Posts Tagged ‘property investment’

2011, The Year For The Next Residential Property Investment Boom?

January 21st, 2011

While the current housing market is proving tough for homeowners at the moment, the Royal Institution of Chartered Surveyors (RICS) suggests that the continued fall of house prices, and availability of commercial mortgages is likely to encourage more people to invest in property. With predictions suggesting house prices will fall by as much as 2 per cent by the end of 2011, more are taking advantage of cheaper property and looking into entering the buy to let market.

At the end of the day, it pays to look at the long term in regards to investment in property. While housing prices are low now, they can only grow in the long term, which means that your property will gain positive equity.

The Buy to Let (BTL) market isn’t for everyone. You need to think about it carefully as a business proposition. There will always be a sizeable initial outlay (specialist BTL mortgages usually need a deposit of at least 25%, and other costs such as arrangement fees are normally higher too), and you need to be prepared for monthly outgoings too – not just mortgage payments, but letting agent fees, landlord insurance and so on.

For those who are in a financially sound situation though who feel they can meet the expenses and various requirements, property investment can prove to be extremely lucrative. The demand for homes to rent is at an all time high as lenders tighten their restrictions over mortgage applications. You certainly won’t be short of interested tenants!

If you are interested in dabbling in the Letting Market but are unsure whether or not it will be a long term benefit for your personal circumstance, then you are advised to weigh up the following specifics. First, determine your projected rental income, this, above all, will highlight if the investment will be worthwhile in the whole. Also, calculate how much you’d intend to charge in rent and compare this with current rental costs on the market. Finally, you must predict what your ongoing spending will consist of, for example maintenance, insurance etc.

As a basic calculation, you can work this out by subtracting your total annual costs (mortgage repayments, letting agent fees, landlord insurance costs and any maintenance or repair costs) from your total projected rental income for the year (remember to deduct around five per cent to account for periods that the property might be untenanted), then dividing by the total initial costs (the deposit, mortgage, surveyor and solicitors’ fees, and decoration or furnishing costs).

These calculations are important as they allow you to determine whether or not investing in property will be worthwhile. Additionally, organising your figures and paperwork will prove to your mortgage lender that you are serious about the decision to rent property, so they will be much more likely to lend to you. Also, as the calculations are all based on estimates, you are given a certain degree of flexibility with your figures, over compensating or under compensating to ensure that you will be able to cope in a fluctuating market.

The Buy to Let lending market is extremely specialised and therefore you are unlikely to find the best rates and deals on the high street, through either banks or building societies. Therefore, don’t be afraid to approach a mortgage broker, contrary to popular belief, they are there to help you!

Look to find a broker who is independent and then you are guaranteed impartial advice and the best value for money. Obtaining financial advice is also imperative if this is your first venture into Buy to Let and renting a second property. Entering the market is a long term commitment and is therefore a decision that should not be taken lightly.

Clearly, investing in property doesn’t come entirely free of risk, although there are hints that 2011 could be the year for property investment. Renting out property provides a regular second stream of income and as the economy slowly recovers, you are guaranteed property appreciation over time. So, is now the right time to invest? If you have the funds to support the investment, then why not?! What’s life without a little bit of risk?

Howard writes for JustCommercialMortgages.com the UK’s leading site for the latest commercial mortgage rates and information.

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Examining the Repossesses Property Market in the US

January 13th, 2011

The foreclosed property market is booming in the United States. It is never good to see a country suffering from home foreclosures but this does provide people with ideal investment opportunities in 2011. According to real estate websites such as Trulia, foreclosed property will reach record levels in 2010. There will be over 3 million homes that will be foreclosed across the US. This is an increase of over 200,000 from last year.

Whilst this presents a distressing position for many people it should be remembered that a large majority of people in the States will simply walk away from a property when in negative equity, that seems amazing to us based out here on the edge of Europe but it is true, yes many people do lose their job and their home and that is an unfortunate reality of life everywhere but there are also professional investors who got in at the wrong level, maybe got greedy with multiple units all geared up and you know the rest.

Our business is not interested in dealing in the misery of others, we specialise exclusively in purchasing foreclosed homes from financial institutions in Florida, and then only from investors who purchased at the peaks and now find that they can actually in many cases walk away from their property, hand back the keys and yet another unit makes its way to the foreclosed property for sale listings and into the statistics mentioned at the top of my piece.

Purchasing foreclosed homes can be fraught. Deal with the experts in Foreclosed property who deal with the experts, we continue to work closely with our seasoned team of professionals based in Florida, our stock is purchased direct from Financial Institutions many of whom are starved of capital and find themselves awash with property they just do not want.

Smart investors can see yields of up to 14% on the property. This is a strong return and is worth investigating further.

If you are interested in finding out more about foreclosed homes in Florida investment opportunities then talk to the expert at ForeclosedPropertyFlorida.co.uk. We have a wide range of bank foreclosed properties listings on our website.

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How To Find A Good Rental Property

September 1st, 2010

When investing your money and time in a rental property there are a few things that are important for you to consider. Before you make the plunge be sure you fully understand what your are getting into. Research your options and take your time.

You will want to look into quite a few things. The history of the property will help you know a lot about why tenants may have left or what made the property successful. Property management software can help you know how rent will be payed and maintenance requests will be fulfilled. Try to find out how much time you will have to spend managing this property.

Often times rental properties may be really cheap but in the long run end up costing you more time an money on the problems that surface. Time and money are precious as a property manager and those hidden problems are not worth either your money or time. Don’t fall victim to properties such as this.

The neighborhood where the property is located can give you some information. See if the neighborhood has a high crime rate that could keep potential tenants from choosing your property. Talk with the local neighbors and get a feel for the community to see what their thoughts are about the property.

If you are looking at multifamily housing, finding a good property management software will also do a lot to help you manage your property. Again, do research. Find out which property management system will work best for you and has the tools you specifically need to manage your property. Allowing tenants to pay rent and submit maintenance requests online will save you the time and hassle.

Talk with the current property owner and see if you could speak with a resident of the property. Discuss their living situation and and ask them if they are happy and if all of their needs are met. If their needs are not met then dig a bit to find the underlying problem and see what could be done to meet it.

Make sure that you do not rush into purchasing a rental property! Doing so could result in a lot of lost time and money. Property management is not something you can set up in a few days and let run, it is work and takes time.

You may find out that property management is not for you. If it is, make sure and do as much research as you can.

About the author: Henry Drake can help you find the perfect property management software. Landlord software will make managing your property simple.

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Get A Discount Of Up To 70 – 80% On Foreclosed Homes In Florida

July 4th, 2010

I ran into one of our first clients just last week, a proper gentleman brimming with common sense in keeping with his age and position, he brought up the property he purchased through us back in 2006 and we chatted generally about how fortunate he was to have no vacancy worth speaking of since he closed and how great a place Chicago was to visit. He was very generous about our U.S. management partners and was overall in quite good humour and enjoying our current stretch of fine weather. Our conversation was tapering to an end when he mentioned that he was on his way to look at a new car, his choice was between a BMW 5 series touring or a Mercedes E Class coupe, I know this screams mid life crisis but I kept those thoughts to myself.

Both vehicles were priced at about 32k, I enquired if either had en-suite facilities or would either generate cash each year, he was puzzled, like myself he realised that cars were the most obvious of depreciating assets, I went on…would either car come with all white goods, including a washer / dryer, when I asked him whether both cars came with air conditioning he said yes and promptly stopped me..

“In the name of God, what are you talking about” he said. The confusion was lifted when I explained to him that for the same investment price as the car he could purchase a foreclosed home in Florida. Gobsmacked would be how I would decribe the look he gave me. I then proceeded to inform him that we were in the business of selling foreclosed property in Florida. He knew our reputation and his interest was ignited.

It is possible to receive a discount of up to 70 – 80 % on a foreclosed home in Florida. We locate these homes in very respectable, sought after locations. These are mainly in Orlando. What’s more, we also source a qualified tenant for your home before you purchased the unit.

We specialise exclusively in United States property and have done so since 2006. Finally after much client demand we have now identified Foreclosed Home projects that have passed our internal due diligence processes and that we are satisfied to be associated with.

The penny had dropped a new car that progressively collapses in value as you drive away from the garage or an asset offering a cash return each year on each unit of about $4400 and a real upside in terms of capital appreciation.

I think he will still change his vehicle but the penny had dropped and after his garage visit he will have something else to talk to his wife about over Dinner, let’s say I am expecting a call requesting more information.

Looking to find the best deals on foreclosed homes, then visit www.foreclosedpropertyflorida.co.uk.

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Investment Rental Property

September 8th, 2009

In the midst of an economic downturn and with the chance of a recession looming in the nearby horizon people have started cutting expenses wherever they can.

Credit has diminished, loans are being recalled and properties left and right are being foreclosed on a every day. Even though there is always a need for good homes that are listed at a good value, the current financial climate means people are more likely to rent a home than they are to buy it. This is a perfect opportunity for prospective investors to look into investment rental property.

As with any property investment, rentals have to have a lot of research into the market and a considerable financial commitment. Furthermore, the investor needs to be completely aware of the advantages and disadvantages of the kind of investment rental property he is attempting to get. Single family houses, for example, generate a lot less money than apartment complexes but are much easier to get and cost less to keep up. Apartment complexes, on the other hand, create a lot more rent but require that much more attention and committal in order to maintain their value (via repairs|fixes, renovations or simple every day maintenance|upkeep) and have a largely higher upkeep.

A house property or a condominium on the other hand can make as much as normal housing or more so but have the trouble that the common property is co-owned and any problems the co-owners have with the tenant will at the end have to be decided by the investor, as the home is legally his.

Investment rental property can be as uncomplicated or as complicated, as easygoing or time consuming as the investor makes it. By carefully studying the local market, prices, normal fluctuations and being smart when mortgaging, an investor can make as much as he is able to commit to financially in this currently unstable economy.

Jason Myers is a professional writer and he writes mostly about anti wrinkle eye creams. He’s also an amateur wine enthusiast and has a website about wine aerators and other wine accessories.

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Knowing When You Have Made A Good Deal

August 17th, 2009
by Davin Greenway

Being aware of what to put your money into when handling real estate activities will set the stage for a good or poor deal. If a good deal is reached, it signifies that the seller, buyer, and realtor all go away with a feeling as though they have been victorious, or made a good barter. Here at Property Berkshire this is what we strive for.

When you want to make sure that you are getting a good deal, make sure that you know where your money is going. If everything is going to go well and if you are going to be investing some money into the endeavor, you will soon discover that the more you know, the better off you are going to be.

When you are thinking about putting together a good deal, you’ll find that the correct interest rate should always be figured. Remember that if you are seller, you will want to have made a profit or at least to have broken even.

How is the money going to work into the equation? Is a good bargain something that is possible. Remember that when you are working at making sure that everyone has a good exchange that you keep an eye out for hidden fees and other problems.

When you are ready to look into how you are going to get the primary loans, if that is the position that you are in, you’ll find that going to different lenders will help you get the results that you expect and are looking for.

What shape is the property in? Many people find that the property needs to be well maintained and well taken care of if it is going t shine. Keeping the property clean and replacing anything that has been soiled or broken over time will make it much more attractive. Good maintenance is important, so see what your options are going to be.

When you are selling a property, expect an inspector or a real estate manager to show up and to make sure that the property has been thoroughly taken care of. If you need to make repairs, make them promptly and think about them as adding to your investment.

When you are ready to sell your home, or if you are ready to take on a new home, remember that the best bargain is one that leaves everyone feeling like they won. There are good expenditures and bad ones and at the end of the day, playing everything above the board and being able to say that you have a good property for sale is essential. Know what you are getting into and what you have a right to demand when you want to get a property that suits you!

About the Author:
Davin Greenway is the creator of Berkshire Property, a property listing website for Berkshire. He also contributes regularly for the Property For Sale In the south of France guide.

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