BGN Entrepreneur

Although thousands of pounds may be wiped off the value of different properties as you read this article, the crashes in the mortgage market are not totally bad. There are several reasons for people not to get too downhearted about the downturn in the market.
1. The falling property prices make housing more affordable for the first-time buyers, who can save up a deposit. It’s also beneficial for the rich buy-to-let investors who are not there for the first time.
2. Houses are used to be taken as bank accounts. So, if people have a couple of buy-to-lets and a three-bed in a great location, they don’t need a pension or savings account. Now people can return to sanity as there are no more misguided beliefs of property being the sole route to fortune. People will spend their time and money to invest elsewhere.
3. As mentioned previous, the divorce rates go down along with the property prices as the house value is falling and the divorce is going to cost people more.
4. Instead of feeling the constant pressure to upgrade to new houses, it’s easier for one to concentrate adding value to his existing house, such as building an extra room, re-fitting the kitchen or landscaping the garden.
5. Due to the change of the market situation, the buyers have more bargaining power now to push sellers to reduce the price. Meanwhile, as only the best and strongest estate agents and mortgage brokers will survive this hard time, the customers can expect better service in the future from them and there will be less confusion in the mortgage market.
6. Fewer advertisements about property sales will be posted in this period of market downturn. It will be the end of all kinds of annoying one-issue websites, as there will be nothing left for them to warn the customers about. House price crash? Been there, done that.
7. For banks, there is less inappropriate lending in the field. Once, the average figure of mortgage borrower had about 5,000 deals to choose from, now it is in the hundreds now.
8. As the house builders will have to stop purchasing up huge chunks of land and constructing massive developments on them, less development will be done on the green belt. It’s definitely good news for environmentalist and countryside lovers.
9. When property prices were rising, people were plagued by niggling feelings that it all looked too good to be true and that the market must be due for a fall. Now the fall is happening, at last, people are free from the paranoia, until prices start to rise again. As a result, temporally, there will be no more fear of the unknown. Actually, according to some experts, the homeowners in areas that have suffered the biggest declines, such as the East Midlands, should not fret, as they are unlikely to fall much further and could be the first areas to stage into recovery.
10. The last aspect is as there is less chance of future boom or bust, it hopefully means no more credit crunches.

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