Tips from the Top

Turn the tables

If you are looking to purchase a property to rent out, do your research by
phoning around and pretending to be a potential tenant. It is generally found
that estate agents will give landlords a higher figure for a specific type
of property than they will to a potential tenant. By turning the tables you
may get a more realistic idea of what the potential yield from your property
should be.

Spread the Risk

Whenever you are looking at a property purchase, particularly when growing
a portfolio, it is vital that you consider how you are going to spread the
risk. Make sure that you consider the differing markets and how exactly you
could minimise your risks. A good way of doing this is to compile a list of
risks and downsides for each property and then consider how you can mitigate
these in conjunction with a different type of property.

Read the full story

Popularity: 7% [?]

Letting Options – Which is better, short-term or long-term?

Having made the big leap and bought your buy to let property, one of the first questions you will have to consider is whether you are going to let it on a short-term or long-term basis. So what exactly are the pros and cons of these options?

The decision about whether to let on a long-term or short-term basis is entirely a strategy decision and not necessarily one that you have to make once and for all, as the purpose and letting strategy can, of course, change over time. Read the full story

Popularity: 5% [?]

Property Investing is a Risky Business

All savvy property investors are aware of the potential risks of property investment. However, how many of these investors have considered what will happen, if their investment goes up in smoke, quite literally? Insurance is often ignored, but do so at your own peril. Read the full story

Popularity: 5% [?]

Rental Yield and Capital Growth

Understanding the economic factors that drive changes in property price are
critical to a successful long term property investment strategy.

Most investors appreciate the simple supply-demand equation. If supply drops
and demand remains constant or increases then in a free market the price increases.
It’s inevitable. Over a short time there can be fluctuations but long
term the market will win out and prices will rise. Read the full story

Popularity: 3% [?]

Financing Options for Unconventional Investments

Investing in an unconventional property may seem like a great way to make money from the property market. However, finding a financial institution that shares your enthusiasm can be difficult. So what are the best ways to finance that unconventional property investment you are considering?

Non standard property

Investing in a non-standard property can be a real headache. Many of the large lending institutions will not consider a property that is unusual in any way. For example, Birmingham Midshires, which is the biggest provider of buy to let financing in the UK, openly rejects unusual properties “In the interests of the borrower and lender, BM does not lend on properties where the rental income is unpredictable, such as non-standard property”. Read the full story

Popularity: 4% [?]

Don’t Lose Out to Capital Gains

So many property investors forget about capital gains tax completely, only to be reminded sharply when it comes to selling their investment property. Capital gains can take a huge chunk of your profit even resulting in you failing to make any money at all. Don’t be caught unaware by this tax!

Understanding CGT

Understanding capital gains tax is not as difficult as you might imagine. In fact, the principles are actually quite simple. Capital gains tax is paid by individuals (or trustees / personal representatives). Companies do not pay capital gains tax; however, they do pay an equivalent sum, under corporation tax, known as chargeable gains. Read the full story

Popularity: 3% [?]