Letting Focus

friday

lettingfocus — Sat, 02 Feb 2008 00:18:00 +0000

friday

It’s nice to be noticed ….but!

lettingfocus — Fri, 01 Feb 2008 15:55:00 +0000

Hey, we must be doing something right.
It’s very flattering when other companies – or maybe their overzealous internet marketing agencies - try to rip you off by using your good name and reputation to try to market their own products on line.
For the record, I approve and recommend a lot of companies in the business – people like Landlordlaw, LandlordZone and Property Investor News to name but three. All good guys with super reputations and an honest approach to marketing– and there are lots of other companies too, many of whom I list on my links page.
Plus, I’m always ready to hear from other reputable outfits too and maybe give you a link.
However, if you are from one of the “Become a Property Millionaire Overnight” firms or you are an agency representing one of these companies please don’t waste your time contacting me. And please save your adwords marketing pounds too – you aren’t fooling any potential customers of mine and you are getting yourselves a bad reputation too.

Letting Agency Renewal Fees - The Lettingfocus.com view

lettingfocus — Thu, 31 Jan 2008 10:09:00 +0000

Letting Agency Renewal Fees - The Lettingfocus.com view
I recently did some consulting with a chap who was not happy that his letting agent was going to charge him to renew his tenant’s contract – the original tenancy had been arranged through the agency.
My view is that all landlords must read the contract with the letting agent BEFORE they sign it. If they have signed to say they agree to being charged a renewal fee then that’s tough, I’m afraid.
I’m not an agent but on the matter of agency fees, my view is that agency letting fees are not high. In fact, a friend of mine has just asked me if I would find a tenant for him whilst he is overseas. My answer was No.
Putting in adverts, doing viewings on wet evenings and weekends, checking references, doing check ins and dealing with the general public and the like is all a lot of work – and not something I would personally do for the going rate agency finding fee of around 8 to 10% plus VAT.
Sorry, but I have better things to do than that – which is why I like to keep my tenants by keeping my rent increases reasonable and my rents below the market average.
The reality is that there is not much cash in lettings – agents often use it as a loss leader to get more lucrative work selling properties.
This is why they often try to make some extra money by charging renewal fees – even though they often don’t do much at time of renewal – and why they always try to load up fees for other services like printing off copies of tenancy agreements and making charges to tenants for doing references etc.
In this particular case the agent wanted to issue a new tenancy agreement.
I said that, seeing as the landlord indicated he did not want to necessarily issue a new longer term tenancy, why not just extend the existing one to make it a periodic tenancy.
One benefit to doing this would be that the landlord would not need to join a Tenancy Deposit Scheme because the original tenancy started before April 2007 – i.e. before TDS became compulsory. So, he would save on the hassle and / or cost of having to register for TDS because TDS is not compulsory for Tenancy Agreements starting before 6 April 07.
If you need more advice on where to letting agency fees ask me. I’m David Lawrenson from property investment experts www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on UK property investment and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investment advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my landlord blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property investment mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Rental rates continue to go up as predicted at lettingfocus.com last year

lettingfocus — Mon, 28 Jan 2008 16:45:00 +0000

28/1/08
Rental rates continue to go up as predicted at lettingfocus.com last year
As we predicted last year we are now seeing a strong rise in the number of people looking to rent property after they have been priced out of the property market or because they are running scared of all the talk of a big fall in house values.
High mortgage costs have forced more people to turn to the rental market, according to the annual UK housing review by the Chartered Institute of Housing (CIH) and the Building Societies Association (BSA).
In fact, renters now pay about a third less than the mortgage repayments on the same property – making renting very attractive.
At the same time, the lender Paragon Mortgages latest monthly study shows that rents in the buy-to-let sector are rising at their fastest rate on record owing to strong demand.
In fact rents increased 19 per cent in 2007, and 8 per cent in the last quarter of 2007 alone according to Paragon.
I predict this very fast rental growth for properties that are not oversupplied to continue this year.
If you need more advice on where to buy to let investments ask me. I’m David Lawrenson from property investment experts www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on UK property investment and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investment advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my landlord blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property investment mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

The dangers of overseas property investment

lettingfocus — Thu, 24 Jan 2008 16:03:00 +0000

Well, I’m just back from a lovely holiday in Mexico on the Cancun coast - which is really more like America than Mexico.
There is a long lovely coastline with many miles of beach still to be built on.
And that’s the danger here because it is already being built on. The diggers are moving in and the supply of hotel standard accommodation is being added to all the time.
As a place it’s lovely. As a property investment, I wouldn’t go near it because all the new supply will ensure that rents and prices are kept low.
Indeed after the last 2 years of strong hurricanes, many owners have not bothered to fix their properties that were hit hard in the storms and many still lie boarded up. That really tells you all you need to know about the returns in this market. Sadly, the same goes for lots of other sub prime developing areas.
If you need more advice on where to buy property as an investment or buy to let please ask me. I’m David Lawrenson from property investment experts www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on residential property letting and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Two Week Break for Hard Working LettingFocus Blogger!!!!!

lettingfocus — Tue, 08 Jan 2008 16:38:00 +0000

Two Week Break for Hard Working LettingFocus Blogger!!!!!
Well, we are off on a well deserved two week break – back on 25th January - by which time the new edition of Successful Property Letting should be hitting the shops.
May I take this opportunity to wish you all a happy New Year!
Please enjoy reading all the past blogs – scroll down or look in the archives.
David Lawrenson

Be careful if you buy property near soon to be improved rail links

lettingfocus — Fri, 04 Jan 2008 09:50:00 +0000

Be careful if you buy property near soon to be improved rail links
If you buy property near a place that will benefit from faster rail links, you need to watch out.
For example, many people bought in Ashford, Kent because it was going to a stop on the London to Paris and Brussels route. Now, however, services have been massively trimmed back and only a few international trains will stop at Ashford.
Still in Kent, the new services on High Speed One (the new name for the Channel Tunnel Rail Link) will start from December 2009 and the timetable for our existing 'classic' routes will be re-drawn completely.
Services using High Speed One will go to London's St Pancras station and journey times from places like Ashford, Folkestone, Canterbury and Dover will be significantly reduced.
However, whilst many people are keen to know exactly what the timetable will be, this is all still at planning stage and the details are yet to be finalised.
It’s not out of the question that existing services might have to be reduced to accommodate the new trains.
If you need more advice on where to buy property as an investment or buy to let please ask me. I’m David Lawrenson from property investment experts www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on residential property letting and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

RICS predicts a soft landing for house prices

lettingfocus — Mon, 31 Dec 2007 12:26:00 +0000

In the last blog I said that repossessions are on the up – and explained how to buy repossessions at auction.
However, as I predicted throughout last year, unless you are in an area that is oversupplied with a particular property type, the fall off in house prices could be short-lived.
The Royal Institute of Chartered Surveyors (RICS) believes that the heaviest falls in house prices are behind us, going against current opinion of more house price falls
They said that the Bank of England's commitment to keep the market liquid will mean that interest rates will be cut back to five per cent during the first 6 months of 2008, making any negative price growth in the market short-lived.They also said that repossessions will rise from 30,000 to 45,000, but that the current employment situation is strong enough to keep the market resilient and avoid any repeat of 80,000 repossessions back in the 1990s.I agree.
Despite the RICs predictions for next year, they still see tough times ahead in 2008, with tighter lending conditions that are likely to impact on the buy-to-let market in particular. So, unless you have good credit, it could be tough to be an investorHowever, they also state that their research shows "little evidence of widespread sales of investment properties taking place".The effect of the credit crunch will dissipate slowly meaning that those seeking to obtain finance in the first half of 2008 may struggle.But the employment picture should be OK throughout the year, helping to prevent significant numbers of repossessions and the subsequent influx of supply into the market.This should ensure that house price growth remains broadly flat over the course of the year.
If you need more advice on property as an investment or buy to let please ask me. I’m David Lawrenson from property investment company www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on residential property letting and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Getting a good deal on repossessed property at auction

lettingfocus — Sat, 29 Dec 2007 11:59:00 +0000

Years ago, buying property at auctions was the preserve of a few professional investors and builders. However, more and more people (and financial institutions) are now both buying and selling property at auction, so that today the volumes sold are approximately three and half times what they were 10 years ago.
Around one eighth of all residential property sold at auction is now a repossession and about one eighth of all repossessed property eventually finds its way to the auction house.
But can you bag a bargain at an auction and what do you need to know?
Well, the first thing to remember is that the auctioneer’s client is the vendor, not you. In this much he is just like an estate agent whose duty is to get the best (read highest price) for the client.
However, whereas some estate agents will often let slip information on what price the vendor will accept, you are not likely to get any such tips from an auctioneer.
Remember too, that you will be in a room competing with other buyers and the auctioneer will be doing all he can to squeeze out an extra five hundred pound from the bidders.
All auctions are seeing a big rise in repossessed flats which were bought off plan by would be investors.
Many of these investors bought the flats with rental guarantees from builders or via property clubs, often on 2 or 3 years fixed rate mortgages taken out in 2004 or 2005.
With the rental guarantee ended these landlords were left competing with hundreds of others for a limited tenant pool. They were also facing having to remortgage at higher borrowing costs.
As an example, at a recent auction, a two bedroom flat in SE London, which had sold at £250,000 in 2005 was put on at a reserve price of £175,000 but still failed to sell.
Repossessions will be marketed at estate agents first and only then come to auctions, so it’s always worth keeping in with agents to see what’s coming up there first.
So, there are always good deals on offer especially on these oversupplied me too city centre flat. However, with the dearth of tenant demand, you have to ask if they will ever be a good investment.
At auction, you and your conveyancer will have had to study the legal pack, do your viewings and survey, arrange the finance and insurance in principle before the fall of the gavel.
You’ll also have to pay 10% of the purchase price right there at auction and you must also normally complete within 28 days though a seller may allow you longer. You will also have to pay the auctioneer’s fees - usually 2.5% plus the stamp duty.
Ten tips for success at auction
Go to a few auctions first before you bid. Understand how it works and feel comfortable.
Ask for the package compiled by the auctioneer at least 4 weeks before the auction. Get your conveyancer to study it carefully. Look at the contract, the title documentation, the searches, whether there is any outstanding planning or environment issues etc and replies to general enquiries.
On the day of the auction, arrive early; check the “addendum” and the legal pack in case anything like special conditions have been added.
Keep cool and stick to your maximum price.
If you go with a partner, sit together as it’s been known for partners sitting in different corners to bid against each other! B
The auctioneer, vendor or their agent can bid up to the reserve price without identifying themselves. It’s called “off the wall” or “imaginary” bidding.
If the sales details quote “unless previously sold” you should be able to approach the auction house and make a bid in advance of the auction. If it’s accepted, you’ll still need to move fast and ensure finance is ready and conveyancing can be done quickly.
If the property hasn’t met its reserve, the auctioneer will normally tell you what the reserve is and advise if he has the vendor’s authority to sell at the reserve price for up to 24 hours after the auction. This can be a good way of snaffling bargains.
Forthcoming auctions are advertised in local newspapers, as well as on the Internet or in the Estates Gazzette magazine.
Get real! Don’t come expecting to buy a £300,000 place for £150,000. However, you may well bag one for £270000 or even a shade less.
If you need more advice on buying property at auction or buy to let investment in general please ask me. I’m David Lawrenson from property investment company www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Be afraid -the government wants their big business pals to push private landlords out

lettingfocus — Fri, 21 Dec 2007 16:34:00 +0000

Both government and the opposition have separately announced plans for major reviews of housing provision and investment policy.
Housing minister Yvette Cooper announced that Government will conduct a comprehensive strategic review of the private rented sector during 2008, which will be undertaken in conjunction with the Department for Communities and Local Government.
The full terms of reference for the review are to be announced in the New Year, but it looks like it will be similar to the Hills Review of social housing published earlier in the year.
The review will be led by Julia Rugg, an academic at York University, who will examine issues such as how renting can be made to help those who currently cannot afford to buy.
Rather scarily, the British Property Federation (BPF) said it would welcome the government removing some of the barriers that prohibit growth of commercial investment in the professional rented sector, while increasing the flexibility of affordable housing policy and standardising regulation.
The BPF has said that the stability of the market could be made much more certain if we “adopted the blueprint for a professional rented sector along the lines of those currently operating in Germany or the USA”
So what?
The word on the street is that the government would like to dole out tax breaks to the commercial property firms - think REITS - to get them investing in the private rented sector.
Well, private landlords ought to be worried about this because it means the government is keen to get the commercial sector involved in the buy to let market.
Basically, my view is that the state does not like private landlords and would like to see their pals in big business move into the sector to give it “more stability” and I would guess, to develop a long term lettings market.
Private landlords ought to be concerned at the risk of being squeezed out by the big boys। It’s already happening in many parts of the student market where the likes of Unite have a foothold. This could be a major threat.
We are off for a Christmas break -see you again in the New Year.
If you need more advice on buying property below market value or buy to let investment in general please ask me. I’m David Lawrenson from property investment advisors www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing for profit and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property networking programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Is the buy to let market dead. Answer – definitely not.

lettingfocus — Tue, 18 Dec 2007 15:09:00 +0000

As anyone who has come to hear me speak or has read my column will know all properties are not born equal.
We are seeing demand growing strongly for houses, while the oversupply of new-build properties means stalling or falling rents on flats.
The latest lettings survey from RICS shows that demand remains healthiest for family homes with 25% more surveyors reporting an increase in demand .
At the samne time, the proportion of landlords opting to sell properties when tenants move out has risen from 6.1pc to 6.5pc in the past quarter, according to RICS – the highest level since January 2005.
Lots of experts will say this is a sign that higher house prices and falling rental yields are making it difficult for landlords to turn in a profit. It will also re-ignite concerns over the housing market. There are some experts who are warning the buy-to-let sector could be the weakest point in Britain’s property market, with some comparing it to the sub-prime sector in the US
My view is that the problems will be limited to those - mainly new landlords - who have bought flats in oversupplied areas from the less reputable property clubs.
Sure, there will be lots of individual stories of landlords hitting hard times, but savvy landllords will be delighted that the curent turn of events is giving them a great opportunity to buy property at below market value prices.
The auctions are busy with landlords snapping up cheap property and whispering to estate agents., “If you know someone who is really keen to sell, then talk to me.”
If you need more advice on buying property below market value or buy to let investment in general please ask me. I’m David Lawrenson from property investment advisors www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing for profit and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property networking programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

How can I check my credit file?

lettingfocus — Sun, 16 Dec 2007 18:10:00 +0000

Many people find they are turned down for mortgage appllciations or other credit and they don’t know the reasons why.
It could be that there is a mistake on their credit file. So, here’s what you have to do.
To get your credit file, all you have to do is contact one of the three main credit reference agencies - Experian, Equifax or Callcredit. By law they have to provide you with your report and the charge for it is currently two pounds.
With Experian and Equifax you can request a paper copy to be sent to you by applying on line - their sites are at www.experian.co.uk and www.equifax.co.uk With www.callcredit.co.uk there is a form at their site which you can print out and fill in along with a £2 cheque or postal order.
If you’ve been rejected for a loan, it could be that you don’t match the customer profile for that product or that you already have too many credit accounts - even though you may be making all your repayments on time.
On the other hand, by not having taken out any credit in the past, you can negatively affect your credit rating – your lack of any payment or credit history can result is a low score. This is a particular problem for people who have not had a UK account or lived at a UK address for a long time.
If you are rejected for a mortgage, ask the lender why – and hold fire on making lots of other applications via other lenders as multiple “foot prints” on your file may damage your rating more.
When you have got the credit file, check that all details are correct. It’s very rare, but it can happen that another person’s credit report may have been mixed up with yours. Even worse that that, you may be the victim of identity theft.
If things are wrong tell the the credit reference agency, who will talk to your lender and highlight the item as disputed. You may also be able to put a "notice of correction" explaining your current financial status – and the reason - which any future lender considering any further applications will see.
If you have had a joint account with someone who has a poor credit record, this will affect you, so if you no longer financially dependent or sharing a joint agreement, tell the agency and they should be able to disassociate you from that person.
Other things you can do are make sure you are registered on the electoral roll at your current address and make loan and card repayments on time.
Also, pay off any old debts including county court judgments and close dormant accounts because lenders look at what your available credit is, even if you are not using it.
If you need more advice on your credit file or buy to let mortgages in general please ask me. I’m David Lawrenson from property investment advisors www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing for profit and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property networking programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Are buy to let yields and incomes set to go up?

lettingfocus — Wed, 12 Dec 2007 15:42:00 +0000

A new report out from Mortgage Express says that nine out of 10 landlords plan to either increase their portfolio or leave it untouched in 2008 and about 95 per cent think gross rental yields - which are at 5.7 per cent - will stay the same or increase.
Meanwhile, the Council of Mortgage lenders latest set of stats shows that 20.6% of first time buyers income is going on interest payments on property – which is quite high and certainly well above the nadir of 1994 when it was about 11.3% (and property as we now know was as “cheap as chips”)
However, today’s figure is well below the 1990 peak of 27.3% - the last time house prices fell a lot.
For these reasons I don’t really see a property crash coming – though I do see a choppy time for house prices - which is a situation which will be taken advantage of by clever experienced landlords who will be adding to their holdings now by buying property from financially overstretched sellers.
These smart investors also know that first time buyers, many of whom have been spooked by the headlines of a property slowdown will be renting instead – which is one reason why these landlords know that rental incomes and yields will increase.
If you need more advice on investing in property or buy to let in general please ask me. I’m David Lawrenson from landlord advisors firm www.lettingfocus.com
I’m the author of the buy to let bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing and a well known property writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service.
Check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my buy to let blog and details of my networking, advice, property networking programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

A polite request for comments for help from other bloggers…

lettingfocus — Fri, 07 Dec 2007 11:34:00 +0000

A polite request for comments from other bloggers…
Am I the only one to find Blogger from Google an absolute Pain in the A…?
Am I the only one to have all sorts of problems with loading up blogs?
The latest thing is it keeps trying to translate what I type into what I believe to be Hindi characters? I have had loads of other problems too with this service.
And am I the only one to find the helpdesk about as much help as a chocolate teapot?
If you are having problems too please let me know –my email is one the site www.lettingfocus.com and then click under Contact (sorry – but can’t post it here as I will be spammed)

Are service contracts for boilers worth having?

lettingfocus — Fri, 07 Dec 2007 11:18:00 +0000

Are service contracts for boilers worth having?
Probably not -if you know a good gas man just use them when you need them
But if you must take out a contract, here are the key things to check….
First, check if there is a cap on call outs. Some cheaper policies limit the number of times you can use them in a year.
Second, check whether your boiler is covered. Some policies won’t cover boilers over a certain age and few cover anything which is over 15 years old. Other polices won’t cover certain models
Third, find out how much parts and labour is actually covered. Whilst it’s OK to have free labour for an hour, most plumbing and boiler jobs take over an hour to do, so it’s better to opt for a policy that has an unlimited amount of labour included as standard.
Fourth, once repairs are done, are they guaranteed and if so, for how long.
Fifth, what’s the call out window? Will you (or your tenants) have to wait in all day or is the booking slot narrower? Powergen says it offers a two hour time slot but most providers only operate on AM or PM and AM often means 8AM-2PM!
Sixth, how quickly can they come out? CoverHeat say they can get someone to your property in 24 hours or 2 hours in a real emergency. However, what happens if that service promise is broken?
Seventh, is there an excess – i.e. do you have to pay the first X pounds of any call out?
Then, finally what’s the cost?
British Gas charges £290 a year for HomeCare 200 but Valliant Boiler’s own cover is £168 and has no annual limits on call outs.
But are any of these products worth it or a waste of money?
Well, they do give some reassurance but there are lots of exclusions on what’s covered, so read the policy carefully.
Also, there have been many instances when the service provider was found out during cold periods when claims have been high.
For example, in 2005, the Guardian newspaper received numerous complaints from readers about British Gas’s service. There were cases of missed appointments including also examples of engineers sneaking up to houses and putting notes through letter boxes saying they had called then they hadn’t.
British Gas says its problems are behind it but it did not fare too well in USwitch’s recent customer satisfaction index.
Another criticism that’s been made is that given the low cost of these services, providers are over-keen to bump up profits. There have been stories of rogue engineers working for one of these providers who will say a boiler cannot be repaired because the part is no longer available. This allows him to then sell in and install a new boiler and make a good profit. However, some customers who have sought a second opinion from their local trader have found that the part is readily available after all.
If you need more advice on service contracts for boilers or buy to let and property investment in general please ask me. I’m David Lawrenson from landlord experts firm http://www.lettingfocus.com/
I’m the author of the buy to let bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing and a well known property columnist and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlord advice service.
Check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com/
My next London landlords networking meeting is on March 12th. Click here for details: Property Advice
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
when you need them
But if you must take out a contract, here are the key things to check….
First, check if there is a cap on call outs. Some cheaper policies limit the number of times you can use them in a year.
Second, check whether your boiler is covered. Some policies won’t cover boilers over a certain age and few cover anything which is over 15 years old. Other polices won’t cover certain models
Third, find out how much parts and labour is actually covered. Whilst it’s OK to have free labour for an hour, most plumbing and boiler jobs take over an hour to do, so it’s better to opt for a policy that has an unlimited amount of labour included as standard.
Fourth, once repairs are done, are they guaranteed and if so, for how long.
Fifth, what’s the call out window? Will you (or your tenants) have to wait in all day or is the booking slot narrower? Powergen says it offers a two hour time slot but most providers only operate on AM or PM and AM often means 8AM-2PM!
Sixth, how quickly can they come out? CoverHeat say they can get someone to your property in 24 hours or 2 hours in a real emergency. However, what happens if that service promise is broken?
Seventh, is there an excess – i.e. do you have to pay the first X pounds of any call out?
Then, finally what’s the cost?
British Gas charges £290 a year for HomeCare 200 but Valliant Boiler’s own cover is £168 and has no annual limits on call outs.
But are any of these products worth it or a waste of money?
Well, they do give some reassurance but there are lots of exclusions on what’s covered, so read the policy carefully.
Also, there have been many instances when the service provider was found out during cold periods when claims have been high.
For example, in 2005, the Guardian newspaper received numerous complaints from readers about British Gas’s service. There were cases of missed appointments including also examples of engineers sneaking up to houses and putting notes through letter boxes saying they had called then they hadn’t.
British Gas says its problems are behind it but it did not fare too well in USwitch’s recent customer satisfaction index.
Another criticism that’s been made is that given the low cost of these services, providers are over-keen to bump up profits. There have been stories of rogue engineers working for one of these providers who will say a boiler cannot be repaired because the part is no longer available. This allows him to then sell in and install a new boiler and make a good profit. However, some customers who have sought a second opinion from their local trader have found that the part is readily available after all.
If you need more advice on service contracts for boilers or buy to let and property investment in general please ask me. I’m David Lawrenson from landlord experts firm http://www.lettingfocus.com/
I’m the author of the buy to let bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on property investing and a well known property columnist and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlord advice service.
Check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com/
My next London landlords networking meeting is on March 12th. Click here for details: Property Advice
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

When buying and selling property, what counts as a Fixture and what is a Fitting?

lettingfocus — Wed, 05 Dec 2007 16:00:00 +0000

When it comes to selling property, people really can do the strangest things and incredible meanness and downright stupidity is often the order of the day. And, this is especially true when it comes to fixtures and fittings.
According to the Halifax, 4% of vendors remove the number plate, 8% remove all light bulbs and 26% remove plants.
The problem is that what constitutes the “chattels” that are within a property is not always clear and in most cases, the only way of resolving it is by the vendor attaching to the sales contract a detailed inventory of what is included in the sale.
The Law Society produces a standardised form for sellers to use and this should remove most disagreements. The form is six pages and covers just about everything you can imagine.
However, a vendor can still exclude something from a sale, as long as he makes this clear to the buyer. He can even take away the house and leave just the land.
If there is no list prepared by the conveyancer, then the contract of sale implies that fixtures can be left but fittings can be removed.
OK, so what is a Fixture?
Items that are attached to the property count as fixtures and are treated as part of the property. Fixtures are generally accepted to include the boiler, radiators, sinks, baths and lavatories. In the kitchen any units that are physically bolted onto the floor or walls also count.
Wardrobes that are physically fitted into a space - i.e. which use one or more wall as a side and which would be incomplete if removed would count as a fixture too. Light fitments and fitted shelving also count as fixtures.
And what is a fitting?
Fittings would cover mirrors that are screwed to a wall, carpets, curtains and curtain rails, cookers which are free standing, lamp shades, ovens, refrigerators and washing machines. TV aerials and satellite dishes are also usually classed as fittings.
If you are a buyer, first, assume nothing is included when you make an offer.
Second, make it clear to the agent what the offer will include but try to be reasonable. If there is something that you really like in the house, be aware that the vendor may like it too and may want to take it with him. In this case make a reasonable offer.
Third, it pays to know something of the vendor’s circumstances. If he is moving to a smaller property or say is going travelling for a few years, he will probably be happy to get rid of things for no money at all. It will save him hassle and storage costs.
In this case, the best course of action may to offer nothing for the items, but once your offer has been accepted, tell the vendor that you will be happy if he leaves them in the house. But if you do this, make sure they are included in the list of fixtures and fittings to be sold.
Fourth, check the fittings and fixtures list carefully to make sure everything you want has been included on it. If it hasn’t get it included.
Fifth, if you are buying anything electrical make sure it works and is safe. Ask to see a demonstration. In my experience vendors are very keen to ask for silly money for fridges and washing machines that are on their last legs.
If you are a seller, first itemize for the agent what you are selling. You should normally exclude expensive fittings like curtains and negotiate on those separately. Also, negotiate over other expensive built in items.
Second, don’t strip the property bare.
Third, don’t try to avoid higher stamp duty by selling a house at say £245,000 and then charging £5,000 for chattels that are only worth £500. Doing this will get you in trouble with HMRC!
If you need more advice on buying property or buy to let please ask me. I’m David Lawrenson from property advice firm www.lettingfocus.com
I’m the author of the buy to let bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let investments and a well known property columnist and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlord mentoring service.
Check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my buy to let blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property networking meeting is on March 12th. Click here for details: Landllord Advice
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Paragon has said it may have to stop lending to new borrowers because of the credit squeeze

lettingfocus — Sat, 01 Dec 2007 10:50:00 +0000

Buy to let mortgage specialist Paragon has said it may have to stop lending to new borrowers because of the credit squeeze. Paragon raises all its cash on the money markets not from savers and so it has been caught out by the crunch.
It has taken some products off the market and increased the prices on others.
As Paragon has no savers it cannot turn to Mr. Darling for help and has indicated it may raise money via a rights issue – issuing new shares to raise cash.
If this does not happen there will be doubts about its future – just as there were in its previous incarnation as National Home Loans back in the late 1980s – when it was last bailed out.
However, existing buy to let investors with loans from Paragon should not be under threat - though they may find Paragon’s new rates not to their liking when they need to re-mortgage.
Paragon is one of the largest lenders in the residential property investment sector, funding one in every ten buy-to-let loans. In general, it has tended to avoid new build flats, so it’s lending book may be attractive to bidders.
All this news is grist to the mill of newspapers that have long (very long) predicted the demise of buy to let. They are fond of saying that the falling number of buy to let loans and their rising cost could force some investors to sell.
And they reported with glee that no less an august instittion than the Royal Institution of Chartered Surveyors has predicted that buy to let is set to become the preserve of the wealthy.
RICS has recently released figures suggesting that to purchase a buy-to-let property you now requiore a deposit of about £65,000 – effectively 30 per cent of the property’s value. They say five years ago, the required deposit was £10,000, or 8 per cent of the value of an average-priced property in the UK.
But whilst in theory borrowers needed to stump up only 8 per cent of the property value, the lending criteria in 2002 were much tighter, especially the irent to interst ratio which meant that lenders actually required investors to put down a deposit more like 15 or 20%.
So, I don’t shrare the pessimism
Buy in the right area and the right kind of property and you should do well.
And as defaults in buy to let are still lower than the rest of the mortgage market, I don’t expect lack of credit will be a problem for long.
And despite what RICS says, there are still plenty of properties on the market, even for new-build flats, for which a 20 per cent deposit is perfectly satisfactory for the lender
If you need more advice on investing in property or buy to let please ask me. I’m David Lawrenson from property consultancy firm www.lettingFocus.com
I’m the author of the property investors bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let property and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service.
I’m alsoa columnist for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my buy to let blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property invesment networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property investment solutions because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

What things do I need to look out for with company lets?

lettingfocus — Wed, 28 Nov 2007 11:48:00 +0000

This article has some useful advice on company lettings and corporate lets.
Where the tenant is a company not an individual, the tenancy agreement document will look similar to one for a normal assured shorthold tenancy (AST), but ASTs cannot be granted to companies so the tenancy will be regulated under common law not under the Housing Act 1988. This means no rent control and the procedure for evicting tenants is also different.
You’ll need to use tenancy agreements which are appropriate for company lets, not the normal AST forms.
A common type of let is the 12 month company let when a lease is taken out in the name of the firm – with a break clause after 6 months.
However when letting to a company it’s sometimes a good idea to take a guarantee from one or more of the directors, just in case the company folds leaving no assets to pay rent or for damage to the property.
Some advantages of company lets are as follows…1) Company lets are always popular with companies as a cheaper option than putting an executive in a hotel and most executives prefer them to hotel living too! And for the company, dealing with a landlord is less hassle than maintaining a company flat 2) Company letting rents can be 10 to 40 per cent above what’s achievable on a longer term let 3) Many companies pay quarterly in advance 4) A big company should be more secure than an individual.
Some disadvantages are….
1) Company lets means more voids and frequent changes of tenant means more work finding new tenants and checking in and out 2) As company let rents are higher your client will expect high standards and for things to be fixed fast 3) Only quality property in up-market areas and close to business centres will rent - making entry costs high for company lets. Where furnishings are required, think expensive 4) To find tenants you’ll need up-market letting agents and relocation agents – again adding to your expenses.
If you need more advice on company lets or letting to companies, please ask me. I’m David Lawrenson from landlord experts http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.I
I’m an expert on buy to let and a well known property investment commentator and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investor mentoring service.
I also provide consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my buy-to-let blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com./
My next London property invesment networking meeting is in March. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog

Why have mortgage companies tightened lending on buy to let?

lettingfocus — Mon, 26 Nov 2007 10:47:00 +0000

There were some interesting bits of news from the weekend financial press.
First off is the fact that Alliance & Leicester is to restrict lending on new build flats to 70% loan to value amid continuing concerns that prices of new build are falling in many areas and there is a big oversupply problem -too many flats and too few tenants causing landlords who have bought into these places to struggle with falling rents and capitals values.
Those who came to see me speak over the last few years will be well aware that I’ve warned of a big problem to come with identikit flats. Well, now it’s here!
Second, Paragon’s shares were under pressure last week. Paragon is one of the biggest buy to let mortgage lenders. Formerly, known as National Home Loans, they struggled in the credit crises of 1989-1990, when they had to be bailed out. Just as in 1989, they still raise nearly all their money from the money markets -so this really is a case of history repeating itself.
Third, mortgage lenders’ continued tightening of lending criteria in the buy to let market has led RICS to say that buy to let will be a rich man’s game from now on.
I don’t think it’s that bad, but if you have not been in buy to let before you are going to have to find at least 20% of the value of a property – and probably 25% from your own funds from now and for a little while.
So, yes it will get harder for the novice.
But if you are a new to buy to let and you don’t have at least 20% to put in, please don’t be tempted to listen to all the guff about “gifted discounts” on new build and bridging loans to buy below market value – if you do, you are only asking for trouble further down the line.
Sorry to say, but if you cannot really afford to get in, don’t play the game.
If you need more advice on property investment or buying property below market value in general, please ask me.
I’m David Lawrenson from landlord mentoring firm http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service.
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com/
My next London property invesment networking meeting is in March. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment help because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Do landlords need to issue tenancy agreements?

lettingfocus — Tue, 20 Nov 2007 10:47:00 +0000

According to the AA, an estimated one in two tenants is not getting a written tenancy agreement before moving into a new home. They go on to say that “landlords are legally obliged to supply their tenants with a written tenancy agreement prior yet it seems many are simply ignoring the law.” The Indy added that “those who do not have a written agreement are wide-open to being exploited. For example, in theory, the landlord could bring the tenancy to an end at any time of their choosing or hold onto deposit monies without giving a reason.”
This is factually incorrect. Landlords DO NOT have to issue tenancy agreements though any landlord who did not do so would be a fool because the TA sets out what the tenant can and can’t do -and it actually makes it easier to recover property too.
If you need more advice on property investment in general, please ask me. I’m David Lawrenson from property investment mentoring firm www.lettingFocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
What’s unique about lettingfocus.com is that we offer independent property investment help because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Should you buy in the area near to the new international station at Ebbsfleet?

lettingfocus — Mon, 19 Nov 2007 11:53:00 +0000

From Ebbsfleet in North West Kent, Paris is just two hours and a bit away - and it looks on the face of it as though all these areas will surely benefit, inevitably pushing up prices of houses and rents.
Northfleet, Gravesend and surrounding areas near Ebbsfleet have been cheap for quite a while compared to the rest of the South East but I think there is a risk that the abundance of new houses planned for this part of Kent, could lead to an over-supply developing.
In fact there will about 30,000 houses built in the area between Dartford and Gravesend which is all part of the Thames Gateway regeneration scheme.
The scale of the development is big, including, in Ebbsfleet Valley next to the station itself, a massive development that will hold shops, offices and over 6,000 of these houses.
The new station is about 36 miles from London, next to the A2 and the village of Swanscombe and only about a mile from Northfleet which is in turn joined up to Gravesend. Dartford town centre is about 6 miles away to the west.
Trains are now running to the continent but it won’t be open for local people to get to London until December 2009 when it will slash the journey time to London by a massive half an hour to just 17 minutes – though as yet no one knows how much this fast service will cost.
Property prices have been edging up surely and steadily.
A standard 2 bed terrace house in an ordinary part of Gravesend last year was about £135,000 a year ago but a quick look at Rightmove shows they are now around the £185,000 mark.
Rent in Gravesend give a good guide to the area – a standard 2 bed terrace goes for about £550 per month and a 4 bedroom property would be anywhere from £800 per month upward.
Average prices for all properties in Gravesend were about £145K in 2003 and are about £215K now (source: upmystreet.co.uk) a rise of about 48%, and not far off the London rate of increase.
Amongst the new developments coming into Dartford are Barratts and Crest Nicholson who are building apartments and homes priced from £210,000, £240,000.
But will the international link and its position do the trick for house prices and rents in the area?
Obviously, other new transport links in London have driven forward new frontier areas such as Canary Wharf - and East and South London have already felt the benefits of the Docklands Light Railway and the extension to the Jubilee Line - and the soon to be extended East London line is already pushing up prices in places on the new line especially in areas like Forest Hill, Brockley and Hackney.
Of course, there is a risk that people hoping to get in on the back of the transport and other developments at Ebbsfleet could fall victims to developers over-hyping and over-supplying a location and setting prices above what an area can really sustain with adverse consequences for home owners and investors.
This phenomenon was well illustrated in the “Truth about Property” TV programme screened on 25th October where investors in flats in some areas of the north 3 years ago are now facing big losses.
It could be worth investors taking a look, however a local agent I know says the area is stuffed full of landlords chasing a small supply of tenants, so watch out - this could be a buy to let ghetto in the making.
If you need more advice on investing in property or buy to let please ask me. I’m David Lawrenson from property consultancy firm www.lettingFocus.com
I’m the author of the property investors bible “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let property and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my buy to let blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property invesment networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property investment solutions because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

MORE CRITCICISM OF SALE AND RENT BACK -AND CALLS FOR REGULATION

lettingfocus — Thu, 15 Nov 2007 17:35:00 +0000

Leading organisations are calling for the regulation of ‘sale and rent back’ schemes.
Citizens’ Advice, Shelter and the Council of Mortgage Lenders have written an open letter to the Treasury calling on it to allow the Financial Services Authority to implement regulation in order to provide protection for consumers.
This all follows exposure of the ‘mortgage rescue’ practice on television and in the press.
In one case, a woman sold her home for under market value to a sale and rent back company which then went bust, leaving her homeless and the house unoccupied.
The programme also showed a novice landlord hawking leaflets around a neighbourhood, offering to buy and rent back properties.
Under Sale and rent back schemes firms or individual landlords buy property from ‘distressed’ sellers at a substantial discount, with the former owners remaining in situ - but as tenants.
I know quite a few “good guys” who do this for a living and they always have the Home owner’s interest in mind.
These guys point out the drawbacks – one of which is that the owner turned tenant has no security of tenure beyond six months – and another is the fact that by doing this they may not qualify for housing benefit in the future.
However, I know that lots of below market value operators who are not do kind.
For most people in mortgage arrears the best advice is to speak about their difficulties to the lender, who has a duty of care first.
The Residential Landlords Association adds that it is unfair and unethical to buy a property without an independent valuation.
In another subject, I hosted a great seminar yesterday. We had Paul Grimaldi the author of the top selling book on employing builders called “Getting the Builders In” Paul’s book is the UK’s top selling title on this topic.
You can buy this book from Amazon. Just click on the link to my book here – http://www.amazon.co.uk/gp/product/0716030152?ie=UTF8&tag=lettingfocouk-21&linkCode=as2&camp=1634&creative=6738&creativeASIN=0716030152 which takes you to Amazon and then just search for Paul’s book.
We also had Toyin from www.landlordslawyer.co.uk who gave a great talk about getting rid of problem tenants. Ask her for advice if you have a problem tenant.
All that plus a copy of a recent article I did on Below Market Value for £30.
If you need more advice on sale and rent back or buying property below market value in general, please ask me. I’m David Lawrenson from landlord mentoring firm www.lettingFocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property invesment networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment help because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Beware of Mortgage Lenders Advice - It may Cost You

lettingfocus — Tue, 13 Nov 2007 12:08:00 +0000

I read in the Daily Telegraph, 3 great quotes from Warren Buffet, the “Sage of Omaha” and one of the world’s most brilliant stock market investors.
He was talking about stock market investments, but his comments could equally apply to buy to let – and the way that many novice investors have bought the wrong kind of property, egged on by property companies / agents masquerading as property experts.
Here are the quotes:
On investing generally - “Never invest in something you don’t understand” and “Seek only to be fearful when others are brave and brave when others are fearful” (I kept that quote in mind when I bought Barclays stock last week!)
On the credit crunch – “You only find out who was swimming naked when the tide goes out”
Great stuff isn’t it.
Of course, readers of this column will already know my opinions of those robbers – the mortgage lenders.
On this subject, I see brokers and lenders are now cashing in again. David Whittaker of Mortgages for Business was quoted by the Residential Landlords Association. He pointed out that nervous investors were buying short-term fixed-rate mortgages that may be inappropriate.
This is because whilst many buy-to-let lenders are offering extremely competitive headline rates, they are gaining their margin through massive arrangement fees of up to 3% that can be added to the mortgage - and hence repayments.
Of course, those with savvy will know that finding the most competitive mortgage means looking at the fees as well as the mortgage headline rate so you can see whether it is a good deal overall.
As a long term finance strategy for those holding on to property short term fixes are rarely appropriate.
Surely, the only reason for brokers and lenders offering these mortgage deals to buy-to-let investors is the potential re-mortgage business in 12 months’ time -i.e. another chance to get more commission for the broker and another juicy “arrangement fee” for the lender.
If you need more advice on buy to let mortgages or property investment in general, please ask me. I’m David Lawrenson from property investment mentoring firm www.lettingFocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London property invesment networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment help because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

Should I Invest in A New Build Flat?

lettingfocus — Wed, 07 Nov 2007 11:03:00 +0000

If you are thinking of doing this, be careful because it’s now clear that increasing numbers of properties bought off-plan as buy-to-let investments are being sold at large losses through auction.
Auction houses are reporting a steep rise in the number of new builds going under the hammer.
Many of these are flats bought off-plan two or three years ago with rental guarantees. They were often bought on fixed-rate mortgages which came to an end at the same time as the rental guarantees finished, leaving landlords stuck on much higher borrowing costs, buy wth lower rental income and possibly no tenant.
It gives me no pleasure to say I have been predicting this for 5 years.
The situation is, of course, especially grim for flats where investors have bought in a block of hundreds of other investors who are in the same situation.
New build prices have also gone down each month for the last three months, according to SmartNewHomes, while UCB Homeloans, part of Nationwide is one of the main lenders who has stopped lending to landlords buying new apartments. It's not the only lender to have stopped either.
Knight Frank research show that yields are now at their lowest levels on new build flats.
Chris Town of the Residential Landlords Association is quoted in “The Times” telling of one landlord in Leeds who has recently been forced to reduce his monthly rent from £1200 to £800. My message is to avoid areas where there is an oversupply or can be expected to be an oversupply of the same kind of property in the future- and where there are too many landlords chasing a small pool of tenants. This is the situation in many cities in the north and the midlands of England right now. And it will remain so for some time.
If you need more advice on buying property ot let out or property investment in general, please ask me. I’m David Lawrenson from property investment coaching firm http://www.lettingfocus.com/
I’m the author of the property investment book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com/
My next London property investors networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

What do I need to know about tax on buy to let?

lettingfocus — Mon, 05 Nov 2007 14:41:00 +0000

Amidst the excitement, worry, legal issues and general administration which go hand in hand with buying and owning property, it is easy, perhaps almost convenient, to ‘forget’ about tax .
But with the right advice, you could save yourself a lot of trouble.
Here are some simple steps to help you.
This guide was written by Susan Mason at Worsley Taxation Services. Their website is at: www.worsleytaxationservices.com
OK, step one is before you actually buy anything, consider how you are to own it. Will it be in your sole name, in joint names with a partner or possibly via a limited company? You should consider the options as the choice will affect the amount of tax due both on the rental income profits and on any gain made when the property is sold.
Step two is record keeping.
Keep a record (preferably a sales receipt, but if lost make a note of it somewhere – be it a grubby paper notepad or a blackberry) of ALL expenses you incur which relate to the cost of purchasing, owning and renting your property. . After all, if you have not kept a note of the expense then neither yourself nor an advisor can say if tax relief is due. Also include costs incurred prior to the date that any letting commenced and those which include some element of private expenditure
Step three is selling.
Any gain made on the sale of the property can be reduced in many ways, including: 1) Indexation Allowance – Intended to remove any element of gain arising as a result of inflation, but now available only to companies 2) Taper Relief – Available for properties owned since April 1998. The amount due depends on the number of years owned and whether the property can be classed as a business asset. Please note that as from April 2008, this relief will be abolished. 3)Private Residence Relief – Any period of time when the property was your main home is exempt from tax, together with the last 3 years of ownership and 4) Residential Lettings Relief – If you have previously rented out your main residence, you are entitled to claim up to £40,000 as an exemption.
Property tax needs careful planning at all stages.
Susan Mason offers a free initial consultation service which can be done via a face to face meeting, over the telephone or via email. Once your particular requirements have been ascertained, the advice will then be tailored to suit your individual situation. You can contact Susan at susanamason@aol.com
If you need more advice on property investment or renting out property please ask me. I’m David Lawrenson from property investment experts www.lettingFocus.com
I’m the author of property investing book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on buy to let and a well known property speaker and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investment and mentoring service
My business is now increasingly focused on providing consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London buy to let networking meeting is on November 14th. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property investment advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.