This leads to the second reason why the UK property market is so hot. As the foreclosures dominate the market, homeowners face stiff competition when trying to sell their own houses. So, to try to get out ahead, they entice buyers with low prices and other incentives, (such as no-money down arrangements).
However, whether you are a bank trying to sell a foreclosure, or a homeowner trying to sell your personal residence, you are still going to face another major problem - the credit crunch. Thanks to that horrible phenomenon, the number of available buyers has dwindled down to almost nothing. Those who are able to buy tend to have over 20% down and excellent credit. And more often than not one of the main groups in this category are investors.
Thats right - if you happen to be a property investor, or have the credentials to become one, you can actually come out a winner in the current housing situation. Yet, with so many properties out there, you might have trouble determining which ones are going to be worth the investment. Fortunately, you can solve all your problems with HIPS, a set of documents required for any house on sale in the UK.
So, what exactly are HIPS and why are they helpful to investors? Simply put, HIPS, (or Home Information Packs), are documents that contain important information about a property. They give you the following information:
1 The energy costs associated with the property (expressed through the Energy Performance Certificate) 2 How sustainable the property is, (if it is new) 3 Title information 4 A statement of sale 5 Information relating to the propertys drainage and water
All of this information is very important in determining whether a property is worth your time. And this goes beyond the obvious issues around the Energy Performance Certificate, as sometimes HIPS reveal ownership or title problems. This is common during situations where a homeowner has died and left no will stating who now owns their property. Either way, it could take months of legal battling trying to get everything straightened out. Why go through that when you can easily find a HIP revealing a more normal title situation?
HIPS can even help you form a type of green marketing strategy. This can be done by analyzing any sustainability info provided in the document. If the house is extremely green, you could make a point of that when advertising the property. You could even reject homes whose HIPS cannot return decent sustainability information.
In fact, thats the ultimate beauty behind the HIP. If you do not like what the document reveals, you are free to reject the sales offer. Best of all, as a buyer you never have to pay for your HIP document. So, do not take the HIP lightly. Carefully read through the document, and if things do not add up, move onto the next property. A.Holland was born in Austria but came to the United Kingdom to study Art and Photography at The Royal College of Art. It was here that she was offered her first article writing opportunity by a friend from a property company that provides cheap Home Information Packs to independent estate agents and property lawyers in the UK. Since then she has had her photography displayed in various London galleries and magazines and articles including Time Out, The London Paper and plenty of other websites.. Visit HIPS Don't Lie!.
