View from abroad
Having just returned from a few days on the West Coast of the USA after attending a friends surprise birthday bash I thought I would commit to a few words having spoken to several property experts & property funders whilst there. The global property recession started in the USA and the worlds finance companies are intrinsically linked as many of you found out.
The steady rise in purchasers confidence we have seen here growing month on month over the past twelve-eighteen months they have seen too. They too have serious concerns about prices in their leading Cities such as San Francisco & New York as we have about London & Greater London regarding affordability and the multiples of salary now needed to both enter & to step up within those markets. Interestingly there long term fixed rate mortgages are very common & thirty year terms can currently be secured for circa 4.5%pa which I feel bodes very well going forward as they clearly are not seeing inflation or bank interest rates sharply hiking up . Proven affordability is going to become the key words in both world markets and buyers do need to have done their financial homework before they start viewing as vendors particularly in sales chains will not wait especially when other buyers are out viewing too.
The US & UK economies are improving and the US like us are seeing falling unemployment rates and increasing numbers of new businesses starting. This is already impacting here in Birmingham and we will shortly be seeing the largest numbers of residential builders tower cranes around town for almost a decade as developers acknowledge that there is a market here for their new build product and the urban renaissance of the City Centre here is far from being completed.