Friday 23 November 2012

Investors and Fast Home Buyers Bring Liquidity to the National Housing Market


With the hope that prices will soar up and condition of the property market will change, many property owners intending to conduct a quick sale of their properties are waiting eagerly. However, the so-called dream hike is yet to become a reality in the property market. First time property buyers may like some properties, but discover (to their dismay) that proper finances are not available for renovating and upgrading old houses that were built by the members of the families few generations ago. The homes may be centrally located or may be valuable. But, that is not what a first time buyer envisions when he opts to purchase a property. However, things are totally different with fast home buyers. Cash home buyers wish to create a new property by renovating an old property and sell it to a prospective buyer at good cost. Due to lack of finances, a property owner conducts a quick sale of his property to cash home buyers, who purchase the house, renovate it and then sell it to a home buyer. By conducting a quick sale, a property owner is often saved from the extra expenses. Due to the current economic downturn, the role of the fast home buyers is becoming prominent in UK’s housing market.

Most fast home buyers are top notch investors who pay the owners in cash. These cash home buyers have become a part of the property industry, providing liquidity and stability to the housing market. Many first-time home buyers might be able to buy a property and also have the good credit scores for purchasing a property, but they do not have the money or capability to buy a housing property that requires renovation and repairs. Under such circumstances, the demand for the fast home buyers increases, who bring liquidity to the housing market.


At present, even banks are unwilling to offer loans to a first-time home buyer who needs the money to renovate and upgrade a property. However, the situation is just the opposite with fast home buyers. They have the money to buy a housing property with cash, upgrade and renovate it and then, they put the house on sale. Banks also agree to provide loans for these renovated homes as there is minimal risk.

Successful cash home buyers are those who have idea about the property market condition. They know how much a property should cost in a particular area and they fix the price of the property accordingly. If they know that a particular property located in a particular region can fetch high prices in the market, they can even purchase a worn out house and renovate it property. If the owner wants to conduct a quick sale of his property, he can get instant cash from these fast home buyers and also save himself from the extra expenses of renovation.

Only cash home buyers know how to add value to a particular property within a very brief time span. Moreover, they also know from where to procure the materials required for renovation at appropriate costs. In addition, they can complete the renovation work within the stipulated time period.

The renovation and the cost of the materials are vital factors. At times, the cost of the materials might exceed the budget of the buyer. This affects the entire profit margin. On the other hand, fast home buyers have thorough knowledge about the property market condition and the costs of the materials. Moreover, they also know from where to get building materials at reasonable prices. So, their profit margin is always high and they can bring liquidity to the national housing market.

3 comments:

  1. Nice article , want to know more about this topic.

    how to buy a house

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  2. This comment has been removed by the author.

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  3. So to make a good deal it is always good to find registered and experienced RE agent.

    first time home buyers & real estate san jose ca

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