Is There a Property Market Recovery?

As an entrepreneur, you undoubtedly perk up at the suggestion that a property market recovery is right around the bend. You know that the property market has a huge impact on the overall resilience of the economic landscape. If a genuine recovery were to be in the works, consumer behaviour would indubitably change, banks would loosen their grips on the purse strings, cash flow would once again permeate economic enterprises, and business profits could be right around the corner…

But this begs one critical question: is the news of a property market recovery real, or is it merely wishful thinking?

The Truth behind a Property Market Recovery
According to the BBC, a property market recovery is indicated by statistics from the Royal Institute of Chartered Surveyors (RICS) that show a falling number of properties falling number of properties on the market and a rising number of buyers interested in them. Activity is up and supply is down—just the formula needed for a property market recovery.

Another snippet of news reported just a couple of days later indicated that figures from the Council of Mortgage Lenders (CML) showed that the number of mortgages for home purchases has risen.

Of course, the flip side of this is that these numbers are still significantly shy of the figures from just a year ago, and (more importantly) to turn a window shopper into a bona fide buyer, the interested party now needs to come up with 25 per cent of the home’s value as a deposit—a figure that is significantly higher than in previous years.

So is the property market recovery made up of 25 per cent wishful thinking?
At the peak of the market, a buyer could quite easily find a bank willing to lend him or her the money for a home purchase. A deposit of 5 or 10 per cent was all that the buyer needed—and if he or she found this too much to scrape together, then there were always the 100 per cent, 125 per cent, and self-certification mortgages from which to choose. Entrepreneurs in the property refurbishment, renovation, and maintenance sectors enjoyed the boom created (at least partially) by these mortgage products. Of course, some of this lending was wholly irresponsible: a buyer putting him or herself in negative equity from day one in the hope that the market will continue to rise is an accident waiting to happen. Nevertheless, flawed as such mortgages were, they resulted in a run on properties—and more sellers felt that they could actually afford to buy and sell their homes.

It is for this reason that the news of a property market recovery is to be welcomed—albeit with some reluctance. Banks are no longer lending quite as liberally as they used to and only qualified buyers need to apply for loans. What is today being hailed as a property market recovery may truly be little more than savvy investors bankrolling agents to take over soon-to-be-vacant properties. It may also be little more than homeowners who simply cannot afford to hold onto their properties any longer doing their level best to get at least some return on their initial investment. It is highly doubtful—especially in light of last year’s property figures—that a genuine property recovery is in the works that is sustainable beyond the investor purchases and on-edge homeowner sales.

Of course, hope springs eternal and, as an entrepreneur, you know that it doesn’t take a lot to nudge the market one way or another. So perhaps simply the idea that there is some stabilisation—that the market might at least have bottomed out and that a property market recovery was at least on the cards—could generate some upward mobility in sales. If this were to be followed with a genuine effort from the banking sector to produce affordable mortgage products (after all, 25 per cent is a little steep and the first-time buyer really needs a break in the form of a 90 or 95 per cent mortgage), we might at least be able to begin to hope for a long-lasting recovery.

7 Things to Do Before Turning 40

Have you ever whiled away an afternoon avoiding your daily office tasks, pondering the meaning of life, and daydreaming of all of the things that you’d rather be doing than sitting at that desk? If so, then you’re likely have a list much like this one, prodding you to move forward and accomplish your personal and professional goals while you’re still young enough to enjoy your success.

But if you’ve yet to establish your own list of seven things to do before you turn 40, here are some suggestions.

1. Surf the big waves off Hawaii – Surfing the peak-season waves off of the northern shore of Oahu in December and Waikiki Beach in July might mean two trips to the islands—but two trips to Hawaii are always better than one.
   
   
2. Visit all Seven Wonders of the World – What better excuse to wander around the world on holiday than to admire each of the Seven Wonders of the World in all of their splendour? Whether you choose to see the seven natural wonders of the world, the sites of the seven wonders of the ancient world, the seven underwater wonders of the world, or the wonder of the No 7 bus to the World’s End pub in Camden is, of course, up to you. Who knows? You might even meet a business Angel along the way who can help you to attain #6 on our list! Stranger things have happened…
   
   
3. Learn a new language – Most of us were required to take a language at school—but imagine becoming truly fluent in a language of your choosing simply for your own personal satisfaction. Knowing at least one additional language might also come in handy when accomplishing #2.
   
   
4. Own a flash sports car – This is something that you really ought to do before you turn 40—partly because when you start having children, a two-seater will be the first thing that you’ll have to get rid of, and partly because the older you get, the more likely you are to be accused of owning one as part of a mid-life crisis.
   
   
5. Invent something that helps mankind – Whether it’s a selfless endeavour to further the advancement of society, or a brilliant money-making creation that just happens to enhance the daily lives of all who own it, inventing an innovative product or gadget just might lead to #6 or #7 on the list—and could certainly to help fund #1–4.
   
   
6. Own your own business – A brilliant idea at any age, owning a business by the age of 40 is an excellent way of removing yourself from the doldrums of working to make someone else rich, and making all of your dreams a reality by becoming your own boss, setting your own schedule, and taking the reins to control your own life. Setting out with an entrepreneurial spirit, the drive to succeed, and perhaps a business Angel or two in tow will undoubtedly lead to accomplishing—and even exceeding—your personal and professional goals.
   
   
7. Become a business angel – Once you’ve become wildly successful from owning your own business and are rapidly working your way through the rest of your list, there’s one more thing that you should do before turning 40. Becoming a business Angel will be perhaps the most rewarding and satisfying accomplishment of your life, because it will show that you’ve truly ‘made it’ and are now in a position to help someone else with the drive, motivation, and tenacious spirit that got you where you are today. Becoming a business Angel should be the ultimate goal of any entrepreneur or business owner who yearns to feel the ultimate sense of accomplishment that comes from supporting a new generation of professionals as they come into their own.
   

Everything on this list is absolutely attainable by anyone with the vision and drive to achieve their dreams. Anything is possible with hard work, motivation and perseverance, and striving to own a business and become a business angel before turning 40 is a sensible, reachable goal that will result in an unmatched sense of pride and success.

Everything on this list is absolutely attainable from becoming a business Angel who helps small businesses to raise their finances to spending your money on more entertaining pursuits. All you need is the vision and drive to achieve your dreams. Anything is possible with hard work, motivation, and perseverance, and striving to own a business and become a business Angel before turning 40 is a sensible, achievable goal that will result in an unmatched sense of pride and success.

Now is the time to create your list of dreams, establish your goals, and use your drive and dedication to reach your full potential. Visit www.angelsden.co.uk to find out more about becoming a business Angel or gaining funding for your new venture.

Don’t You Go Changing Now

In this loan-shy banking era, Angel finance is one of the most frequently used methods of financing a new business, and more and more small business owners are taking advantage of this lucrative opportunity.

So what is ‘Angel finance’? The ‘Angel’ is a wealthy private investor—not bound by the rules of a venture capital firm, but governed solely by his or her own common sense—who is looking to invest in new opportunities. If your business could benefit from a capital injection to boost its chances at success, then it is this type of person whom you will need to impress.

With this in mind, we have compiled our ‘top three’ rules for pitching for Angel finance

Pitching for Angel finance rule #1—Be yourself
When pursuing Angel finance, be yourself. Don't try too hard—the prospective investor is likely to see right through you. Remember, these wealthy individuals got to where they are today because they're savvy entrepreneurs used to sifting out the truth. They won't be impressed if they discover that you’re putting on an act to impress them—and they will be able to tell. Besides, nobody likes a kiss-up.

It’s only natural to want to do well in what could possibly be the most important meeting of your business life, but presenting a persona invented for your Angel finance pitch in the belief that it will show an investor what they want is a bad strategy. So if you're not funny, don't try to crack jokes when pitching for Angel finance—and if you're not naturally sombre, don't try to button it down. Start simply by being yourself. If you come across as unnatural or uncomfortable because you're trying too hard to impress the investor, he or she will pick this up and feel less inclined to invest in you.


Pitching for Angel finance rule #2—Keep it short and professional
At an Angels Den SpeedFunding event, you will have just three minutes in which to present your case for Angel funding to each investor. Remember, these are wealthy individuals and you're not the only one clamouring for their support. So while you need to be yourself, you also need to make your pitch professional—complete with all of the relevant information about your business, and its facts and figures. In short: you should know your stuff.

Think about an excited new mum or dad: they can answer any question about their baby. They know how much she weighs, what time she was born, what birthmarks she has, and where. Your business is your baby—and you ought to be prepared to answer any question that the investor might have, with the information right at your fingertips.

Make a list ahead of time of the questions that you might be asked during your pitch for Angel finance and make sure that you have those answers uppermost in your mind. If you have to dig for the answers (‘Um… Good question… Let me see here... I know I have it somewhere...’), you'll end up wasting time and looking unprofessional.


Pitching for Angel finance rule #3—Honesty is the best policy
While you must be honest in being yourself, you must also be honest in relation to your business. If you try to inflate the facts and figures, once again, your potential investor will find you out. He or she may discover your omission or exaggeration long after your pitch—but whenever they do so, their trust and confidence in you will be destroyed. So when you make that graph, or when you write up that product comparison, stifle the urge to manipulate the truth. Of course, you love your business or your business idea. Of course, you think it's a great idea—it's your own idea, after all. But just because you think it's great doesn't mean that you need to come off sounding like a cheap used car salesman.

If your potential investor smells something fishy—such as a prospective sales figure for the first year that sounds a little too optimistic, or an assertion that you'll definitely crush the existing competition without so much as a whimper from them—your pitch will be over before it really gets started.

So good luck with your Angel finance pitch: remember to be honest, professional, and—most importantly—be yourself, and it’s sure to go well.