Posts Tagged ‘Investment Property’

Whether you are after a bargain investment, an unusual property with character, or the house of your dreams that you have been waiting to buy for years, buying a house from property auctioneers can work out to be great value.

As the hammer drops you can find yourself walking away with an amazing deal. But it can also go the other way – if you don’t do proper research, you can find yourself lumbered with an expensive wreck that you’ll never be able to shift.

As with much of the property buying process, the key is research. The more time you put in before laying out your hard earned cash, the better your eventual deal could be.

This attitude towards buying from property auctioneers has been confirmed by new research from a company called Auction Finance.

It discovered that 25,000 houses are sold at auction each year. Figures from the Royal Institution of Chartered Surveyors show that’s around £5.2 billion of property a year.

Auction Finance’s survey showed up to three out of four people bidding for homes at property auctioneers hadn’t even got a valuation on their potential new home.

And the company says that’s like playing Russian roulette with your money, especially if you’re not a professional property investor.

It believes that you have to have huge experience in buying from property auctioneers to be able to spot potential problems in a house just by looking round. Most people would be better off getting a survey done first.

Seeing as you might have to have three or four surveys done on potential properties, experts suggest you put a portion of your overall budget aside for surveys. It will be money well spent to discover subsidence problems before you’ve paid out hundreds of thousands of pounds.

Other advice from experts revolves around spending time on the internet finding out all the information you can. Use a good property portal to look at the prices similar houses have sold for; this will help you set an accurate price guide.

Also use search engines and council websites to check the demographics of the area. It’s pretty easy these days to find out crime statistics, flood risk and what neighboring properties sold for, even for a country property. You can also get information on the house from the Land Registry for a small fee, which is a valuable investment before you go to property auctioneers.

And it’s worth typing the address and postcode into search engines, and on local newspaper websites.

The other research you can do is pounding the streets. Visit the area at different times of the day to see what the traffic is like, if it’s affected when pubs kick out, etc. Keep an eye out for signs of crime such as boarded up windows or broken glass next to cars. If lots of houses are up for sale, ask yourself why.

Knock on neighbors’ doors and ask them about the house – you might be surprised what you will learn. Have a series of questions that you want answered, such as the recent history of the property, why it is up for sale at auction, and how well it has been looked after.

Be friendly with the people you speak to; they might be your neighbors soon! And while you are knocking on doors, remember it’s an area you don’t know. Stay safe and don’t attempt this exercise on your own.

With all of this information backing you up, you will find the process of buying from property auctioneers a lot less scary.

The recent stabilisation of house prices coupled with the increasingly stringent lending standards may give the impression that first time homebuyers with little or no savings have no option but to forego their plans of buying property. Indeed, data provided by Nationwide showed that the average first time buyer in the UK has to use 49% of their post tax salary towards mortgage payments – the highest level since 1990. But according to a recent survey, the current climate in the UK does not deter many property investors from acquiring their first property even if it meant purchasing them somewhere else. A significant number of people are making their first property purchase abroad.

According to many property experts, the rising cost of mortgages and excessively expensive property prices have compelled some first time buyers to purchase their first investment property abroad.

Fifty percent of these first time buyers say they would buy overseas so they could get on the property ladder. In addition to this, the survey also found that the number of first-time buyers who are thinking of investing in property abroad has increased twofold in merely 10 months. France in particular provides a secure investment for first time buyers because of the strength of its property market. Experts agree that the outlook for the French property investment remains optimistic giving investors a better chance of earning solid returns on their investments.

The survey also reveals that countries at their peak are seeing property values rising by up to 30% per annum. This allows property investors to start taking in a weekly or monthly profit almost immediately from the rental of their property abroad which they can use to put back into a deposit for a property in the UK.

For property investors who have decided to get on the property ladder, experts provide the following essential advice to help make their climb a much easier task:

* Save up for that important deposit. The end of the 100% mortgage spelled trouble for many homebuyers as they are now obliged to put aside a significant deposit. Industry experts suggest drawing up a budget for expenditures, opening a savings account and depositing a fixed amount each month.

* Opt for shared equity. This type of scheme allows homebuyers to buy a property at a discounted price (for example 90% of the purchase price) with someone else such as a property developer holding the second mortgage on the property for the other 10%. When the property is eventually sold, they would get 10% of the property’s new value.

* Buy property using shared ownership. Getting on the property ladder is also possible through a shared ownership basis. For instance, homebuyers could own 75% while someone else, usually a Housing Association, owns the rest. Mortgage payments can be paid on the 75% and rent on the other 25%. This setup also offers buyers the option of buying more at set times.

As with any other investment, it’s best to seek the help of qualified professionals who can provide homebuyers with the best advice and at the same time protect their interests and make the purchase a stress-free experience.

If you’re a real estate agent that does not sell multifamily or other investment real estate at least some portion of the time, then you’re missing out on a great opportunity to build your real estate business.

Moreover, I believe that any real estate agent can sell multifamily property just by learning a few basics, whether they’re a novice to real estate investing or not.

Hey, when I started in real estate, I made the jump from residential real estate to income property sales almost immediately. Just six months into my real estate career I sold a shopping center and made a $24,000 commission…and I knew less about real estate investing then what you’re about to discover in this article.

But I digress.

The point is that you don’t have to become a commercial real estate specialist to sell rental property. Yes, commercial expertise is necessary to service some properties, e.g., leasing, but ordinary real estate agents can typically handle multifamily property transactions quite successfully, and generally do when they want to. That’s how I did it, and so can you.

Moreover, don’t sell yourself short. If you’re a real estate agent, then you are certainly in a great position to work with income property sellers and buyers. Remember what we learned about real estate, that it’s a “contact sport”. Think about it. Investors walk and call in to real estate offices, are previous customers, relatives, friends, and neighbors. In truth, we’re surrounded by potential real estate investment customers.

Finally, strike the thought that any effort you make to sell rental property won’t be worth it. The untold secret about investment property, what others would not want you to discover, is that real estate investors typically purchase more than one property over time. Moreover, unlike home buyers (who purchase one house), real estate investors are known to purchase multiple properties plus, are often willing to sell for the “right price” because there’s no emotional attachment like with a home.

In other words, when you get the opportunity to work with one investor on one transaction, you potentially are setting the stage for multiple transactions.

Okay, now let’s go down the list.

1) Make the Decision

Foremost, decide to make some portion of your real estate business investment business. You don’t have to throw your residential business under a train. If you want to keep selling houses, great, just don’t get started with rental property half-heartedly. If you need an incentive, bear in mind that investment properties can easily generate multi-million dollar transactions equal to three or four residential transactions; therefore, a golden opportunity to bolster your annual earnings in this troubled housing market.

2) Learn the Basics

Unlike residential property, where amenities like kitchen size and school district are important to buyers, other than how they impact rents, amenities generally mean little to those who buy investment property. Real estate investing is about the numbers.

As such, investors are less impressed by an agent’s style and panache than they are with the agent’s ability to discuss investment property and provide timely numbers and reports. It’s not about Armani and Mercedes. Listen. When an investor asks, “What’s the property’s cap rate?” and you have the answer, that’s all you need to start making the right kind of favorable impression that will keep the investor from dumping you for your competition.

At the very least know how to compute capitalization rate and gross rent multiplier and be able to create an APOD. There are numerous websites devoted to real estate investment definitions and formulas where you can learn what you need easily, including my website.

3) Tool Up

Investing a few dollars for quality real estate investment software that enables you to create cash flow, rates of return, and profitability presentations is one of the best tools you can procure for real estate investing, bar none. Here’s why.

Foremost, it makes a statement to investors that you work with rental income property. Presenting quality reports with concise financial data suggests to investors that you’re serious about investment property, can assist in a sound buying decision, and might genuinely care about how the investor spends his or her money. It’s about winning investor confidence.

Secondly, it tells your colleagues that you work with rental income property. This benefits your business because it gives you income property credibility and in turn can lead to additional referral business.

Thirdly, you can learn about rental income property. Almost by default, the formulas, returns, and reports generated in real estate investment software tend to rub off. It’s as a customer of mine remarked, that my software contains everything about real estate investing it took him 15 years to learn. You get the idea.

4) Prepare

You’re making a crucial mistake if you wait until you’re confronted by an investor to learn the terms or buy the software. Urgency is always an issue when investors make the decision to buy or sell investment property, and if they see you pause or scramble for answers, they’re not going to have qualms about calling someone else. Winning or losing a sale often rests solely on the perception a customer develops within seconds during the first encounter. Don’t blow it.

5) Promote

Finally, let people know that you work with multifamily property. Foremost, call your residential customers and ask whether they’ve considered investing in real estate. Remember, investors are homeowners. Tell your relatives and friends. Obviously, the more people that know you’re prepared and equipped to do a real estate analysis and run rates of return for them, the better. I’m preaching to the choir, here, of course, but I can’t emphasize enough the impact your preparation for investment real estate will have on others.

Here’s to your success

Many developers in the UK will offer significant discounts to purchasers who choose to buy their investment property off plan, i.e. before the build is complete. Current examples include The Cube and The Mews developments in Manchester, both marketed through the website BuyProperty4Less.com. These builds are due to be complete in autumn 2008 and contain apartments from £116,450 to £152,150, available with a 15% discount for those buying off plan. In the fashionable Ancoats area of Manchester, the Ellesmere Property Group is offering 17% discounts to off-plan purchasers of apartments in their Ingenta development. Here there are 30 properties for sale with gross prices starting at £181,260.

The website off-plan.co.uk also holds a range of interesting investment opportunities, including Victoria Court at Platt Bridge in Wigan. Here there are ten luxury two-bedroom apartments available priced at £125,000. Those buying off plan can save 15% on that price, which works out as a discount of £18,750. If you are looking for a good discount on an investment property, search for new developments in your area and you could be pleasantly surprised.

For those who wish to do their own redeveloping, going to auction can be a cost-effective way of purchasing an investment property. According to the Sunday Times, “90% of cheap property is sold at auctions”. Due to the popularity of purchasing investment property at auction there are now a growing number of companies that offer to keep you up to date with the latest auctions for a small subscription fee. One of these services is run by IPDS whose website, auctionpropertyforsale.co.uk, also contains useful guides to the auction process. Another website, LandlordZone.co.uk, has a number of useful links to other companies where auction listings can be found.

Another way to make the most of your investment property is to buy in to an area of expected growth. Scotland is currently at the top of the list of many of the UK’s property forecasters. Scotland is enjoying a period of economic prosperity due to the oil industry and is the focus of much new investment. The good news for investors is that the property prices in Scotland are on average around one-third less the elsewhere in the UK so it is possible to buy low and get a higher-than-average return. With its great transport links, growing university population and rich history, Aberdeen is full of potential for those searching for investment property. The agent Gavin Bain & Co holds a wide range of properties in the area, which currently range in price from £68,500 to £450,000. Dundee is also a good prospect for investment. Here, Your Move is currently marketing a three-bedroom city centre flat in an attractive converted mill building for £137,950. If you prefer your investment property to be in a brand-new development, take a look at Discovery Wharf. Construction and Property Marketing have two and three-bedroom apartments in this modern building from £161,000 and £187,750 respectively.

Taking advantage of a buyer’s market means that after the initial saving, investors will be looking to the long term for significant returns. However, buying to let in thriving university towns and regenerating business regions can offer great rental opportunities. As always, good research and good timing are the keys to success.

Interested in investing in buying property? Look for great opportunities at http://www.buyproperty4less.com/

Property investment has become a boosting choice for people looking for greater freedom in how they spend their interim time or how they invest for the future. If you planning to purchase Investment Property there are many choices in the internet which give you access to the biggest selection. Auction property investments, Off Plan Property Investments, Distress Sale Properties, everything the property investor requires under one online property marketplace.

Recently, the media has reported that most areas in UK have listed rates shrinks, with property investments in Greater London taking the sharpest drop of all. These estimations may be sourcing some people in the UK to question if it is still in fact a perfect time property investments.

Stories of a property investment crash in the UK have been constantly in the news for quite some time now. But many property experts are of the certainty that the property market will remain solid. The reason behind this is that the deliver of property is inadequate to meet demands not to mention the fact the property is still affordable.

When the prices falls or when there is a decline in asking price, there is always a group of ready investors that are inclined to pick up bargains. These comprise of people such as first time investors, family movers, or property investors seeking property investment deals. The justification why there is a ready supply of investors is because there is a essentials under supply of property, as the current number of completed establishments is running below demand.

The intensifying demand for a deteriorating supply of property investment will produce prices to remain firm. Even though unsold properties have been reported to rise, the unsold stock levels are expected to remain below the long-term trend. Immanent migration has increases drastically due to the attraction of the UK as an excellent place to work and live in.

Additionally, there are also two suitable circles that make the decision in property investment is a sound one. Evidently, no issue which way the UK economy turns, property investment market is still expected to stand out, most especially over the long term. First, when the economies of the world enter another recession or denigration, then interest rates could come down, further decreasing property investors’ expenses, while retentive the rental revenue. Second, if the capital venture of property investment takes a fall, then people will terminate purchasing investment properties, and rent alternatively. The growth in rental demand wills then surprise in property investment income.

Not all real estate property types may be appropriate for new real estate investors. There are many factors to consider when making the decision to add real estate to an investment portfolio.

When deciding on a residential real estate investment strategy, some options for new investors to consider include:

Rental units

Rental units can be considered both long term and short term investments. Types of properties that may be considered for this category would include:

* Detached single family homes

* Attached single family homes

* Multi-Unit properties

* Condos/Townhomes

Being a Landlord

Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property issues can be very stressful and time consuming. One way to minimize the impact of being a landlord is to hire a professional property management company.

Hiring a professional property management company has several advantages:

* Allows owners of rental properties to be ‘shielded’ from dealing with tenant and property issues directly.

* Provides a buffer allowing the owners to maintain a hands off approach to managing their properties.

* May provide a less stressful experience

* Offers the ability to purchase real estate investments not immediately local to the investor.

* Provides a single contact point for all issues regarding the investment property.

Professional property managers are well versed and prepared to manage tenant and property issues as they arise. They will typically take care of all issues relating to the property.

Many offer their services at reasonable prices and rates while others can be quite expensive depending on additional services being offered. You may expect property managers to provide the following services:

* Advertise properties available

* Receive applications for tenancy

* Perform Credit and Background checks for applicants

* Recommend rental pricing

* Pay maintenance and/or repair bills for the owner

* Send monthly statements and rental income (Less any outstanding bills.

Typically these are deducted and itemized from the rental income and will appear on monthly statements)

Flipping or The Bane of New Investors

Often times, new investors in real estate are overly anxious to ‘flip’ properties and make a significant profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for ‘flipping’.

The real estate market fluctuates greatly. Yesterdays great ‘flipping’ market may be (recent market trends as an example) tomorrows ‘Hold on to it’ market. While this is certainly a desirable quality of an investment property, it is and should not be the primary consideration for new real estate investors. The competition for this type of real estate investment is fierce and occupied by seasoned, experienced professional builders and investors

Property Types

Let’s discuss the various property type which may be considered by new real estate investors.

The selectionof the type of real estate property for investment purposes may be based on several factors.

These factors include:

* Financial considerations – How much can you afford?

* Availability of properties – What types of properties are available?

* Location – You’ve heard this one a thousand times – Location…Location…Location…

* Income potential – Does the property in question match your real estate investment strategy?

Detached and attached single family homes Single family homes whether attached or detached are often the first real estate property type new investors seek. In many areas, they offer the most availability of any property type.

Prices obviously vary greatly with these property types as well.

Multifamily Properties

Apartment units such as duplexes and triplexes should be considered as a viable option for new real estate investors.

Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio of commercial real estate holdings and to build their equity before moving on to larger commercial real estate investments.

Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be owner occupied.

Summary

Selecting an appropriate type of real estate property in which to invest is a primary consideration for all serious real estate investors.

Real estate investment strategies include the decision of whether or not to become actively involved in the management of the property. Professional property managers offer alternatives to assist in a “hands off” approach to owning residential income property.

Knowing there are options on the various types of properties to purchase as investment may provide new real estate investors the information needed to make that final decision to become a real estate investor.

End of Part 2

© Copyright 2008 Jennifer MacKay. All Rights Reserved.

A lot of people are making real money with their residential property investment portfolios.

While the concept can be daunting to new investors, the key to making money is simple.

And who doesn’t want to make money?!

You may already know just how simple it is, but if you haven’t, here is a quick guide along with some helpful tips.

A lot more than luck is required to make good investments of any kind. Really, with any investment the more you know the better you’ll do. With that in mind, you can study up on the basics of residential property investment. Nothing is more valuable than money, and the best way to protect and increase yours is with a solid strategy.

If you’ve done your homework and are ready to take the next step, then that means you’re going to be viewing a lot of residential investment properties. The number one mistake first-time investors make is buying into the hype of so-called hot properties, and overseas properties are all the hype right now. Sure, having the ocean in your backyard sounds nice, but that’s for tourists not for property investors.

For some new investors, the prospect of making their first residential property investment is overwhelmingly exciting while others feel only anxiety or fear. Both feelings are normal but letting your excitement override your good sense can prevent you from making the best investments, and letting fear hold you back can keep you from ever getting started.

Begin by considering the following questions:

· What are you really looking to accomplish?
· What type of long-term goals have you set?
· What are your expectations?
· What type of finance options do you have available?

Is Income or Capital growth, more important to you? Or perhaps both?

When buying and selling investment property, each investor will have their own goals and strategies. Regardless, many still fall for typical sales lines and enticing new deal offers over and over again. The best advice for new investors would be to start by determining and focussing on their investment property strategy goals. The following four basic options to property investments are:
1. Flipping Property – In order to profit from the sale.
2. Buying Development Land.
3. Invest in “Income Generating Property” in the “Buy-to-Let” and “Commercial Property” markets.
4. Invest in Property Development Companies.

Once you have decided which investment property strategy is best for your specific situation and goals keep the following business factors in mind: Consulting with most Professionals may seem like a good idea. Just remember that you should see your solicitor for legal advice, your bank manager for financial advice, your accountant for tax advice and your local real estate agent for actual property investment advice and also for any tips on where to find some of the better investments. Use professionals specifically in their areas of expertise only.

Lastly, beware of the media and incorrect and often misleading information. Stay on top of the property market by following top sources only.

When you’re comparing shares vs property in an attempt to decide where you’ll invest your hard earned money next, it’s never a case of one being entirely good or entirely bad. Shares and property both have their benefits and downsides. The important thing is to look for good choices in each sector, and to decide which option fits your particular situation.

For a while, the shares versus property argument was going in favor of property, as far as most people were concerned. Investing in property was fashionable. With the recent real estate crisis in America property investment is losing its appeal for many. However, that doesn’t mean that investment property isn’t a viable choice. Buying property to rent is still a good option, and there’s plenty of opportunity available in commercial property.

Stocks and shares have bounced back and forth recently, and many people are concerned about their future prospects. However, the right choice can mean that, for you, the shares vs. property debate comes up in favor of the stock market. It all depends on your situation – there are good things about both of them. Anyone who argues that one is definitely superior to the other hasn’t done his or her homework.

Benefits of Property

In general, property wins the shares vs property argument for people interested in stability and long term growth. Property offers good leverage and strong capital gains. Established properties fare better, and it’s important to choose carefully. Look for good locations and opportunities for price appreciation. If you want to be sure of income, think about rental locations as a safe bet.

Property investment is something that many find easier to understand than share investment. There’s a certain level of knowledge and sophistication required, but less technical understanding. In terms of shares vs property, property is also more tangible – you’ll be able to see where your money is going.

Investing in property can also give you more control over your investment. Property investors have complete control over the investment, where share investors have only the influence of their voting power. In terms of shares vs property, Property also gives you the ability to personally add value if you choose to renovate or develop it.

Benefits of Shares

When we talk about shares vs. property, shares offer high liquidity and good cash flow prospects. They’re easier to profit on in the short term, if you keep a good eye on shares prices. Income is one of the most certain parts of any investment return. That means you should look for companies you know to be well managed, which have a good profit record if you think shares are the best choice in the shares vs. property debate.

In addition to the above, when it comes to shares vs. property, shares are much more divisible. You can sell down portions of your portfolio without selling the whole thing – something that can’t be said about property. The minimum investment is also usually lower. If you can only invest five thousand dollars, that’s not a problem.

Transaction costs are lower in the shares vs. property debate, too. The only costs required are brokerage on acquisition and disposal. On the other hand, property will have a number of extra costs on both ends, plus the cost of maintaining it. Direct share ownership actually has no ongoing costs at all.

What is an investment property?

An investment property is a land or place, which is sold or bought for different spatial functions, which is carried on for a long period of time. By investing a property, people are able to gain more profits because a land’s value increases over time.

Getting or acquiring properties has become very popular across different societies all around the world. Investors in the stock market seem to be very excited with the results of their stocks at the end of the day because of the good effects brought about by many investments.

For a person who decides on getting an investment property, he or she must be able to determine for what purpose should this property have. In that case, knowing the different aspects of getting a property is very important. Location, accessibility and budget constraints are just some of the facets that one should consider in getting an investment property. Of course, you would rather want to have your investment property stand the pillars of time than it be wasted just because of some poor conditions such as environmental, economic and others. Thus, it is just very essential that a person have the right knowledge in property acquisition. By this, good research on the real estate industry as well as a attentive and keen look on the market should be done.

Things you need to know in looking for a good investment property

In looking for a good investment property, one should be able to know the span of time the land will be used and for what purpose. By this, you will be able to plan very well your strategies in utilizing the property that you would like to invest in. Remember that time is very important especially in investing a property. The longer you would like a property to serve a certain purpose or function, then the greater the rate of maintenance and improvements you will need to keep your property in good, working condition. Moreover, you will have to invest as well with the different features that will help enhance and improve the scale of your property’s usage such as appliances, furniture pieces, furnishings and accessories that will keep up with the trends of the current time.

Next, you should be able to set up a bridge amongst different people who may help you in knowing which properties are about to be sold. By this, you will have a list of different properties, which you can acquire to make a good investment. Aside from depending on your colleagues, you may also try searching on your own. Finding different prospective properties with your own effort may help increase your knowledge on the different site locations and features which can help aid you in your decision to choose which among the properties you will invest in.

Lastly, you should check if your finances are in good shape to accommodate the different price ranges that might come along the way in your search for a good property to invest in. Remember, looking for a good investment property needs to have a good amount of budget on the part of the buyer. If you want a property, which you need to last for a long time, then you will probably have to spend a lot of money to have it in your possession.

Property investment has always been considered an attractive option for many people in the UK who are seeking financial freedom. Even with the perceived stabilisation of the property market, property investors still consider the investment vehicle a viable one now that prices are declining and yields are going up.

The rationalisation for this is that the buy to let sector in particular is presently undergoing rising rents and shorter vacant periods – two factors that bring about lower voids compared to those of typical borrowers. Furthermore, by purchasing discounted property from distressed and motivated sellers, there is potential to earn instant profits from day one.

What buy to let offers property investors

Investing in property, particularly buy to let, offers financial benefits in the short, medium and long term. In the short to medium terms, property investment offers various tax efficiencies. For the medium term, property investors can benefit from increased rental income brought about by inflation and the rise in market rents. For the long-term horizon, property provides capital growth. Capital growth is the increase in value of your property portfolio over time. It refers to the money you make as the value of your property goes up in price.

Why buy to let remains popular

Here are the factors that contribute to a healthy demand for buy to let properties:

* Immigration. One of the reasons that buy to let has become a widespread investment vehicle is due to the rise in legal migration to the UK. A survey from Paragon Mortgages revealed that migration is adding to the UK’s population by 0.3% annually.

* Household shortage. According to the Department for Communities and Local Government, the UK needs more than 200,000 households a year to meet the housing demand. However many property experts say that there is a major shortage in housing supply.

* Social trends. The divorce rates in the UK have risen significantly: In 1980, there were 148,500 divorce cases in all of UK. In 2000, the figures climbed to almost 200,000, an increase of more than 30%. There has also been a considerable increase in the number of people who stay single by choice and enter marriage later in life.

What to consider before investing in property

* Where to buy: Property experts suggest that you look up historical data and consider the pattern of capital growth over the last 10-20 years. This will help you determine whether the location you are interested in buying property in is worth the money. Your main goal of investing should be to achieve long term capital growth.

* What to buy: When investing in property for the long term, you need to think about what type of property to buy. Some experts recommend apartments since these establishments have high initial returns and require low maintenance usually.

* When to buy: The time to buy property is as crucial as actually purchasing it. Considering that it is impossible to know when prices are going to hit rock bottom, some experts claim that the best time to buy is now.

For you to thrive in property investment, specifically buy to let, you should be able to find the balance between obtaining the best out of your property and effectively managing spending. It is similarly crucial for you to ensure appropriate rental cover and a suitable mortgage product. But most significantly you’ll be able to get the most out of your property if right from the start you have already earned profits from it – which is possible if you buy the property at a below market value price from a distressed seller.

The credit crunch has forced many people in the UK to divest themselves of some of their assets. This is a normal reaction to a declining market. But what about those property investing entrepreneurs who have chosen to hold on to their investments, are adding to their portfolio and are even taking advantage of the credit crunch? Why are these investors acting differently from the many others in the midst of a so-called gloomy outlook?

Holding on to your property

It isn’t surprising that many property investors have wisely opted to hang on to their properties in spite of a slowdown. Property is regarded as the best option for long-term capital growth and it provides an opportunity to earn long-term profits especially for those who buy in the right place at the right time. Over the long term, property prices have the tendency to move in cycles with property doubling in value generally every seven to ten years. This means that an investment property such as a buy to let investment property can be a prudent choice as long as it’s selected carefully and with expert guidance.

Also, the present buyers market has resulted in less confident banks and fewer suitable mortgage products for borrowers. Due to this, the number of potential buyers has considerably declined. This means that a property may not sell unless the owner prices it way below market value. Selling in the current market also poses a few disadvantages such as agents’ fees, solicitor’s fees and capital gains tax for those who own the property as a 2nd home or investment property.

Adding to your portfolio

Many investors have found that the present market is a good time to add to their portfolio. This is because of the glut of affordable properties being put up for sale in the market. Auctions in particular are good sources of cheap properties such as repossessed homes that can be acquired for as low as 30% below market value. As part of a smart property investing strategy, the key to making a good investment is to acquire properties at BMV prices. It doesn’t only provide enormous profits. It’s also the secret to obtaining little or no money down financing – an excellent strategy for investors looking to expand their portfolio.

A buy to let property is considered a good addition to a property portfolio. Buy to let has been viewed by many as a stable and resilient market because of the considerable returns it has generated. One important aspect about the buy to let industry is that the rental market is predicted to remain strong due to robust demand from tenants and from young professionals who have decided to forgo making a property purchase until a later phase in their lives as a result of the scarcity of mortgage products available for them.

Taking advantage of the credit crunch

While a credit crunch is extremely unfavourable for many, benefiting from it isn’t an improbability. As bad as it may sound, the economic downturn still poses a number of opportunities for the property investor. One is that you can take advantage of the competitive rates being offered by pursuing alteration plans for your property. The slowdown in the economy means that people will consider remaining in their current homes for a longer period which means that owners will be inclined to implement improvements on their properties.

Therefore a decline in the property market doesn’t have to be all doom and gloom. As long as you know how to play your cards right and implement effective property investing techniques, you’ll be able to survive the current property market.

Rentals have continued their upward climb down and are predicted to go even higher as certain factors that kept the rental market healthy continue to have an impact on the rental figures in the UK. According to figures from the Royal Institute of Chartered Surveyors, the demand for rental accommodations has continuously increased due to the stabilisation of property prices and the tightening of mortgage lending conditions. This bodes well for the property investor looking to add to his investment property portfolio.

Where to buy investment property

Buying a property despite the credit crunch may seem a disadvantageous move. However, according to investor 1st Asset, there are two markets that a property investor can look to. 1st Asset states that properties located in super-prime locations such as west London are worth considering. Areas that are set to receive major new investment boosts are likewise considered by the company as an excellent option. An example is east London which is being primed for the 2012 Olympics. For you to be able to take advantage of these areas, it’s best if you get in the market quickly before the spotlight is directed at these markets and before buyers start to move in and prompt the increase of property prices.

Advantages of buying today

If you’re looking to make a property purchase, today is a good time to go ahead with it. The reason? Stamp duty amongst many other things. Recently, the one per cent stamp duty threshold was increased from £125,000 to £175,000 for a period of one year. Because of this, many property buyers had the opportunity of paying lower stamp duty and significantly lowering transaction costs – which of course translated to considerable savings. Another good reason to buy today is the emergence of the buyer’s market and therefore, the abundance of affordable properties. The current property climate has led to a rise in the number of repossessed properties, which are often sold cheaply.

What investment property to consider

With the increase in rents, it becomes sensible to invest in a buy to let investment property. It’s true that the media is painting buy to let properties as investment vehicles to stay away from. However, the Council of Mortgage Lenders recently expressed its belief that the media representation of the fall of buy to let company Bradford & Bingley is erroneous. The media portrayal of the firm was thought to have caused a furore among many in the industry. CML released figures for the first half of 2008 that showed a lower proportion of buy to let mortgages in arrears of more than three months compared to residential mortgages. Apart from that, CML data indicated no difference in the rate of repossessions.

When buying an investment property for conversion into a buy to let, you should consider obtaining it at a price below its true market value to enable significant savings from the day of purchase. Acquiring a BMV property is possible by finding sellers motivated enough to agree to sell for lower than the market value of their properties – some define this as the price an estate agent could reasonably expect to achieve within three months of marketing the property. Once you have found such a property, you’ll be able to take advantage of 100% financing from several private property investors ready to finance your investment.

What are the returns from letting property?

According to the Association of Residential Letting Agents, gross returns vary between 7% and 10% and will be lower for pricey properties. ARLA adds that the average rental return in Britain today flits around the 10% mark with the capital appreciation expected to match, if not surpass, inflation for the immediate future. As a general rule, the gross rents should range between 130% and 150% of the monthly mortgage payments.

Investing in property today may be regarded by some as unfavourable. But if you do your homework, make the necessary preparations and invest for the long term, you can be on your way to a successful and thriving career in property.

Commercial property is real estate market is planned to use by for-profit businesses, like workplace complexes, shopping malls, service stations and for other restaurants. Commercial property might be purchased completely by a developer for prospect plans or leased by real estate broker. Commercial property falls anywhere between residential home and investment property.

Basically every included city uses a zoning method to control the use of property within its authority. In order to get permission building a new bureau complex or other profitable business, the city management needs to decide on that chosen area is certainly commercial property. The areas which divide industrial, residential and commercial property are obviously marked on the city maps. If the future business is evidently in an area zoned for commercial use, then the city would probably permit the sale to proceed for the stated use. If any part of the commercial property expands into a residential or work zone, however, then the buyer has look for a ‘variance’, special authorization to cross over a zone boundary.

Commercial property could be detained by real estate agents who treat it alike as residential property. One can also get commercial property through property auctions. Signs publicity the openness and size of the commercial property could be upright, and arrangements could as well be made to purchase or lease smaller lots. Sellers of commercial property might further also agree to make improvements to the land, like grading off rough spots or clearing out surplus trees. A professional developer might purchase enormous swatches of commercial property just to guarantee its accessibility for later projects.

A city often uses zoning laws to put off conflicts among residential homeowners and businesses. Land chosen as commercial property is hardly ever located in the middle of residential zones. City planners hearten commercial businesses to assemble along busier streets and middle downtown areas. This assists to remain traffic to these sites manageable. Some areas of the city might as well be chosen for ‘mixed usage’, that means some commercial property might be used for any other residential purposes. A quaint downtown shopping area with apartments will be an example of mixed usage.

Property investment has always been one of the most common methods of investing capital. Many know that property investment can be a lucrative business option and hence many investors consider it an integral part of their diversified portfolio.

Investing capital in a specific industry like property is a long-term way for individuals or families to obtain financial security for their present as well as future. As property values are rising in many countries, investors can achieve good capital growth.

Here are important points to consider about property investment:

1) The bottom line of property investment is to find an affordable property that can prove to be highly lucrative for the future. Anyone can invest in property and use any number of the many books and guides packed with helpful information that are available on the internet and at local bookstores and libraries.

2) Sometimes this huge amount of information can seem to be complicated and confusing. The best advice is to start from a primary level and then learn some tricks of the trade. If you are a beginner, you must look for a profitable property investment…so seek articles and tips on this.

3) Though the whole scenario of investments is always changing, property investment is still a viable means to enhance your financial portfolio. As time moves on, for example with newer media options of television and internet, new trends in property investment are appearing.

4) In the last decade, a common way to buy and sell property was to buy a house and / or to fix the existing problems. Prepare your property for resale and then sell the house quickly.

5) Residential property investment is the investment that can carry low risk and is not like investing in commercial property where investors have to worry about the conditions of businesses. Property investment loans are not as difficult to get as other types of loans and investing in residential properties can give investors a substantial financial boost.

Investors must consider the surrounding environment. For example, if you are buying residential properties then check whether there are sufficient numbers of schools, hospitals, main roads etc. to support our day-to-day existence.

Also check out the history of capital growth rate in the area in last at least 15 years. Make sure that property investment is worth the capital benefit. You must also consider the population growth rate of the locality.

Investors can also get property investment loans and attain about 106% of the purchase price. However, to qualify for such loans, your financial conditions must be able to sustain your current liabilities as well as the investment home loans. Lenders usually assess your assets, income and credit profile before financing your investments.

Investing in property extensive financial planning, but it also gives you some great tax benefits. Even though the market shifts all the time in the property sector, buying and selling property is always a good industry to be involved in.

If you are planning to invest in property, you need to take advice from experts or you can conduct research on the internet, attend seminars, interact with social groups and then read as much as possible regarding this matter to clear up all your investment doubts. The more you know about market, the better you will become at finding good property investments.

It is a known fact that financial markets all over the world are facing a recessionary trend. Property prices all over the world are showing negative growth because credit is hard to get. One market that has remained unaffected by this credit crunch is the Dubai property market. Development of properties is growing at an unprecedented pace, and most properties under construction will not be ready for occupation until 2010. Many large investors in the world still look at the Dubai property market as the most profitable investment. Also, no negative impact is seen in property rentals and resale of properties.

Most people felt that investment in Dubai’s property was a bubble waiting to burst. They were proved wrong, as Dubai is still considered to be the one of the most lucrative and the safest places for property investments. One of the main reasons for this is the ever growing property resale market. The property resale market is growing at a steady pace, and refuses to show any signs of negative growth. People investing in Dubai’s property market are brimming with confidence as they are confident of getting high returns on investments made on property. People estimate that prices of properties under construction will increase by at least 25 percent, and those completed will increase by at least 50 percent. All this makes Dubai property a great credit crunch investment.

Dubai no longer has larger oil recourses, but let’s not forget that it made huge money when it produced oil. The enormous amount earned by exporting oil is finding its way into the property market of Dubai. Property construction is developing so rapidly that it is hard to find a block where no construction is taking place.

One of the most talked about and happening projects is the one coming up at the Island of Ireland. If you looking to invest in penthouse suites, beach-facing homes and villas, then the Island of Ireland is the place to invest. Apart from Villas, Suites and Penthouses, you will also find restaurants, spas, cafes, boutiques and all other facilities that you can dream of. The total project area of Island of Ireland is over 225 000 square feet.

The Island of Ireland is not the only place you can invest in. Palm, which is situated at Jumeriah, is another investment hot spot. The project is in the shape of a huge date palm and is man-made. To build this giant date palm more than hundred million cubic feet of sand has been used. Palm is being constructed in the area between the gulf and the mainland. Once the project is completed it will address the problem of the shortage of beaches in Dubai. A monorail has been set up to take people to the Palm. Famous personalities like Michael Owens, Joe Cole and David Beckham have bought properties here.

Property prices in Dubai have gone up more than 10 times in last six years. There is an unprecedented rise in demand for ready-to-occupy properties, which has resulted in a shortage of these properties. This has resulted in the demands of many investors remaining unfulfilled. With people predicting that property prices will increase further, there are no signs of a slowdown in the Dubai property market. So if you are looking for investments with assured returns then Dubai property market is the right place to invest.