Archive for the ‘Property Investing’ Category

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Top Buy to let Investing Tips

Tuesday, December 1st, 2009

If you are below market value property investor sourcing property which fits all of your requirements is tough. I’ve put together a few tips on how to find the best buy to let properties.

Find an up and coming area. In this current economic climate this is not easy. Even so the old rules still hold true. Good transport links, schools and amenities are all good indicators. Also look out for local investment and rejuvenation.

Do your research. There are lots of resources online. You can use sites like Upmystreet and NetHousePrices to research all kinds of things from recent property sale prices to crime rates and average house prices for certain sized properties.

Make sure the figures stack up. Ideally you should have at least 25% deposit for the purchase and the monthly rental income should exceed 125% of your mortgage repayments. Most importantly if the property is empty for a couple of months how will this affect your ability to pay the mortgage?

Think about the type of tenant you are going for and make sure the property you are buying matches their requirements. For example if you are renting to a family make sure the house has a decent size kitchen and bathroom as well some outdoor space for the kids. Ensuring your property is appropriate to the needs of your target tenant will make it a lot easier to rent out.

BMV property investing is about sourcing the best property. Investing in the current property market is all about the long term, gone are the days when you could flip a property and make a killing. Buy a property with good and steady rental returns, which you can hold on to a good few years.

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Buy to Let Investing

Monday, November 30th, 2009

As we all know getting a mortgage is difficult unless you have a large deposit. If you are a seasoned below market value property investor you’ll know that if you want to invest in property at the moment your motive should be long term rental returns due to falling prices as opposed to capital growth.

The golden rules of buy to let investing are simple providing you can find the right property. You should try and aim for at least 75% loan to value with your monthly rental return exceeding 125% of your mortgage re-payments. This is why it is so important that you do the math and find a specialist company, which can find BMV properties. If you can buy a cheap property with good rental income, then you can potentially decrease your loan to value rate. This will hopefully make the investment more affordable, providing it’s the right property for you.

When we send you a property we will typically tell you how much the property costs, rental income and provide pictures. This means you can immediately determine if it is a viable deal.

Buy to let investing is a long term plan and finding a good BMV property specialist you can work with closely is crucial if you are going to be successful.

Typically the Christmas period is low in the property market, however there are still lots of properties on the market. If you want to hear more about our below market value property deals you can sign up on our homepage.

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Did the Stamp Duty Holiday Work?

Tuesday, November 17th, 2009

The below market value property sector has been enjoying the stamp duty holiday, which was introduced by Gordon Brown back in 2008 to stimulate house sales during the recession. The incentive applied to any house purchase under £175,000 and is more geared towards properties in north than in the south.

However, now the holiday is over the 1% tax will be levied on any property over £125,000. For below market value investors this means more investment will be required and maybe a little less spent on renovation.

But how much impact will the re-introduction of the tax have on the UK property market? It will impact certain regions more than others. In London the average house price is well above £200,000 and barely anyone would have been able to take advantage of the holiday, let alone BMV property investors.

In the North of England the average house price is only £116,000, so it could be said that many more people will be affected than in the south. However, if you look in areas such as Bradford and Newcastle you will see lots of flats and houses below the £100,000 mark.

The RICS is asking for stamp duty to be restructured so the tax is not levied on any purchase below £150,000. This will certainly help first time buyers in the north more than in London.

For information on sourcing property in the UK please contact Property Banker

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Seasonal Impact on Property Investment

Monday, November 16th, 2009

The below market value property sector is seasonal as are many other industries. This is especially evident in the lead up to Christmas as the property market slows down. It was reported last week that asking prices fell by 1.6% between October and November. This is the first fall in 3 months, which according to RightMove means the average house price in the UK is £226,000.

So what does this mean for the BMV property market? Well, it probably means less demand for property and further price drops until next year. Also because the festive period is the most expensive time of year for many homes, this means additional financial stress in a time when every penny counts. Maybe January and February 2010, will see a sudden influx of repossessions on the market. Recently the CML re-adjusted its prediction for the volume of repossessions down from 75,000 to 48,000.

In contrast there are more properties on the market this year than for the same period last year, and in most regions of the UK asking prices are higher. These are both positives for the property market, but it seems recovery will be slow for some time to come.

The property market mirrors consensus in the general economy, a long slow recovery in the property market probably means the same for the rest of the economy. It’s going to take time but there are still investment opportunities out there, if you have the money to invest. If you are interested in sourcing property, you can sign up on our home page to receive a list of our top investment properties.

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Property investing in the UK

Monday, October 5th, 2009

One of the most lucrative jobs in the UK is property investment and if you know how to find below market value properties then you are on a sure fire way to generate a tidy income; even in a slow market. Below market value property is property in the UK that is for sale at less than the building is actually worth and it is one of the few things in life that doesn’t follow the adage of ‘if it is too good to be true then it probably is’ as below market value is true and it is not a scam!

BMV property, as it is more commonly called, are often on sale from companies who have repossessed a house and want to get a quick sale but properties also come in the form of new developments that are looking to sell plots quickly to get the ball rolling and simply home owners who need a quick house move. The term below market value is self explanatory and if you want to buy cheap property in cities such as Newcastle, Manchester, London and Liverpool you will need to source out property deals of this type.

Cheap properties for sale are a major commodity for property investors and if they carry the BMV property price tag then any investor should check out that it is a legitimate tag before jumping straight in. This is fairly simple to do by viewing the property, checking out the area, learning who you are buying from i.e. a company or individual and gaging the average prices that houses in the area normally go for.

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