Building Solutions (Midlands) Blog » Property Investors

Harder to profit from buy to let?

Richard — Thu, 29 Jul 2010 18:54:56 +0000

With nearly a million people facing cuts to their housing benefits many buy to let landlords will be facing the usual issues with collecting rent from tenants who have little or no funds. There are many in the property sector that feel this could lead to a two tear system. With the lower end of the rental market becoming poor quality and the possible gettoisation of some areas with a high percentage of let properties.

How to buy houses below market value

Richard — Sun, 25 Jul 2010 15:38:45 +0000

There are several ways to obtain houses below market value, but most methods require a high amount of time and commitment. They range from courting your local estate agent through to attending all the local property auctions. There are some companies that can provide portfolio building and source below market value properties. Some of these companies have suffered in recent times as their operations have become hampered by the recent drought in the buy to let mortgage lending’s markets. If you do chose to invest in below market property in the Midlands, Derby, Stoke-on-Trent, Belper, Ripley, Heanor, of Alfreton and the surrounding areas. There is one company with over 12years trading history and an enviable network of contacts within this area. ambervalleyhomes

Buy below market property

Richard — Sat, 24 Jul 2010 13:45:18 +0000

If you are looking for great property investments one of your main concerns will be getting your new investment property below market value. This way you have a head start compared with many other landlords and property investors in your area. There are several companies that can assist you in building property portfolios and help you find property below market value. It is always a sensible idea to go for a company with a well proven track record and a good trading history. If you are looking for a company to help you with your property investment strategies in the Midlands, we recommend Amber Valley Homes, with 12years of property trading experience they are always please to help new investors with sound advice. ambervalleyhomes

Good news for commercial landlords as High Court rules that some company voluntary arrangements are unfair.

Richard — Fri, 23 Jul 2010 18:37:24 +0000

A recent high profile court case has given many commercial property owners and managers a feeling that justice has been done. Landlords have long complained that company voluntary arrangements and pre-pack agreements are becoming a refinancing tool rather than a last resort. Retailers in particular have been accused by some in the property sector of using this type of legislation to circum vent lease agreements and pass some of their problems on to landlords. Some administrators have been accused of losing their sense of fail play over the use of company voluntary agreements and pre-pack companies. This recent court ruling will at least set some clearer frame work for retailers and landlords who find themselves in these unfortunate circumstances.

The ups and downs of UK house prices and the fundamentals of economics

Richard — Mon, 12 Jul 2010 20:19:03 +0000

The UK house price is affected by the fundamentals of economics but driven by sentiment, it follows the ups and downs of the economy and also the sentiment of the UK public. It would seem that both economics and sentiment have conspired for the third consecutive month to see the humble UK house price drop. The recent drop is thought to be partly as a result of the increased supply of homes hitting the market as many chose to chance their arm at a sale once the H.I.P. was gone.

Buying a property that needs repair

Richard — Sun, 11 Jul 2010 17:39:22 +0000

The are two main reasons that people chose to buy property that needs repair, firstly that they plan to give it their own look and feel or they are finding it difficult to get a suitable property in the location they need. The second main reason why people chose to buy a property that needs repair is that they plan to profit from property. Many property buyers simple cannot find the time or inclination to commit to building work, so these problem properties are often available at a discount. So this is how many canny property developers make a living buying up properties that are in a state of disrepair and renovating for a profit.

Should I buy a house at auction?

Richard — Fri, 09 Jul 2010 19:39:22 +0000

As with any house purchase there are positives and negatives, buying a house at auction is no guarantee of a bargain, but most are sold for an attractive price. The main negative is the speed at which you need to move, there is not time for lengthy debate you need to make a firm informed decision and move quickly to get your property finance in place. Not all properties that are sold at auction require work but the vast majority will at least require some attention. You will need to find a good local builder and ask your estate agents advice on how best to maximize your profits from property development.
They may advise a simple refurbishment or they may advise that the type of property you are buying would benefit from a home extension to make the kitchen or living space more appealing. Whatever your plans for buying auction property the best advice is to go to a few property auctions before you think about buying a property, so you get a feel for how property auctions work.

The number of houses for sale increases by 60% year on year

Richard — Tue, 06 Jul 2010 08:43:46 +0000

The abolition of the Home information packs has undoubtedly given many home owners the motivation to market their properties. Last year was obviously a slow time for property sales and that has been part of the reason why the increase in sales stock has been so dramatic.
The increase in available property has also lead to an increase in the number of viewings which is very positive news for vendors. It must be said that the increase in property viewings is only around a third of the number of new instructions hitting the property market.
Interestingly only two regions in the UK have seen sufficient increase in property sales in June one of which was the east midlands with sale increasing by over 6%.

Landlords require more powers of influence over Insolvency practitioner’s charges?

Richard — Fri, 02 Jul 2010 10:01:35 +0000

There has been much debate in recent times that is tougher times. That the number of insolvencies has increased. Landlords have been concerned that insolvency practitioner’s fees may be high in comparison with similar fees required by secured lenders in the recovery of assets. Landlords who are often unsecured creditors are at a disadvantage in comparison with Banks who have a direct charge on a director’s home or other assets. So it may be that further regulation will appear in these more challenging financial times to assist landlords in debt recovery.

Increase in VAT gives the renovation and construction industry a temporary boost.

Richard — Thu, 01 Jul 2010 07:34:25 +0000

The planned rise in VAT will make many developers bring work forward to avoid another 2.5% extra renovation or build costs that they have not planned into their development appraisals. There is no VAT on new build properties so the new build development sector will remain unaffected. The other budget change that few have really given much thought is the capping of housing benefit. This will have an immediate affect of the purchasing behavior of landlords. They will now be very careful when considering adding properties to their portfolio that have high rents as the government has capped weekly rents. Those who hold this type of property will be looking to switch to professional tenants and move from those tenants on housing benefits. This will add further pressure to the private rented sector, and give more reasons for those accidental landlords to off load their investment properties. It appears that the world of the professional landlord is out of vogue and will be left to the hardcore that manage and repair their portfolios and keep expenditure to the minimum.