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Research has been carried out in recent years and the following is a summary of why it is estimated that it will take an average of 15 years for a first time buyer to save up the deposit for their first flat or house:

· Savings in the UK have fallen to record low levels and millions do not have a safety net. It only takes the lightest touches to send people spiralling down the bankruptcy lane - a period of illness or a divorce.

· Average household debt in the UK is approximately £7,713 (excluding mortgages) and £45,437 including mortgages.

· The average owed by every man, woman and child in the UK is approximately £18,757 (including mortgages).

· The Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,087 per average UK adult at the end of August 2005. This figure translates into a 10% increase on the previous year’s levels and a 45% increase since 2000.

· According to a leading Professor at the University of York’s Sociology Department “people normally think of people in poverty being single mums on council estates or people living in a rented bed-sit, but this is a stereotype. By far the largest number of people in poverty are homeowners, many of them young First time buyers.”

According to the professor, the financial strain of buying their first home leaves many first-time buyers with little disposable income.

The dilemma that our clients face is that the more they try to save towards their deposit, the more the property prices keep on rising. This leaves them in a catch 22 scenario. Without help from family, most young people continue renting because they can not afford to save up for their first deposit to get on the property ladder

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Real Estate Giants Inject Rs. 2,200 Crore in Tri-City
After Mumbai and Bangalore, it is the turn of Chandigarh and its
peripheral areas to become the most sought after destination for
integrated townships. From all over the country, real estate giants i.e. DLF, PACL, Ansal, Janta, Unitech, Omex, Eldeco and numerous others are flooding the area vying to construct quality residential complexes to the tune of Rs. 2,200-crore.

Property markets in the area, spurred by IT growth and a shortage of real estate are some of the hottest in the market, but it is expected increasing availability of residential and commercial property is bound to bring real estate price down as colonisers and others pour in. Already, many of the housing projects have gained the Punjab Government’s clearance while others are slated to get it soon.

The growing demand for high-quality entertainment and leisure facilities has prompted several builders in Zirakpur, Mohali and Mullanpur Garibdas to plan multiplexes in the area, and the government has reserved 1,431-acres of Mohali land for commercial use. Mohali, located on the Chandigarh-Samrala-Ludhiana road has most of the proposed projects within its grid framework, and a railway station on the Kambala railway line is scheduled to come up in the near future.

The next destination of choice for housing developers is the
Zirakpur-Patiala road, also a hot spot for investors due to its
strategic location and direct linkage with Chandigarh, Ludhiana, Ropar, Patiala, Ambala, Ropar and Simla. Fast emerging as an important tourist centre and the electronic city of Punjab, with a number of MNCs setting base here, it is important residential requirements of people be met. High prices and low availability of real estate in the tri-city and peripheral areas made it difficult to buy property in the area, but availability of 10,000 housing units is likely to bring them down.

To suit the pocket of buyers, both plots and flats are on offer, and already, 29,000-acres of land in Sector 107, 30,000-acres for group housing, and 10,200-acres for housing plots in the Mohali sectoral grid have been ear-marked for the same. Apart, from housing projects with an investment of Rs. 100-crore, there are smaller ones of less than 10-acres that have been cleared by the town planners, and could well be a better option.

The government too has set aside Rs. 32.24-crore for augmenting city infrastructure, widening and strengthening roads, besides setting up canal water and sewerage treatment facilities.

All those who wish to settle in the region, are likely to see these new townships bring down property prices within reach of the common man. Only a matter of time, quality housing will be available for those willing and with the pocket to buy.

This article is sponsored by: www.indiarealestateblog.com

We are real estate business and wants to provide information about india real estate

Mortgage Equity Withdrawal is the formal name for equity refinance, reverse mortgages or simply home loans based on equity (as the security for the loan).

Mortgage Equity Withdrawal rose to 8.7 billion pounds in the second quarter of this year to its highest since the third quarter last year, official data showed (on Tuesday 4th Oct 2005).

Mortgage Equity Withdrawal is a measure of the equity Britons have extracted from their homes but which they have not re-invested in property.

Sharply rising house prices in the last few years have encouraged a trend where Britons refinance their mortgages to extract cash which many economists say has helped support spending.

The Bank of England said that Mortgage Equity Withdrawal was up sharply from 6.437 billion in the first quarter of this year although it is still well below the 14.5 billion seen one year ago, when house prices were rising more than 20 percent annually.

The Bank of England has since cut interest rates by a quarter of 1% to 4.5 percent which could support Mortgage Equity Withdrawal in coming months, particularly as there are signs that the property market may be stabilizing after a year of stagnation.

As a percentage of post-tax income, Mortgage Equity Withdrawal rose to 4.2 percent from 3.2 percent in the first quarter of the year but is well down on 7.3 percent seen a year ago.

” Mortgage Equity Withdrawal appears to have found its way into increased holdings of financial assets (equities, bonds) as much as extra spending,” said Geoffrey Dicks, UK economist at RBS Financial Markets.

“Generally the pick-up in Mortgage Equity Withdrawal is probably indicative of more `normalization’ of the housing market but while it is saved rather than spent, the policy implications are not huge.”

Official data last month (September) showed the saving ratio rose to 5 percent in the second quarter of this year from 4.5 percent in Q1 (also of this year).

Separate figures showed UK residential construction barely grew in September, putting in its weakest monthly performance since May.

But what does this mean in real terms?
There are several key points in this statement, these are:

1.People are refinancing their homes because of increased value
2.People are not necessarily spending the money on the property
3.People are not necessarily spending the money in the high street

These three points are important to all of us, not just the policy makers. Here’s why.

Let’s consider the first point, people are refinancing there homes because the equity has grown rapidly.
This statement tells us that the housing market although not sky rocketing as it was a couple of years ago, is none the less still rising.

The second point tells us that when people effectively withdraw this money it is not to improve the home itself, hence the equity of the property will not grow at a better rate than market rate.

The third point is perhaps most telling, people are not taking the money and spending it in a hap hazard manner but are potentially saving it (bonds, shares, bank accounts).
So what do this mean for us?

Well, it’s a bit of mixed signals heads up if you like.
The general population (property owners) are slipping into ever increasing levels of debt (if you’re refinancing your mortgage or ‘freeing up equity’ as the agents put it, you are effectively borrowing money) – unless it’s a reverse mortgage.

People who are refinancing are not improving the quality of the property with the money and so if the market takes a fall their property will devalue as much as the next property (whereas if they’d returned some of the capital into improvements they would at least be sitting on a lesser slump in value).

Finally, and perhaps the most damming sign is that people are saving more, this is not a good sign. In a healthy economy the rate of saving is low, this is primarily because confidence is high (people aren’t worried about the bills or their jobs) but the fact that more people are now starting to save money rather then spending it means that the retail sector will be taking a hit, this means that the bottom end jobs will be in danger, this in turn has a knock on effect in the service sector and becomes a vicious circle – the end result being market stagnentation .

But what this trend does illustrate quite simply is that you can potentially get more money back in savings interest than you pay out in refinancing interest – so at the moment the smart moneys in equity refinance.

The author, Paul Foley, is a successful counselor and Webmaster of the refinance information site www.mortgagehelp4u.comThe site is dedicated to providing information to those who need it regarding getting out of debt by means of financial tools. Paul also runs the site www.cash-sense.com/cashsense.html - make money the easy way.

Refinancing mistakes can cost you a lot of money. You can avoid these mistakes by being a smart loan shopper. Don’t gamble on future rates, but make your refinance decision on what is available today. Use accessible information by researching rates and fees from a number of companies to find the best deals. And make sure you compare interest costs, not just rates.

1. Waiting For Lower Rates

Mortgage rates are notoriously unpredictable. No one can guarantee rates will drop or rise in the future – they are just guessing. So instead of listing to financial forecasts, invest some time in looking for a low rate lender.

With the internet, you can quickly compare rates and fees that are posted on lender sites. You can even get a free loan quote based on your unique credit history and financial resources. Then look at your potential savings to see if refinancing is worth it.

2. Not Checking Rates

Even though the news and financial analysts talk of one mortgage rate, in reality there are hundreds. Each mortgage company has their own criteria for determining rates. That is why posted rates on websites vary.

Lenders also have different standards for evaluating credit. So while general posted rates can help you narrow your refi lender search, you still need to ask for a loan estimate.

3. Assuming Lower Rates Will Save You Money

Amortization makes the refinancing question tricky. With the majority of your interest paid at the beginning of the loan period, refinancing usually only makes sense in the first couple of years.

Of course there are exceptions. For instance, if you refinance for a shorter period with significantly lower rates, you can save a bundle. You may also decide to refinance in order to cash out part of your equity at a lower rate. Immediate lower payments may also make a refinance worthwhile. If you would like a list of recommended home refinance lenders, visit www.abcloanguide.com

Before signing for a refinance, make sure you understand how much savings you will see. Don’t just compare interest rates. Also look at interest payments left on your current mortgage and compare it to the refi mortgage.

With a little bit of time and the right information, you will save yourself thousands of dollars.

ABC Loan Guide can provide more Mortgage Refinance Information, and give lender references for a Home Finance or Refinance loan.