Rent Your Home to Solve Housing Worries

Want to move, but trapped by the credit crunch?

Renting out your home may be an interesting solution to investigate, if you want to keep moving up the property ladder. And it’s not a crazy as it might sound at first…

Currently we’ve got a property market with low property sales, but high rental prices. Which make a good combination for shrewd investors. This could be a perfect way of side-stepping the market log-jam and moving on - rent out your current home; let the tenants cover the mortage; and buy again.

If you bought your property more than 4 or 5 years ago, it’s likely that the rent you could earn on your home could more than cover your monthly mortgage costs, because rents are currently high. At the same time, property prices are dropping, so it makes no sense to sell your property at the moment. Unless you’re willing to risk the capital appreciation that might have accrued up till late last year.

A recent letting report from RICS shows new instructions at letting agents are at an all-time high; and estate agents noting an increase in new landlords letting their own homes.

How to Capitalise on the Rental Market

Here are a few things to consider before you become a landlord:

Firstly, you need to understand your market. If you’ve got a three-bedroom house, well-maintained and well-located for schools, you’re in a good postion for a family or corporate let. If, on the other hand, it needs some tidying up and it’s not to such a high standard, then you’re better offering it to a younger family or flat-sharing.

Speak to local estate agents, who would know your area , and know what kind of rental prices your property could realistically achieve.

Don’t go out and buy furniture for tenants. It’s likely they have their own. But if someone does come along who wants to rent it furnished, then be prepared for a small outlay. Be flexible in other ways – if you don’t have a power-shower, but a prospective tenant says he’ll commit for a year if you install one, consider it might be worth spending the £300 to secure them.

If a tenant is willing to commit, but at a slightly lower rate than you’ve set, again consider if it makes sense to let your property out at the lower price, rather than run the risk of going a full month without any income. If you’ve got several prospective tenants, this won’t be an issue.

A few more things to consider before renting out your property.

You’ll probably need to convert your existing residential mortgage into a buy-to-let mortgage. At the very least, check the terms of your mortgage, and place a call to your mortgage company to let them know your intentions to rent out your property.

You’ll probably need at least a 10% deposit saved up to place as a deposit on your new property since it’s hard, if not impossible, to find 100% or even 95% mortgages any more.

What’s the Downside?

You’ll need a legally binding contract drawn up. Although a bit of searching on the web will turn up numerous law firms who specialise in downloadable legal documents - including short-term assured tenancy agreements.

Recognise or find out your legal responsibilities - in terms of the safety of your home. Particularly things like gas appliances that require annual inspections and certification by a Corgi-approved technician. If you do let your property out furnished, or partially-furnished, the furniture must meet or exceed any current fire regulations; and any electrical appliances must be checked for safety.

In your calculations, you need to factor in any costs you might have to cover when the tenants leave - from a little bit of re-decorating, to repairing fixtures and fittings, to replacing carpets.

Understand thaere is a lot of uncertainty in the market. There seems to be a glut in tenants right now; with rental prices very high. As teh property market stabilises, this could change, meaning a drop in possible rental incomes, or less tenants looking to rent your property. So you need to consider your possibilites and ability to cover tow mortages for a few months if need be.

What’s your first step?

Talk to someone who has done this. Or someone who can really help and guide you through all the different things you need to consider. After all, it’s a bit more than just decorating your house in a neutral shade throughout.

There are a number of property investment seminars that are held throughout the UK, which you could attend to hear more about becoming a landlord, and to ask questions - to see if this could be a viable way for you to move up the property ladder.

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Falling House Prices - Still a time to Profit

How Can You Profit From Property?

House prices are falling - as if you didn’t already know! But they haven’t fallen so fast for 18 years. The average house price has dropped a shade over 10% since this time last year. And according to Nationwide, the fall in house prices is actually accelerating. June saw a 0.9% fall; July fell by 1.5% and August saw a fall of 1.5%.

So is there still a means or a mechanism by which to profit in these uncertain times?

The housing market hasn’t looked so grim since 1990. But look at the peaks and profits we’ve had since then…

If you look historically, the property market has increased in value over the longer term. Of course there have been ups and downs in the market, but over the longer term, property has remained a pretty safe bet.

And as several estate agents are reporting, some interest is returning to the property markets, with a slight increase in viewings. Although they also say that the increased viewings have not necessarily yet translated into increased buyings.

So there is still a degree of caution across the different property and housing market sectors. Most experts agree that people are waiting to see how far (or how much further) the house prices are going to fall, before making any commitments.

The average house price, again according to Nationwide, is now £15,000 cheaper than a year ago.

On the other side of the coin, a number of mortgage lenders have announced they are going to cut the cost of fixed-rate mortgages, to encourage buyers to take action in the housing market.

So is there a way to profit from all this?

What’s the best way to buy into the property market and find your niche within property investment?
What’s the best way of finding your way around in this current market uncertainty?

One of the best ways is to get some expert advice. From someone - or a team of people - that have been through the ups and down of property investment and can guide you through the pitfalls, so you can learn firsthand from their mistakes.

Property Mentor is one such team. They are offering a free property investment seminar in different locations around the UK. Click here to find a location near you.

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5 Reasons Why Houses Prices Are Falling

Why Are House Prices Falling

The housing market in the UK is in freefall currently, in stark contrast to the buoyant property market scene of just a few years ago. But why are house prices falling and are you concerned about the negative equity that your home presents you with.

Throughout the nineties and midway through the 21st century the UK property market enjoyed its biggest ever boom. Our homes it would seem were our biggest asset. This though was a false sense of economy as most would never realise the equity in our homes as to move would negate the profit gained.

1. House Prices Are Unaffordable To First Time Buyers - First time buyers are finding it increasingly difficult to get onto the first step of the property ladder as the average house price to earning ratio are now poles apart.
2. Mortgage Lenders Are Not Approving Finance - The phrase Credit Crunch applies to the mortgage industry more than any other. Applications for mortgages are fewer and more mortgage applications are being rejected.
3. Interest Rates Increasing - Interest rates are increasing with velocity, the average monthy mortgage repayment has risen by 30%. This effects first buyers and low wage earners who are now in danger of repossession.
4. Unstable Economy - Any rumour of an unstable economy and one of first industries to be hit is residential property market.
5. What Goes Up Must Come Down - the last decade of phenomenal growth had to slowdown sometime, an initial slowdown is viewed as a negative - the knock on effect is panic, reduction in consumer spend and eventually a credit crunch situtaion.

Is Now A Good Time To Invest In Property

If you intend to move house or buy a property for the first time for the sole purpose to live in it may be wise decision to not do anything yet. House prices will probably continue to fall for the forseeable future - then recovery is expected.

For the property investor now is the perfect time to invest in property both residential and commercial. The Buy To Let market will increase dramatically as tenants will outnumber available property.

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Buy Property To Rent To Students

Investing In Property To Rent Out To Students

If you have ambitions in the property investment market - the student market is currently enjoying massive growth. Even in times of economic troubles the one thing that the UK will never run out of is students and their need to be accommodated.

Year on year more school leavers opt to go to university, meaning more investment opportunities for you.

Buying into property around universities and university town is and will always be a the most sensible property investment you will ever make.

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The Current Student Demand For Accommodation

Fact 1: A high majority of universities can only house or accommodate around a third of its total number of students. Simple mathematics dictates that two thirds of students need somewhere to live for the duration of their courses - ideally within a half mile radius of their university.

Fact 2: Mortgage lenders have reduced the number of mortgages offered by nearly 40%. The number of people who find themselves stuck on the first rung of the property ladder is rising dramatically. This increases the need for rental accommodation.

Fact 3: In the last 4 years, student rent has risen 17% - a £36.16 increase per month. It may sound like a small amount of money, but when when you factor in time imagine what this figure will amount to in 1 year. Approximately £430 free extra profits, based completely on interest and inflation.

Fact 4: Private rental accommodation has risen by over 50% in the last 6 months. Some students especially in and around the London area are now paying an additional £200 more than they were two months ago. with rent set to rise a further 6.3% in the next year - the wise property investor is profiting.

Tenancy For Life - Is It Possible

Can you imagine earning between £500 to £1000 each and every month - for life.

Every year nearly 6 million new students leave school and begin their journey into further education, yet an incredible 70% of this number will have to find rental accommodation - off campus.

The solution to their problem lies with you through Buy To Let

Buy to Let For Students

Property Mentors unique step by step system can teach you how to profit form the student demand for property - the exact same system we use to make our very own investments. You can invest with no previous experience, using little or none of your own cashflow and make instant free equities of over £15,000. It sounds incredibly simple - the risk is minimal and rewards are potentially huge.

As long as there are students there will always be a demand for rental accommodation. More and more 18 year olds are opting to go to university every year, meaning more tenants will be searching for a home to shelter them through the next 3 years of their life. Now is the time capitilise.

All you need is a system to make this goal a reality. Systems such as these are available to everyone - but surprising few fully understand or aware the potential.

The Buy To Let property market is not elitist or for the cash rich compaines or individuals.

In our FREE 2 hour property investment seminar we will introduce you to new, unique strategies seen no where else in the country, that will enable you to receive 100% mortgages, and become financially free after your first 4 properties.

So make your investment dreams happen. Book your free course today …

Solving the Property Investment Puzzle

Fitting Together the Pieces of the Property Puzzle

With all the different opinions on property investment, house prices, inflation, recession, and what’s going to happen with the property market, it makes it difficult to work out a viable strategy to profit from property investment.

Even though house prices may be falling in most regions, the rise in rents since April has kept many landlords in the game - and in profit - particularly since the rise in rents has helped increase their gross yields.

RICS spokesperson James Scott-Lee said:

“The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up… Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns.”

It seems that established and savvy investors have been reaping the benefits of the housing downturn for some time now, and will probably continue to do so.

But there are still quite a few hurdles to cross, before you can be certain of turning a profit in these uncertain times. Many people may be reluctant to enter the market right now, which could be a blessing for those with the foresight to profit from property, buying low and either renting or simply waiting for the markets to turn once again.

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Students Still a Good Bet?

There are certain areas that tend to remain buoyant, despite other market forces at work. These are cities where a lot of re-generation is taking place, and top student and university towns. As far as property investment from rentals, it seems that places such as Nottingham, Durham, Bangor, Manchester & Hull remain well above average, with yields far better than other areas of the country.

Although many investors may think that this is a weak property market at the moment, research is showing rental yields are on the up, and buy-to-let investors have an interesting opportunity to take advantage of the increasing demand for student accommodation, whilst capitalising on the lower house prices.

As Nick Clark, Managing Director of the Property Investor Show said recently:

“There will always be a sustained demand for properties which will produce a far greater annual rental yield than the average buy-to let property. In fact, it could be as much as six to seven per cent more.”

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Buy To Let On The Increase

Buy To Let Property Is A Good Investment

As housing prices continue to tumble the buy to let or lettings market is sharply on the increase - this is according to the Royal Institution of Chartered Surveyors (RICS)

As mortgage lenders are becoming more choosy as to who they grant mortgages to - the buy to let market is benefitting from the current market conditions.

Would be borrowers who are struggling to obtain a mortgage, are now forced into the property rental market - a real boon for anyone who has bought property to play in the property investment game.

Demand in the rental or buy to let market is outstripping demand in all areas of the UK - massively.

Buy To Let Markets Biggest Increase In 10 Years

The buy to let market has enjoyed its biggest and fastest growth rate in 10 years with no sign of a slow down over the coming month. If you are thing of buying a property as an investment - now is the time do it

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London is traditionally the busiest and most successful of the UK regions for the buy to let market but quite remarkably it is the North that has enjoyed the highest and fastest growth rate.

Scotland has experienced the slowest growth rate and the most stable market conditions.

House Prices Fall, Rental Prices Rise

Despite the media negativity towards the housing and property market in general, it’s the residential property market that’s suffering the most; and in particular the residential property owner who’s sole purpose is to live in his or her property.

The state of the buy-to-let market means that landlords can now charge more for their rent and so balance out the fall they’ve experienced in the equity of their investment.

All in all the landlord is not suffering. The wise property investor is buying more properties or preparing to invest, as house prices will soon reach a low point where there the next fluctuation will be generally up.

Have you got ambition to get into the property investment market? The property investment market is a very profitable one provided you invest wisely.

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Is Buy To Let Still A Good Investment

Buy To Let Investments In The UK

With interest rates rising, inflation going through the roof and mortgage lenders becomming fussier by the day is buying to let still a good investment?

The UK property market is under pressure and the media tells us our are homes are under threat throughout this latest period of economic doom - the Credit Crunch is truly taking a hold.

So what of the entrepreneurial spirited who either has one or more buy to let properties and one or more buy to let mortgages is it time to press the panic button and bale out - if they can.

Most of the buy to let ‘ers we have spoken to remain relatively calm it is not as if they have lost the lot on one spin of the roulette wheel.

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Any invetsor will tell you the high’s and low’s are part and parcel of the property investment game. “It would have been good to sell some properties at the start of the decline but hindsight is a luxury we do not have.” says David Forster a home based property investor. “I got into the property investmarket at the beginning at 2003 when mortgage lenders where literally throwing money at investors - times have changed now but experts predict the good times will be back. It is just a case a riding the strom. While house prices are in decline, now is good time to buy again”

The Future Of The Buy To Let Property Market

At the time of writing the buy to let market is becomming one where only the strongest or smartest will survive.

Mortgage lenders are removing buy to let products at an alarming rate - it is estimated that only 25% of buy to let products are still available in comparison with this mid 2007 many mortgage companies have now withrawn products and lenders are asking for much higher deposits.

The one man band type property investor working alone will suffer with the experienced multi property owners will still able to keep thier heads above water - but only just.

With house prices expected to hit rock bottom sometime soon the only way is up. The smart investors are ready to pounce.

Property Investment

Property - A Safe Bet?

Investing in property even in times of economic downturn is and always will be a wise investment of your time and money.

However the wisest investment of all, is the ability to invest just your time. My Property Investment can teach you how to profit from the property market without using any of your own money. All that’s required is your time.

The property market enjoys peaks and troughs just like any other investment opportunity - the wise investor can benefit from a negative property market possibly more so than a buoyant one.

If the idea of profiting from the housing or property market appeals, whatever the market conditions, then read on »

When Will House Prices Rise Again

When Will Property Prices Start To Rise Again

As UK homeowners watch in anguish as the equity in their properties starts to fall almost monthly there is at least some better news hopefully just around the corner.

Some property experts say the housing market has reduced in activity by as much as 50% over the last 12 months. Worse still the insider experts predict further falls and more negative equity.

It is not all doom and gloom as simple economics points to a recovery but for a few years yet. Whilst the property market is being strangled new house building projects are being postponed by house builders. This will aid the property market in the coming years.

Soon, demand will outstrip supply and this will force house prices up again. The property market has and always will be prone to peaks and troughs. At the time of writing we are most definately in a trough - whther the hosuing market has reached its lowest point time will tell.

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One fact is certain the smart property investor is relishing this particular trough as very soon the savvy investor will be making a purchase or two to benefit from an under valued property that is sure to rise in the coming years.

The worst areas effected by the fall in property prices is London and the South East - this is traditionally the area where house prices are highest and potential profit is greatest. Predictions indicate that house prices will match 2007 in London and the South East by 2012 and a decade on a further 80% increase is expected.

Where any kind of investment is to be made the highs and lows have to be experienced - the smart property investors are about to get on again … are you going to join them.