Tuesday, 23 February 2021

Real Estate And The Covid Era,Whats Next?

Covid 19 and it's impact on all sectors cannot be overemphasized!

There isn't any sector that dint feel the impact,and might we add still feeling the impact of the pandemic.

Sectors like travel,health and real estate were indeed some of the most affected sectors around the world!

Image : mortgagecalculatoruk


So what's next for people looking to move houses,move within state or country lines,mortgage,remortgaging,refinancing etc.

what a next? How does the real estate sector move out of the Covid rot?

Image:property reporter


Indeed people still need to satisfy their housing needs,and indeed people still need to buy and move houses and homes as things gradually pick up around the world.


PWC predicts that though real estate capital markets have settled, most anticipate overall real estate prices to fall 5-10% as income may be curtailed for several years.

 Industrial properties, data centers and single-family homes are expected to rise in value, while retail and hospitality will see the largest decline. 


The long-term outlook in the real estate sector hinges on the ability of countries to reign in COVID and render its effects at an all time minimal low level.


Now, more than ever, the real estate industry has the chance to take the lead in using planning,development,and investment capital to reshape work and lifestyle environments. 

Image: pressloft

The housing market has been on fire this year with record-low mortgage rates and a sudden wave of relocations made possible by the need to work from home..


Forbes shares their real estate expectations via here’s a
 real estate expert Danielle Hale who believes real estate is expected to hike up in sales value up to 7 percent and will continue to rise to top 2020’s levels.

While mortgage rates are expected to pick up gradually, sales and price growth will be propelled by still strong demand backed by a recovering economy.
There will be high buyer demand and still-lagging supply.

While the much younger population are expected to play a growing role in the housing market, fast-rising prices will create a bigger barrier to entry for the many first-time buyers in many real estate markets around the world.


In the UK, while people continue to make home purchases,like popular youtubers channel Ambrose and Jennie Jenkins, Property Reporter forecasts that with the dust only just beginning to settle from a highly active end to 2020,the departure from the EU,Vaccinne roll outs and lots more,the UK Real estate and housing market is still expected to experience a stocato kind of movement.


“According to the Bank of England, mortgage approvals are only down -0.9% in comparison from January to November 2020 side by side same period in 2019.

 Zoopla puts new sales agreed in 2020 were 9% above 2019. The remarkable recovery was thanks to households re-evaluating their housing requirements and was fueled by the stamp duty holiday.”


Demand in 2020 was 40% higher than in 2019 showing a trend of promise for 2021

Bank of England figures reveal that 104,969 mortgages were approved in November 2020, the highest since August 2007.

HMRC also puts the number of transactions at an upward rise with 115,190 sales recorded in November 2020, 19.3% higher than November 2019. 

Rightmove has reported that an estimated 650,000 properties are still changing hands and therefore transaction figures will continue to rise throughout 2021. 


So, what does 2021 have instore for the property market?


Property Reporter believes the UK is Looking at 2021 being host to a lot of housing market changes and deadlines. The stamp duty holiday is set to finish at the end of March 2021, the same deadline for Help to Buy changes.
A 2% surcharge for overseas purchasers will be introduced from 1st April and potential changes to Capital Gains Tax are set to be introduced. These changes will no doubt impact transaction volumes and house prices

With changes and uncertainties ahead, MortgagecalculatorUK already have things in check.

They have different mortgage,debt,refinancing and payment calculators as well as features which allow you to link to a specific calculation with the results already filled in.

Mortgagecalculator.uk




Unsure how your payments may change as rates move change? They provide a UK mortgage amortisation calculator which allows you  to figure out what your monthly loan repayments will be for either fixed-rate or interest only loans. You have the ability to schedule future interest rate changes in your calculation, which will help you see how your loan payments will change if rates rise.

 If rates fall you can of course remortgage again at the lower rate when your fixed introductory period has concluded.

You can determine other things like 

Basic Loan Structure: Enter the price of the home, your down payment and how loan your loan amortisation schedule lasts.

Fixed-Rate Details:
 Enter your introductory fixed rate, rate change frequency, anticipated rate changes, and interest rate cap.

Interest-Only Details: Enter your introductory rate, rate change frequency, anticipated rate changes, and interest rate cap.

Printable Report: 
Click on the "printable schedule" button at the bottom of the calculator to create a printable amortisation schedule for your facility.


Some banks limit how much of the loan can be prepaid during the introductory loan period, while allowing higher mortgage overpayments when the rate has shifted to a standard variable rate (SVR).

Many borrowers across the UK and the rest of the world refinance their loans when rates reset, which is a big part of why remortgages were recently nearly 40% of new commitments.

 Many loans contain upfront fees to help cover administrative costs & the costs of offering lower rates. Some loan terms prohibit advance repayments, particularly in the introductory fixed-rate period.


Mortgagecalculatoruk is helpful in forecasting and planning all real estate deals to avoid unforeseen liabilities in the housing market in 2021 and the nearest future.

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