By Tony Hodgison
When the recession became a real problem to the economy, the real estate market was the hardest hit in terms of investment properties. The value of homes and other property types plummeted quickly and drastically. Homes that were valued in the millions of dollars were now sitting at an all time low of barely six figures. Now that the recession has lifted somewhat, what does that mean for investing in real property?
The current market, while still volatile, is starting to recover. However, because it is still volatile and any investment can take a turn for the worse, learning the best techniques for the specific market you are hoping to be investing in is necessary. Some basic knowledge is needed to invest wisely because doing so can net some large profit margin success stories; however, doing so the wrong way or with too much risk involved can leave an investor with nothing.
Understanding the local trends is the first step to safe real estate investing. Knowing what the target area is doing and how sales are trending is essential, as well as knowing what other investors are getting from the same market. What has the average investment in the local property been going for? How long are the properties sitting on the market? How many have gone to auction?
While these are just basic questions, the answers to them can help determine the outcome and garner a successful investment. The answers are called market indicators and they are used to help the investor make a proper decision about investing in a property or not.
Another thing to consider when investing in real estate is the amount of inventory involved and the trends involved. Low inventory means that a higher than usual demand for real property is coming in the future with each new listing. This could lead to some quick contracts at high prices.
On the other hand, high inventory markets will more than likely take longer to contract out a property and at a much lower selling price. Additionally, inventory can change with the seasons, such as higher inventory in the winter and lower inventory in the summer. This is why in the Hamptons, NY, summer homes typically rent for much more than any other season or area.
All investing is risky, which is why when an investor chooses real property, he should have at least two backup plans in case his first choice does not work. Not having a backup plan could prove to become quite costly, especially for those house flippers who only receive a 10 cent on the dollar profit. Real estate investing is clearly a volatile market; however, investing in the right way can become quite profitable.
Are you interested in real estate investing? If so, be sure to visit my site to learn more about choosing the right investment property.
Article Source: http://EzineArticles.com/?expert=Tony_Hodgison
http://EzineArticles.com/?Real-Estate-Investing---What-You-Should-Know-to-Reduce-Your-Risk&id=4721117
Saturday, August 28, 2010
Thursday, August 26, 2010
When Interest Rates Rise, is There Any Protection For a Buy to Let Landlord?
By Amanda Parkin
As a buy to let landlord in the UK you may have mortgages on some or all of your properties.
It's not uncommon for property landlords to opt for buy to let interest only mortgages to maximize their tax position and given rental income tends to be a regular amount, buy to let fixed rate mortgages are also popular.
Historically a buy to let landlord would probably have remortgaged at the end of a buy to let fixed mortgage onto another similar deal.
Many buy to let mortgage holders have indeed reached the end of their preferential interest rate deal recently but have found that in the current financial climate re-mortgaging to a new buy to let fixed deal is not always possible.
Property landlords are no doubt keeping an eye on base rate predictions and with limited re-mortgage choices many are concerned as to what the future has in store.
Going back only a couple of years the buy to let LTV was more generous than today with buy to let landlords able to borrow up to 85% of the value of their rental property whereas the maximum buy to let LTV is now only 75%.
Whilst many property landlords enjoy the security a buy to let fixed rate mortgage brings, many of them are no doubt currently enjoying lower monthly mortgage payments especially if their mortgage has reverted to somewhere in the region of 2% above Bank of England base rate.
If this is you, what should you do next?
The first step would be to talk to an experienced financial mortgage advisor to review your options. For mortgage brokers to help it's advisable to have a clear picture of your portfolio in terms of how much rental income each property generates, the outstanding mortgage balance on each property and an up to date idea of the current value of each property.
This information will allow your mortgage broker to assess your options with you. It may be that remortgaging onto a new buy to let fixed rate mortgage is possible and the decision then is just whether you want to take up this option or continue to take advantage of the current low interest rate.
The question is, how much would interest rates have to rise by before it became impossible for you to maintain your mortgage payments?
The interest rate on buy to let fixed rate mortgages is currently around 5% with establishment costs of anything between 2% and 3.5% so it's not a cheap solution, but it will give you piece of mind that when interest rates rise, you are protected at least during your fixed rate period.
It may be that a review with your mortgage broker to highlight your options shows that a re-mortgage is not an option.
If your buy to let LTV is greater than 75% you will be very unlikely to find a lender to offer a mortgage.
If this is the case but you are still worried about the effects of an interest rate rise, there is another option.
There is an insurance policy available which can protect mortgage payments from rising interest rates without the need to re-mortgage.
If the Bank of England base rate rises, causing mortgage payments to increase, this insurance policy will pay out to cover some of the increase for up to two years.
This has been a very welcomed option for many buy to let landlords offering stability where previously a high degree of uncertainty was forecast.
This insurance policy will effectively cap your existing mortgage interest rate for a period of two years so you will know, irrespective of what the base rate does, what your worse case payments could be.
For full details about this rate guarding policy or to review your existing buy to let mortgage arrangements contact one of the advisors at equate free on 0800 038 0098 or visit http://www.equatemortgages.co.uk/.
Equates advisors are very experienced in the buy to let mortgage sector and are happy to talk to any property landlords irrespective of the portfolio size.
Review your circumstances now and regain control of what the future has in store.
Article Source: http://EzineArticles.com/?expert=Amanda_Parkin
http://EzineArticles.com/?When-Interest-Rates-Rise,-is-There-Any-Protection-For-a-Buy-to-Let-Landlord?&id=4000505
As a buy to let landlord in the UK you may have mortgages on some or all of your properties.
It's not uncommon for property landlords to opt for buy to let interest only mortgages to maximize their tax position and given rental income tends to be a regular amount, buy to let fixed rate mortgages are also popular.
Historically a buy to let landlord would probably have remortgaged at the end of a buy to let fixed mortgage onto another similar deal.
Many buy to let mortgage holders have indeed reached the end of their preferential interest rate deal recently but have found that in the current financial climate re-mortgaging to a new buy to let fixed deal is not always possible.
Property landlords are no doubt keeping an eye on base rate predictions and with limited re-mortgage choices many are concerned as to what the future has in store.
Going back only a couple of years the buy to let LTV was more generous than today with buy to let landlords able to borrow up to 85% of the value of their rental property whereas the maximum buy to let LTV is now only 75%.
Whilst many property landlords enjoy the security a buy to let fixed rate mortgage brings, many of them are no doubt currently enjoying lower monthly mortgage payments especially if their mortgage has reverted to somewhere in the region of 2% above Bank of England base rate.
If this is you, what should you do next?
The first step would be to talk to an experienced financial mortgage advisor to review your options. For mortgage brokers to help it's advisable to have a clear picture of your portfolio in terms of how much rental income each property generates, the outstanding mortgage balance on each property and an up to date idea of the current value of each property.
This information will allow your mortgage broker to assess your options with you. It may be that remortgaging onto a new buy to let fixed rate mortgage is possible and the decision then is just whether you want to take up this option or continue to take advantage of the current low interest rate.
The question is, how much would interest rates have to rise by before it became impossible for you to maintain your mortgage payments?
The interest rate on buy to let fixed rate mortgages is currently around 5% with establishment costs of anything between 2% and 3.5% so it's not a cheap solution, but it will give you piece of mind that when interest rates rise, you are protected at least during your fixed rate period.
It may be that a review with your mortgage broker to highlight your options shows that a re-mortgage is not an option.
If your buy to let LTV is greater than 75% you will be very unlikely to find a lender to offer a mortgage.
If this is the case but you are still worried about the effects of an interest rate rise, there is another option.
There is an insurance policy available which can protect mortgage payments from rising interest rates without the need to re-mortgage.
If the Bank of England base rate rises, causing mortgage payments to increase, this insurance policy will pay out to cover some of the increase for up to two years.
This has been a very welcomed option for many buy to let landlords offering stability where previously a high degree of uncertainty was forecast.
This insurance policy will effectively cap your existing mortgage interest rate for a period of two years so you will know, irrespective of what the base rate does, what your worse case payments could be.
For full details about this rate guarding policy or to review your existing buy to let mortgage arrangements contact one of the advisors at equate free on 0800 038 0098 or visit http://www.equatemortgages.co.uk/.
Equates advisors are very experienced in the buy to let mortgage sector and are happy to talk to any property landlords irrespective of the portfolio size.
Review your circumstances now and regain control of what the future has in store.
Article Source: http://EzineArticles.com/?expert=Amanda_Parkin
http://EzineArticles.com/?When-Interest-Rates-Rise,-is-There-Any-Protection-For-a-Buy-to-Let-Landlord?&id=4000505
Wednesday, August 25, 2010
Buy to Let Landlord Insurance and Standard Home Cover
By Richard A Burgess
If you purchased your let property as a buy to let, you may see it purely as a business investment. However, if you have rented out a house you used to live in, it may not be immediately apparent that you need specific buy to let landlord insurance.
However, if you let your property and subsequently have to claim on your insurance policy, you may find that the insurer may refuse to pay out if you have not notified them of the change in the nature of the occupation.
How does standard home cover differ from landlord's insurance?
Buy to let landlord's insurance may be different from standard home cover because the risk profile of a let property may be deemed to be different.
What happens if the property is empty?
If the property falls empty, whether you are a landlord or an owner-occupier, you may need to inform your insurers if it is vacant for 30 days or more. This is because the nature of the property changes again in the insurer's eyes, because it becomes an unoccupied property which then needs unoccupied property insurance.
Vacant property may be more at risk from vandalism, and may also suffer more than occupied property from damage caused by fire or flood. The sooner fire or flood damage is repaired the better, but the trouble with a vacant property is that by definition there is no one on site to deal with these problems or call for some help.
What else do you have to consider?
Whilst buy to let landlord insurance may be different in some ways to standard home buildings and contents cover, there are some similarities. For example, you may wish to consider:
Article Source: http://EzineArticles.com/?expert=Richard_A_Burgess
http://EzineArticles.com/?Buy-to-Let-Landlord-Insurance-and-Standard-Home-Cover&id=4769196
If you purchased your let property as a buy to let, you may see it purely as a business investment. However, if you have rented out a house you used to live in, it may not be immediately apparent that you need specific buy to let landlord insurance.
However, if you let your property and subsequently have to claim on your insurance policy, you may find that the insurer may refuse to pay out if you have not notified them of the change in the nature of the occupation.
How does standard home cover differ from landlord's insurance?
Buy to let landlord's insurance may be different from standard home cover because the risk profile of a let property may be deemed to be different.
What happens if the property is empty?
If the property falls empty, whether you are a landlord or an owner-occupier, you may need to inform your insurers if it is vacant for 30 days or more. This is because the nature of the property changes again in the insurer's eyes, because it becomes an unoccupied property which then needs unoccupied property insurance.
Vacant property may be more at risk from vandalism, and may also suffer more than occupied property from damage caused by fire or flood. The sooner fire or flood damage is repaired the better, but the trouble with a vacant property is that by definition there is no one on site to deal with these problems or call for some help.
What else do you have to consider?
Whilst buy to let landlord insurance may be different in some ways to standard home buildings and contents cover, there are some similarities. For example, you may wish to consider:
- what terms and conditions there are. Some insurers may insist that property owners must fit certain door and window locks to show that they have taken steps to prevent break in;
- what exclusions and limitations there are. They may be particularly pertinent if contents are included, as some insurers may have limits on the amounts that can be claimed for single items; and
- what the claims procedure is. Whilst the best case scenario is that you never have to make a claim on your buy to let landlord insurance, it may be a good idea to keep the documents to hand just in case!
Article Source: http://EzineArticles.com/?expert=Richard_A_Burgess
http://EzineArticles.com/?Buy-to-Let-Landlord-Insurance-and-Standard-Home-Cover&id=4769196
Saturday, August 21, 2010
Top 5 Ways to Learn Real Estate Investing In an Easy Way
By Rakesh Sharma Jack
There are many ways to learn the real estate market and how to begin investing, but you should start with just a few of them. Say, begin with 5 and then master them, once you have learned the first 5 steps, you may begin to further your education and learn all of the steps. Always start out with the basics and advance your knowledge slowly, but thoroughly.
First of all... start educating yourself by way of reading, you can utilize your local library, the internet and check for any free or low cost seminars in your area. Before getting started, you will want to think about what it is you would like to achieve from your new venture and then list everything down. Think about what you already know about investing in real estate and start from there. Usually we know more than we think about a topic and that makes it easier to take the first step. Always be open to advice from friends, acquaintances and even experts you may come in contact with.
This would also be the time to consider any partners that maybe interested in beginning a new endeavor with you. It is always good to have hand in hand support; it makes any business decision a lot more comfortable to deal with. In addition, having someone to learn with is always easier, especially when you or your partners have the same goals in mind. The first steps you may want to begin with are listed as follows:
1. Begin by finding a Tail seminar: This is where an expert begins to gather updated or even historical information and methods on the real estate market. The usually gather this information from other experts, either new in the market or seasoned. Once they have the experts of interest, they set up seminars, to allow new up and incoming agents to listen in. Even if you are not an agent, you can attend the seminars and begin your education.
2. Find an expert for advising: Try to find an expert who is willing to be your mentor. With a mentor, you will build up the confidence and education that is needed to begin your new trade. Remember that an expert may have a lot of knowledge, but they too began at the bottom and they will usually train you based on that.
3. Follow a well-known system: There are many systems out there for real estate investing and some maybe very helpful in getting you started. I am not saying to go spend a lot of money on some real estate kit for beginners, but at least check out what the systems have to offer and if it would be easier for you to purchase a kit, then do so.
4. Take advantage of the current economy: Normally this would not be listed as one of the top ways to learn real estate investing, but due to these economical times; it has become one of the main ways to invest. Research the foreclosure market; you will be amazed how many properties have been foreclosed on and repoed. These properties are usually placed back on the market at amazingly low rates and can even be obtained through auctioning.
5. Understand the market through locality: No what areas are hot and which areas are not. This means property value is not always based on the structure itself, but also on the area; which the structure is located. If the structure in near an ocean or a lake, you will have higher property value. Most people love beautiful scenery and if a property provides that, most people will find some way to afford it. You will even have people that purchase properties based on schools in the area or even entertainment.
Always remember there are always different ways to begin investing, but you have to start small and be smart about what you are learning and how to apply what you have learned.
Rakesh Sharma Jack is a freelance copywriter, article ghost writer, SEO writer and eBook expert based in India with more than 10 years of experience. He has written dozens of eBooks, hundreds of research reports and thousands of articles on various topics. To know more about him and his services, please visit: http://aurumwriters.com/.
Article Source: http://EzineArticles.com/?expert=Rakesh_Sharma_Jack
http://EzineArticles.com/?Top-5-Ways-to-Learn-Real-Estate-Investing-In-an-Easy-Way&id=4816464
There are many ways to learn the real estate market and how to begin investing, but you should start with just a few of them. Say, begin with 5 and then master them, once you have learned the first 5 steps, you may begin to further your education and learn all of the steps. Always start out with the basics and advance your knowledge slowly, but thoroughly.
First of all... start educating yourself by way of reading, you can utilize your local library, the internet and check for any free or low cost seminars in your area. Before getting started, you will want to think about what it is you would like to achieve from your new venture and then list everything down. Think about what you already know about investing in real estate and start from there. Usually we know more than we think about a topic and that makes it easier to take the first step. Always be open to advice from friends, acquaintances and even experts you may come in contact with.
This would also be the time to consider any partners that maybe interested in beginning a new endeavor with you. It is always good to have hand in hand support; it makes any business decision a lot more comfortable to deal with. In addition, having someone to learn with is always easier, especially when you or your partners have the same goals in mind. The first steps you may want to begin with are listed as follows:
1. Begin by finding a Tail seminar: This is where an expert begins to gather updated or even historical information and methods on the real estate market. The usually gather this information from other experts, either new in the market or seasoned. Once they have the experts of interest, they set up seminars, to allow new up and incoming agents to listen in. Even if you are not an agent, you can attend the seminars and begin your education.
2. Find an expert for advising: Try to find an expert who is willing to be your mentor. With a mentor, you will build up the confidence and education that is needed to begin your new trade. Remember that an expert may have a lot of knowledge, but they too began at the bottom and they will usually train you based on that.
3. Follow a well-known system: There are many systems out there for real estate investing and some maybe very helpful in getting you started. I am not saying to go spend a lot of money on some real estate kit for beginners, but at least check out what the systems have to offer and if it would be easier for you to purchase a kit, then do so.
4. Take advantage of the current economy: Normally this would not be listed as one of the top ways to learn real estate investing, but due to these economical times; it has become one of the main ways to invest. Research the foreclosure market; you will be amazed how many properties have been foreclosed on and repoed. These properties are usually placed back on the market at amazingly low rates and can even be obtained through auctioning.
5. Understand the market through locality: No what areas are hot and which areas are not. This means property value is not always based on the structure itself, but also on the area; which the structure is located. If the structure in near an ocean or a lake, you will have higher property value. Most people love beautiful scenery and if a property provides that, most people will find some way to afford it. You will even have people that purchase properties based on schools in the area or even entertainment.
Always remember there are always different ways to begin investing, but you have to start small and be smart about what you are learning and how to apply what you have learned.
Rakesh Sharma Jack is a freelance copywriter, article ghost writer, SEO writer and eBook expert based in India with more than 10 years of experience. He has written dozens of eBooks, hundreds of research reports and thousands of articles on various topics. To know more about him and his services, please visit: http://aurumwriters.com/.
Article Source: http://EzineArticles.com/?expert=Rakesh_Sharma_Jack
http://EzineArticles.com/?Top-5-Ways-to-Learn-Real-Estate-Investing-In-an-Easy-Way&id=4816464
Friday, August 20, 2010
Reducing the Risks of Buy to Let
By John Keynes
Investors in residential property, known in the UK as "buy to let", generally put their money in this asset class because they view it as lower risk than buying shares on the stock market. Yet without proper landlords insurance and the right buy to let mortgage, the risks of this asset class may in fact exceed those of others that are generally perceived as riskier.
The main reason for the inherent riskiness is that a residential property investor is taking not only market risk, which is the worry that property prices or rentals may decline, but they also take on a range of additional risks. Foremost among these is interest-rate risk. Most buy to let investors in the UK take out interest-only variable rate mortgages. This sort of mortgage generally has the lowest monthly repayments and is the most efficient from the perspective of tax planning. But it does leave the property investor at the mercy of prevailing interest rates. With official central bank policy rates so low at the moment, many people are short-sightedly overlooking the fact that central banks will start to tighten monetary policy once the world economy stabilises or at the first sign of inflation returning.
A second category of risks relates to idiosyncratic risk. If one was to buy shares in only a single company on the stock market then one would be exposed to the risk that the company was run by crooks and had cooked its books, for instance. It is for this reason that most rational stock market investors buy shares in 50-100 companies. If one turns out to be a bad apple then the impact on the overall portfolio will be minimal.
Yet when it comes to buy to let property investing, many amateur landlords have only one or perhaps two properties. Trouble such as unexpected maintenance bills, tenants who don't pay their rent or who damage the property can cause immense financial loss.
In both instances landlords can insure themselves to some extent against these risks. In the case of interest-rate risk it is possible, for a price, to obtain a mortgage with a fixed rate of interest. These are generally fixed for periods of three to five years, but some with longer fixed terms are available. The trade off for the certainty that they provide is that they cost somewhat more than variable rate mortgages.
A range of landlords insurance policies are also available that help cover many of the idiosyncratic risks involved in leasing property. Buy to let home insurance policies will often include cover for deliberate damage to the property. Options include legal expenses cover, to cover the costs of evicting tenants and rent guarantee cover, under which the insurance firm will pay the rent that would have been received should tenants abscond or stop paying their rent.
A sensible buy to let investor will carefully consider the range of buy to let mortgages and look at several landlords insurance policies to ensure that their investment is indeed as low-risk as they had hoped it would be.
You can read more about landlords insurance and and fixed rate mortgages by clicking on the above links.
Article Source: http://EzineArticles.com/?expert=John_Keynes
http://EzineArticles.com/?Reducing-the-Risks-of-Buy-to-Let&id=3662138
Investors in residential property, known in the UK as "buy to let", generally put their money in this asset class because they view it as lower risk than buying shares on the stock market. Yet without proper landlords insurance and the right buy to let mortgage, the risks of this asset class may in fact exceed those of others that are generally perceived as riskier.
The main reason for the inherent riskiness is that a residential property investor is taking not only market risk, which is the worry that property prices or rentals may decline, but they also take on a range of additional risks. Foremost among these is interest-rate risk. Most buy to let investors in the UK take out interest-only variable rate mortgages. This sort of mortgage generally has the lowest monthly repayments and is the most efficient from the perspective of tax planning. But it does leave the property investor at the mercy of prevailing interest rates. With official central bank policy rates so low at the moment, many people are short-sightedly overlooking the fact that central banks will start to tighten monetary policy once the world economy stabilises or at the first sign of inflation returning.
A second category of risks relates to idiosyncratic risk. If one was to buy shares in only a single company on the stock market then one would be exposed to the risk that the company was run by crooks and had cooked its books, for instance. It is for this reason that most rational stock market investors buy shares in 50-100 companies. If one turns out to be a bad apple then the impact on the overall portfolio will be minimal.
Yet when it comes to buy to let property investing, many amateur landlords have only one or perhaps two properties. Trouble such as unexpected maintenance bills, tenants who don't pay their rent or who damage the property can cause immense financial loss.
In both instances landlords can insure themselves to some extent against these risks. In the case of interest-rate risk it is possible, for a price, to obtain a mortgage with a fixed rate of interest. These are generally fixed for periods of three to five years, but some with longer fixed terms are available. The trade off for the certainty that they provide is that they cost somewhat more than variable rate mortgages.
A range of landlords insurance policies are also available that help cover many of the idiosyncratic risks involved in leasing property. Buy to let home insurance policies will often include cover for deliberate damage to the property. Options include legal expenses cover, to cover the costs of evicting tenants and rent guarantee cover, under which the insurance firm will pay the rent that would have been received should tenants abscond or stop paying their rent.
A sensible buy to let investor will carefully consider the range of buy to let mortgages and look at several landlords insurance policies to ensure that their investment is indeed as low-risk as they had hoped it would be.
You can read more about landlords insurance and and fixed rate mortgages by clicking on the above links.
Article Source: http://EzineArticles.com/?expert=John_Keynes
http://EzineArticles.com/?Reducing-the-Risks-of-Buy-to-Let&id=3662138
Thursday, August 19, 2010
Buy to Let Investments - Secret Strategies
By I Clark
If you are looking for good buy to let investments in the UK, you may be wondering where you can find a suitable property that you can find financing for. This market is not quite as easy to enter as it was not too long ago, when almost anyone could get a loan from a company that specialised in buy to let. You can still find good opportunities in this area, but you have to do a little more digging now.
The Value of Networking
You don't necessarily have to find a house or building that is being marketed as a buy to let property. You simply have to find a property that would be suitable for that use. What you are really looking for is a good property in the right location that people would want to let.
Word of mouth can be one of the best ways to find properties. Networking is an overused word, but it can be a valuable tool in your search. Simply let people know that you are looking for a particular type of property. You don't have to do this in an aggressive manner; just casually mention it to as many people as you can. Try to make contact with as many social circles as you can. This can include relatives, where you work, social activities, gyms, even online forums. Again, don't spam the internet with requests, but do drop hints to people you are already talking to.
Searching on Foot
In today's economy, many people are anxious to sell their homes, buildings and flats. Some of these people may be listed with real estate agents, but some are not. Some advertise, but some may only put a sign in front of their property. If you find a neighborhood you like, you might take the time to walk or drive around and look for "For Sale" signs.
If you are more aggressive, you might even knock on doors. If you find a house you like that is not, as far as you know, listed as available, it would be better not to make an offer to the owner. Politely inquire if he or she knows of any buildings that might be for sale in the area and hand them a card. You just may find someone who has been considering the idea of selling but hasn't yet put their property on the market. This can be the best way to find good values.
Remember the Fundamentals
No matter what creative way you conduct your search for that perfect buy to let investment property, you have to keep the fundamentals in mind. Just because someone is willing to sell their house at a good price does not mean you should buy it. Do research on the local economy and the likely future of the neighborhood.
The location must be convenient and desirable to people who need a place to let. The building must be in good condition, unless you are someone who can do your own renovations (or it's reasonable enough that you can afford to hire someone to do the work).
These are some tips to help you start thinking creatively in your search for good UK buy to let investments. The opportunities are still out there --you just have to be willing to search for them.
Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who also deals with Buy To Let Investments with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian's honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.
To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/buy-to-let
Article Source: http://EzineArticles.com/?expert=I_Clark
http://EzineArticles.com/?Buy-to-Let-Investments---Secret-Strategies&id=1603763
If you are looking for good buy to let investments in the UK, you may be wondering where you can find a suitable property that you can find financing for. This market is not quite as easy to enter as it was not too long ago, when almost anyone could get a loan from a company that specialised in buy to let. You can still find good opportunities in this area, but you have to do a little more digging now.
The Value of Networking
You don't necessarily have to find a house or building that is being marketed as a buy to let property. You simply have to find a property that would be suitable for that use. What you are really looking for is a good property in the right location that people would want to let.
Word of mouth can be one of the best ways to find properties. Networking is an overused word, but it can be a valuable tool in your search. Simply let people know that you are looking for a particular type of property. You don't have to do this in an aggressive manner; just casually mention it to as many people as you can. Try to make contact with as many social circles as you can. This can include relatives, where you work, social activities, gyms, even online forums. Again, don't spam the internet with requests, but do drop hints to people you are already talking to.
Searching on Foot
In today's economy, many people are anxious to sell their homes, buildings and flats. Some of these people may be listed with real estate agents, but some are not. Some advertise, but some may only put a sign in front of their property. If you find a neighborhood you like, you might take the time to walk or drive around and look for "For Sale" signs.
If you are more aggressive, you might even knock on doors. If you find a house you like that is not, as far as you know, listed as available, it would be better not to make an offer to the owner. Politely inquire if he or she knows of any buildings that might be for sale in the area and hand them a card. You just may find someone who has been considering the idea of selling but hasn't yet put their property on the market. This can be the best way to find good values.
Remember the Fundamentals
No matter what creative way you conduct your search for that perfect buy to let investment property, you have to keep the fundamentals in mind. Just because someone is willing to sell their house at a good price does not mean you should buy it. Do research on the local economy and the likely future of the neighborhood.
The location must be convenient and desirable to people who need a place to let. The building must be in good condition, unless you are someone who can do your own renovations (or it's reasonable enough that you can afford to hire someone to do the work).
These are some tips to help you start thinking creatively in your search for good UK buy to let investments. The opportunities are still out there --you just have to be willing to search for them.
Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who also deals with Buy To Let Investments with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian's honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.
To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/buy-to-let
Article Source: http://EzineArticles.com/?expert=I_Clark
http://EzineArticles.com/?Buy-to-Let-Investments---Secret-Strategies&id=1603763
Wednesday, August 18, 2010
Peterborough Market Review For Buy to Let Landlords
By Terry Lucking
When investing in property, one of the main measurements of success should be how much better the property you have bought has performed versus national and local averages of someone that just bought a property for a home.
Successful buy to let investors should be able to:-
1. Buy a property at less than people pay for similar properties locally
2. Ensure the property delivers positive cashflow throughout the investment period
3. Watch their property grow in value at a better rate than similar properties
For a property to meet these targets, it's essential that investors research the area incredibly carefully and understanding what areas and properties are in constant high demand and short supply is critical. It will however, take a lot of time and effort! But hopefully the information below and the case study on Peterborough will help give you an idea of where and what information to look for.
It's easy to look at local property prices, rental demand and yields in today's market, but when you are investing in buy to let you are likely to be selling the property some time in the future, possibly 10 or 20 years in advance, and property supply, demand, prices and yield during this time can change beyond all recognition.
So, where do you get this information from? How do you analyse an area?
Analysis on Peterborough
To analyse the Peterborough market, you need to understand the basic investment figures, such as average property prices in different areas, what properties were in high demand versus supply and what properties are always required for rental income.
To source this data isn't difficult as you can find average property prices from the Land Registry. You can then find data on how different areas around Peterborough are performing from sites such as Hometrack, and one of the best places to start at a local level if you are looking to make money from buy to let, is to identify and meet with the top local letting agent in the area.
Current Information for the Peterborough AreaThe key figures to look for when investing are the property prices and rental income that can be generated. Once you have this 'average data' then you can analyse the property prices by flats, semis and detached and then by one, two, three and four plus bed properties.
Property Price Information (Source Land Registry Dec 09)
City of Peterborough £111,661 -6.3%
Cambridgeshire £172,101 -0.5%
Rutland £205,608 -4.8%
England/Wales £161,783 +2.5%
Property Price Breakdown by House Type
Flat/Terraced/Semi Detached/Detached
City of Peterborough; £71,717/£81,701/£111,392/£207,381
Cambridgeshire; £108,637/£137,930/£157,186/£253,752
Rutland; £110,150/£131,676/£154,199/£268,490
England/Wales; £150,179/£124,523/£152,587/£251,845
If you are buying to let, then you need rental price information. When you are looking for this, it's important to only talk to letting specialists and ideally a company that looks after the whole area, rather than just concentrates on one or two parts, such as the city centre, as they won't be able to give you an independent overview of the whole market.
For this study, we have used figures provided by Belvoir Peterborough, which has been in the area for over 10 years and only carries out property lettings.
Rental prices in Peterborough have fallen on average by 5% in the last 12 months (in line with national figures). The average rent of £550 versus the average property price of £108,000 still gives an average gross yield of nearly 6%.
Mainstream rental properties offer the following income (per month):-
1 Bed Flat/2 Bed Flat/2 Bed House/3 Bed House/4 Bed House
High; £525/£900/£625/£750/£1,000
Low; £425/£525/£495/£525/£750
Source: Belvoir Lettings, Peterborough
Room rents attract £45 - £100 depending on area, quality of property and room size.
With this data, you have a good idea that this is an area you could afford to invest in and one that offers potential yields that would deliver a positive cashflow.
Economy, Employment and Average EarningsOnce you know that a property deal stacks up, you then need to know a little bit about how robust the economy is and what type of people are employed in the area as well as how much they earn - as this will influence whether people are likely to rent or buy and what they can afford.
As far as the economy is concerned, The Royal Mail's new business barometer survey shows Peterborough to have the fastest-growing population of businesses in the UK in 2006, and in 2008, Peterborough was ranked 14 out of the top 20 towns, based on active business growth.
The spread of work within Peterborough also appears quite healthy, with the majority of people in the service sector and around 26% in the public sector, which although an important sector, shows that Peterborough is mainly business led and will therefore be cushioned from the pending 'downsizing' of public services in 2010 and beyond.
Peterborough is home to household names such as: Anglian Water; British Sugar; and Ikea and is trying to attract 'future proof' industries such as environmental, food and drink and precision engineering.
This information reassures you that the area is definitely 'on the up' and there is an opportunity, for the right investor, to buy properties in areas that are likely to see a growth in demand.
The Future for Peterborough
Once you have an idea of what the current economy and property performance is, you need to find out what the future plans are for the Peterborough area. This will help you identify which areas within Peterborough are likely to be the places with the property types that would be in high demand, but supply is restricted now and in the future.
This information is typically easy to find as each area across the UK has their own 'future plans' that are published on an annual basis and each local authority has a department called 'inward investment' that has information to help attract new business to the area, which is helpful to property investors.
For Peterborough, the future of the city and surrounding areas is managed by 'Opportunity Peterborough', which has its own website, and highlights all the key targets for the area's growth.
From this resource, you can find the following:-
1. In 2004, Peterborough started to expand once more following its designation as part of the 'London-Stansted-Cambridge-Peterborough Growth Corridor'.
2. Peterborough is benefiting from one billion pounds of regeneration over 15 years to 2021.
3. Major redevelopment of the City Centre is being planned, including a new shopping centre in North Westgate.
4. A new university is being created: the Anglia Ruskin University Campus.
5. Peterborough is being developed as one of the UK's top four greenest cities
The next step is to look at what's expected to happen with population growth and coupled with this, what planned increases there are in the number of properties for people to live in. With this information, you're looking out for where demand might grow for homes and disproportionally increase in price over time because supply cannot grow at the same rate.
For example, the new Anglia Ruskin University might suggest a huge growth in student demand for rents. However, if this is already being catered for by institutional investors building big blocks of student accommodation, then investing in student accommodation near the University might not be the best route to successful returns. A much better investment route might be areas and property that staff who work at the University, such as lecturers, would be interested in buying and renting in.
Once you have an idea of the changes that influence the future demand and supply of property, you then need to look at what the population, house supply and job growth prospects are for the different areas within Peterborough.
This information is normally supplied by various resources. In Peterborough's case, Opportunity Peterborough and the local authority had many reports which researched these statistics. The most useful resources which many local authorities produce are:-
1. The local development plan
2. The local housing assessment strategy
For the Peterborough area, the information suggests the potential growth was pretty impressive versus other areas researched. For example, the information suggests that over 20,000 new jobs will be created following the regeneration of the area. This is useful information as more jobs are likely to result in an increase in population.
Further research shows that overall, Peterborough's population is expected to grow from the current 164,000 by 11.6% to 181,800 in 2016. Much of this population growth is expected to be in the city centre and areas such as the Hamptons created to the south of Peterborough.
However, this information only shows me that demand for housing will increase. It is not enough in its own right though to make an investment decision as you need to better understand what the plans are to increase the housing stock to cope. Having visited the area, it is evident that Peterborough has already added a lot of new homes to the area including a whole new suburb 'Hampton Vale' and has the potential space to add a lot more.
More research from the Peterborough Housing Needs and Demands Survey shows there are currently 71,500 households within Peterborough. This is expected to grow to 83,000 by 2012 and to 96,500 by 2021, adding 25,000 new households to the region.
So in summary, we now know:-
1. What the plans are for local area development, eg the University, city centre redevelopment
2. Where and by whom the demand for property comes from for now and in the future
3. What, how many and where the supply will grow via the additional homes that are going to be built
Armed with all this information you can now start looking at different locations and identify property types that you think will grow in value more than the national and local averages. So you next research task is to work out where these properties are likely to be built and which areas and property types are likely to benefit from the population growth, while having a restricted supply which will drive up both rental income and property prices.
Where and What to Invest InTo do this, use the local authority website (Peterborough.gov.uk) to find out about the various wards within Peterborough such as Bretton, Peterborough Central and Hampton Vale. At this stage, do a little on-line research about these areas and then spend a good day driving from area to area, picking up the local property papers, chatting to the local agents, even the locals and then trying to identify the best streets and property types to purchase.
From this level of research, you should be able to conclude that some of the better potential areas appear to be in Peterborough City Centre, Bretton and the Hamptons and that the types of properties you should be looking at are, depending on which area: two bed terraces, three bed townhouses and well located one bedroom properties.
For the full report on Peterborough and help sourcing properties to invest in contact the author who is a leading Peterborough lettings agent.
Terry Lucking is Managing Director of Belvoir Property Lettings Peterborough, which has the largest range of rental properties in Peterborough, http://www.belvoirlettings.com/Peterborough. Started in 1999 it is now the leading lettings agency in Peterborough, Oundle, Corby and Cambridge. He can be contacted on +44 (0) 1733 321500, email terry.lucking@belvoirlettings.com
Article Source: http://EzineArticles.com/?expert=Terry_Lucking
http://EzineArticles.com/?Peterborough-Market-Review-For-Buy-to-Let-Landlords&id=3758323
When investing in property, one of the main measurements of success should be how much better the property you have bought has performed versus national and local averages of someone that just bought a property for a home.
Successful buy to let investors should be able to:-
1. Buy a property at less than people pay for similar properties locally
2. Ensure the property delivers positive cashflow throughout the investment period
3. Watch their property grow in value at a better rate than similar properties
For a property to meet these targets, it's essential that investors research the area incredibly carefully and understanding what areas and properties are in constant high demand and short supply is critical. It will however, take a lot of time and effort! But hopefully the information below and the case study on Peterborough will help give you an idea of where and what information to look for.
It's easy to look at local property prices, rental demand and yields in today's market, but when you are investing in buy to let you are likely to be selling the property some time in the future, possibly 10 or 20 years in advance, and property supply, demand, prices and yield during this time can change beyond all recognition.
So, where do you get this information from? How do you analyse an area?
Analysis on Peterborough
To analyse the Peterborough market, you need to understand the basic investment figures, such as average property prices in different areas, what properties were in high demand versus supply and what properties are always required for rental income.
To source this data isn't difficult as you can find average property prices from the Land Registry. You can then find data on how different areas around Peterborough are performing from sites such as Hometrack, and one of the best places to start at a local level if you are looking to make money from buy to let, is to identify and meet with the top local letting agent in the area.
Current Information for the Peterborough AreaThe key figures to look for when investing are the property prices and rental income that can be generated. Once you have this 'average data' then you can analyse the property prices by flats, semis and detached and then by one, two, three and four plus bed properties.
Property Price Information (Source Land Registry Dec 09)
City of Peterborough £111,661 -6.3%
Cambridgeshire £172,101 -0.5%
Rutland £205,608 -4.8%
England/Wales £161,783 +2.5%
Property Price Breakdown by House Type
Flat/Terraced/Semi Detached/Detached
City of Peterborough; £71,717/£81,701/£111,392/£207,381
Cambridgeshire; £108,637/£137,930/£157,186/£253,752
Rutland; £110,150/£131,676/£154,199/£268,490
England/Wales; £150,179/£124,523/£152,587/£251,845
If you are buying to let, then you need rental price information. When you are looking for this, it's important to only talk to letting specialists and ideally a company that looks after the whole area, rather than just concentrates on one or two parts, such as the city centre, as they won't be able to give you an independent overview of the whole market.
For this study, we have used figures provided by Belvoir Peterborough, which has been in the area for over 10 years and only carries out property lettings.
Rental prices in Peterborough have fallen on average by 5% in the last 12 months (in line with national figures). The average rent of £550 versus the average property price of £108,000 still gives an average gross yield of nearly 6%.
Mainstream rental properties offer the following income (per month):-
1 Bed Flat/2 Bed Flat/2 Bed House/3 Bed House/4 Bed House
High; £525/£900/£625/£750/£1,000
Low; £425/£525/£495/£525/£750
Source: Belvoir Lettings, Peterborough
Room rents attract £45 - £100 depending on area, quality of property and room size.
With this data, you have a good idea that this is an area you could afford to invest in and one that offers potential yields that would deliver a positive cashflow.
Economy, Employment and Average EarningsOnce you know that a property deal stacks up, you then need to know a little bit about how robust the economy is and what type of people are employed in the area as well as how much they earn - as this will influence whether people are likely to rent or buy and what they can afford.
As far as the economy is concerned, The Royal Mail's new business barometer survey shows Peterborough to have the fastest-growing population of businesses in the UK in 2006, and in 2008, Peterborough was ranked 14 out of the top 20 towns, based on active business growth.
The spread of work within Peterborough also appears quite healthy, with the majority of people in the service sector and around 26% in the public sector, which although an important sector, shows that Peterborough is mainly business led and will therefore be cushioned from the pending 'downsizing' of public services in 2010 and beyond.
Peterborough is home to household names such as: Anglian Water; British Sugar; and Ikea and is trying to attract 'future proof' industries such as environmental, food and drink and precision engineering.
This information reassures you that the area is definitely 'on the up' and there is an opportunity, for the right investor, to buy properties in areas that are likely to see a growth in demand.
The Future for Peterborough
Once you have an idea of what the current economy and property performance is, you need to find out what the future plans are for the Peterborough area. This will help you identify which areas within Peterborough are likely to be the places with the property types that would be in high demand, but supply is restricted now and in the future.
This information is typically easy to find as each area across the UK has their own 'future plans' that are published on an annual basis and each local authority has a department called 'inward investment' that has information to help attract new business to the area, which is helpful to property investors.
For Peterborough, the future of the city and surrounding areas is managed by 'Opportunity Peterborough', which has its own website, and highlights all the key targets for the area's growth.
From this resource, you can find the following:-
1. In 2004, Peterborough started to expand once more following its designation as part of the 'London-Stansted-Cambridge-Peterborough Growth Corridor'.
2. Peterborough is benefiting from one billion pounds of regeneration over 15 years to 2021.
3. Major redevelopment of the City Centre is being planned, including a new shopping centre in North Westgate.
4. A new university is being created: the Anglia Ruskin University Campus.
5. Peterborough is being developed as one of the UK's top four greenest cities
The next step is to look at what's expected to happen with population growth and coupled with this, what planned increases there are in the number of properties for people to live in. With this information, you're looking out for where demand might grow for homes and disproportionally increase in price over time because supply cannot grow at the same rate.
For example, the new Anglia Ruskin University might suggest a huge growth in student demand for rents. However, if this is already being catered for by institutional investors building big blocks of student accommodation, then investing in student accommodation near the University might not be the best route to successful returns. A much better investment route might be areas and property that staff who work at the University, such as lecturers, would be interested in buying and renting in.
Once you have an idea of the changes that influence the future demand and supply of property, you then need to look at what the population, house supply and job growth prospects are for the different areas within Peterborough.
This information is normally supplied by various resources. In Peterborough's case, Opportunity Peterborough and the local authority had many reports which researched these statistics. The most useful resources which many local authorities produce are:-
1. The local development plan
2. The local housing assessment strategy
For the Peterborough area, the information suggests the potential growth was pretty impressive versus other areas researched. For example, the information suggests that over 20,000 new jobs will be created following the regeneration of the area. This is useful information as more jobs are likely to result in an increase in population.
Further research shows that overall, Peterborough's population is expected to grow from the current 164,000 by 11.6% to 181,800 in 2016. Much of this population growth is expected to be in the city centre and areas such as the Hamptons created to the south of Peterborough.
However, this information only shows me that demand for housing will increase. It is not enough in its own right though to make an investment decision as you need to better understand what the plans are to increase the housing stock to cope. Having visited the area, it is evident that Peterborough has already added a lot of new homes to the area including a whole new suburb 'Hampton Vale' and has the potential space to add a lot more.
More research from the Peterborough Housing Needs and Demands Survey shows there are currently 71,500 households within Peterborough. This is expected to grow to 83,000 by 2012 and to 96,500 by 2021, adding 25,000 new households to the region.
So in summary, we now know:-
1. What the plans are for local area development, eg the University, city centre redevelopment
2. Where and by whom the demand for property comes from for now and in the future
3. What, how many and where the supply will grow via the additional homes that are going to be built
Armed with all this information you can now start looking at different locations and identify property types that you think will grow in value more than the national and local averages. So you next research task is to work out where these properties are likely to be built and which areas and property types are likely to benefit from the population growth, while having a restricted supply which will drive up both rental income and property prices.
Where and What to Invest InTo do this, use the local authority website (Peterborough.gov.uk) to find out about the various wards within Peterborough such as Bretton, Peterborough Central and Hampton Vale. At this stage, do a little on-line research about these areas and then spend a good day driving from area to area, picking up the local property papers, chatting to the local agents, even the locals and then trying to identify the best streets and property types to purchase.
From this level of research, you should be able to conclude that some of the better potential areas appear to be in Peterborough City Centre, Bretton and the Hamptons and that the types of properties you should be looking at are, depending on which area: two bed terraces, three bed townhouses and well located one bedroom properties.
For the full report on Peterborough and help sourcing properties to invest in contact the author who is a leading Peterborough lettings agent.
Terry Lucking is Managing Director of Belvoir Property Lettings Peterborough, which has the largest range of rental properties in Peterborough, http://www.belvoirlettings.com/Peterborough. Started in 1999 it is now the leading lettings agency in Peterborough, Oundle, Corby and Cambridge. He can be contacted on +44 (0) 1733 321500, email terry.lucking@belvoirlettings.com
Article Source: http://EzineArticles.com/?expert=Terry_Lucking
http://EzineArticles.com/?Peterborough-Market-Review-For-Buy-to-Let-Landlords&id=3758323
Real Estate Has Created More Wealth Than Any Other Type Of Investment Vehicle
By Chris Temps
Real Estate has created more wealth than any other type of investment vehicle. I have been investing full time for 6 years. I have bought in 4 different states within the United States. I have purchase single family homes and multi-unit apartment complexes. With the slow down in the housing market it has become more difficult in making deals happen, but there are still many deals out there. In fact, you want to buy when everyone else is selling. This is the concept of contrarian investing. You don't follow the crowd or the masses. You have to be creative. There are so many aspects to real estate that I only know a fraction of what there is to know about real estate investing. I know enough to make a comfortable living for myself. Just like any other business, it takes time to learn, understand, and implement the different strategies to become successful investor.
There are many different types of investments such as land banking, single family homes, multi-units or apartment complexes, and commercial. Within commercial there are many several subcategories such as storage facilities, commercial development, multi-units, retail, warehouses, etc. Most people start out in the single family home investing. This is the easiest to get in to and most understood by people.
You make money in real estate when you buy. You receive the money when you sell. Buying right is everything. The formula for buying property for single family homes is 70 cents on the dollar, or in other words, at a 30% discount or margin. For example, if a house retails for $100,000 your maximum offer should be $70,000 (70 cents of the dollar). Obviously the lower the better, that is, if you can purchase the property at $50,000 you are in much better shape. There are a lot of fees associated when you buy and sell a house that novice investors forget to consider. There are closing costs, agent fees, holding costs, insurance costs, repairs and maintenance costs, utilities, taxes, legal fees, and more. Also, most rookie investors purchase retail. Buying property from the Multiple Listing Service (MLS) is retail. You need to purchase directly from motivated sellers, but that will be a whole new discussion another time.
Another tactic that I have learned from the infamous Robert Allen, guru in real estate investing since the 70s, is the 1% rule. The 1% rule is when you buy a rental property you need to earn a minimum of 1% of the sales price to break even. Did you catch that? For example, if you purchase a property for $100,000 you need rental income of at least $1,000 to breakeven; knowing this strategy will enable you to avoid most pitfalls in real estate investing. Most people don't know this and that is how they can get into negative cash flow situations and get into trouble. That is why most single family homes or properties are not true rental properties. In California, where I live, most properties will not cash flow due to the high home prices ranging from $200-$600K in most metropolitan cities of California. To breakeven in a property that costs $400,000 you will need $4,000 (1% of sales price) in rent just to break even. It's just not going to happen. You see how this can be a big problem for most real estate investments? The good side to all of this is that there are homes in several other states that are under $100,000. There are homes even under $30,000. That is what I have been investing in. I have been buying foreclosures for under $20,000 in several states. Since I live in California this is called out-of-state-investing where the real money can be made.
Chris Temps
[http://www.MyGuruReviews.com]
"It's a Matter of Knowing Versus Not Knowing"
Article Source: http://EzineArticles.com/?expert=Chris_Temps
http://EzineArticles.com/?Real-Estate-Has-Created-More-Wealth-Than-Any-Other-Type-Of-Investment-Vehicle&id=839569
Real Estate has created more wealth than any other type of investment vehicle. I have been investing full time for 6 years. I have bought in 4 different states within the United States. I have purchase single family homes and multi-unit apartment complexes. With the slow down in the housing market it has become more difficult in making deals happen, but there are still many deals out there. In fact, you want to buy when everyone else is selling. This is the concept of contrarian investing. You don't follow the crowd or the masses. You have to be creative. There are so many aspects to real estate that I only know a fraction of what there is to know about real estate investing. I know enough to make a comfortable living for myself. Just like any other business, it takes time to learn, understand, and implement the different strategies to become successful investor.
There are many different types of investments such as land banking, single family homes, multi-units or apartment complexes, and commercial. Within commercial there are many several subcategories such as storage facilities, commercial development, multi-units, retail, warehouses, etc. Most people start out in the single family home investing. This is the easiest to get in to and most understood by people.
You make money in real estate when you buy. You receive the money when you sell. Buying right is everything. The formula for buying property for single family homes is 70 cents on the dollar, or in other words, at a 30% discount or margin. For example, if a house retails for $100,000 your maximum offer should be $70,000 (70 cents of the dollar). Obviously the lower the better, that is, if you can purchase the property at $50,000 you are in much better shape. There are a lot of fees associated when you buy and sell a house that novice investors forget to consider. There are closing costs, agent fees, holding costs, insurance costs, repairs and maintenance costs, utilities, taxes, legal fees, and more. Also, most rookie investors purchase retail. Buying property from the Multiple Listing Service (MLS) is retail. You need to purchase directly from motivated sellers, but that will be a whole new discussion another time.
Another tactic that I have learned from the infamous Robert Allen, guru in real estate investing since the 70s, is the 1% rule. The 1% rule is when you buy a rental property you need to earn a minimum of 1% of the sales price to break even. Did you catch that? For example, if you purchase a property for $100,000 you need rental income of at least $1,000 to breakeven; knowing this strategy will enable you to avoid most pitfalls in real estate investing. Most people don't know this and that is how they can get into negative cash flow situations and get into trouble. That is why most single family homes or properties are not true rental properties. In California, where I live, most properties will not cash flow due to the high home prices ranging from $200-$600K in most metropolitan cities of California. To breakeven in a property that costs $400,000 you will need $4,000 (1% of sales price) in rent just to break even. It's just not going to happen. You see how this can be a big problem for most real estate investments? The good side to all of this is that there are homes in several other states that are under $100,000. There are homes even under $30,000. That is what I have been investing in. I have been buying foreclosures for under $20,000 in several states. Since I live in California this is called out-of-state-investing where the real money can be made.
Chris Temps
[http://www.MyGuruReviews.com]
"It's a Matter of Knowing Versus Not Knowing"
Article Source: http://EzineArticles.com/?expert=Chris_Temps
http://EzineArticles.com/?Real-Estate-Has-Created-More-Wealth-Than-Any-Other-Type-Of-Investment-Vehicle&id=839569
Investment Real Estate in the UK - Why and How to Buy
By I Clark
It's not hard to buy real estate in the British Isles. In troubled or unstable economic times, investment real estate in the U.K. is a great way to diversify your holdings and minimize your risk. In this article, we'll discuss some of the important facets of residential real estate investing in the Great Britain.
Buying Investment Property in the U.K.
Real estate transactions are fairly straightforward and usually start with an offer to buy that's followed by formal contracts that are contingent on a survey and proof of a clear title to the property. When buying real estate, a small deposit of about 10% is placed to hold the property while the sale is formally completed. The seller's solicitor or lawyer holds the deposit. Note that when the formal contracts are exchanged, the parties are legally bound to complete the transaction. Although most real estate deals in the country are for freehold properties, there are some sales for leasehold apartments that range from 99 to 999 years. It's important to note that in Scotland neither the buyer nor the seller can back out of the contract once the offer for a realty investment is accepted.
The Home Condition Report
When you're purchasing residential investment property, it's a good idea to obtain an HCR or "Home Condition Report" that is a detailed documentation of the property's condition by a certified inspector. The inspection takes 2 - 4 hours and covers all the major components of the property. The seller pays for the HCR, so be sure it's included in the general "Home Information Pack" (HIP) that the seller provides.
Completing the Sale
Other items related to making a real estate investment should be handled by a solicitor or lawyer. The fees involved when you buy investment property add up to about 4% of the selling price and cover legal fees and land registry. If the property is valued over £60,000, there's also a stamp duty of from 1% to 2% of the selling price. And if you need a mortgage, don't forget to budget for the cost of application, valuation fees and survey.
Taxes and Interest Rates
Property tax is another expense buyers face. It's payable on a rating system where band A is the lowest and band H is the highest. The property's rating is determined by comparing it to other similar properties in the neighborhood. Property taxes range from £400.00 per year and up. It's likely that most buyers will need a mortgage to buy investment real estate. Buyers can borrow up to 90% of the property's value with a term of 25 years. First-time buyers often get special deals, so be sure to look around for the best possible rate.
Faster Return on Investment
Buying investment real estate in the U.K. is a popular choice for people who want to tie their savings to something substantial. Real estate investments usually grow faster than more conservative options like savings accounts. Just be sure you understand both the risks and rewards before property investing.
Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company also dealing with Investment Real Estate with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian's honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.
To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/real-estate/.
Article Source: http://EzineArticles.com/?expert=I_Clark
http://EzineArticles.com/?Investment-Real-Estate-in-the-UK----Why-and-How-to-Buy&id=1650701
It's not hard to buy real estate in the British Isles. In troubled or unstable economic times, investment real estate in the U.K. is a great way to diversify your holdings and minimize your risk. In this article, we'll discuss some of the important facets of residential real estate investing in the Great Britain.
Buying Investment Property in the U.K.
Real estate transactions are fairly straightforward and usually start with an offer to buy that's followed by formal contracts that are contingent on a survey and proof of a clear title to the property. When buying real estate, a small deposit of about 10% is placed to hold the property while the sale is formally completed. The seller's solicitor or lawyer holds the deposit. Note that when the formal contracts are exchanged, the parties are legally bound to complete the transaction. Although most real estate deals in the country are for freehold properties, there are some sales for leasehold apartments that range from 99 to 999 years. It's important to note that in Scotland neither the buyer nor the seller can back out of the contract once the offer for a realty investment is accepted.
The Home Condition Report
When you're purchasing residential investment property, it's a good idea to obtain an HCR or "Home Condition Report" that is a detailed documentation of the property's condition by a certified inspector. The inspection takes 2 - 4 hours and covers all the major components of the property. The seller pays for the HCR, so be sure it's included in the general "Home Information Pack" (HIP) that the seller provides.
Completing the Sale
Other items related to making a real estate investment should be handled by a solicitor or lawyer. The fees involved when you buy investment property add up to about 4% of the selling price and cover legal fees and land registry. If the property is valued over £60,000, there's also a stamp duty of from 1% to 2% of the selling price. And if you need a mortgage, don't forget to budget for the cost of application, valuation fees and survey.
Taxes and Interest Rates
Property tax is another expense buyers face. It's payable on a rating system where band A is the lowest and band H is the highest. The property's rating is determined by comparing it to other similar properties in the neighborhood. Property taxes range from £400.00 per year and up. It's likely that most buyers will need a mortgage to buy investment real estate. Buyers can borrow up to 90% of the property's value with a term of 25 years. First-time buyers often get special deals, so be sure to look around for the best possible rate.
Faster Return on Investment
Buying investment real estate in the U.K. is a popular choice for people who want to tie their savings to something substantial. Real estate investments usually grow faster than more conservative options like savings accounts. Just be sure you understand both the risks and rewards before property investing.
Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company also dealing with Investment Real Estate with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian's honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.
To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/real-estate/.
Article Source: http://EzineArticles.com/?expert=I_Clark
http://EzineArticles.com/?Investment-Real-Estate-in-the-UK----Why-and-How-to-Buy&id=1650701
Tips on Buy to Let Property
By Michael Bury
Professional property investors are enjoying the current financial climate. What? You probably think I'm mad making that statement. On the contrary, what we are experiencing at the moment is a market that is in turmoil and and amateur investors are panicking. What this does for the professional property investor is gives us the opportunity to buy properties which will meet our strict criteria.
We are all too well aware that far too many people jumped on the bandwagon and purchased buy to let properties without applying simple basic criteria. Let's face it, with a rising market anyone can make money no matter how bad a deal it was. Clearly this is a lesson to us all and reinforces that we need to have a strategy, clear-cut and stick to it when we buy investment property.
Number crunching: if you are to succeed inbuying investment property in the current market, you need to do your calculations. As we have all discovered the lending criteria has changed and now lenders are looking for 25%-30% deposit. You need to be able to demonstrate to your prospective lender that you have built-in contingencies to cover void periods, general maintenance and insurance.
Letting agents: we are fortunate in the UK buy to let market that we have several options for letting agents. We have in our experience had the good, the bad and the ugly-this is a specialist area and you would do well to invest the time and effort to interview and test them thoroughly. Let's be honest we are buying investment property for the long-term and need to ensure that we have the best team around us. Once you have agreed terms you are relying on the letting agent to ensure you have full occupancy of your buy to let properties. Therefore do not skimp on this important factor of your business.
Quite often you will be targeted with off -plan properties with fabulous (unqualified) ROI figures. The professional property investor will disregard these figures and carry out their own research to draw a realistic conclusion. Far too many companies advertise properties indiscriminately promising huge returns which unfortunately are totally unrealistic. One important question to ask yourself is why buy properties that developers are marketing in this fashion? If it looks too good to be true, more than likely it will be.
Location, where do you buy investment property? Some will say 'it's far too expensive where I live' and go on to purchase in some remote area of which they know nothing about. This is all good and well as long as you carry out your thorough research and you can manage it one way or another. We would suggest in the first instance you concentrate in the UK buy to let market ie: your own backyard there are deals to be found if you look hard enough-let's face it no one said it was easy.
Property Investor Tips
Barbury Properties
Article Source: http://EzineArticles.com/?expert=Michael_Bury
http://EzineArticles.com/?Tips-on-Buy-to-Let-Property&id=4545888
Professional property investors are enjoying the current financial climate. What? You probably think I'm mad making that statement. On the contrary, what we are experiencing at the moment is a market that is in turmoil and and amateur investors are panicking. What this does for the professional property investor is gives us the opportunity to buy properties which will meet our strict criteria.
We are all too well aware that far too many people jumped on the bandwagon and purchased buy to let properties without applying simple basic criteria. Let's face it, with a rising market anyone can make money no matter how bad a deal it was. Clearly this is a lesson to us all and reinforces that we need to have a strategy, clear-cut and stick to it when we buy investment property.
Number crunching: if you are to succeed inbuying investment property in the current market, you need to do your calculations. As we have all discovered the lending criteria has changed and now lenders are looking for 25%-30% deposit. You need to be able to demonstrate to your prospective lender that you have built-in contingencies to cover void periods, general maintenance and insurance.
Letting agents: we are fortunate in the UK buy to let market that we have several options for letting agents. We have in our experience had the good, the bad and the ugly-this is a specialist area and you would do well to invest the time and effort to interview and test them thoroughly. Let's be honest we are buying investment property for the long-term and need to ensure that we have the best team around us. Once you have agreed terms you are relying on the letting agent to ensure you have full occupancy of your buy to let properties. Therefore do not skimp on this important factor of your business.
Quite often you will be targeted with off -plan properties with fabulous (unqualified) ROI figures. The professional property investor will disregard these figures and carry out their own research to draw a realistic conclusion. Far too many companies advertise properties indiscriminately promising huge returns which unfortunately are totally unrealistic. One important question to ask yourself is why buy properties that developers are marketing in this fashion? If it looks too good to be true, more than likely it will be.
Location, where do you buy investment property? Some will say 'it's far too expensive where I live' and go on to purchase in some remote area of which they know nothing about. This is all good and well as long as you carry out your thorough research and you can manage it one way or another. We would suggest in the first instance you concentrate in the UK buy to let market ie: your own backyard there are deals to be found if you look hard enough-let's face it no one said it was easy.
Property Investor Tips
Barbury Properties
Article Source: http://EzineArticles.com/?expert=Michael_Bury
http://EzineArticles.com/?Tips-on-Buy-to-Let-Property&id=4545888
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