Posts Tagged ‘Properties’
Realestate: Types of Investment Properties
March 16th, 2011Investment property for sale – Purchase of investment properties Florida and Where It’s Hot
January 24th, 2011Reasons to Invest In Florida Investment Properties
January 10th, 2011Invest properties in Sydney
January 5th, 2011Commercial Properties in Delhi ? Commercial Properties, Real Estate Developers Gurgaon
November 12th, 2010Buy Investment Properties in UK
October 4th, 2010As the nation’s property market has cooled, Hometrack has reported the return of a buyers’ market, with sales currently being made at 94.3% of the asking price. Waiting for a buyers market is a good way to make your money stretch further but an increasingly popular way of saving money on investment properties is by buying at auction.
According to the Sunday Times, “90% of cheap property is sold at auctions” and at every auction are investors ready to modernise in the hope of a quick profit. Due to the popularity of purchasing investment properties at auction there are now range of companies that keep up to date with the latest auctions and who will provide you with listings for a small subscription fee. One of these services is run by IPDS whose website, auctionpropertyforsale.co.uk, also contains useful information about the whole auction process. If you are keen to buy at auction you will find other agents and listings sites through the website, LandlordZone.co.uk.
Another way to buy investment properties with savings on the purchase price is to buy off plan. Many developers throughout the UK will offer significant discounts to those who agree to purchase before the build is complete. At the moment many discounts can be found on investment properties in Manchester, which has been undergoing a period of regeneration. On the website BuyProperty4Less.com you’ll find several examples, including The Cube and The Mews developments both due for completion in autumn 2008. These developments contain investment properties from £116,450 to £152,150, with a 15% discount for purchasers who will buy off plan. Also in Manchester, the Ellesmere Property Group is offering 17% discounts on apartments in the Ingenta development where there are 30 properties for sale with gross prices starting at £181,260.
The website off-plan.co.uk is currently marketing a range of investment properties with off-plan discounts of 15%. These include Victoria Court in Wigan, a development of ten luxury two-bedroom apartments priced at £125,000 before discount. Three luxury apartments in West Cliff Apartments in Preston city centre at £210,000 before discount. And a choice of 13 one or two-bedroom flats in Worsley, Manchester from £135,000 before discount. This website is also offering the opportunity to buy a piece of television history! Brookside Close is now up for sale in West Derby, Liverpool (but there are no discounts on those properties).
To make your investment properties a success, buy in an up-and-coming area where property prices are often lower and are forecast to rise more than the national average. At the moment, property forecasters are focusing on Scotland where prices are almost one-third less than the national average. Scotland is currently enjoying economic prosperity due to the oil industry and is attracting much investment.
In Aberdeen, a good buy-to-let prospect with international transport links and a popular university, the agent Gavin Bain & Co holds a wide range of properties ranging in price from £68,500 to £450,000. In Dundee, Your Move is currently marketing a three-bedroom flat in a converted mill building for £137,950 while the company Construction and Property Marketing currently holds brand-new apartments at Discovery Wharf from £161,000.
Topping many current lists as being the area most likely to experience the greatest price increases over the coming year, Scotland is looking like a good place to invest. If you are buying to let, the university regions of Aberdeen, Dundee, Edinburgh and Stirling have obvious attraction. Whether you are looking for investment properties to renovate or buy into a brand-new development there is much to be found.
Use an Investment Property Calculator to Evaluate Properties
September 10th, 2010If you are getting serious about rental property investment, you will need to be able to determine if a property is likely or not to be profitable for you. The last thing you want to do is invest in a piece of property and find out that you are loosing money each month because your expenses on the property are more than your income from renting it! One of the best ways you can begin to evaluate your potential investment property is through the use of an investment property calculator. You can easily find investment calculators of all kinds on the Internet.
An investment calculator can assist you by showing you many of the probable outcomes you can expect of your investment. Investment property calculators use very complex mathematical equations to give you fair financial analysis of your potential investments. They look at all of your routine mortgage and upkeep costs, and they also can give you an idea of your income and tax considerations for the property, as well.
By simply looking on the Internet, with a good search engine such as Google, you can very effortlessly find a multitude of free investment property calculators which you can easily use to evaluate rental property. Into the property investment calculator, you will input all of your monthly rental income, the monthly loan repayment costs associated with any financing you have on the property, and the operating expenses which are necessary to maintain the property in question each month.
From all of the data you have entered the calculator will then give you rough estimates of your monthly cash flow you can expect from the investment, your annual building tax deduction which you can legally take, and any changes which might occur in the amount of taxes you will be paying on the property.
Mortgage investment calculators are complex enough to take both positive and negative values into consideration such as income, taxes, and payments. The calculator is a great way to determine if your potential investment property will earn you money, or conversely cost you money. It can also be helpful in determining the rent which you will want to charge your tenants for rental of the property.
Most mortgage calculators do have some limitations which you need to be aware of, however. Most of them assume that your expenses are the same each month over any given year. While it’s a nice basis, we all know that you can have a very costly repair and your numbers will no longer be anywhere near close to accurate. But, in this scenario you can run the calculator again and re-evaluate the numbers it gives you.
Many mortgage calculators also do not take into consideration many of the important tax issues you will be faced with. They do not see any rebates you might receive, or any tax deductions which you may be eligible to claim which would reduce your overall tax obligation
While investment property calculators can be very valuable tools for you to use, you will want to understand that they do have some limitations and as always you will want to consult with professional tax accountants when necessary.
