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Buy Investment Property in UK

Mon, 06 Sep 2010 07:14:15 +0000

Taking advantage of a buyer’s market means that investors will be looking to the long term for significant returns on their property price. In November 2007, Hometrack reported an average year-on-year housing price growth of 4.4% and expected the market to slow further over the coming months.So where are the hot spots for those buying investment property today? The Royal Institute of Chartered Surveyors is forecasting that London, the South East, Scotland and Northern Ireland will see the most significant price increases over the next five years.Scotland is one of the most affordable places for buying investment property with prices almost one-third less than the national UK average. Scotland is also seeing higher-than-average growth due to economic prosperity from high oil prices.In the historic, university city of Aberdeen, the estate agent Gavin Bain & Co currently holds a range of properties from £68,500 to £450,000. There are numerous buy-to-let prospects for those buying investment property, including a 2-bedroomed apartment in a modern city-centre development in Candlemakers Lane for sale at £165,000. For the same price, Andersonbain & Co is marketing a well-presented 3-bedroom semi-detached family home in the Sheddocksley area. If you’re looking for something really special then take a look at Honeybank, a traditional 3/4-bedroomed granite cottage in Newmachar. Close to the Swailend golf course the owners of this property are looking for offers over £245,000.Northern Ireland’s property surge is the result of a period of investment and regeneration. Ireland’s property finder, PropertyNews.com, has over 800 properties to choose from and there’s something for all budgets. Among these are several 5-bedroom character properties in the university area of Belfast on the market for around £350,000 each. Close to amenities they offer great investment potential in a buoyant student rental market.Throughout the UK, investors wishing to maximise their short-term profit are continuing to follow the trend of buying investment property as a development project. In the current property market, houses that are in need of modernisation are being snapped up quicker than those that are in pristine condition. For a £10 to £20 monthly fee, Renovate Today will keep you up to date with lists of properties in need of renovation in your chosen region. If you want to find an auction agent in your area take at look at the Prime Location website, which lists agents throughout the UK in the Property Investment section.Another way to maximise profit when buying investment property is by choosing a new property off-plan. Developers will often offer discounts on the market price to those who commit to buying before completion. The Ellesmere Property Group is just one company that specialises in off-plan property. They are currently offering a 17% discount on apartments in the cutting-edge Ingenta development in the Ancoats area of Manchester. The Ancoats region is currently being revitalised with new bars, restaurants and fashionable retail outlets and is attracting much new investment. There are 30 properties within the development with gross prices starting at £181,260.Award-winning property portal New Homes Direct is a good place to look for anyone buying investment property off plan. Many of their properties are offered with discounts of 10 to 20%. They are currently marketing a large development of 109 apartments in Leeds with units available from £80,000 to £162,500 with an off-plan discount of 18%.With the UK property market cooling and expected to stabilise next year, now could be the time to take advantage of a buyer’s market. This summary shows you just a taste of what is out there for those interested in buying investment property right now.

How To Create A Profitable Real Estate Note E book

Sun, 05 Sep 2010 01:17:56 +0000

Bank loans are so expensive that home mortgages are beyond the reach of most home buyers. Real estate notes or owner financing is just what the slumped real estate market needs to jump start the economy back on it’s feet. My e book explains how in detail.
How To Create A Profitable Real Estate Note E book

Can property lease payments be added back to cash flow in a commercial mortgage?

Sat, 04 Sep 2010 13:17:47 +0000

If an established business exists on a leased property (and will be moving into the new property after closing), can the lease payments be added back to the cash flow when determining the approval amount for loan?

I will not renew my lease if I can find a nice piece of commercial property.
I dont understand why not. To me it is like telling a renter interested in purchasing a home that their qualifying amount is based on their income AFTER they pay their rent. It doesnt make sense. The only difference is that the business owner can take that expense off their taxes.

Investment Property: Building Better Returns

Wed, 01 Sep 2010 15:20:33 +0000

UK Commercial Property Market Has Become the Best Value for Investment in the World

Mon, 30 Aug 2010 06:20:05 +0000

According to the annual strategy review by global property fund manager La Salle Investment Management, the UK commercial properties market could be a great long-term investment. La Salle has reported that the UK commercial property market has fallen first and hardest therefore now making it one of the most attractive areas in terms of investment.

This is a great bit of news in an otherwise gloomy time for commercial property and should hopefully generate lots of interest amongst real estate investors over the next year. Due to the huge downturn UK commercial properties should offer some extremely appealing return on investments and provide investors with some great value deals in 2009 and 2010.

The commercial property market has been one of the credit crunch’s biggest victims. A previously booming industry has seen huge downturns and is still expected to fall further in value. Previous commercial buildings that once had leasing waiting lists are now standing empty with landlords having to offer all kinds of inducements and incentives in order to entice tenants in.

Dominant high street brands such as Focus and Land of Leather are some of the latest retailers that have had to seek concessions from their landlords as the impact of reduced consumer spending has taken its toll. Landlords and businesses have to remain ever reactive and innovative in order to stay afloat during these hard times. UK commercial property owners do appear to comprehend the downturn and are remaining vigilant and working out two-way deals between themselves and their tenants that are in all parties’ best interests. If you are currently looking for commercial property for lease or for sale within the UK there are some great bargains to be had.

Foreign investors have cottoned on to this and see the UK as an ideal area for long-term commercial property investment. A high percentage of office blocks, retail outlets and other commercial buildings are likely to come under foreign ownership over the next two years where investors will be taking full advantage of the current value declines within the industry. Previously iconic commercial buildings could be sold off at bargain prices to investors willing to wait for the market to right itself before they see returns on their investments.

Buying an Investment Property

Fri, 27 Aug 2010 23:15:57 +0000

If you are contemplating investing in property in Queensland but harboring doubts, it would be wise to do some research and take the time to talk to an investment property expert. You will soon come to the realization that a long-term investment plan in property can provide a source of income, an opportunity to build equity over time and security for your future. There are companies that offer advice and expert help in investment, guiding you through the entire process, enabling you to make well informed decisions. If you are considering investing in property in order to rent it out and earning money from it, you will need to do some specific research especially to determine the monthly rental price of the property. Take a few tours around the neighborhood yourself; go at different times and days of the week to get a good idea of the area. Sunday might be the complete opposite of a Tuesday night for example. You want to know and make sure if there is anything that may turn out to be a plus or a problem for the future tenants. Like schools, bars, crime, shops, parking space etc. The history of the property is crucial to know if the tenants used to rent for long periods because then you shouldn’t have any problems sub leasing the house either. Research the rental rates for equal properties in the neighborhood and see what they are asking. Check out the infrastructure as well, motorways, public transport etc. If the house is in need of renovation you should take these costs into consideration. The most difficult part of the process will be finding the right property to suit your requirements. This can take some time as it could be a while until a suitable property comes onto the market, and then there are all the processes involved in purchasing it. Every property you look at will be unique dependent on its location, the current state of the market and the local economy. Most people say that it’s all about location location location and with a Queensland investment property you can be sure it will be the perfect investment. This is where the experts in the field of investing in property come in. To do this all on your own it will be a little exhausting and there is a lot of hard work involved. Most of you have a busy life already and then to make extra time for this might hold you back to invest at all. Not only do they assist you with putting together a long-term property investment plan but they’ll also find you the perfect real-estate that has the possibility to create the capital growth you are looking for in the first place. Other issues like financing, conveyance, and insurance and property management are no rocket science for them either. With the knowledge and help of the expert there’s little left for you to do or stress about! Some property investment advisors obtain their market data from local government, regulatory and leading private industry bodies, but to ensure their advice is entirely accurate they also employ teams of professionals who research the location directly by liaising with contractors, local agents, developers and even local residents. Also taking into consideration factors such as the local environment, facilities and amenities, quality of the neighborhood, transport systems and local economy, they use their findings to locate properties with strong long-term investment potential for their customers. The types of people they have coming to these advisors for advice are seeking to improve their lifestyle by eliminating financial worries and gain security in the knowledge that they can better provide for future family responsibilities. For new investors, the notion of making their first residential property investment is extremely exhilarating, whilst others will feel apprehension or trepidation. All these feelings are typical, however your excitement could prevent you from making the best investment, and your fear prevent you from even getting started! It is not uncommon for ordinary investors to accrue two or even three properties over a number of years, the financial confidence and increased cash flow these can generate will improve your standard of living tenfold. Always remember to do a thorough research before you invest in anything!

Build a Fortune With Real Estate Foreclosures and Short Sales.

Wed, 25 Aug 2010 23:18:45 +0000

Real Estate Foreclosure Short Sale Course Reveals from beginning to end how to short sale a property. Often Advertised. Rarely Delivered.
Build a Fortune With Real Estate Foreclosures and Short Sales.

Investment Property: Taking Advantage of Rising Rents

Mon, 23 Aug 2010 07:15:10 +0000

Rentals have continued their upward climb down and are predicted to go even higher as certain factors that kept the rental market healthy continue to have an impact on the rental figures in the UK. According to figures from the Royal Institute of Chartered Surveyors, the demand for rental accommodations has continuously increased due to the stabilisation of property prices and the tightening of mortgage lending conditions. This bodes well for the property investor looking to add to his investment property portfolio.
Where to buy investment property
Buying a property despite the credit crunch may seem a disadvantageous move. However, according to investor 1st Asset, there are two markets that a property investor can look to. 1st Asset states that properties located in super-prime locations such as west London are worth considering. Areas that are set to receive major new investment boosts are likewise considered by the company as an excellent option. An example is east London which is being primed for the 2012 Olympics. For you to be able to take advantage of these areas, it’s best if you get in the market quickly before the spotlight is directed at these markets and before buyers start to move in and prompt the increase of property prices.
Advantages of buying today
If you’re looking to make a property purchase, today is a good time to go ahead with it. The reason? Stamp duty amongst many other things. Recently, the one per cent stamp duty threshold was increased from £125,000 to £175,000 for a period of one year. Because of this, many property buyers had the opportunity of paying lower stamp duty and significantly lowering transaction costs – which of course translated to considerable savings. Another good reason to buy today is the emergence of the buyer’s market and therefore, the abundance of affordable properties. The current property climate has led to a rise in the number of repossessed properties, which are often sold cheaply.
What investment property to consider
With the increase in rents, it becomes sensible to invest in a buy to let investment property. It’s true that the media is painting buy to let properties as investment vehicles to stay away from. However, the Council of Mortgage Lenders recently expressed its belief that the media representation of the fall of buy to let company Bradford & Bingley is erroneous. The media portrayal of the firm was thought to have caused a furore among many in the industry. CML released figures for the first half of 2008 that showed a lower proportion of buy to let mortgages in arrears of more than three months compared to residential mortgages. Apart from that, CML data indicated no difference in the rate of repossessions.
When buying an investment property for conversion into a buy to let, you should consider obtaining it at a price below its true market value to enable significant savings from the day of purchase. Acquiring a BMV property is possible by finding sellers motivated enough to agree to sell for lower than the market value of their properties – some define this as the price an estate agent could reasonably expect to achieve within three months of marketing the property. Once you have found such a property, you’ll be able to take advantage of 100% financing from several private property investors ready to finance your investment.
What are the returns from letting property?
According to the Association of Residential Letting Agents, gross returns vary between 7% and 10% and will be lower for pricey properties. ARLA adds that the average rental return in Britain today flits around the 10% mark with the capital appreciation expected to match, if not surpass, inflation for the immediate future. As a general rule, the gross rents should range between 130% and 150% of the monthly mortgage payments.
Investing in property today may be regarded by some as unfavourable. But if you do your homework, make the necessary preparations and invest for the long term, you can be on your way to a successful and thriving career in property.

Sourcing Commercial Property in London

Thu, 19 Aug 2010 16:12:33 +0000

Despite the recent economic downturn and the emergence of alternative market centres across the world, London is still one of the most important business centres on the global stage. Basing a business in London commands a certain amount of kudos and respect and consequently commercial property in London is often at a premium.
However this does not mean that a London address is out of the realms of possibility for any business, and using the services of commercial estate agents who are experts in their field is the best way to source commercial property in London. A good commercial property estate agent will have access to a wealth of knowledge and opportunities that should suit almost any business looking to move into their first commercial property. London is a dynamic and constantly evolving marketplace and its commercial property market is transient, particularly at the moment. This is good news for companies looking to move within the M25 boundary, as it has created a buyer’s market full of bargains and sellers more willing to negotiate terms.
Central London is extremely well served when it comes to transportation. Five airports serve the entire region, including London City Airport, located in the heart of East London’s Docklands area, which has been influential in opening up this relatively poor district to the business community. An extensive road and rail network criss-cross the Greater London area and the legendary Underground system means that getting around the capital is easy, cheap and quick. Commercial estate agents know the importance of a good transport infrastructure to the promotion of business, and will be able to recommend locations that will offer your business the greatest benefits. If your business requires large amounts of storage and has strong international ties, for example, then a commercial estate agent may recommend a location close to an airport or international rail terminal that will fulfil your business needs accordingly.
Commercial units and offices in the centre of London can in cases still command relatively high prices, but looking at locations that are slightly outside the City and West End may turn up more affordable commercial property options. London is far more than just the EC and W1 postcodes and many businesses are looking to the East End and south of the Thames as viable locations. These areas are just as well serviced with transport links as the pricey West End, but offer more choice for companies looking for cheaper commercial property options. Commercial estate agents specialising in these locations will know of hidden gems that could be exactly what your business needs to make that step into the thriving metropolis without going over budget.
In theory, finding commercial property in London should be no different to finding the same type of accommodation anywhere else. However, despite the economic downturn, competition is still relatively fierce and will become ever more so as the focus on London increases as we move towards the 2012 Olympics. By utilising the services of an experienced commercial estate agent, businesses can ensure that finding the ideal location is a smooth process and that they get the most suitable premises available at an affordable price. Despite the undoubted economic downturn worldwide, many businesses are still booming in London, and there are plenty of opportunities for businesses to join in by relocating to one of the most exciting cities in the world.

Investment Property Portfolio’s – 6 Key Strategies for a Smart Loan

Wed, 18 Aug 2010 15:13:10 +0000

A booming market for buy-to-let and investment property portfolios has created the need for new types of mortgages and investment property loan facilities. Securing finance for buy to let and holiday rental properties classed as an “investment property loan”, has never been easier and many of the main lenders have transformed their lending criteria to support property entrepreneurs.
Historically lenders were reluctant to support property investors unless they had serious investment equity ranging from 25-40% of a given properties value. The latest range of financial offerings, are now more in-line with existing household mortgages where buy to let loans are available for up to 90% of the value of the property. The criteria for lending, depends very much on the anticipated yields for the property and to some degree on solid business plans and logic that reflect capital growth in the investment. With a myriad of product offerings available it maybe difficult for a prospective property investor to determine what constitutes a good offer from a financial institution.
The best investment property lenders will look and consider 6 key elements in their risk assessment. So it is very important that you as the proposer understand clearly and prepare in advance a plan that accurately presents your facts in order to pitch smartly to get the finance you need.
6 key Investment Property Loan points
Equity available Know what you have in terms of tangible equity in your home, other investments in assets, and liquidity. Use this valuable information to form the basis of calculating your security to finance the investment plan. This ensures to the lender that you have a sound knowledge of your strategy in investing and you have a good consideration in managing your risk.
Interest Rate Percentages It is generally anticipated that the higher the investment deposit the better the mortgage rate. Buy-to-let mortgages rarely attract the discounts that home mortgages attain. However interest rate benefits are gained if you are prepared to put up front 20 25% of the loan value. Try and avoid low deposits as the rates for larger deposits will be more attractive both in the short-term overhead reduction and long-term gain.
Current debts Ideally all outstanding mortgage and loan liabilities or commitments should be understood and declared when requesting the finance. This will determine the maximum loan available to you for your investment project. Ideally this should be considered in advance of any property speculation or viewing of proposed properties. You may also find through this process that it presents an excellent opportunity to consolidate current finance and reduce overheads through the consolidation process.
Current Income or Salary Lenders will often consider salary and income within the mix of calculating repayments. Multiples of salary are often considered along with the yields or estimated monthly rental incomes from the property portfolio. Important to the property investment will be the current state of the property and whether the property requires investment in refurbishment or modification to enable tenants or renters to occupy.
Tax liability Reduction You can often save money by offsetting your mortgage payments, maintenance costs and agents fees against rental income. This will ultimately reduce tax liabilities against any profits made in rental and capital growth.
Insure properly Accidental damage caused by renters or tenants does occur as does general wear and tear. So, make sure that you invest in adequate insurance and don’t let these costly overheads affect your profits. There are specialized landlord and investment property insurers who will cover your property for these eventualities and once again these fees should be tax-deductable.
Summary:
Investing in a property portfolio can be a lucrative venture provided that you are prepared and you understand and manage your risks. Lenders will look for good credible knowledge of the investment and will make assessments based on the six points raised earlier. An ill-conceived plan and approach will unlikely attract the finance desired from leading financial institutions. Alternative sources of finance may be available to you, although you should expect to pay significantly higher costs in terms of interest payments set-up fees and management costs. If the numbers don’t add up in the plan the leading lenders will not support your venture. If this is the case then veer towards prudence and carefully rethink the 6 key steps to a smart loan.