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Buying ex-local authority properties in UK

Posted by on Feb 2, 2016 in Real Estate, Tips and Tricks | Comments Off on Buying ex-local authority properties in UK

For investors interested in buy-to-let ex-local authority property investments, selecting the right property in the right areas can yield excellent profit.

One segment that’s generating a lot of excitement is the ex-local authority council property market. John Moore, president of the Property Investors Association of Australia (PIAA) reports on why it’s one of the hottest sectors in the UK at the moment.

Buying ex-local authority properties in UK

The demand for ex-local authority types of properties in the UK is increasing rapidly. From first homebuyers looking to break into the property market to property investors wanting to diversify their portfolio, these pre-owned homes are popular with almost everyone. While they haven’t been associated with high capital growth previously, buyers are becoming increasingly aware of the potential of these properties as a good investment.

Popular areas in London such as Camden Town, Kensington Gardens, Fulham, Pimlico and Chelsea contain ex-local authority flats in areas usually associated with much more exclusive property. The capital appreciation of these types of properties is likely to match if not exceed inflation in the near future.

Properties that are bought for less than the price of similar private sector properties can achieve rents close to those of property that costs almost twice as much as these ex-local authority flats. Even less attractive areas provide excellent investment opportunities. The ex-local authority blocks contain a combination of one, two and three-bedroom flats and can be five or more stories high.

Buying ex-local authority properties in UK

The three-bedroom flats appear to have the greatest potential. Renovating the flat by converting the kitchen into a bedroom and rearranging the living area to accommodate a kitchen provides excellent potential for renting. at the same time replace the kitchen faucet on the kraus kpf-1602. The flats are completely repainted and fitted with modern appliances and furniture that suit the lifestyle of a temporary resident on a working visa. Three-bedroom flats in the central areas of London Clapham, Fullham, Pimilco and Chelsea sell for a price of around £250,000.Financial considerations

Financing of ex-local authority property is done through buy-to-let mortgages. Lenders know that the yields from this type of property are good as long as the location is right.

Since the Housing Act of 1988 and 1996 letting is considered an investment in the UK. A joint incentive of the ARLA (Association of Letting Agents) and mortgage lenders helps private landlords to invest in property they intend to let out without paying commercial rates of interest.

Buying ex-local authority properties in UK

Their view is that buy-to-let makes the private rental sector healthy and is good for the advancement of the economy. The properties are purchase with an 85% LVR (loan to value ratio) and have a term between 5 and 45 years.

The flats are sold on a freehold basis by councils to owner occupiers and investors. Investors need to consider that many buildings are old and need major repairs so the choice needs to be made carefully. Some are in buildings that require extensive renovation and can end up costing the investor significant amounts in ongoing maintenance and repairs.

For investors interested in buy-to-let ex local authority property investments, selecting the right property in the right area can yield excellent profits. However, as buyers become more aware of the huge potential of ex-council properties, prices are inevitably beginning to rise….

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Should You Rent Or Buy Your First Property ?

Posted by on Nov 15, 2015 in Business, Real Estate, Tips and Tricks | Comments Off on Should You Rent Or Buy Your First Property ?

Your decision whether to rent or buy your home is a strictly personal one. A lot more goes into it than just the finances involved in a home purchase. You have many issues to consider.

Let’s start with the cost of a home. Everyone will tell you that it makes financial sense to buy. They say that if you rent, you are just throwing your money away; in ten years, you’ll have a drawer full of receipts. Yes, that’s true, but there’s more to the price of a home than the price of the home!

Most people use the ten-percent rule to calculate a possible mortgage based on their best guess of a home’s cost. For instance, if you buy a home for $200,000, you’ll pay about two thousand a month. But that’s such a rough guess. mortgage_house_keys

You can start with the cost of the home, but don’t forget to deduct your down payment. Then figure out what interest rate your bank will give you. You also have to allow for your homeowner’s insurance and your property taxes. Plus, if your down payment is less than 20%, you’ll have to pay for PMI-private mortgage insurance.

Besides the cost of the home, you have to pay the cost of updates. Just about everyone who buys a home has to do renovations or simply wants to do them. This can range from inexpensive options like painting the walls to an ultra-expensive roof job or electrical updates.

You also must consider the cost of upkeep. Will you be able to set money aside in case the furnace breaks? Can you clean your own gutters when it’s time or will you need to hire someone? Even yard maintenance can add up to a lot of blood, sweat, tears, and dollars. After you figure out what is the best ALEKO gate opener, can you install it on your own? All in all, buying is an expensive undertaking.

On the other hand, maybe it’s the right time for you to buy. Purchasing a home cements your status within your community. It’s a symbol of solidity, not only of your integrity but of your financial solvency. Your participation in community debates concerning new developments or tax levies takes on real meaning for you. There’s an unsung but definite status attached to being the king of your castle. Should You Rent Or Buy Your First Property ?

It might be a drain to come up with the down payment, and maintenance costs can be a drag. But there are certain tax incentives to owning a home. As time passes by, your home’s value will grow and your mortgage principal will shrink. The investment value or equity in your home will stand you in good stead in the years to come.

Plus there are the additional freedoms that come with owning your own plot of land. You are the primary decision maker, whether it’s a question of major remodeling or just banging nails into the walls. Plant a garden. Fence in the yard for your kids. You can do pretty much what you want in your own yard, you can even use metal detector and do some exploring if you want.

Many people welcome the challenges of home ownership. If you’re a handyman, the work of checking the roof each fall is negligible. Creating a backyard where you can relax and entertain racks up high satisfaction levels. And if you’re not good at some of the chores, barter services with your neighbors-do their taxes in exchange for some plumbing help.

Ultimately, only you can decide whether you should rent or buy a home. Consider your motivation, your finances, and your preparedness to take on all the responsibilities, and then you can make the right decision.Should You Rent Or Buy Your First Property ?

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