From the 4th of January 2011, VAT will rise from 17.5% to 20%. The change will significantly affect both a buyer’s and a seller’s costs to move, with increased VAT impacting not only estate agency fees and conveyancing costs, but also potentially the cost of surveys, land registry and search fees. Moving costs too are likely to increase, as are the price of redecoration and furnishing and these increases are not far away.
It takes on average 13 weeks to complete a house move, once a sale has been agreed. So sellers putting their home for sale at the end of August / beginning of September still have time to beat the VAT increase if they act quickly! It is also worth bearing in mind that many companies will not increase their prices immediately following the change in the law, so even if your move does not complete until January or February you may still save money on certain aspects.
The market is still very buoyant so there really is, no better time to sell. And from a buyers viewpoint, if you act quickly, with a bit of luck you could still be in your new home by Christmas.
Contact Jonathan Waters Estate Agents today to sell your Ipswich or Clacton property
Wednesday, August 25, 2010
Thursday, August 12, 2010
Mortgage Interest Rates Still Competitive
Jonathan Waters Estate Agents comment on the recent Bank Base Rate decision:-
“Yet another month has gone by with no change to the Bank Base Rate (BBR). Once again the Bank of England (BOE) have taken the view that the economy is still too fragile to start to raise rates back towards more normal levels.
This is now unlikely to change in the short term with the Governor of the Bank of England recently commenting that he could see rates remain low for the foreseeable future.
This provides further support to the housing and mortgage markets and should help ensure that both borrowers looking to move home and those who want to remortgage, continue to see very competitive mortgage interest rates.
Mortgage product availability remains at close to the highest levels seen this year in spite of the seasonal dip in activity that generally takes place over the summer months, with many high street lenders continuing to review their products to attract borrowers.
Borrower preferences have seen a further move towards fixed rates with 6 out of 10 borrowers choosing fixed rates in July, which is something of a shift from several months ago when variable rates were more popular.
Interest rates are often a topic of conversation and differences of opinion have always existed amongst economists, bankers and politicians in relation to interest rate setting policy. However, interest rates are unlikely to fall any further and those buyers and borrowers that want to move either their home or their mortgage currently have access to some excellent products.
For further information on how the latest base rate decision affects you please call Jonathan Waters Estate Agency in Ipswich on 01473 721133.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95. (or insert fee statement)
Sell your Ipswich Property – contact us now for a free valuation and to discuss your move!
Sell your Clacton Property – contact us now for a free valuation and to discuss your move!
Tuesday, July 20, 2010
The question everyone will want an answer to!
Fiona Wilson from the Mortgage Advice Bureau comments on The Bank of England’s decision to continue their policy of holding the bank base rate at 0.5% for the 17th consecutive month.
“Now that the new coalition government have put forward their emergency budget and plans to tackle the public deficit, the effect of these proposals will mean less disposable income through rises in direct and indirect taxation for most people. The Monetary Policy Committee may have felt that raising interest rates at this time would potentially stop what is currently very modest growth in the economy.
The last month or so has continued to see lenders trimming their mortgage rates to prospective borrowers with Moneyfacts reporting the average 2 year fixed rate now standing at 4.51%. Recent lending patterns have suggested that borrowers are increasingly opting for fixed rates over variable deals with more people choosing fixed rates in June 2010.
As always the question everyone will want an answer to is - when will interest rates rise? Once again the answer is no-one really knows, from our understanding the opinion currently is that following the announcements concerning public finances and the likely impact that this is going to have on public sector jobs, incomes interest rates are likely to stay lower for longer, but that does not necessarily mean that rates will not start to creep up slowly!”
Fiona Wilson is from the Mortgage Advice Bureau for further information on how the latest base rate decision affects you, please call Jonathan Waters Estate Agents on 01473 721133 or visit www.mortgageadvicebureau.com/jonathanwaters for further information and advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.
MAB 3724
“Now that the new coalition government have put forward their emergency budget and plans to tackle the public deficit, the effect of these proposals will mean less disposable income through rises in direct and indirect taxation for most people. The Monetary Policy Committee may have felt that raising interest rates at this time would potentially stop what is currently very modest growth in the economy.
The last month or so has continued to see lenders trimming their mortgage rates to prospective borrowers with Moneyfacts reporting the average 2 year fixed rate now standing at 4.51%. Recent lending patterns have suggested that borrowers are increasingly opting for fixed rates over variable deals with more people choosing fixed rates in June 2010.
As always the question everyone will want an answer to is - when will interest rates rise? Once again the answer is no-one really knows, from our understanding the opinion currently is that following the announcements concerning public finances and the likely impact that this is going to have on public sector jobs, incomes interest rates are likely to stay lower for longer, but that does not necessarily mean that rates will not start to creep up slowly!”
Fiona Wilson is from the Mortgage Advice Bureau for further information on how the latest base rate decision affects you, please call Jonathan Waters Estate Agents on 01473 721133 or visit www.mortgageadvicebureau.com/jonathanwaters for further information and advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.
MAB 3724
Wednesday, June 30, 2010
A Reasonable Budget for Property
“A Reasonable Budget for Property”
There have been mixed messages surrounding Tuesday’s budget, with most criticism predictably coming from those now sitting on the opposition benches.
Whilst everyone was expecting tough measures, those announced are unlikely to have a major impact on the recovering property market. The Stamp Duty tax break for first time buyers up to £250,000 remains in place, which is good news. The two main changes concern Capital Gains Tax and VAT.
CGT is rising with immediate effect from 18% for basic rate taxpayers to 28% for higher rate taxpayers. This nevertheless remains well below the 40% it used to be until just three years ago. This is unlikely to affect the majority of homeowners as in the UK, unlike many other countries, we enjoy tax exemption from any appreciation in the value of our principal residence.
However, second home or buy-to-let owners will need to take this new regime into account when deciding whether or not to sell. An important consideration is that any gain is actually added to income for CGT purposes and could well tip a basic rate taxpayer into the higher rate bracket.
The good news is that this change is immediate. Had the chancellor decided to implement this from eg. the next financial year, there would have been a flood of properties entering the market in order to avoid the hike, thereby undermining prices.
VAT is to rise from 17.5% to 20% from January. This 2.5 point rise is again unlikely to affect property prices as it will only apply to certain costs of sale such as removals, solicitor’s fees, and estate agency fees. The actual figures involved are relatively nominal, and are unlikely to prompt people to sell as a direct result. At xxxx agency we’ll be absorbing the difference for all our selling clients for a whole year in any event!
©Copyright 2010 Richard Rawlings except as excluded under licence.
There have been mixed messages surrounding Tuesday’s budget, with most criticism predictably coming from those now sitting on the opposition benches.
Whilst everyone was expecting tough measures, those announced are unlikely to have a major impact on the recovering property market. The Stamp Duty tax break for first time buyers up to £250,000 remains in place, which is good news. The two main changes concern Capital Gains Tax and VAT.
CGT is rising with immediate effect from 18% for basic rate taxpayers to 28% for higher rate taxpayers. This nevertheless remains well below the 40% it used to be until just three years ago. This is unlikely to affect the majority of homeowners as in the UK, unlike many other countries, we enjoy tax exemption from any appreciation in the value of our principal residence.
However, second home or buy-to-let owners will need to take this new regime into account when deciding whether or not to sell. An important consideration is that any gain is actually added to income for CGT purposes and could well tip a basic rate taxpayer into the higher rate bracket.
The good news is that this change is immediate. Had the chancellor decided to implement this from eg. the next financial year, there would have been a flood of properties entering the market in order to avoid the hike, thereby undermining prices.
VAT is to rise from 17.5% to 20% from January. This 2.5 point rise is again unlikely to affect property prices as it will only apply to certain costs of sale such as removals, solicitor’s fees, and estate agency fees. The actual figures involved are relatively nominal, and are unlikely to prompt people to sell as a direct result. At xxxx agency we’ll be absorbing the difference for all our selling clients for a whole year in any event!
©Copyright 2010 Richard Rawlings except as excluded under licence.
Tuesday, June 29, 2010
Housing Market Filled With Vigour & Optimism
With the instability and uncertainty of the election period behind us and a stable coalition government now in place, the housing market is filled with a renewed sense of optimism and vigour.
One of the first acts of the new government, and the catalyst for this vitality, was to abolish HIPS. This was a real shot in the arm for the housing market and just what was needed to encourage potential sellers to have a go at selling their property without having to pay out a large upfront fee.
Since then, we have had the emergency budget and are pleased to report that the slight pre-budget lull has turned into a post-budget, post-HIPS, post- election surge of new interest!
This surge is reflected in the fact that our offices, both town centre and East Ipswich are busier than ever and new enquiries are coming in thick and fast over the phone and from our web site.
Property prices are increasing once more so now is the time to get on to the property ladder or to move a few rungs further up it. Vendors can take steps to make the most of their properties to achieve the best prices. These could include de-cluttering, finishing off any annoying jobs and tidying the gardens to increase that all important curb appeal.
Buyers can look to securing some good mortgage deals at the moment as the banks continue to loosen their lending criteria. And remember, if you can get into a strong position, before you make an offer, then there are still deals to be had! Once you have secured a buyer, or if you have no independent sale, then your estate agency can negotiate you a good deal on your new home – saving you money on the purchase of your next property.
All in all, this has been a generally good budget and one designed to bolster the economy in many ways. Stamp duty rates remained the same as they were set to in March 2010, which is good news for first time buyers. VAT is set to increase to 20% in January 2011, so if you are serious about moving, act now, to avoid increase VAT charges on your moving fees.
Sell your Ipswich property – click here to arrange a free valuation.
One of the first acts of the new government, and the catalyst for this vitality, was to abolish HIPS. This was a real shot in the arm for the housing market and just what was needed to encourage potential sellers to have a go at selling their property without having to pay out a large upfront fee.
Since then, we have had the emergency budget and are pleased to report that the slight pre-budget lull has turned into a post-budget, post-HIPS, post- election surge of new interest!
This surge is reflected in the fact that our offices, both town centre and East Ipswich are busier than ever and new enquiries are coming in thick and fast over the phone and from our web site.
Property prices are increasing once more so now is the time to get on to the property ladder or to move a few rungs further up it. Vendors can take steps to make the most of their properties to achieve the best prices. These could include de-cluttering, finishing off any annoying jobs and tidying the gardens to increase that all important curb appeal.
Buyers can look to securing some good mortgage deals at the moment as the banks continue to loosen their lending criteria. And remember, if you can get into a strong position, before you make an offer, then there are still deals to be had! Once you have secured a buyer, or if you have no independent sale, then your estate agency can negotiate you a good deal on your new home – saving you money on the purchase of your next property.
All in all, this has been a generally good budget and one designed to bolster the economy in many ways. Stamp duty rates remained the same as they were set to in March 2010, which is good news for first time buyers. VAT is set to increase to 20% in January 2011, so if you are serious about moving, act now, to avoid increase VAT charges on your moving fees.
Sell your Ipswich property – click here to arrange a free valuation.
Friday, June 11, 2010
Be a World Cup Winner with Jonathan Waters Estate Agents!
The World Cup starts today and to mark this exciting event Jonathan Waters Estate Agents are running a fantastic World Cup competition!
For all sellers come onto the market with Jonathan Waters Estate Agents in Ipswich and Clacton, during the World Cup (11th June - 11th July) will be entered into a prize draw to win their house sale totally free of charges!
What's more, all new sellers who list their property for sale during the span of the competition, will receive £250 (inc VAT) of our standard selling fees* and a £25.00 donation will be made by Jonathan Waters Estate Agents to the Genesis Orwell Mencap.
And if England win the World Cup we'll celebrate with you by increasing our offer to £500 (inc VAT) off our standard commission fees!*
To take advantage of this amazing offer, contact us now to arrange your free property valuation!
Wednesday, May 26, 2010
HIPS – No Longer Needed To market Your Property
From May 21st 2010, homes being marketed for sale will no longer require a Home Information Pack or ‘HIP’. This timely government intervention has been positively received by estate agents and homeowners alike, and should further bolster an already recovering housing market.
HIPs were first introduced between May and December 2007 and since then, anyone looking to sell their home had to pay up to £500 to obtain theirs, prior to marketing their property for sale. The idea behind HIPs was that they would contain useful information about a property and so save time when it came to conveyancing. The packs included local authority searches and a 'green' rating in the form of an Energy Performance Certificate or EPC.
However the main problem with them was, they required a large upfront fee that put some people off attempting to sell their property, where they might have tested the water before. This was not good news in a slower housing market.
Peter Bolton King, chief executive of the National Association of Estate Agents, said of the HIP: 'Few house buyers have paid much attention to these pointless packs.” As a result they quickly became viewed by all concerned, as just another piece of annoying government legislation.
In what has been described as “a hallelujah moment” the new government of the day has seen fit to do away with home information packs. Housing Minister Grant Shapps is quoted as saying, “The new Government wanted to waste no time in cutting away pointless red tape that is strangling the market'.
It is estimated that around £1bn pounds was spent on these packs and that some 2.7 million sellers had to pay for one.
One very useful element of the pack remains: the Energy Performance Certificate which rates the energy efficiency of a property. It is part of European law that an EPC be obtained within 28 days of placing your home on the market. Homeowners who do not have one, face a fixed penalty fine of £200.
The certificates, which are valid for 10 years can be arranged through Jonathan Waters Estate Agents. On instruction, we will order this for you and we will even pay the £75 fee – although certain terms and conditions apply. For more information, please call our Ipswich or Clacton office.
HIPs were first introduced between May and December 2007 and since then, anyone looking to sell their home had to pay up to £500 to obtain theirs, prior to marketing their property for sale. The idea behind HIPs was that they would contain useful information about a property and so save time when it came to conveyancing. The packs included local authority searches and a 'green' rating in the form of an Energy Performance Certificate or EPC.
However the main problem with them was, they required a large upfront fee that put some people off attempting to sell their property, where they might have tested the water before. This was not good news in a slower housing market.
Peter Bolton King, chief executive of the National Association of Estate Agents, said of the HIP: 'Few house buyers have paid much attention to these pointless packs.” As a result they quickly became viewed by all concerned, as just another piece of annoying government legislation.
In what has been described as “a hallelujah moment” the new government of the day has seen fit to do away with home information packs. Housing Minister Grant Shapps is quoted as saying, “The new Government wanted to waste no time in cutting away pointless red tape that is strangling the market'.
It is estimated that around £1bn pounds was spent on these packs and that some 2.7 million sellers had to pay for one.
One very useful element of the pack remains: the Energy Performance Certificate which rates the energy efficiency of a property. It is part of European law that an EPC be obtained within 28 days of placing your home on the market. Homeowners who do not have one, face a fixed penalty fine of £200.
The certificates, which are valid for 10 years can be arranged through Jonathan Waters Estate Agents. On instruction, we will order this for you and we will even pay the £75 fee – although certain terms and conditions apply. For more information, please call our Ipswich or Clacton office.
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