become wealthy “Property is the best employee ever! It doesn't have days off, never calls in sick or with a hangover, works 24 hours a day, 7 days a week and never has a holiday. All the while making you £££s Read more
To see a full list of our writers and find out more about them please visit the authors page.
How Property Mentor Can Help You
Keeping you up to date with the latest property investment news is just one of many ways that we ensure all of our investors get the most from their properties. On our FREE property courses we will show you how we made a success of investing in property, and what you need to do to replicate this success.
The strategies that we teach apply to everyone - if you are new to property you need all the advice you can get, and if you are an experienced investor you never stop learning.
Find your local course
To find one of our FREE property investment courses near you simply enter your postcode below.
Use our Postcode Checker to find our next course near you. Book a place now to find out how we did it and how our regular mentoring days will ensure that you are ALWAYS at the top of your investment game!
Reference Code:
Events Coming Soon
London - Central - 04th Feb
London - West - 05th Feb
North East - 07th Feb
London - Central - 07th Feb
West Midlands - 07th Feb
London - North - 08th Feb
South East - 08th Feb
Recent Testimonials
"I didn't realise it would be this good, great!" view testimonial
"I found it really informative especially the networking"... view testimonial
"I have now learnt a whole new way of doing things"... view testimonial
"I feel there's always something to learn and it's a fantastic"... view testimonial
© Copyright Property Mentor™