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Tips for Making a Sound Real Estate Investment

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Tips for Making a Sound Real Estate Investment

Article by Atarjamat









When you are ready to purchase real estate for investment purposes, you need to learn to look at the process differently than you would if you were buying real estate for personal use. You need to learn to look at the property in terms of how it can make money for you now rather than how much it can yield for you in the future. Certainly you will want to see the tax advantages, especially if your intent is to buy the property and resell it at a profit. There are also tax advantages to renting a property but they are contingent upon the dollar value of maintenance and other costs you put into the property. You will offset these costs against your rental income in order to calculate the amount of your tax credit for that property.

Whether you are going to resell it or use it as a rental property you have to consider how much work you can afford to put into the property and still make a profit. Certainly if you get the property at a substantially reduce price you can afford more repairs or renovations than one for which you have a pay a higher price. In addition you will have to make more repairs and renovations on a property to plan to use for rental property. Another thing to consider when you are investing in real estate for rental property is you must keep the property in top condition if you expect to retain tenants. Even those who rent property do not plan to move every time their lease ends, so they want some place they can feel comfortable and where they can depend on the landlord to keep the place in good condition.

Where can you find real estate investment property at a reasonable price? If you look around you can find information online including the location of <ahref=”http://theinvestorpages.homestead.com/OscarBerlangaBuyers.html”>wholesale investment property. You will be able to find thousands of real estate investment properties at wholesale prices if you take the time to search instead of trying to rush into buying investment property. If you rush you increase the chances of making a wrong decision and thus buying a property that will not be profitable for you. Therefore to save yourself from choosing something that turns out not to be a worthwhile venture take the time to research before you buy any real estate for investment or even for personal use.

If you aren’t sure where to find profitable <ahref=”http://http://techhousebuyers.com/”>real estate investment property, you want to take the time to conduct some research online in order to be in a position to make an informed and educated decision. Only when you research each property you are considering buying as an investment can you be sure you are making the right decision and that you aren

Buy to Let Investment Advice for the UK – 4 Tips for Success

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Buy to Let Investment Advice for the UK – 4 Tips for Success

Article by Steve Martin









Buy to Let Investment Advice for the UK – 4 Tips for Success

Location – A good location is imperative. If you are looking at family sized homes then proximity to good school catchment areas will be important. If you are looking for Student style accommodation then properties close to colleges or transport links to colleges are good. There is also normally a Student Area of most College towns, typically where the larger, older houses with multiple rooms are found for an affordable price. If you are thinking of a modern apartment, then locations in the centre of town or near pubs, restaurants and shops are ideal places for young professionals to rent.

Avoid: Rural areas – there is a limited market. Bad neighbour hoods

Property Type – we have already discussed 3 types of property above. These all have advantages and disadvantages. The UK rental market is flooded with 1 and 2 bed apartments which have been bought by investors. If you choose to purchase an apartment then make sure it stands out from the crowd, either through location, design or price. Consider furnishing, as there are usually less furnished properties available in most areas (City centres excluded).

Larger homes obviously cost more to buy and maintain but are popular with executives relocating with families. They can receive higher wear and tear if there are children or pets present.

Student homes may be in cheaper areas which can over time become trendy places to live realising a good return on your investment. Renting on a room by room basis can achieve a higher overall rent than renting the whole house to a family. The downside is that they tend to not be looked after and can need a lot of TLC between tenancies and may only rent for 9 months of the year during term time.

Décor and design – Most people, regardless of tenant category look for the following:-

• Modern Kitchens with appliances – even if unfurnished.• More than one bathroom – unless studio or 1 bed flat.• Neutral colours – not necessarily magnolia.• Off road parking – preferably more than one space.• Outside space – terrace or balconies in apartments give the wow factor.• Low maintenance gardens.• Clean and tidy properties.

Rental Value – before committing to a mortgage do your research thoroughly. The main property portals will allow you to check the market in the exact area you are considering. Look at:

• How many of the type of property you are looking at are available at the same time. • What rental they are asking for (remember most people make a lower offer than the advertised price).• How long do they stay on the market?• The numbers of furnished vs. unfurnished.• The quality and design of the properties available.

You may print this article or display on your website providing you include the Authors name and link to letting agents leamington spa

For more information visit Landlord Information or Tenant Information



About the Author

Steve is Director of Martin Property Management – letting agents for Leamington Spa, Kenilworth and Warwick – Warwickshire, UK.










10 Tips For Buy-To-Let Investment Success

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10 Tips For Buy-To-Let Investment Success

Article by James Copper









The Buy-To-Let market place is booming. More and more people are investing in a second property as a long term investment plan. As attractive as the proposition sounds, there are a number of potential pitfalls that need to be taken into consideration. Use the steps below to ensure that your Buy-To-Let investment is a success.

#1 Choose The Right PropertyThe location is extremely important. Make sure that speak to a number of local letting agents to determine the supply and demand in the area. Look at such things as whether there are local employers or a university. You can get the details of letting agents near you by contacting The Association of Residential Letting Agents.

#2 Choose The Right MortgageYou will need to check with your lender to how much you eligible to borrow. Most lenders will allow you to borrow 85 percent of the properties value. Also most lenders will take into account the expected rental income when they are deciding how much they will lend. Make sure that your rental income covers 125 percent of your monthly mortgage payment.

#3 Work Out Costs And IncomeWork out how much your monthly mortgage repayment will be and whether the expected rental income will exceed this. Checking out the rental prices of similar properties advertised in newspapers in your area will give an indication of whether this is possible. Also look at whether you could afford your mortgage if interest rates shop up and the property is unoccupied for 3 months.

#4 Consider Hidden CostsYou will have to pay solicitors fees, estate agents fees, building insurance, mortgage arrangement fees, stamp duty and possibly service charges and ground rent.

#5 Budget For Ongoing CostsYou are responsible for ensuring that the property meets health and safety standards. Local authorities require that you comply with fire regulations, which could mean you have to put in fire doors and smoke alarms.

#6 Choose A Professional Letting AgentYou might want to consider using a professional letting agent. They will find tenants, collect deposits and the rent and arrange the inventory and tenancy agreements. But expect to be charged anything from between 10 to 18 percent of the gross rental income that you get.

#7 Ensure You Have The Right InsuranceAs you are the owner it is your responsibility to insure the structure of the property, which includes permanent fixtures and fittings. You will need to check your policy as most buildings insurance policies exclude buy-to-lets.

#8 Sort Out Your Tax PositionYou have to pay income tax on any rental income you receive, but you can deduct some expenses and you will probably be liable for Capital Gains Tax when you sell. You would be well advised to speak to your accountant before you proceed.

#9 Get A Fully Flexible MortgageThese types of mortgages are well suited to the buy-to-let market. This is because you can fluctuate your payments in line with rental income.

#10 View Buy-To-Let As A Long Term Investment Do not expect to make a quick profit on rental income and equity gain in the property. You look at the longer terms for profits. Generally about five to ten years.



About the Author

James Copper writes on all areas of finance. He works for Any Loans who specialise in Secured Loans and Remortgages.










Tips For Renting Your Investment Property

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Tips For Renting Your Investment Property

Don’t let all the effort that has been put into getting your investment home go down the drain. If you don’t take the time to assess things properly you are headed for trouble. Learn your rights and obligations as a landlord even if you decide to use a rental agency to handle your property. By letting your home through a rental agency you take the worry and stress out of the equation. They take care of it all for you unless maintenance you are responsible for has to be done. They can take care of it on your behalf by contacting the necessary people and sending you the account.

Renting out an investment home that you have secured with a lot of hard work and financial outlay can be an uphill effort unless you have property management know how beforehand. Without thorough background data you can be heading for a lot of trouble in way of unpaid rent, property damage and complaints from neighbors over noise issues from your tenants. There is much to know before you first attempt the rental of your investment home, and being forearmed with this knowledge will save disputes and stress. You must be aware not only of the obligations of the tenants toward you, but also your responsibilities to them. You will be responsible for making sure fans, hot water systems, stoves and plumbing are in good working order and electrical wiring is safe. When something goes awry with any of these, you will be expected to fix it at your own expense.

The activities involved here can be pretty exhausting for you as a landlord, especially that you are part of the workforce. You will have to make regular inspections to make sure the tenants are living up to their responsibilities. Why not take the load off your shoulders and find yourself a respected, reliable real estate agency to do this for you. They will do thorough background and financial checks on prospective tenants, arrange the signing of the tenancy agreement, make sure the rent is paid on time and make regular inspections of the property. If there is a problem that needs to be addressed they will liaise between the tenant and yourself, saving you the need to be directly involved.

The fee for this service is a small price to pay when you consider the peace of mind it will bring you, and the time it saves you doing it yourself. These people are experts in property management. They have to be as it is their livelihood. Choosing this step is the best thing you can do for you and your property.

A property management Sydney agency takes the worry out of renting out your valuable property. All aspects of the rental are taken care of by the real estate Double Bay like LHI Real Estate http://www.lhi-re.com.au/, and can recommend repair companies for things that you are responsible for maintaining if you don’t want to have to do it personally.

How to know if your UK property investment is being used to grow illegal drugs

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How to know if your UK property investment is being used to grow illegal drugs

As a landlord , when you let a property, you hope that your tenants will treat your property with care and respect ensuring that, at the end of their tenancy, they return the property to you in the same condition they found it in when they arrived. You also assume that your tenants will not undertake any kind of illegal activity in the house. Unfortunately, this isn’t always the case. In the UK there is a growing trend towards tenants renting properties for the purpose of cultivating illegal drugs. Make sure you reduce the risk of becoming a victim of this type of activity by learning how to spot the warning signs of illegal activity.

The equipment and materials required for growing cannabis can be acquired quickly and cheaply by almost anyone. This combined with the attraction of being able to carry out the activity in someone else’s property has made it a relatively simple task for the criminally minded tenant to set up a cannabis factory. However you can mitigate your risk of falling foul of this type of activity by looking out for a few simple clues

Your vigilance should start at the tenant viewing. Tenants intending to grow cannabis may show little regard for the practical considerations that would normally concern prospective tenants such as identifying a space to position their washing machine in the kitchen or checking there are enough sockets where they would want to position their television. They may not even look in all of the rooms. This is because they do not intend to use the property to live in, in a normal fashion

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You should also be wary of tenants who show an unusual interest in the electricity supply at the viewing. If a tenant asks repeated questions about the location of the rcd board, where the supply enters the house, and other aspects of the electrical infrastructure this could be another indicator that they intend to grow cannabis at the property. The reason for this is that cannabis needs a lot of heat and light to grow, meaning that the  electricity consumption in the property will increase massively. Invariably the grower will try to tamper with the wiring, by bypassing the electricity meter, as a way to avoid detection

You should also be wary of any tenant offering to pay the rent for the entire tenancy upfront and in cash at the start of the tenancy. Cannabis growers will often make such an offer to increase the chances of you not needing to visit them and disturb their activity, during the tenancy. Also, doing this will mean that you do not have their bank account details, making them more difficult to trace if their activity is discovered.

When a tenancy has started there are other signs to look out for. Cannabis cultivators will obviously try to hide their activity from view and therefore will ensure that curtains remain closed and windows blacked out at all times. If you notice that this to be the case during the day time it should arouse your suspicions. You should then attempt to contact the tenant to arrange a property inspection. If the tenant ignores your calls or tries to avoid an inspection this indicates that they do not want you to see the inside of the property and should arouse you suspicions further.

In such cases you may wish to examine the rubbish being thrown out of the property for further evidence. Large quantities of plant waste and an unusual odour provide further reason to be suspicious.

Following these tips should ensure that your uk property investment is not an easy target for cannabis growers. However, if you have reason to suspect that cannabis is being grown in  one of you investment properties, you should contact the police immediately and ask them to investigate.

For more information on issues related to investing in property in the UK go to :

http://www.investmentpropertyinuk.com