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March 24th, 2010 in Property Investment by Kez
When you visit a house during an open house or an appointment with your property agent, take your time. Carefully weigh up the following factors before deciding if the property that you are looking to buy is right for you:
- Price The price is the main criterion for most of us. Learn how you can or can not afford to pay, request a mortgage pre-approved before you start viewing any properties. Perform a thorough due diligence on the price of the property and in case of buying investment property for sale, make sure that the discount offered is genuine. Perform the due diligence before you even step out to see the property to save you time on being disappointed and wasting a trip if the price des not stack up.
- Fees Yet, even if you can pay for a property mortgage, other property costs such as property taxes and service charges could put it out of your reach. In some new areas, property taxes are lower until the facilities and services such as sidewalks, parks, fire stations and schools are built. You must have an idea of future property taxes for properties you are considering.
- Architecture Determine if you like the style of the house. Evaluate how the house will be easy to maintain and clean. If you are buying a rental property as a buy to let investment, then make sure that the property layout and number of rooms lend themselves to providing you the maximum rental value.
- Alterations and size Ask yourself if the interior will meet your requirements today and tomorrow. Are there enough bedrooms and bathrooms? Is there a room for a home office or game room, if necessary? The garage is about the right size? Do you need a garage at the property? Is there enough storage space?(The old houses are full of charm and can sometimes be bigger offering more storage space.
- Lot Size Again, you should consider your current and future needs. Review the property size for its rent ability to make sure it will appeal to the type of tenants you plan to target for the rentals. If it is to be a family home then does it have enough space for a family? Or are you buying the property for occupation by single people or couples who would rather have a smaller property with a smaller garden to manage with no lawn to mow
- Landscaping Are you looking for a property requiring minimal landscaping and hence low management or looking for a property that you intend to occupy and want the charm of spending a few weeks a year in the garden? You need to assess the type of garden to assess the costs of maintenance. Its again a question of money and time
- Maintenance and refurbishment Are you likely to need to upgrade the heating and other utilities? Does the water supply need work? Is the roof requiring replacement soon or in the coming years? Will you need to redesign your kitchen or bathroom soon? Consider these expenses as part of the purchase price when you speak with your buy to let mortgage advisor. To assess the overall expense, you would ideally want to carry out a thorough property survey to determine the exact costs of any further work required to bring the property up to the state you want it. A full survey requires a lengthy discussion and we will not go into any lengthy detail here.
- Extras Know exactly what is included in the price of the house and what is not. Appliances, curtains, blinds, central vacuum and air conditioners If you are in doubt, ask questions and get answers in writing.
- General Condition Should the exterior should be repainted, does it need rendering, repairing, brickwork replacing… or any other extra work? The windows; are they safe and waterproof? Is exterior lighting sufficient? Are there any cracks in walls or floors? Does the flooring need replacing soon? Is there an alarm system? Is the water pressure sufficient? Do the hot water or cold water taps do they work properly? Is the heating system in working order? Does the property need rewiring? Check for damp, mould, signs of wood rot or any sign of wood worm, any other structural problems.
The idea is to make sure that you do thorough homework on the property and make sure that you don’t end up with any nasty surprises later down the line after the purchase!
property buying
March 24th, 2010 in Property management by Kez
When you buy a new property to live in yourself or buying an investment property, there are a number of costs you need to consider to make sure that you can afford the overall expense of owning a new property. These costs go beyond the mortgage payment costs that you incur each month. Property ownership involves two main categories of costs:
Non-recurring costs
Some of the costs you can expect to bear during the purchase of your home:
- Closing costs and other additional costs associated with the home. The closing costs that you pay depends partly on the size of your mortgage, the value of your property and the province where you purchase. For example you will need to consider solicitors fees, mortgage broker fees, any stamp duty that may be applicable to the purchase of your property, survey costs when applying for a mortgage, your deposit payment, property insurance and so on.
- Moving Expenses Whether you hire property movers to pack, move and unpack your belongings or you do it yourself, it will cost you something.
- Costs related to new home Think about what you need and everything you want to feel at home in your new home, especially if it’s your first. Then, think about what you need just to move, e.g. cleaning products. These short term costs are additive, so try to take into account the initial costs.
Recurring costs
What are the costs you can expect to pay monthly, quarterly, or sometimes every season:
- The mortgage payment will probably be your biggest regular outgoing towards the cost of your property, whether you have a normal residential mortgage or an investment buy to let mortgage. Several factors affect the amount of mortgage that you make, including: the amount financed, term, rate, type of mortgage product and payment schedule. If you want to pay off your mortgage more quickly and reduce interest costs, you can make payments more frequently, for example bi-weekly (at the same time as your pay). Adding a little to your monthly payments or making an extra payment each year can be extremely useful.
- Property Taxes Depending on where you are, you will receive a council tax bill that is normally paid annually. Nowadays, it is possible to pay property taxes in several ways: by writing a check to the council, by online Banking or if your council allows, automatic debit from your checking account every month.
- Property Insurance Your lender will require that your property is insured at closing, and it is an expense that you can not avoid when you buy the property. The property insurance protects the replacement cost of the structure in case an unfortunate event occurs. Your property insurance should also cover your personal valuables: jewelry, art, furniture and computers, among others. Your property insurance should also cover liability insurance, in case someone gets hurt on your property or you damage property accidentally by a neighbor. (From time to time, make sure your coverage fits with the value of your property.)
- Service Charges If you buy a flat or an apartment, you will undoubtedly be asked to pay a service charge for maintenance of the property inside and outside, including common shared areas used by the public. Ask before you buy all the details on these expenses, among others, from the management company..
- Utilities Each month you will need to pay the heating bill, gas, electricity, water, telephone and cable (or satellite television).
Regular Maintenance. A well maintained property retains a higher market value and contributes to the enhancement of the neighborhood. Proper maintenance can even increase the value of your property. Sometimes these expenses are a little too easy to postpone. But if you neglect certain maintenance tasks, you will find perhaps that repair costs are much higher. A regular maintenance schedule covers a multitude of tasks from mowing to snow removal, through the roof repairs and periodic maintenance of heating system.
Property Costs, property expenses
January 2nd, 2010 in Property management by Kez
Many property investors will choose to manage their own properties, particularly if they live a short distance from the property. However, for many investors it may not be feasible to take over the management of their properties if the properties are located across different parts of the country. In this case a property investor may want to appoint a property manager to take care of things on the leasing and property management in exchange for a monthly fee.
The benefits of appointing a property manager for our property investment can easily outweigh the reasons for not to have a manager in place. A good property manager will always communicate effectively with the owner in all circumstances and perform well.
Duties and functions of a manager of property are extensive and will vary depending on the conditions and demands of the property owner. Here is a list of some of the responsibilities a property letting agent may assume:
- Advertise for and interview (credit checks, referees contact) potential tenants
- Gather initial payment of deposits
- Collect monthly rents
- Arrange any necessary repairs
- Periodic inspections and inventory checks of property
- Paying workers, gardeners, council tax and other bills out of incoming rent
- Make the regular lease payments to the owner
- Contact the owner of tenants giving notice to vacate property
- Contact the owner to arrange for repairs above a certain value
- Notifications and appropriate to issue letters to tenants
- Provide reports of rent and expenses to the owner
The above is just a sample of functions performed by a property manager. A good property letting agent/ manager is not necessarily someone who charges lower fees. Most managers around where your property is located charge similar fees, however their ability to control the property according to your requirements differ and so it is necessary to follow a strict screening process to choose the right letting agent for your needs.
The best way to select the right property manager is to interview a number of property managers and ask them a series of predefined questions. Some owners prefer to do this in an interview, while others are content with perhaps a call and email to phone.
So what type of questions should you ask? There are several different aspects of property management that must be looked at and so I have listed some possible questions accordingly.
Fees and services offered
What monthly fees do you charge?
How many properties do you control?
Do you charge a fee to leave?
How often do you conduct inspections?
Reporting
How often are payments made to the homeowners?
Under what circumstances do you contact an owner?
Tenants
How do you find and interview prospective tenants?
How often do you collect rent?
What is the typical period of notice?
How do you treat non-payment of rent?
Maintenance
What action is taken if a tenant should damage the property?
How do you control the major and minor repairs?
How long have you worked with your preferred trades people?
These are only sample questions and will differ depending on your situation, however they provide an outline of what you may need to ask.
At the end of the day, do not settle for less than what you expect from a property manager. After all, your investment property, bought with your hard earned money, is placed in their hands. Make whatever effort you need to ensure that your property is in the hands of someone you consider capable and trustworthy.
property manager
December 27th, 2009 in Property Finance by Kez
The use of variable rate mortgages has increased and more and more people are using this strategy. This strategy, by its nature (variable), is about taking a risk that must be assumed but in recent years it has shown very good results.
Description
The interest rate on a variable rate mortgage changes with the base rate of the Bank of England. The lender does not give you a fixed rate but a discount off the basic rate. For this reason, variable rates are expressed as the base rate less a percentage.
Example: “if the rate is based on base rate minus 0.90% in this case, if the base rate is 6.00%, the customer will pay their mortgage rate of 5.10% (6.00 - 0.90%) for this period of time. Some time later if the base rate is 5.25% then the mortgage rate of the mortgage will be 4.35% (5.25% - 0.90%) for this period. The Bank of England sets the interest rate every month. That does not mean that the rate will change 12 times but its more a review and a decision of whether the rates need to change, and deciding on a new rate if the rates need to change.
Advantages Of Variable Rates Mortgages
Historically, this is a very good strategy, especially when rates are stable or decreasing. This strategy allows borrowers to:
- Take advantage of rates that go down during the term of the mortgage.
- Payments are usually lower.
- Available from many lenders.
Disadvantages
- Rates are variable, so they can ascend or descend (a risk factor).
- Payments vary with interest rates.
When Using The Long-Term Strategy
It is clear that the variable rate is a good choice when the rates tend to go down or are stable. Since it is difficult to know for certain which way the rates are headed, if you take a variable rate mortgage, you will have to keep a close eye on the trend of interest rates every month.
All products offer a variable rate has also an option to convert the variable rate to a fixed rate. It is a fairly easy process: you call the lender and you tell it to convert your loan to a fixed rate.
Caution: Lenders Increase Rates When You Switch To Fixed Rates
If you see that the interest rates are rising and you wish to change your mortgage from a variable to a fixed, you need to take account of the fact that the fixed rate offered will usually be higher. When someone wishes to convert a mortgage from a variable rate to a fixed rate, lenders are usually known to increase the fixed rate offered to a borrower.
How To Stay Updated On The Movement Of The Base Rate?
Due to the fact that your mortgage rate varies with the base rate, it is important to keep an eye on the base rate. Keep note of the following points to track the interest rates:
First, the base rate may change as much as 12 times a year. When the Bank of England adjusts its policy rate this news is usually disseminated to all mass media (newspapers, radio and television). Your mortgage broker will also have first hand knowledge of the interest rates so keep in touch with your broker and keep an eye on the media. The interest rate announcement is usually made on the first Thursday of every month by the Bank of England.
Consider A Variable Rate With Ceiling
Some lenders offer variable rate with a ceiling. That is to say that if variable rates rise above the ceiling rate, your mortgage will be adjusted so that your rate is equal to the ceiling. Your maximum rate therefore, is the maximum rate for your mortgage.
Conclusion
The strategy of variable rate is often an option that must be examined carefully. Several thousands of pounds can be saved as a result of the right choice. Consider the following 2 tips before choosing your variable rate mortgage:
- Choose a variable mortgage with the right lender. There are so many variations in the variables rate mortgages.
- Stay up to date on interest rates or make sure your broker is in contact with you to advise you.
mortgages, Variable Rate Mortgages
December 26th, 2009 in Property Investment by Kez
A mortgage broker with the right expertise is an important factor that should be considered when choosing a mortgage broker [See: Choosing a mortgage broker]
Over the years, many mortgage lenders have added or changed dozens of mortgage products. There are hundreds of mortgage products available for borrowers and trying to choose the right mortgage product can be daunting. Choosing mortgages is a full time job. It requires the mortgage broker to know all the options, products and strategies in the mortgage market today.
Some signs of an expert mortgage broker
When you contact a mortgage broker, look for signs to determine how knowledgeable the broker is likely to be. Pay particular attention to the following:
- He does not speak only of a mortgage product (eg 5 year fixed), but several opportunities to handle the mortgage strategy.
- He knows the factors that influence the rise and fall of interest rates and can explain clearly the current situation in the cycle of interest rates.
- He knows all the products offered by all lenders in the market and can easily compare. As an example, the best variable rate of 5 years is with the lender XYZ because … while the best mortgage line of credit is offered by ZYX because …
- He is able to compare the best rates available for each lender and at the same time you can select one with the best offer.
- The broker tries to understand your situation and your goals.
- He shares with you ideas about how your mortgage may be repaid quickly.
- He is authorized by the Financial Services Authority (FSA)
- He works for a company that has a good volume of business
- He explains clearly and easily the concepts and ideas of more advanced mortgages
- A new trend in the mortgage market is to see more and more mortgage brokers who specialize in a certain market area.
There are specialists for:
- Mortgage customers who have a good credit score.
- Bad credit mortgage clients with less than perfect credit history.
- Mortgages for construction.
- Mortgages for residential property buyers
- Buy to let mortgage specialists
- Commercial mortgage specialists
The fact that some consultants specialize enables them to better understand the nuances and details of specific mortgages and can better understand a strategy and products available in that specific mortgage market.
The expertise of your mortgage consultant will be a big benefit for your property purchasing strategy and could help you save thousands of pounds.
mortgage advice, mortgage broker, Mortgage Broker Expertise, mortgage help, mortgages
December 26th, 2009 in Property Finance by Kez
An important part choosing a mortgage broker is to ensure that the mortgage broker has integrity. [See: Choosing your mortgage broker]
Integrity in a person is defined as: “Good character, as a person of integrity, incorruptible, whose conduct and actions are beyond reproach.” A mortgage broker with integrity will put your interest before their own and the lender
If you have any doubts about your mortgage broker then keep looking for another mortgage broker. You must have confidence that the advice or recommendations he/ she gives you is good for you (not him/ her!)
Finding a mortgage broker with integrity
When you are searching for a mortgage broker and are in the selection process, the first step is to have a telephone conversation with the mortgage consultant and see if he/ she listens to you without saying exactly what you want to hear. (Example: Do not tell the broker that you are looking for “the best mortgage rates for 5-year fixed” but instead ask him/ her of their recommendations for a mortgage). Let him/ her speak and answer your questions. A good adviser will probably start by understanding your situation and your goals to be able to advise you properly.
More than a product or an interest rate
If your broker speaks instantly of an interest rate or product (5 years fixed, a line of credit mortgage or even a variable rate mortgage), he/ she is probably too focused on a quick transaction rather than a long term relationship. The biggest savings come from little things over the years. Your advisor should be able to give good advice to pay your mortgage more quickly (and save interest) without putting strain on your budget.
A good mortgage consultant will probably have several solutions (preferably with several lenders) custom made for you. The best mortgage consultants have even developed several strategies they use with mortgages to save money for their customers.
All these are signs of integrity to the profession – he/ she tries to save you money
A long-term relationship
Find a mortgage broker who has a management approach to your ongoing mortgage needs. Such a broker will contact you annually to review your situation, check your mortgage strategy and give you advice.
Advisors who want only a quick transaction are easy to find, but a good advisor who is in touch year after year are in a class of their own.
- In summary, take time to find a mortgage broker who:
- Does not look only for a fast mortgage product,
- Does more than just shop for interest rates,
- Has no conflict of interest with you
Helps you save money with a good mortgage strategy
mortgage advisor, mortgage broker, mortgages
December 26th, 2009 in Property Finance by Kez
Choosing your mortgage consultant?
The repayment of a mortgage is a “sport” of endurance. There are several strategies that can help you gain (paying less interest). A good mortgage consultant is an important asset who can help you get a good mortgage with a good mortgage strategy helping you year after year to pay off your mortgage faster without changing your standard of living.
Finding a good adviser does not have to be rocket science. It is like hiring an employee who works for you. If you plan to pay your mortgage in 15 years or 25 years, your mortgage professional will be there to help.
Here are some considerations that can help you find a good mortgage consultant.
Types of mortgage consultants
There are 2 main types of mortgage consultants who each have their strengths and weaknesses:
The representative of the bank branch offers products from a single lender, is responsible for several tasks including mortgages and is an employee with a possible annual bonus.
The mortgage broker: Offering products from several lenders, specializes in mortgages and works only on commission (paid by the lender) and some charge an additional one off fee.
Factors to consider when choosing a mortgage broker.
Choosing a mortgage broker is primarily a question of trust. There are 2 things that normally help us trust a professional:
- Integrity Will the mortgage broker put my interests before his own and that of the lender? “The negotiation of a mortgage involves two parties who are opposed and whose interests diverge: the lender and the borrower. It is important that you are confident that the recommendations of your advisor reflect the best strategies and solutions for you.
- Expertise: Does your mortgage broker have the ability to offer the best solutions? Your mortgage broker should be able to compare for you the various mortgage products and determine which is best for you.
The two components, integrity and expertise are necessary for trust. Here are two examples to explain this point:
A good used car salesman probably had the expertise to sell you a car, but will you trust him? It depends!
Even if your car salesman is the most honest man you know and works hard, does he the right knowledge and expertise to be able to select the best car deal for you?
Choosing
Trust is often a feeling that one has with a person. It is based on the fact that we think that this person demonstrates integrity and has some expertise. If you find the right person to be your mortgage broker, you will probably end up with a professional who will be able to advise you for many years.
finance, mortgage advisor, mortgage broker, mortgages, Property Finance
December 26th, 2009 in Property Finance by Kez
A good mortgage strategy is the basis for significant savings: thousands and even tens of thousands of pounds in savings on a mortgage of £100,000.
Choosing the right mortgage strategy
The easy answer for choosing a good strategy is to contact a mortgage broker who specializes in creating customized mortgage strategies for the clients.
Why?
There are three good reasons:
1. Nobody knows the future of interest rates in the UK.
2. Good strategy must take into account the current economic climate and changing situation.
3. It must be customized with your goals and your personal situation.
Working with all this is not an easy job and it is better to check a mortgage professional who does this day after day.
But do not stop there.
You need to take on the more difficult task of analyzing several factors to create a mortgage plan.
In order to choose the right mortgage strategy, you need to:
know the strengths and weaknesses of the mortgage products available;
identify your current position in the cycle of interest rates, and
assess the probability of higher or lower rate for the next 10-15 years.
Cycles of interest rates.
There are basically 3 types of scenarios and 2 basic rules to understanding interest rates (all this could take several books but we’ll keep our issue at the way).
Scenario:
1. Rates are generally higher
2. The rates are generally falling
3. The rates are generally stable.
Two Rules of Interest Rates:
• Interest rates below inflation. When the index of consumer prices rising rates are increasing.
• Interest rates are linked to the economic health of UK. When the economic situation is healthy, the interest rates rise and when things go wrong rates go rates down.
Nobody knows the future of interest rates. We just need to remember that each scenario requires a particular strategy and getting it wrong can prove very costly. For example, it could be disastrous for a strategy to be linked to lower interest rates and they start rising.
A borrower may want to “stay on the safe side” and opt for a pre-determined risk strategy with a mortgage that is fixed at the same rate for say 5 years. Alternatively, someone may want to opt for fixed rate for much longer, but at times this strategy has proved costly. Choosing the right product, therefore, is crucial to saving thousands of pounds on the long run.
What are the different strategies?
There are several basic strategies, each may have several options and it is often advantageous to combine two strategies together to take advantage of the market. The most important thing is to consult a certified professional in the mortgage market.
Properly evaluating the different the strategies means a borrower can enjoy a proper mortgage planning and savings throughout the duration of a mortgage. Remember that a good mortgage strategy is significantly more important than simply negotiating the best interest rates. Each strategy deserves an explanation must and be customized and combined with your long term goals and the state of the economy today.
finance, mortgage strategy, mortgages
October 17th, 2009 in Property Investment by Kez
Most of the time property buyers look into buy to let or commercial mortgage financing when purchasing properties. Now, if you are into mortgage financing, a survey of the property is required before the bank approves your mortgage application. However, cash purchases do not require a survey of the property. The survey is optional and will rest on the preference of the potential buyer. All buyers must survey the property they are eyeing just to make sure that the both the investment and physical foundation is strong and that no major repair is needed.
If you are a buyer and you want to be thorough in your property viewing, have a surveyor accompany you. The cost of the survey is fairly minimal; just about a couple hundred pounds will normally do to pay for the survey, maybe even less. However, if the property you want to be surveyed is exceptionally large, if it is waterfront or heavily wooded, if it is located in a rough terrain, then be prepared to pay a bit more for a more detailed survey.
So why should a buyer conduct a survey on a property? Well a property survey does not only provide you with information on the internal aspects of the house, but it will also provide you with essential information regarding easements, encroachments and right-of-ways on the property. The issue of easement and right-of-way is not that big of a deal, yet it is still valuable to know. Encroachments and infringements issues should be corrected before you close the deal with the property owner. If there is a neighbor’s shed in the property you want to buy, ask the owner to remove the shed first before you close your deal for you might have problem with that in the future.
Now, if you do not have the funds to hire a professional surveyor and the house you are about to buy is small and is fairly new, then you can probably do the survey yourself. There are just some basic areas you need to focus on in order to do the survey properly. First of all, look for malicious roots. Roots of large trees can interfere with the foundation of the house so if you see one, have it removed immediately. Check also the downpipes and the drains. Inspect the walls and check for any cracks or bulges, also the roof. Check the boiler. Feel the temperature inside the house and see for yourself if it is properly heated. Ask the owner how old is the boiler and when it was last serviced. In addition, check the property for damp, any pest infestations in walls or floor boards, check for any structural movements or damage (a major problem to fix), any cracks in the walls, the roof, ceilings, any musky damp smell, flooring and state of the floor boards, the attic, internal doors, state of the décor, signs of any attempts to cover up any problems such as damp and cracks, guttering, leaks, state of fixtures and fittings state of the electric wiring, check loft spaces thoroughly, state of the garden, out buildings just to name a few.
Buying a property without a thorough professional survey is a dangerous sample to take and it must be conducted to ensure that you don’t end up with a disastrous property investment.
Property Survey
October 13th, 2009 in Property management by Kez
Finding a good tenant is quite a challenging task. There are some tenants that seem OK at first but as time passes by, they might be any landlord’s worst nightmare. You need to have a set of criteria to qualify tenants when you are looking for the right tenant. Most property investors buy investment property on the premise that they can rent it out to good paying tenants. The tenants do not just have to pay on time. They should also take care of your house as if it is their own.
One of the things that you should consider when looking for tenants is their credit history. This is to take care of the financial aspect of the deal. A person who has a superb credit history means that he is able to keep up with his debt. It may also suggest that he or she has a good paying and stable job that enables him or her to pay diligently. In any case, this is a good indicator that your tenant will be able to pay the rent regularly as well. Just to be thorough, make sure you also verify the employment of the potential tenant.
As part of the background checks, obtain at least 2 references from previous landlords to ensure that the potential tenant has a good track record of looking after previous properties they may have rented. If they have not rented before then ask for 2 character references from 2 independent parties that the tenant has dealt with before. In fact the landlord should go one step further and ask the tenant for a Guarantor to sign a Guarantor form on behalf of the tenant.
A tenant Guarantor form is essentially a form that is signed by someone who knows the tenant to take responsibility of any costs that may be owed by the tenant that they fail to pay. It is a binding agreement that may be signed by either friends or family of the tenant and (although it is optional) it must be signed to ensure that you add further security and protection in case the tenant defaults on any rent payment.
If a tenant has arrears and you have a Guarantor sign the Tenant Guarantor form then you can legally chase the Guarantor for the payments that the tenant has not made. It is wise to ensure that the Guarantor also has good financial circumstances so that he/ she is able to pay you any dues on behalf of the tenant. As a guideline, a good Guarantor should at a minimum be employed home owner.
There might be a lot of good tenants in your area but the problem is they are all staying in other apartment or houses for rent. How do you find good tenants for your property? It all boils down to good advertising. To start getting the word out to the public, you can make use of word of mouth advertising. It is fast, easy and it will not cost a penny. Spread the word through your family members, friends, neighbors, and office mates. Put up notices on your work notice boards and any other community boards. You would also of course need to do other forms of advertising to find your tenants including the Internet.
If you find a tenant who is related to someone you know, the good thing is that they would not want to destroy their reputation. This means that they will do the best they can to maintain the house or apartment. You can interview them and do background checks before you admit them into your property.
Once you have found good tenants, your next job is to hold on to them for as long as possible. Make sure that you are a good landlord so that the relationship is mutual. Handle all complaints properly and keep your reputation clean. Tenants would love to rent in properties where they would have a good working relationship with the landlord. Discuss restrictions before your tenants move in so they will not be surprised when they actually get to live in the property. Be completely clear about the terms of the tenancy and encourage your tenants to read the tenancy clear from the outset to avoid and arguments and differences later on down the line.
property tenants
October 12th, 2009 in Property Investment by Kez
A lot of people are having a tough time deciding whether to buy their own house or rent first. There are a lot of factors to consider when making this decision. Buying and renting a house has its own advantages and disadvantages that home seekers need to know first before having an informed decision.
The advantage of buying a property is that its rates depend largely on the state of the housing market. This is very significant especially now when the economy is down. A lot of people are turning away from buying a house because they fear that they might not be able to keep up with the monthly mortgage payments. Also, buy to let and commercial mortgage products are hard to obtain. Banks are tight on their mortgage lending nowadays knowing that the economy is not letting up anytime soon.
Also, on top of the monthly payments, you also have to worry about the legal fees, stamp duty and agent fees. In the long run, the disadvantage of owning your own property is that you have to take note of the maintenance of the property and all the cost that goes with it.
On the other hand, the big advantage of owning a house is that you will be purchasing a big investment. Buying a house adds to your personal assets. A lot of people have already become rich through property investing. Also, you can do whatever renovation and redecoration you desire with your house. You can add a garage, a porch or even a new bedroom.. The possibilities are enormous for you to explore the full potential of the space that you buy.
Buying house also means that you don’t end up wasting money on renting a property. If you ask a lot of home owners they would consider renting a property as good as burning their hard earned cash. Imagine, paying monthly rent and bills for a house that will never be yours. Plus you will always have the thought of eviction and non-renewal of contract hanging over your head every day. You do not have control of a landlord who may at anytime decide to rent out your place to a new tenant. You cannot do anything else but to look for another property to live in.
The advantage of renting is that people who are only starting their career can have a place to live with relatively low start up cost. This way, you can save enough if ever you decide to buy a house in the future. Renting also gives more flexibility. If your job requires you to move to different places regularly, then renting might be the house option for you. However, for the long term, buying a property should always be on the priority list to ensure that you get on the property ladder quickly and potentially get started in your property investment career. The earlier you jump on the property ladder, the earlier you can put your money to work to build property assets which will be worth considerably more in the years to come.
Buying Property, Renting Property
October 11th, 2009 in Property Investment by Kez
When it comes to buying and selling property, the buyer always has a lot of options to choose from different types of houses, different designs and locations. Finding the right property is normally relatively easy. The seller, however normally has the more challenging task of selling their property and making it more noticeable than the competition. Sellers always need to be on the lookout for creative and innovative ways in which they can sell their house and turn their properties into money making investments.
Sometimes, the most effective way to sell your house is to offer creative ways of financing. Because of your financing options, a lot of potential buyers may find your offer more attractive when compared to other property which may have better feature than yours. If you do not know other ways of financing aside from loaning from the bank, read this article through up to the very end.
One financing option you can offer your buyers is to rent with the option to buy. This is more commonly known in the property business as the Rent to Own Option. The contract for this type of financing states that the buyer has to sign a lease to rent the property and a percentage of their monthly payment will go towards the down payment, debt payoff and closing cost of the entire property. The contract also states that at the end of the lease term, the buyer or the renter of the house has the option to totally purchase the property with the portion of their rent to add as payment towards the purchase.
Another financing option is the lease/purchase. This is quite similar to the Rent to Own -Option. The buyer will also sign a lease agreement where they will rent the property first. The difference is that they do not have the option to buy the house but they are actually required to buy it at the end of the lease term. The amount of the property rent may be below or at par with the market rate; this will just depend on how long the buyer wants to lease the property and how quick the buyer can consummate the final purchase.
The third creative financing option you can offer your buyer is called buyer possession with a delayed closing. This type of financing is beneficial for those looking for a place to live as soon as possible while their residential or commercial mortgage is being processed. With this option, the buyer signs a purchase agreement and is able to take possession of the property even before the closing of the transaction.
creative property selling
October 8th, 2009 in Property Investment by Kez
London remains the prime area for investment opportunities not only in UK but also all throughout Europe. The prices for the properties in Central London rose up to 22% in 2006 and 18% in 2007 according to the International Property Consultants Savills. In terms of the whole area of London, historically the Central London properties are the best performing and it should continue to outperform the rest of the capital and even the whole of the United Kingdom for when the recovery fully takes effect.
Prime properties in Central London are found in Mayfair and St. James. The improvements in the Westminster part during the past ten years contributed largely to the price increase of the properties there.
In West London, two of the most prestigious areas are Notting Hill and Holland Park. Both are tagged as the smartest areas in London. Prime properties in neighboring areas include Bayswater and Marylebone.
With regards to the Northern Part of London, there has been a shift of business to the Docklands and Canary Wharf due to the conversion of many riverside warehouses. There is also an improved property price seen in Shad Thames, The Isle of Dogs and Wapping.
During the past five years, the areas of Wimbledon, Richmond, Wandsworth, Clapham and Battersea are all considered to be prime properties locations in South-West London.
Property Investors can also expect to earn from properties in Belgravia, Chelsea and Kensington as these areas are deemed to be the most expensive and highly regarded in all of the United Kingdom. The areas mentioned have a well-maintained stock of attractive period houses, smart shops and are very accessible to the main city.
International investors in UK usually come from oil rich countries such as Russia, Kazakhstan and the Middle East. If you are a buy to let property investor and you want to put your money in an area where the forecasted growth is historically high, invest in a UK London property.
UK residential property prices rose by an astonishing 410% between the years 1986 and 2006 as reported by the Housing Statistics Briefing, English Partnerships in September 2006. The economy in UK remains relatively stable in spite of global economic crisis. UK already recovered some of its loss by the middle-end of 2009 proving that the country still remains as an exceptional location for investment. While the British pound became cheaper by almost as much as 30% compared to the Euro and US dollar in the year 1997, it is expected to regain its powerful position in the year 2010.
London Property
October 7th, 2009 in Overseas Property by Kez
Egypt is one of the hottest emerging tourist spots in the world which is why property investment in the country is popular in the recent times and also will be for the years to come. Egypt has a growing economy in spite of the downward pattern of worldwide economic markets. There are major developments in terms of infrastructure for the benefit of the tourism sector. The investment climate in Egypt is very promising even boasting of 20+% capital returns per year in many of its prime areas like Hurghada and Sharm-el-Sheikh. There have been recent government reforms facilitating the purchase of properties in Egypt by residents and overseas buyers alike. The attention of the world for property investment is now focusing on Egypt property as one of the prime investment locations worldwide.
The warm desert climate of Egypt is perfect for any discerning tourists out there and is why tourism is on its boom in the country. Egypt has all year-round sunshine with an average temperature raging between 14 degrees in coolest place to 40+ degrees Celsius in hotter seasons.
The beauty of the country is vast and beyond comparison with the stunning white beaches, crystal waters of the Red Sea, coral reefs alive with various fishes in contrast with the desert landscape. Tourist detonations like Shrm el Sheik and Hurghada have made their mark on the world tourism stage. These beautiful coastal towns offer various recreational activities are also available for every age. And don’t forget the historical towns like Cairo and Luxor and others. The culture of Egypt dates back to as long as five thousand + years. The people of the country are very friendly in nature plus many of them speak great English. In terms of accessibility, Egypt can be reached via direct flights from various international airports all across the world. In just five hours from mainland Europe, the country is considered as the number one medium haul tourist destination of the region.
When investing in Egypt property, one of the essential factors to consider is the economic state of the location, especially in terms of investment properties. The property price returns in the prime areas of the country are as high as 20+% per year in the previous years. Even with the developments outlined for Egypt, the cost of living still remains relatively low and the prices of the properties are still very affordable. The government sees the opportunity for foreign investments to come into Egypt in the coming years and is why they are giving property investors additional incentives. They are also working on easier investment process to attract even more business to the country.
A tip to various investors out there is to catch the Egypt property market before it is too late.
Investing in Egypt Property
October 7th, 2009 in Property Investment by Kez
If you are in search for a traditional route of finding investment properties in the UK then property auction is one of the oldest forms of property investing and an age old favourite for those looking for exciting bargains. Information on property auctions can be easily found both in the local media and the internet. Announcement for property auction is normally advertised a few weeks in advance before the actual auction takes place. Look out for announcements in your local newspapers and the internet.
If you are reviewing a specific auction and want more information about the properties to be sold, go to the auctioneer and buy yourself an auction catalogue. The catalogues (if not free) are normally sold at a nominal fee. You will see detailed information regarding the property sale, the prices, viewing times and any special concerns of the property, if any. Make sure that you appoint a solicitor to do check any documentation and contracts of sale for the transaction ahead of the auction.
Auction houses are not commonly known for offering the best of presented properties. A lot of the properties sold at auctions are repossessions, receiver stock, bankrupt stock, under developed properties, properties from people who want to sell them quickly for one reason or the other, so in many cases the properties are not well maintained. So when viewing the properties of your choice, have a surveyor or builder with you so you can have them check out the foundation of the house and other concerns as well. This is strongly advised as bidding on a property that you have not inspected can potentially result in a disastrous purchase. A proper inspection will uncover any hidden and unwanted surprises that may adversely affect the potential investment and help you plan a budget for any potential work that may be required to bring the property into good habitable order. A thorough inspection will tell you if a property is worth bidding on all together and the scale of any re-development work.
An auction property will normally have two prices associated with it, a guide price and a reserve price. Remember that a guide price is different to the reserve price. The guide price is the rate at which the property is expected to sell and the reserve price is the rate at which the owner is expecting to get. Guide prices are just that, a guide that is for information purpose only and should not be relied upon as an indication of the reserve price.
The auction house typically lays down some rules regarding property purchasing and time constraints. A 10 percent deposit is required at the day of the auction. The purchase should be completed by the end of the 28 days after the auction; this is reduced to 14 days for some repossessed homes. With the little time span you should make sure that you have all your finances, whether that be buy to let mortgage or a commercial mortgage or cash before you join any UK property auctions.
At the auction house, each property is given approximately three minutes for bidding. This is simply the average time and not any rule as such. Once the hammer resounds, you have to immediately pay 10 percent of the price of the property and sign the contract of sale. Bid on the right property and bid only within your limits to achieve the best deal. If you do not yet feel comfortable regarding the whole auction process, you can always attend a few on a trial basis before actually bidding.
A good tip for bidding at auction is not to get emotionally attached with either the bidding or the property. Many beginners make the mistake of over bidding beyond their budget for a property because they get emotional, if not excited, for the property of their choice. It is IMPERATIVE that you stick to your original budget to ensure a good investment purchase. If you are worried that you might get emotionally attached to a property or that you may exceed your budget limits, ask a friend or a solicitor to do the bidding on your behalf. If you cannot personally attend an auction for whatever reason, you may still join one via the telephone or through the internet.
Property Auctions
October 1st, 2009 in Success by Kez
Success is a very personal thing that people often associate with an end goal or achieving results and targets. Whether you are in property investment or any other field, success is not just confined to achieving and meeting targets. It is also about the actual journey that a person takes on to achieve the goals. A successful person is normally good at ensuring that every moment of the journey to meeting goals is successful and not just the end result.
Additionally, if you were to talk with successful people or people who have achieved financial wealth the one common thing they would tell you is that success to them has not been about achieving the financial wealth but they focus on the actual significance of what they are doing and if they are adding any value to for example the world or what it is that is significant about their goals.
People who have achieved success and significance have usually had to overcome fear and apathy and are commonly people who do not feel insecure in taking calculated risks. They commonly understand and apply themselves without any fear and doubt to make decisions that eventually lead to successful results.
The same people are usually contempt with who they are, what they have achieved in life and where they are in relation to their life. They normally enjoy what they are doing and are not usually involved in tasks that are not close to their heart without having to change personalities for the sake of their tasks.
Successful people are normally sure of what they want and follow successful ways either set themselves or successful strategies but without giving in to anyone who may dictate to them. Their self assurance usually carries them forward to achieve their goals.
There are some key themes in successful people and the idea of the above is to get you thinking about success but it really is a personal thing for people.
Successful People
September 30th, 2009 in Property Investment by Kez
There is now a growing buyt o let opportunity for investors as the percentage of landlords selling their properties has risen in the recent times and at the highest for many years. Despite this, some investors are being more careful about investing into the buy-to-let market due to fluctuating market conditions. The much more selective lending of residential and commercial mortgage products by the banks does not help matters.
My advice in the meantime is to look for private money to help fund your purchases. This is a worthy strategy to any investor’s business plan.
Some financial institutions have even withdrawn their buy to let mortgages while on average, the deposit amount investors are asked to produce is up to 35 percent as compared to only 8 percent back in 2002. Some of these lenders even added a requirement that the rent for the property must be more than 125 percent of the mortgage payment. New landlord instructions, which indicates the buy-to-let activity, also dropped to a low point.
Some buy to let landlords may even hold onto their properties until later this year before considering selling due to these factors. However, just remember, most property investors are in it for the medium to long term. These may seem daunting to new and inexperienced investors but with the proper guidance and help, these are mere hiccups which could easily be resolved.
Many big-time and experienced investors could not care less about predictions of a buy-to-let slowdown caused by interest rates and lending criteria. Some of them are even exploiting this time to expand their portfolio this year while others continue to maintain their portfolio without worrying about property market trends. The smart investors believe in the “buy low, sell high” philosophy and the smart investors have definitely starting to creep out of the woodwork to take a piece of the bargain pie. I have personally noticed a marked increase in the number of investors looking to buy and capitalize on the low prices. After all, we all know that if historical indicators are anything to go buy, anyone buying property at such times look to gain significant profits on the long term.
So for anyone fretting from the mad panic created by the media, just learn from the smart buyers who bought at the slumps of the 1980’s and the 1990’s to create massive wealth for themselves.
Buy to Let Opportunities
September 27th, 2009 in Property market by Kez
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.
September 26th, 2009 in Property market by Kez
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.
Property market
September 25th, 2009 in Commercial Property by Kez
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
Commercial Property, Commercial Property Investment
September 6th, 2009 in Property Investment by Kez
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.
Positive Cash Flow Property
August 25th, 2009 in Property Investment by Kez
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
Buy to let Property
August 23rd, 2009 in Property Investment by Kez
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
Buy to let Property
August 18th, 2009 in Property Investment by Kez
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.
Investing, Property Coach
August 18th, 2009 in Property Investment by Kez
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
declining property market, investing in property, property investing, recession and property
July 19th, 2009 in Property Investment by Kez
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
property seller, property seller motivation
July 19th, 2009 in Property Investment by Kez
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 1st, 2nd and possible 3rd 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
property questions, property sellers
July 7th, 2009 in Property Investment by Kez
Property investment business can be a highly rewarding enterprise, and many opportunities for beginners are available. Property business gives back results according to the input made by the investor. If an investor is aware of what he is doing, then high profits and great money making prospects will come his way. For every starter there are a few facts that must be learnt before getting into the property investment business.
Following are four mistakes which are committed usually by newbie property investors:
Fixing the Price:
Many starters in property often make a mistake of paying too high a price for a property not worth the money. Knowing which property to buy and what price to fix for it are things that most newbie investors learn by experience. But over paying can be a huge obstacle in the success of your business, and staying calm, consulting experts and making price comparisons can help you overcome this problem.
Get Your Team of Professionals Together:
Another common mistake is that most investors indulge in the property business without any team of professionals. There are many aspects of buy to let property investing which requires expert services that need handling by experienced people. Rather than testing your own nerves and skills by handling all things single-handedly it is better that you immediately get a team of professionals together that can get your business operational. This team will act as the foundation of your business, and if it is strong and powerful, your business will never collapse.
Overcome Your Fears:
Every new investor is over cautious in his early days, as he always thinks that some catastrophe may befall due to his negligence. While remaining alert against any possible danger is always good, being procrastinate will slow down the operations of you business and hamper your development in the property market. By hiring a team of experts in the property market, you should build confidence that you will make some informed decisions when selecting property deals.
Explore the Market And Learn the Trade:
It you have entered property investment with the intent to earn your living from it, it will be worth your while to spend money and time to learn the tricks of the trade. You always require some formal training or education about the various aspects of property investing. Most new comers make the mistake of making the investment, without having any know-how about property investment. They do so because either they do not realize the importance of learning or they want to save some money. But you must realize that spending a little time and money in learning the things that can save you thousands of pounds in potential losses or help you gain significant profit will always be worth doing
property investment for beginners
July 7th, 2009 in Property Investment by Kez
Investment in property has the potential of being a complex process, confusing many and inducing them to commit mistakes. In order to successfully accomplish the many steps in property investment, you need to use free property tools as they turn out to be more than useful in assisting you in making the right decision.
As a new investor in property, there is always the chance that you will make mistakes along the way, but you must make sure that you avoid making the following five commonly mistakes committed in property investment:
Do Not Jump Into Investments Without a Plan:
It is perhaps the worst and costliest mistake which many investors commit, as they jump into investing without formulating any plans. Doing so is reminiscent to sabotaging all your efforts and ensuring deliberate failure. For all those who intend to earn through their investments, making prior plans and strategies is a necessity.
Avoid Flip-Flopping If You Hit Success:
It is quite normal to look for some other strategy if the old one did not work out. But once you hit success with a particular property investment strategy, then there is no point in doing the unnecessary flip-flop.
Exceeding Your Budget Is ‘Disaster in the Making’:
It is best to evaluate how much you must pay on a monthly basis, and then follow this plan religiously. Hunting property that is far beyond the limits of your budget will be a wild goose chase; therefore, you must not always follow your instincts in all situations. If you do so, this will potentially bury you under huge debts.
Becoming Part of the Crowd Will Not Help:
There are so many people involved in the property market, and the reason for that can only be put down to the condition of the economy. If you enter the property market and start doing what others are already doing, then it will not help your purpose. Rather than becoming a part of the existing crowd, you need to be introspective and search what you can do that will give you an advantage over the rest.
You Need To Be Persistent to Come Out Successful:
Another common mistake on the part of young investors in property is that they are not tenacious and often change their course after facing early difficulties. Your desire to succeed in property investment must be more powerful than your fear of failure. If you contribute all your efforts and resist in the face of adversities in the initial stages, high profits will eventually come your way.
Property market is a place where only those who plan for the future survive. Going in without drawing out any plans will be a folly; therefore, gathering prior information before investing in property is a way to ensuring better chances of success.
Property, property investment mistakes
July 6th, 2009 in Property Investment by Kez
Investing in the property market can help you create many profitable assets, while offering you equally great opportunities to get wealthy. But as experience has shown, the initial step in anything new can be quite hard, and proper planning is required to turn the rest of the property investment journey into a success.
Here are some useful suggestions which can help you make a bright beginning in property investment:
Get Your Team In Good Shape:
To enter the property investment business all alone is nothing but the perfect recipe for failure. Property business is a team game as you need a number of experts and professionals who can help you handle different aspects of work. A lot of technical and legal expertise is also required, which further pushes a person towards hiring some experts. You would need a good lawyer, an authentic accountant, builder/ contractor, mortgage broker and a tax advisor as well as a good property supplier if you are relying on others to source investment deals for you..
Property experts can help you get hold of the best property at the lowest possible prices, while the contractor will have the task of checking the health of the property and what it would take to repair it. Legal and tax advisors are also indispensable as they have the mastery over legal and technical issues far beyond the knowledge of a common man. Keeping hold of proper accounts is also very important as your clients will have more trust on your services while your business’ efficiency can also be optimized, so a chartered accountant must be hired.
Searching The Market Always Helps:
Before buying any property you must survey the market and use the services of your brokers to get hold of the best property. You can have a look at specialist investment property suppliers, as most of the times the best property is to be found there. Your success will depend on the fact that you draw up a property investment plan, and formulate a strategy as to which property to purchase for buy to let and which to sell on profit and so on.
Knowledge Is Power:
Sir Francis Bacon rightly said that “Knowledge is Power”, and the same goes in the world of property. In order to keep up with most recent events and catch the best deals, you must be proactive. You can enter property associations and clubs, attend trade shows and interact with useful experts to learn what is going on in the current property market. Apart from accumulating priceless knowledge you will also be creating social contacts which will ultimately help you in your property business success.
Do You Plan To Flip ’em?
If you are only interested in flipping property or in other words indulge in purchase and sale of property, then you must get a plan together. You will be required to compile a comprehensive and in-detail list of buyers and sellers, so that whenever you want to sell a property at a good price, you have at least a few buyers ready to make the purchase.
If you happen to accomplish this successfully, then your rate of flipping properties will be quite fast, enabling you to get high profits in no time.
By following these simple tips, you can give a great start to your career in the property market. Whatever strategy you follow, it is always recommended that you consult with the experts and take guidance from those who have done it before. Starting your adventure with low-priced or smaller property will be the way to go, as you will make mistakes on that way, but ensuring that these mistakes do not cost too much, will be the key.
investing in property
July 6th, 2009 in Property Investment by Kez
When investing in the property market, making the right choice can have a great effect on your financial future, but taking such a vital decision can never be easy, especially for those who are still new in the world of property. Therefore, it is important that you should be able to distinguish between a highly rewarding investment and a money-thirsty vampire property that keeps sucking your funds.
Remain Informed About Property Booms and Busts:
It can be safely concluded that predicting the future property trends with 100% certainty is next to impossible, but you can still make efforts to learn about the current state of the market. You would be better off if you knew whether the market is going through a slump or if it is booming.
The principle of “Buy Low and Sell High” is also quite applicable in the property business. During a slump, prices of property are falling rapidly due to low demand and home owners are desperately looking to dispose off their property with minimum loss. This is a time for a visionary investor who has long-term plans. You can buy good property at very low price, and in the coming years, you will certainly reap the benefits of this investment.
People also get lured into buying property when the property market is going through a boom, but this is not always the best time to buy. By doing so, not only do you end up paying more than what the property is worth, but you also have to bear very steep mortgage rates.
Survey The Market And Analyze the Prices:
If you happen to have a chat with any pro property expert, he will always recommend that you should conduct a thorough survey in the market before buying any property. Such a survey can take time, but comparing prices from different sellers will be well worth the trouble. After analyzing all the options you can get your hands on the dream property which can bring great cash flows.
Whenever you want to confirm if the property of your choice is worth the price being asked for, the simple solution is to take a look at the prices of similar property in the close neighborhood. Any inconsistencies will get exposed, and you will have the assurance and confidence while buying the property that your money is being spent on a profitable property.
Whether you are searching for good property in the offline market or in the online property market, comparing prices is important. But this price comparison can only be fruitful if you compare the right properties that have similar characteristics. Prices in the property market can be quite volatile, and for this reason you would need to consider comparison of the most recent prices of properties against the property you are looking to buy.
Hire Professional Services To Stay Safe:
Before making any payment, it is best to call upon the services of a professional property surveyor to scrutinize your purchase. Such an expert can help you detect some latent or hidden defects in the property like any major construction defects and any other form of damage that may make the investment risky.
They will also help you draw up an estimate of the expenses that may be required to turn any property that requires work into a property that is ready for rent. The point needs special attention on your part, as research has revealed that most property owners have paid the price by overlooking the potential repair cost.
Profitable Property Investment
May 29th, 2009 in Property management by Kez
These days more and more tenants are on the look out for rental houses and the rental listing sites are flooded with rental property. In such a situation, you must make some extra efforts in order to distinguish your rental property from dozens of others; some similar houses on rent may just be in your very own neighborhood. If you go through the current rental listings on websites, you will not find it hard to observe that they all contain a traditional stereotype pattern. In order to ensure that your rental listings successfully pull tenants, make a few changes to make your listings unique and tempting.
Pick a Catchy Listing title
It is essential that you should start attracting the tenants from the very beginning. Rather then going with the conventional listing titles like $850 – 1 bd/1, make your title count and use catchy words. The importance of the title must not be underestimated; unless it appeals to the tenant, he/ she will not bother viewing the rest of the details.
It is beyond doubt that you must keep the title short, but still you have the margin to play with tempting words that impart vital data to tenants. You may desire to mention the number of bed rooms in your house, but mentioning a unique feature of your house will give your rental listing a cutting edge over the rest. Some important features that deserve a place in a good title include on-site washer and drier, car parking facilities, a good location, a nice view, superior décor or any other facilities which you desire to put across to your tenant. You can also enhance the distinctness of your property by mentioning places like gardens, conservatories, bar etc.
Keep Your Listing Specific and Make the Right Use of Adjectives
While writing your buy to let listing you should go all out and give complete information about your house with all its advantages and merits. Use of adjectives in description of your house also counts a lot. Rather than using common adjectives like “nice” or “amazing”, you need to use adjectives like “bright”, “classic” or “modern” which help the reader imagine those features in his/ her mind.
Tenants are more attracted to listings which give a clearer and unique description of the house, and you can achieve this goal by making the right use of adjectives.
Mention All the Details
It is definitely worth mentioning all the necessary information and distinctive features of your house and the surroundings to tenants. Although only these unique features will not guarantee seemingly trivial facts like a house on a quiet street or close to shopping centre may also tempt tenants. As your listing will play a defining role in convincing the tenant, it is important to take time while finding words for it. It is sometimes possible, that we fail to find the best features of things which we love the most, and you must make sure the same does not happen in case of your rental property.
‘Seeing is believing’
The famous proverb ‘Seeing Is Believing’ is not all that incorrect and giving nice pictures of the interior and exterior of your house will force the tenants to contact you. This is important, especially in case of gumtree as it provides an instant snap shot of your property.
It is advisable that you always keep some nice and presentable pictures of your house so that you can use them in future. The last thing you want is to be taking pictures of an untidy property when an existing tenant leaves and be using those pictures to try to attract tenants. This can be a major set back to your campaign to find a new tenant; therefore, ensure that you have a clean set of pictures handy that you can use to advertise while you clean up any mess behind a leaving tenant
property rental, rental listing
May 28th, 2009 in Property management by Kez
I have mentioned in another article how easy it is to be successful in property. If we break it all down, it boils down to 2 main factors; 1. knowledge and 2. having the drive to be able to put the knowledge into practice to achieve the rewards. We are not talking rocket science here, but just the application of the right knowledge correctly with determination and drive. If you can do that, then the system of property investment becomes pretty straight forward.
In the case of buy to let property investment, a straight forward system in a nutshell means buying the right property at the right price and renting it to the right tenant. Here I want to mention the importance of looking after your tenants, as the tenant who occupies your property is the single most important relationship that you will have to develop a successful buy to let property investment system. It is the tenant who forms the cogs of the wheel.
When you go and buy an investment property, you can borrow hundreds of thousands of pounds to acquire a deal and it is our tenant who is actually going to pay that money back, not you, not your mortgage broker, not your solicitor or any one else for that matter. You tenant is the one person who will give you money, no one else will. Your tenants are your clients and they are ones who deserve the most respect out of anyone else you deal with. The rental properties that you buy are their homes. Tenants are great people who give you money month after month so you can keep the bank happy by repaying your buy to let mortgage. Aren’t they good? Yes indeed so give them respect for what they do for you. If they are not there, then your buy to let system isn’t going to work. It is your tenants responsible for your success so respect them as much as you can.
landlords, managing tenants, property tenants
May 27th, 2009 in Property management by Kez
You have done your first ever deal on an investment property, got the keys and ready to either move in it or rent it. This is usually the most exciting part of the purchase and many new investors like to think about the possibility of upgrading the property to their taste so they can cherish the purchase a bit more. But, if the property is in good order and is perfectly habitable, is an upgrade really essential? The quick answer to the question is No! Especially of the property is a pure investment
If you purchase a property with the intention of living in without any consideration of ever selling then you can be forgiven to upgrade the house in exactly the way you want it, after all you are going to be living in it for a while so you may as well decorate and design it to your taste. However, if the property that you purchase is an interim step towards your dream house or a property that you are planning to let or planning to flip it for quick profit then the last thing you want to start doing is to start adding your designer touches. Forget about adding the new luxury kitchen, bathroom, a new conservatory or patios, taking such action when not needed simply means losing a large chunk of your profit in the upgrades.
You have to treat every property purchase as a business purchase and not to purchase to fall in love with the property. You goal is to fall with the investment DEAL not the actual property itself. Remember that you have a buy to let mortgage to take care of.
You should only spend money on aspects of the property that will help you realize a bigger profit. If that doesn’t happen then you are wasting your hard earned profit. And as good as you getting your cash and burning it before your eyes. By all means make the property more presentable by doing some new painting and other tidy ups, but forget the granite work tops and the designer touches, let the new owner who wants the luxuries to add them themselves. Bottom line you are in business to make money, not to take on properties to do up as in the fancy staged TV programs. These programs are “made up” and are not right for investors who have better things to do, which is buy more property and hence more profit! We are not here for fantasy and design, we are here to take on the mundane deal making tasks to constantly generate profit.
property renovation, property upgrading
May 11th, 2009 in Property Investment by Kez
Most of the people who hit the rich lists usually have one thing in common; they have used property investment to increase their wealth to greater heights. Property investment is used by the elite as a vehicle for making money and you would think to do the same you have to be ultra smart to reach these heights. But the question is do you need to be ultra smart? The answer is no! The great thing about property investment is that you don’t need to be super intelligent to make big profits; it is all about having the right knowledge and the drive to succeed. The idea behind successful property investing is pretty simple; do your research and just go out and buy.
If you look at the property price trends of the previous 10, 15 or 20 years in any area, you can see the significant price rises. If you had bought a property say 10 years ago, you would now be sitting on a handsome profit. You didn’t need to be a great negotiator, or a super intelligent to realize massive profits. We are not talking below market value property, we are talking big profits from property that you could have bought at FULL price! Buying virtually any property 10 years ago and realizing a profit now would make you seem like genius, but did you really have to be a genius to make the profit? Not quite!
In the current market we are being presented with a huge opportunity to capitalize on buying low priced property for profiting in the coming years. This is an opportunity that doesn’t require a genius to work that there is huge potential for profit. History shows that the property prices will rise on the long term and the normal thinking person in you will tell you that prices will be much higher a few years from now. Whether we reach the bottom of the declines this year, next year or whenever, a normal thinking person will know that the prices will eventually rise. So researching deals today and buying below market value property based on today’s valuations presents an excellent opportunity for massive long term profits. There are huge opportunities for an informed investor to go out into the market place and present sellers offers based on today’s prices. Do you think the rich people out there are sitting back scared of the current market declines or buying? The answer is that the richer who want to get richer are buying and buying regularly. They are making the most of the buy to let opportunities. You wouldn’t call them geniuses as this is a pretty obvious course of action to take; BUY LOW SELL HIGH!
To match the rich thinker, just do what they do, buy low and sell high! Do this a multiple number of times and as long as you don’t use your properties as a way to fund your lifestyle, you can also be sitting pretty in a few years time. Isn’t that simple or do you think there is more to it than that? Obviously you need to have knowledge to find and purchase the deals correctly but isn’t the principle easy enough? Keep it simple!
This is not something everyone will do. Why not? Because the average person will always have a reason not to work hard to find the deals and take action to go out there and grab the opportunities that are there to be taken.
profit from property, Property Investment
May 10th, 2009 in Property Investment by Kez
If you have been dealing in property investment, or even starting out then you will know that having knowledge is power. But just having knowledge is not enough; the actual implementation of knowledge is what matters. You need to know as much as you can about your deals, especially in the property market when there are hundreds of pounds involved in each deal. You need to be sure of what property deal you are looking at and all the facts and figures to be able to make an informed decision to go ahead on an investment deal.
One way to ensure that you have as much knowledge as possible about the investment deals you do is to focus on buying property in your local area, or in an area that you know really well. If you deal in a wider geographical area then you will admit that it is impossible to fully know the investment potential of a property deal in every area. However, if you concentrate on a specific area, the chances of you having more knowledge and facts about the property are much greater.
Choosing to invest in a specific area allows you to become an expert about the values in that area and helps spotting property bargains much easier. Studying the local market trends and regularly conducting property due diligence on investment deals will eventually make you an expert in your area and becoming an expert will give you a big competitive advantage to ensure that you end up buying the best buy to let deals available. If you do regular studying and research about an area, you will eventually find that you will eventually get a good feel for the local market and ultimately help you make good informed decisions.
The key is to study and research in your chosen area to determine the regular trends and the sales values. Regular analysis will help you become an expert valuer in your local market and it will help you spot a bargain instantly and help you negotiate the best prices. You will develop an expertise of the local niche and being an expert of an area of even up to 200,000 people can help you pick up enough good deals to help you profit well and build a solid buy to let property portfolio.
Property Investment
May 8th, 2009 in Property management by Kez
With the recent declines in the property market, a large portion of speculating investors have turned into reluctant landlords. If this describes you then stick to the basics of property renting to ensure that you can ride out the storm.
When renting a property, the first and foremost task on your priority list should be screening the prospective tenants before you hand over the keys to your property. That means doing a background checks on the tenant, reviewing their credit report and checking previous references from their previous landlords.
When conducting the checks, make sure that you ask for a picture id such as a driver’s license or a passport to ensure that you are checking out the correct person.
If you think you are likely to get a good demand for your property then see if you can arrange an “open house” so that you can show the prospective tenants the property all at once. This will save you considerable amount of time which can be invaluable if you managing a number of properties in a portfolio.
Once you have completed the viewings and selected your tenant, make sure that you do not hand over the keys to the property until the deposit checks have cleared.
Being a landlord is not as easy as you may think, especially if you have a lot of properties. You will have problems and need to have money in place in case you need to spend money on potential problems. Renting property without the right checks or a contingency fund can lead to painful problems.
landlord, Property management
May 1st, 2009 in Property Investment by Kez
Knowing the kind of returns property investment can be tempting enough for anyone to put a significant amount of savings into the property market. This hasty approach can quickly cause the erosion of your hard earned money instead of compounding it if the investment is not made correctly.
Although the property market has the potential to give a good return on your investment, it can be risky if you do not understand the basics of this volatile market. So before you dip in your pocket, remember that the most important thing to succeed in property investment is to understand the value of the property being purchased. It takes a decent amount of well informed research and some experience to be skillful enough to associate a fair value to the property. Taking note of the following basic information will assist you in taking an informed decision.
The best way to arrive at the ballpark figure of the value of the property is to compare it with the recent and current sale price of similar properties in the area. The word which is used in the world of property for sale prices is ‘Comp’ (short for comparable). Once you zero in on the property that you want to buy, compare its price with comp of similar properties (both currently on sale and previously sold). If the listed price is near the comp then you can be practically sure that you are getting the right deal. But before you go celebrating, make sure that the property you are buying is similar in characteristics to that of the comparable properties. In other words the properties you compare against have similar internal characteristics such as the number of rooms and size, similar external characteristics such as garage, garden and parking and the actual condition of the property is similar too. For example, if the property being sold to you is at the higher price than the comparable property and has some extras like a swimming pool, a landscape or extra parking spaces/ garage then the asking may be reasonable.
If the listed price is a significant departure from the comp then you should brace yourself to do some micro comparison. Other factors can also influence the price difference. For example if you do not have the luxury of finding similar properties on the same road for comparison then you may have to look at the next closest road and those properties can quite well vary in price due to factors such as amenities and the local surroundings. You should look more closely at the amenities local to the subject property you are looking to purchase. Check if the property you are buying has extra amenities features and assess the cost of these extra amenities which are being provided to you. Pick up two properties from the recently sold and current on sale properties which are similar in all aspects and see if the price varies between them due to the local amenities to gauge the way the properties are priced.
You will also need to take account of current market trends and whether the property market trend is lending itself to lower o higher property prices compared to similar properties in the past. Market trend is a very important factor influencing property prices. The same property that was sold a year ago may well be priced higher if the property market has appreciated in value since then. Conversely the market may be in a correction phase and the same property could be worth less in the current market, so make sure you take the market trend into account.
The process of property valuation may sound simple in theory but to apply it you must have as much information as you can about the homes recently sold or listed for sale in the market. A serious property investor should continuously research the market for the trends in the price by visiting the properties, following property advertisements in news papers or online.
Once you have done enough research into the property market and once you learn how to associate a fair value with a property, you are ready to take a plunge into the world or property investment.
Property Investment, property value
April 27th, 2009 in Property by Kez
Welcome to the new property networking website. Find new members and share your property and business interests with others. You can also post blogs and will find useful content here related to the property and the business world.
property networking
