Your investment property Information
Purchasing property is an art by itself and there are many ways to find the property you want to purchase. Investors soon came to realize that while other forms of investment came and went investment property tended to be much more reliable for long period of time rather than stocks and shares. Investment property provides a real tangible asset to an individual. Investors should be careful in purchasing investment property. The successful property investment and land investment is littered with those who have made a multitude of investment and made other mistakes and paid the price. So we give below your dreams of investment property and avoid the pitfalls along the way. In order to enhance property purchasing there are many ways of getting the property below the market value.
There are many investors for property investment and some of the methods are described below:-
1. Buying the property through an estate agent.
2. Buying the property at auctions
3. Purchasing using the internet
4. Private purchase through contacts or friends
5. Repossessions through estate agents
Investment property is bought by many investors through estate agents. These agents negotiate tricky issues with the vendor. The agents have to be advised on what your budget is, type of property you want and the type of good deals they can offer. It is important to find out why the seller wants to sell his property. E.g. Moving jobs, divorce. Financial problems?
Investment property could be brought at auctions also. Most of these properties are sold at about 10- 20% below normal market value. Because of the sellers market in UK at present, some properties are sold at below market price so with the bidding it will come up to the market value. Some things to watch are whether the property has any structural defects, in the area whether there are rising crime or next to a new road or development.
There are many companies that specialize in internet sales. They offer many services and the most basic is advertising the vendors property.
It is worth to scan the private property sales in the newspapers. You might stumble across a real bargain. You might be able to get an investment property at about 20% below market value.
Most repossessed properties are sold via estate agents or auctions. There are very few repossessed properties at the moment in UK. Generally this kind of investment property is almost at the market price.
We give below 10 tips to help you achieve when you buy investment property.
1. Research the market
2. Choose a location
3. Crunch some numbers
4. Shop around
5. Target your tenant
6. Dont be over ambitious
7. Consider looking further afield
8. Negotiate
9. Know the pitfalls
10. Consider if you want to manage through a property management company.
If you need further details about
Investment Property in UK, Please visit
http://www.hbfinvestmentproperties.co.uk
Article author: Sudarshana P.H
Some would say that if you are buying and selling properties to make your income, that you are not a property investor. That would seem to be a debateable question.
What is a property investor?
I think we would all agree that a person who buys property and holds it, would be considered a property investor.
A person who buys and sells property to make their income would, in most cases, still say they are a property investor because they still have to invest and risk money in property in order to make their income. One could call this short term investing.
Personally I dont know of any particular definite clarification at this point but it is worth pursuing, more from an interest point of view.
This argument is one that is bandied around the share market where an investor is considered to be a person who buys and holds whereas a person who is in for the short term trade is considered to be a share trader.
So with property, is one called a property trader?
If you have been a buy and hold property investor and consider becoming a buy and sell investor then you will need to go through quite a different mind shift.
The two property investment strategies are quite different from each other.
Some buy and sell investors do just that, buy and sell. Buy low and sell high, whereas others like to be involved in renovating to make their profit. These are two different strategies again and each needs their own set of criteria in a business plan.
Generally a buy low purchaser would be looking for sales which have to be sold for a particular reason like:
mortgage foreclosure
deceased estate
divorce dispute
severe illness
If a buyer is cashed up and purchasing in these particular situations, a very good price can often be negotiated.
Article author: mark tait
To help you with your investment property calculations you might find the following form very useful. The suggestion would be that you complete one of these Property Cash Flow Analysis Calculator forms for each property you own and fill one out before you go to contract on any others.
Each property needs to stand on its own merits and having a form for each property will help you keep a close eye on what is going on where and when and whether or not there needs to be any action taken.
You could copy this calculator and print it or you could put it into an Exel spreadsheet for ease of use.
Property Cash Flow Analysis Calculator
1. Investment Property Purchase Costs $
..
2. Income Rent $
.. x 52 weeks = $
.. (A)
3. Investment Property Outgoings (per annum)
- Loan Repayments Interest Portion $
..
- Insurance $
..
- Rates $
..
- Body Corporate $
..
- Agents Commission $
..
- Maintenance $
..
- Borrowing Costs $
..
- Travel $
..
- Other $
..
- Total Outgoings Per Annum $
. (B)
Net Cash Position (A-B) $
. (C)
4. Non Cash Deductions
- Depreciation - plant & articles $
.
- Building depreciation - capital costs $
.
- Total Non Cash Deductions $
(D)
Tax at marginal rate D x (15%, 30%, 40%, 45%) refunded $
.. (E)
Cash Flow Position
Net Cash Position Deficit / Surplus (C) $
.
Tax Refunded as calculated (E) $
.
Contribution required by Investor per Annum $
.
Contribution required by Investor per Week $
I hope this helps with your property investments.
Happy Investing
Article author: mark tait
