Click Here >>>>>
Estate Agents Consett New Homes Consett
Selecting a new home may be the largest
decisions you will make and we at Strathmore
Homes are committed to making that
as stressful free as possible and that
home will bring you pleasure for many
Our success and reputation are based
a firm belief in traditional values
combined with a determination to be
in design and construction. Strathmore
is committed to being the leader in
With poor stock-market performance over recent years and many experts suggesting this may continue for some years, wise chosen buy-to-let property investment opportunities are a great way to either balance your strategic investment portfolio, prepare something extra for that increasingly more risky pension plan. Rental yields of 5-12% pa are possible, even in a static or falling market. In addition, capital gains are quite possible in a growth market, in which case your rental yield can be impressively supplemented by the additional capital appreciation. In the past, property gains have been excellent and many investment and pension funds traditionally concentrate a portion of their fundholding on property investment. Indeed, while rents increase with inflation, loan repayments may stay fairly constant and so your profit should go up as the years go by. However, as always, past performance is no guarantee of future performance.Though buy-to-let is not without its problems. It is suitable for long-term investors, and people saving for their retirement and to supplement to a pension. As with any investment, you should not put all your eggs in one basket.
Beware of wildly forcast profit figures and ensure you take advice from a competent letting agent such as those found though ARLA. Excessive profit forcasts are often unreal after taking account of the expenses of running an maintaining the home, including a number of hidden expenses such as insurance, gas safety checks and central heating contracts. Buying an older home invariably means maintenance expenses are greater. Fortunately by investing in a new home there should be a lower expense of maintenance with a higher monthly rental. Consequently this produces a better net profit return.
If you need to borrow to fund an investment
property, lenders typically charge one per
cent higher than on loans for your own home
and the normal status checks apply. The usual
range of deals is on offer from around 20
of the major players. Try a mortgage broker
who specialises in buy-to-let as they may
serve you best. Lenders will normally take
into account your salary as well as the rent.
To be on the safe side, rents should be 130
per cent to 150 per cent of the mortgage
payments. With buy-to-let, a hefty deposit
of 25 per cent to 50 per cent of the value
of the property is normally required. There
may also be the usual arrangement and valuation
fees of around £500, not to mention stamp
duty, legal and other costs.
Location is everything
Buy a property for commercial reasons alone,
never just because you would like to live
there yourself. There are many options -
with the Government 's intention to encourage
half of all 18-year-olds to stay in higher
education, students are a growing group.
First-time buyers are finding property too
expensive, so they are renting instead. Company
lets are still in demand. "Location,
location, location" is everything. A
one-bedroom flat in central London may be
better than a house in rural Britain. Properties
near good transport, popular town or city
centres, popular holiday destinations and
universities are wise choices. Visit local
estate agents - ask them how much current
rents are in the area, the demand, the likely
period of vacancies and what standard of
décor is expected. Once you have chosen the
right property, make sure you select an agent,
particularly if you are inexperienced. They
may take up to 15 per cent of the rental
should you chose the all inclusive package,
but it is worth it as they alleviate stress.
At the lower cost end of the option, you
can simply appoint an agent to "find"
you a tenant. The agent drops out of the
picture once both parties start talking.
LINKS TO INTERESTING WEB SITES:
The Deputy Prime Minister's web site for
assured shorthold tenancies - a guide for landlords and tenants with
links to other sites