Down here in sunny East Sussex, certain aspects of property investment are thriving, despite the economic downturn.
Holiday lets are enjoying increased occupancy, spreading far beyond the “peak” season, and out into the shoulder months, producing some significant cash flow for investors. Continue reading Top 5 signposts to a holiday let with year round occupancy potential
The state of the housing markets has led to many property people changing strategy to avoid losing money on sales.
Property investors come in two types – buy to let investors and buy to sell traders. Both have a different set of rules to deal with the tax on selling a property.
Developer is a term that can fall in to either category as both refurbish homes. Continue reading Are you a property trader or investor?
Calls to boost buy to let by upgrading pensions to include residential property are gathering momentum in Parliament.
An influential select committee of MPs is urging the government to streamline pension and tax laws for landlords to stimulate investment in private rented housing. Continue reading MPs urge ministers to open pensions to buy to let
Money and blood often don’t mix – which is why so many families go to war over their ‘fair share’ of cash.
With so many wealthy business people and celebrities drawing up marriage pre-nups, perhaps the time has come for property business partners to consider the same deal. Continue reading Property business pre-nups can stop family feuds
Using Finance to Increase your Returns
After recently attending local property networking events it still amazes me that investors think it’s a good idea to buy properties for cash. Firstly, the financial returns are less when a property is purchased for cash. Secondly, it means a large amount of cash is tied up for six months as no remortgaging can take place until a period of six months has elapsed. This means if a bargain property opportunity comes along within that six month period you will miss out, unless you have more cash to hand. So start as you mean to go on i.e. gear the property on purchase with a mortgage, ideally 75% to 80% loan to value mortgage. Continue reading Get into High Gear with Gearing
-By Guest Columnist John Paul- Part 1 of an 8 part series
Welcome to the first in a series of eight articles giving you top tips for renting your property to tenants in receipt of Local Housing Allowance (LHA).
I have personally built a successful portfolio by letting to LHA Tenants and the profits and cash flow exceed those I could have achieved with working tenants. In some areas rents are as much as 30% higher than market rents in the private rented sector. I think you’ll agree that’s a premium that makes some additional administration worth the effort. Continue reading Introducing The LHA Expert for Landlords – @TheLHAexpert
… an unencumbered one.
Should finances allow, I commonly suggest that investors obtain or keep an unencumbered property (no loan of mortgage secured on it) as quickly as possible as it’s an incredibly powerful tool to have at your disposal and here’s why.
Firstly it’s always there to fall back on; no matter how low lenders reduce LTVs you’ll nearly always be able to raise cash on it in an emergency. You never know when you may need some quick cash and if your portfolio is geared up and lenders move the goal posts you may find yourself unable to lay your hands on some urgently needed cash. This may be for the deal of a lifetime, it may be to help a friend or relative or it may be for an unexpected bill! Continue reading The Most Powerful Property an Investor Can Own Is…
Read part one of the what the why
Armed with your investment budget you are ready to go in search of property bargains. You must look for areas of value where price corrections have been overdone, areas where prices have been dragged down by a greater number of bank repossession properties. Today such areas mainly occur in greater numbers in the North.
Property value is best illustrated by looking at The Nationwide first time buyer gross house price to earnings ratios. Continue reading Putting it all together – The what, the why part 2
The tax man has lost a key case that allows holiday let owners claim business property relief against inheritance tax.
HM Revenue & Customs has argued for many years that holiday lets are an investment, not a business, and as such are not allowed to claim the relief unless the owner was ‘substantially’ involved with holidaymakers.
This was generally believed to exclude furnished holiday lets as they were grouped with buy to let and other rental property income by the tax man. Continue reading HMRC Loses Key Holiday Let Tax Case
As all Landlords should appreciate, property investment is a business.
It’s not something you should ever attempt to do “as a hobby”, “reluctantly”, “on the side”, “accidentally” …. . There’s too much at stake for that, up to and including the wellbeing of your tenants, who you are responsible for in the eyes of the law.
Like any business, cash-flow is king. Without it, you don’t have a business! Continue reading Top 6 strategies for improving your cash-flow