Except for London, in all other regions buying a house is better than renting because property analysts feel that the worst downturn is a matter of past. The cost of taking a loan is very prospective and interest rates are low too. Since the financial situation is improving affordability power is improving too. Since buyers are very few, it is very easy to negotiate with the property dealers as prices remain under pressure. 63% of the buyers feel this is the perfect time to buy a house.

But there is one major point to look into before buying a house. Finance is the most important aspect. Soon 1% tax will be payable on properties that cost between £125,000 and £250,000. We must have ample savings in order to pay this or else even money lenders might deny our loan. This is a perfect time to buy a house if we have enough savings and a secure job. But we must keep in mind not to over stretch our loans.

But there are many other countries that do not have an unswerving source of property pricing. Even US is yet to use derivatives wholeheartedly. Derivatives are used more openly in the European markets such as Germany and France. Generally trading is done o the overall IPD index but investors such as Prudential’s property funds have started to trade derivatives based on development of certain sector within property such as retail and London Offices. These properties can also be used for derivative trading.

This step will help more people to invest. Even if shares of one sector falls the other sector can act as a back up depending on that sector’s potential. There is a lot of prospective by using derivatives. Commercial property owners can lock income returns and evade capital values if they fear a fall in prices. The residential derivative market is not very often traded and in the last quarter of 2009 residential derivative contracts were traded against Halifax House Price Index for an estimated £150 m.