House-swapping new property craze
to hit market!
Wednesday 1st April 2009
House swapping is becoming the latest market craze according to leading home-swapping websites HomeSwapper4-Sale.co.uk and EasyHouseExchange.
With mortgage loans becoming harder to attain and house prices expected to fall a further 10% by the end of 2009, thousands of homeowners have turned to house swapping as a solution.
As the name suggests ‘house-swapping’ involves homeowners cutting out the middle man, and exchanging properties directly with other owners.
The only difference being, instead of exchanging homes for a 2 week get-away, homeowners are choosing to swap for good.
Yet it seems this scheme could be doing homeowners a favour, saving them on legal fees and costs.
One instant saving that has got homeowners buzzing is estate agent fees. Traditionally based on 3% of the properties selling price – when sold as part of a chain – homeowners with a property worth £100,000 can now make an immediate profit of £3,000 simply by swapping their properties.
However many estate agents are surprisingly behind this new method, as they can still receive a commission from those who require an estate agent to organize their negotiations and HIPs.
And it is a scheme that could help alleviate the slump in the housing market.
The only factor homeowners still need to be aware of is all the extra hidden costs:
1. Cost to join ‘home-swap’ website – on average £19.95 for 3 months
2. Taxes, legal fees and due digilience – to make the house swap legal (and permanent), a solicitor still needs to be involved
3. Property Survey – recommended to prevent any future unseen costs
4. Market Values – must check the market values of the properties involved. Any differences should be met with a cash payment
5. Mortgage – if a mortgage is involved, make sure there is enough funds to pay it off
Accumulated together, these fees can mount up.
Then there is the further complication of matching these properties accordingly to the right person.
When most people wish to sell they do so based on the hope of either up-grading, downsizing or moving closer to their jobs/family. It’s a move fuelled on choice, making finding a property that is exactly suitable for both parties a slim, if not impossible, task.
For real choice and flexibility, buy-to-let is still the only reliable route left. Especially for individuals seeking to move without facing the complications of buying and selling.
Interested in learning more about how property investment can offer homeowners an easier route to moving home?
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