property investment advice for investing

If you are new in the property investment sector, you will probably have read a lot of recent doom and gloom reports of the slowing property market that made many investors wary. In the recent months there was a slight increase in prices in certain areas and investors and house buyers are watching the property market eagerly to see which way the market is continuing to head.

The economic situation, and more specifically the banking situation, is definitely better than it was a year ago, but any signs of recovery seem fragile and a lot still needs to be done to build a solid foundation for the banking system and the world economy before we return to the good times of property investment. The buy to let mortgage lending from the banks is still very tight to give way to any significant movement in property prices and this has led to lower demand in property. There is less money for both residential and commercial mortgage products to allow any significant property buying activity that we witnessed during the peak periods of the property boom.

Now, this may be a cause for concern especially for house sellers but for property buyers and investors, it is a good thing because plunging property prices could only mean one thing, great deals for properties at below market value prices. According to RICS, a fall in property prices are mainly due to weak demand and not due to a surplus of properties. New buyer enquiries were falling and it seemed, many of them either could not afford to purchase properties at this time or they were just being extra careful due to the uncertain economic conditions, locally and internationally.

This does not mean there is plentiful supply of housing, new or otherwise, in the market. There wasn’t any glut at all. In fact, housing supply is still suffering a shortfall, but this very fact did not help the market because ultimately, the market depends more on the demand for housing. So for those investors

The property price falls, demand nose diving and less than buoyant market conditions could only mean one thing. Good news for investors! Yes, this is the time when investors could go right in and make a healthy profit amassing more below market value properties than you ever thought possible!

So if you are currently side lines watching the property market, now may not be a bad time to consider making a move into picking up a few bargains while the property market is down.

There are a few basic ways for new investors to study the property market conditions in any area without having to study endless number of surveys and statistics by housing experts. Of course, you could easily consult me for advice and tips but I am sure, most of you would prefer to do some background research yourselves every once in a while.

Let’s say you are interested in investing in a property at a particular area you have taken a fancy to. Perhaps you plan to live there or perhaps you just like the idea of adding one of the properties there to your portfolio. Whatever your reasons, it is important to first take note of the property market conditions of the area, regardless of the general property market conditions of the country.

The reason for this is simple. Property market conditions sometimes depend on the locality, the accessibility and the economy situation of the area. Take London for example. With the falls in residential property prices in UK and a gloomy outlook for the market this year the fall in London is not as severe as in other parts of the country. The property market in London still has a higher demand then that compared to other parts of the country despite the declining overall market conditions. For example,

Now lets get on to identifying the markers of whether the property market conditions of an area is thriving or dying. First, take a look at the developments in the area. Are there signs of a thriving area with plenty of new and old successful shops and a growing number of estate agencies? Are there large construction projects involving a mix of commercial and residential properties on the way? Is the area easily accessible with plenty of links via various public transportation? If the answer is yes to all these questions, then, it could safely be said that the area is definitely growing with an imminent increase in people moving there. You see, you don’t have to do in-depth research because the developers building the mega projects and the estate agencies have already done that before they set up base there. They are often quite good indicators, much like bees leading you to the honey.

What if the area is a derelict area but you feel that it has potential? What do you do to find out if it would be redeveloped and turned into a thriving area in future? Well, there are signs of a dying area being revived which can be spotted if you look carefully. It is almost the same as looking at a thriving area except that this area, you look for signs of growth. There could be some openings of new shops and businesses in the beginning. Then the huge chains come along such as Starbucks and McDonalds. Again, a sure sign, is the opening of new estate agencies all over the area. Check the local property websites and if there are signs of prices going up, then it is your chance to grab the opportunity before it is too late!

As for how to detect dying markets, it may not be as easy as looking for thriving markets. Sometimes, the property market conditions may seem slow on the outside but it does not necessarily mean that the market is dying. More obvious signs could be the lack of new developments such as construction of new buildings. Estate agencies are closing down instead of increasing. Also look at the demand for rentals, if the overall demand is low, then this could also be an indication of a dying market. Do remember that decrease in demand and a slide in prices could be due to several contributing factors such as higher interest rates, accessibility problems and most importantly, lower employment rates. Without enough supply of work, the economy of the area will tend to slide and this could affect the property market as more people move away to greener pastures and demand falls. These indicators should be good enough for investors to stay away unless there are signs that this area could soon be revived such as a future infrastructure project linking it closer to London or Edinburgh or something like that. Then it would be a good time to invest now and reap the rewards later.

I would like to end this by saying that these tips are merely general and broad term tips which may not apply to some market conditions with varying degrees of developments. As I have said, it is helpful to seek the advice of experts and professionals to be sure. After all, investment is about gaining long term financial success and not facing heartache from mistakes and badly made decisions.

If you are waiting for an opportunity to grab commercial properties at bargain prices, now may be a good time to consider doing so, with the prices declining due to decreasing tenant demands and even fewer new buyer enquiries.

The situation looks gloomy as the demand for the retail sector has plummeted at the fastest pace within the last six year period, due to the recent credit turmoil and the consequent effect on the housing market. A recent Royal Institution of Chartered Surveyors (RICS) survey revealed that new buyer enquiries for all property sectors have also declined, with the retail sector experiencing the sharpest reduction in enquiry levels. This is especially so for retail properties in Central London and Wales. The survey also revealed that surveyors’ confidence in the office and retail sectors have dropped to its lowest since 2003.

As for rental expectations, these turned negative for the first time in four years while investments into commercial properties also slowed due to the credit crunch. The net balance of capital values in the office and retail sectors reportedly fell between 20% and 30%. Team that with less availability of capital funding, many investors are holding back from purchasing any commercial property. That includes the office sector which had remained buoyant previously before it joined the retail sector by taking the escalator down recently.

Reading through the various reporting sources, the outlook is indeed looking pretty bleak, especially as surveyors expect this situation to continue for sometime. In other words, commercial property prices are yet to hit rock bottom and so, prices will continue to fall. This may seem a bad sign for those looking to sell or trying to rent out these properties during this period.

However, to many a savvy investor, the gloomy figures are a potential indicator to purchase as many commercial assets as possible at bargain prices. Every cloud has a silver lining. Previously expensive commercial properties will now be priced much lower and if you have the resources, expertise and funds, it may be a good time to invest in UK commercial properties, be it in the retail office or other commercial sector. However, keep watching the market, there is still some time before the market is set to bottom out.

The future outlook for this sector may be depressed for now but when we talk about spending hundreds of thousands or even several millions on an asset, it means you are likely to be committed at least for several years. So, if the market is bad now, get the properties now because it is at below market value. With the assets in hand, you will definitely get into position to realise a nice profit once the market goes back up, perhaps after six months or a year or several years. It depends on your investment strategy of course but investments need not bring immediate substantial returns. In time, tenant demand and new buyer enquiries will increase and that is the time that investors, who have cleverly grabbed this golden opportunity now, will reap their rewards.

In conclusion, investments into commercial properties during this slowdown is worth it in the medium to long term. However, make sure you get good professional advice and a good commercial mortgage source so that you do all the due diligence necessary to be as sure as you can of a sizeable return in future. Let me know how you get on

When you begin to learn to about property investment, you will find a lot of different strategies and lots of people pushing different views on the right strategy. Its important to have an element of wise ness and common sense when making decisions in choosing the property investment. This article discusses positive cash flow and talks about what to look for when buying an investment property.

The concept of positive cash flow is straight forward; it simply means that the property that you invest in generates more monthly income for you than you have to payout. In other words, the rent that you generate is more than the combination of your outgoing payments on buy to let mortgage interest rates, your property management fees, bills etc. Having a property that gives positive cash flow means that you have a property that gives you a regular income as opposed to losing any money.

So why would an investor not purchase a property that generates a positive cash flow regularly? The counter view to buying positive cash flow property that people talk about is the fact that with property investment you need to think about 2 main elements; the rental returns (whether the rental income is positive or negative) and capital growth. Many people take the view that you cannot have both elements working for you in your investment strategy and believe that you can have one or the other. It is generally believed that if you get a property with a positive cashflow, it is usually at the detriment of the capital growth. With so much of the money coming from property capital growth, in a lot of cases, the capital growth can be compromised in a positive cashflow property, so it is something you would want to keep an eye on and ensure that having a positive cashflow does not mean you sacrifice capital growth.

If the research is done correctly, there are definitely investment deals out there that offer both capital growth and good rental returns. The key is in doing your research before completing on the purchase. If you are unprepared to do the work, it is unlikely that you are going to find the right property investment deal. That means looking for the right property sellers, looking into untapped towns and areas and getting the properties in the growth areas.

Gone are the days when only the wealthiest of investors were holding a property portfolio, even those with only a couple of houses are also very actively investing in the property market. People even cover their mortgage interest payments with their rental income, and to increase their net worth through the rise in the capital value of the properties.

However, whether you are a small investor or are managing a healthy portfolio, the rules of the game apply to you in the same way in any case. You are targeting a market when you invest in the buy to let properties, so research your market.

You must know as an investor what people want, and what is it that they look for in the properties when you are offering your property for rental. But the market is certainly not for the impatient one, and those who are looking to make millions in a few weeks will be pretty disappointed to learn that, just like any other business, buy to let property requires a decent amount of dedication and hard work too.

Be patient with your investment and you will eventually see for yourself the benefits of investing in buy-to-let markets.

Read lots and lots until you are confident that you have every angle of property investment covered. Knowledge is power and learning the right investment tactics from the right resources will be the difference between success and failure.

Consult experts and network as much as you can to learn more. That does not mean that you end up throwing money at expensive rip off courses, just do your research to find the right courses.

Buy to let property is for everyone and making money from it is as easy as it appears, as long as you are well versed with the right information about property investing before dipping your toe in the water

Demand for rental property is as high as ever. As more students get enrolled in the universities and waves of immigrants continue to set foot on the British soil, people are looking to rent more and more houses everyday, since it is not easy to buy property. The buy-to-let market has been hot ever since it all started in 1996.

The buy-to-let market can really help you make some lucrative profits in the longer run if you address the right target market, but it is not as easy as it seems. Targeting the right market and making the right moves can really bring you the profits that the buy to let property investments are known for.

Why Invest in Buy-to-Let Properties?

Buy-to-let has proved to be one of the most reliable shapes of real estate investments, especially since the last decade, which you can pursue to earn more on your wealth. There are a few good reasons why the property market has been able to hold the attention of investors towards itself. Primarily, investment in properties is very safe, and is much safer than the kind of market fluctuations which can shake the stock market, so it is a good portfolio diversification option alongside your investment in stocks. Landlords also like to see their investment in a more tangible shape than shares.

If you are thinking about the declining property prices of properties these days, then the investors in real estate only worry if they are looking to flip properties. If the prices are low today, they will rise in the future. Besides, investing in a buy-to-let property keeps on bringing in the income, and the investor is usually pretty happy with the return.

If you are a smart investor, then you should really be eyeing the rental property market in the UK keenly. Economy in general may be in recession, but other socioeconomic factors in the country, such as increased immigrant influx and a consequent increase in population, and the climbing rate of divorces, you can always find more and more people looking for rented houses. You can be very much sure of university students looking for a place to rent, so if you target your property to them at the right time, the returns will flow in

If you are in the habit of watching sports, then you must have observed that a change in the coaching staff can massively affect the results of a team. Alex Ferguson may be a classic example in the sport of football; the team he has worked with as a coach (manager), he has done wonders. And most often than not, it is the coach that gets the axe when the team is not performing well.

It is a general rule that everything that offers high returns involves high level of risk of failure, and the same holds true for the property market. As an investor you need to be aware of the limits so that you stay away from any losses, while there is no margin whatsoever for repeating the same mistakes over and over again in the property market. Therefore, if you want to have success in property, you need to formulate and execute you plans with perfection without ever repeating your mistakes.

In order to be successful as an investor, you must make the habit of taking well calculated and smart decisions. You can attain this goal by hiring the services of a property coach; once you get an expert opinion on each and every move you make, it will create a process of check and balance. An expert will help you realize your mistakes, which is the first step towards rectifying your errors. You will also not get the chance of passing the blame on to someone else, when you are responsible for the mistake. As is frequently remarked by football experts, that winning is a habit but so can be losing. It is up to you to decide which habit you want to develop. No matter how many property articles or books you read, once you get a coach on your back you will instantly develop the winning habit.

A property coach or expert helps you draw out a sound plan and come up with new ideas for carrying on the property business. But just like in football, property investment success only depends on you executing those plans to the best of your abilities. If you have a property coach, he will not rest until he sees you work as hard as is required. With the help of a property coach, you will never lose sight of your goals and he would always be there when you need to ask him complex questions. Moreover, a coach can also get you going when you are down through his motivation skills.

While picking a property coach that can help you become successful, it is important to hire one who has done it all and has been through all the levels of property business as an investor. Choosing a property trained coach who has never been in the thick of the action will not be very effective. It is always useful if your coach owns some local properties, as it ensures that he is easily accessible whenever you need to ask his advice. It is also important to have a look at the attitude of your coach towards your success. Is he really bothered about your future in property market? He must exhibit that he cares that you succeed irrespective of the fact that he gets his fees from you or not.

There has been much talk about entering a property market that has been going through a slump for quite some time. But the problem arises when there are not enough people who are willing to put in sufficient capital which is required to carry on in a slack market. If you are planning to invest in a declining property market, then you need to read the following five facts:

• To start with avoid paying prices which the buyers ask. Most of the buyers are usually asking for prices in and around the amount of their mortgage, but the fact is that in a property market constantly showing a downward trend, this is not the way to go for them. If you have plans to acquire a particular property, then get down assessing it thoroughly and if it seems to be a potentially profitable investment for the months to come, then get going with your offer. In a downward property market, it is not unusual to ask for a discount for up to 20 percent. And if the seller refuses your offer, you got nothing to lose as you can look for other properties, while the seller will realize sooner rather than later that his price is simply too high for the market.
• You need to focus on location before making any investments in the property market. In order to make the smart investment you need to plan and give special attention to the location of your property.
• You need to be a little patient, as making an investment in a downward property market is a long-term investment. You should waive off any thoughts of making instant profits, but eventually, when the market goes up again, you will be among the leaders if you were wise enough to make the right investments and stick with them.
• When entering a declining property market, you should not entertain any ideas of flipping houses, because it does not happen. Only a few lucky investors are able to make a successful flip, and quickly flipping is dying out. You would be better off investing in many properties and making repairs when necessary to them so that your chances of making pounds are increased.

Becoming a landlord is currently the order of the day in the property market. There are millions of people who have lost their houses for one reason or the other, but ultimately they have to live somewhere even if they have to rent a house. Being a landlord is very profitable as long as you are making the right property investment with good rental yields

Every property investment buyer is looking to make a safe investment, and a basic prerequisite for doing so is to find out a motivated property seller, which, by the way is not very difficult. All it takes is to think like a seller and understand the basic reasons behind a motivated sellers desire to sell property. 

If you want to make great deals on a regular basis, then you need to step in the seller’s boots and understand the philosophy of a motivated property seller. Generally there are four categories of a motivated seller:

• A seller facing problems such as divorce, bankruptcy, law suits, death, health problems etc.
• Their life is undergoing drastic changes like retirement from job, job transfer, relocation or increased mortgage repayments etc.
• They are eyeing other opportunities like stocks, shares, business and other speculative activities.
• They are looking for the right price; if they get the right price, they will proceed otherwise they will withdraw.

Analyzing motivation factor in property sellers is relatively simpler when it comes to homeowners. They are usually a simple lot, who have not acquainted themselves with the skills and tricks of a regular investor.

A motivated seller will not be too shy to answer the main question of why a he or she wants to sell their house when asked by an investor. When such a question is thrown towards an ordinary homeowner, he or she will take no pains to conceal the truth and will come out all guns blazing. He or she will readily let you know whether it is their divorce or if he or she is planning to relocate. But extracting the “real” reasons for a regular investor can be somewhat difficult.

But this difficulty does not mean that the motivation factor is not valid here, in fact, it’s just that the replies are more ambiguous. It is a common mistake committed by most investors when they assume that they are aware of the true motives of the other party. Every one has their own needs and preferences; while most sellers are price-motivated, there are others who do not care too much about price and there are some other factors that are influencing their actions.

In order to get the seller speaking about the exact motivation, you need to spend some time in chalking out your strategy and formulating well thought out questions. It is a fact that when you ask the same thing, but with different terms and words, you often get a very different answer. In order to learn the true motives behind the sale of a house, you need to do some homework. Here are a few good examples of questions that are designed to extract facts out of sellers:

What in your opinion is the best feature of your property? Is there anything that you would desire to change?

What was the reason you bought this property over another in the market? Have you sold a similar property in recent past?

Why are you asking this particular price for this house? Do you have any other property? Any particular reasons why you picked this one to be sold? Are there any steps that you have taken to prepare this house for the property market?

By asking indirect questions you can dig to the core of their decision making. This method is much more effective as compared to asking, “Why Are You Selling This House?” Different people have different reasons for selling their property. For some it may be the education plan for his little ones, while others may be planning for their time after retirement. No matter what the reason is, as a buyer it is important for you to learn the true motives of the property seller, and asking cleverly worded questions will help you get to the root of a sellers motivation

After doing all the hard work in setting up the property buying advertisements, distributing the leaflets, erecting the banners, running a website campaign to attract motivated sellers and your phone starts buzzing, now is the time to reap all the benefits of your efforts. When you get a call from the seller, it is important to ask the seller the questions which matter. This article sheds light on five of the most important questions you need to ask the seller in order make sure that the property investment deal you are potentially taking on is right for you.

It is quite obvious that the first thing you will need to ask are the sellers personal details such as name and other particulars so for when you to address them both during the conversation now and the future; these questions fall under the category of common sense questions, but this article will be discussing some other more significant questions.

• To start with you need to know the exact location of the property and the general surroundings. Asking the exact address, the type of property (terrace, detached…) number of bedrooms and bathrooms, garden and garage and other similar information from the seller is important. Another question to ask is how close are the amenities such as the nearest shopping centre, schools, transport etc. Your goal should be to squeeze out as much information as possible.
• You must also address questions based on the actual state of the property. You must put direct questions to the seller about the possible repairs needed to the house. You can gain a better understanding by learning when the last time the house was upgraded. Your special attention must be directed towards, roof, windows, flooring, boiler and heating, bathrooms, electric wiring and plumbing in the house.
• It is also imperative to learn the basic motive behind the offer to sell the house. You should try to extract the true reasons from the seller, by being frank and going into details. The most commonly given reason is need for money, but to be honest this is not always the real reason. For instance, if the buyer says that he requires instant cash to pay off an impending debt, then this sounds much more realistic. The reason why you need to insist on knowing the real reason is that you do not want to get into any unnecessary hassle that may emerge later on after the purchase of your buy to let property.

Asking the reason for the sale will also help you assess the degree of motivation by the seller. A seller who is on the verge of repossession is likely to be much more motivated and hence likely to offer a better price than someone who is simply looking to move for upgrading their house. So pay particular attention to this part to avoid wasting time chasing the unmotivated seller who may end up wasting your time with a bad price and even changing his mind.

• Now comes the part where you learn about the financing of the property. You need to know about the loan balance of the house, if any, while you must also enquire whether the loans or taxes are done with or not. Putting across queries about the 1^st, 2^nd and possible 3^rd mortgage amounts is also essential. The more you learn about the financing of the house, the more informed you will be to know what offer the seller actually needs to make the sale possible.
• As already touched on above, you can check the motivation levels of the sellers by offering to pay the purchase amount of the house in cash. You can ask the property seller to lower the price of the property on the grounds that you offer to pay wholly in cash. If the seller is in need of a quick transaction then, it is more than likely that he will lower his price, giving you the house at a cheaper price.

It is always worth remembering that no matter how direct or demanding the question is, you need to be polite and courteous in your manners. These feelings can only be generated if you keep in mind that you are there to help the seller get out of his or her financial woes. By putting across these questions, you will weed out any unmotivated sellers