photo credit: hyku

EBay has been on the go for years and so isn’t news, but it is news for me. I watch from a distance as my wife receives an apparently never ending stream of parcels. Stuff comes in and stuff goes out – daily. So what’s all this got to do with property investment and new homes for sale? The answer is mindset.

The mindset of a property investor

I made this connection because of this post which I read on the forum yesterday about a real estate investor and his first property investment opportunities. This post basically says that if you talk to the seller you will learn why they want to sell. Every body’s natural assumption is that anybody selling anything wants to achieve top dollar and yet we know that they don’t because of EBay.

I realize that many people run an online shop through EBay but for many more it’s a great way of moving your stuff on to someone who might enjoy and use it. The alternative is the tip, and some how that would be just plain wrong.

It’s not all junk

We can all look through our wardrobes, lofts, garages and sheds and find a ton of stuff we just don’t want anymore. Some of this stuff has no value, and some of it great value, but it’s just no longer required.

Real estate, homes for sale, houses, and holiday homes can all fit into this category for a variety of reasons, death and divorce being two key ones.

Technorati Tags: property investment, real estate investing, real estate, realestate, property, business, finance

photo credit: Raul_d50 ** No Video! **Scotland has shown a sharp rise in the number of properties it has selling for over 1 million pounds. In 2006, 144 £1m properties were sold in Scotland, but that rose to 343 £1m properties in 2007.

Only London outstripped Edinburgh for the number of properties sold for in excess of 1 million or more last year. This is quite a funny statement really, because all cities in the world tend to compare themselves to London.

The total number of house sales in excess of £1 million pounds within Great Britain rose by 30% in 2007 to 8,257, so London leads the way by a very long margin.

Financing a £1 Million Property Investment

So how much money would you need to finance a £1 million pound investment property, and how do the figures work? I will use and example of a five year fixed mortgage that I found on The Money Centre’s website.

The product I chose is a 5.89% five year fix, with an 80% LTV and 125% rental cover. LTV means Loan to Value, so the lender will lend 80% or £800,000 which will cost £3,926.67 per month. It doesn’t sound so bad if you say it quickly.

The lender in this case requires 125% rental cover, which means they need to be sure that you can rent the property out for 1.25 x £3,926.67 which is £4,908.34. The purpose of the rental cover is to provide a buffer for void periods while your property has no tenants. So the lender needs to make sure that you are making a profit of at least £981 per month.

You can do it if you think big

Buying a property in this way is more accessible than you think, and virtually every man and his dog can do it. This is because lenders are lending money against a business proposition, which they will verify themselves to ensure that the property stacks up for both capital value and rent. If they are not satisfied that the property meets the valuation – they won’t lend.

Property investing and property investment is about being shrewd, being dynamic and being on the ball. A property investor sees opportunities to make money and works out how to make a purchase – you would be surprised what can be achieved with a little ingenuity. Investment opportunities are all around, you just have to look.

Technorati Tags: real estate, realestate, property, property investment, real estate investing, business, finance

photo credit: Ian Muttoo

BoKloks takes a battering because of the slow down in the UK mortgage lending market. Click here to read the FT report. BoKloks provide high quality housing and are an initiative of Ikea in Sweden that may provide answers to first time buyers looking to get their foot on the property ladder.

BokLoks is collaboration between Ikea and construction company Skanska and is available in the UK under and exclusive license with property company Live Smart @ Home.

The concept is revolutionary so you might need to sit down to take this is. Let me know when you are ready. Its cheap housing fitted out with stuff from Ikea.

That’s right – now you can buy a house that matches your furniture, and what’s more these houses are available for rent, shared ownership or outright purchase.

Do read the article in the FT because it’s actually got nothing to do with a slow down in the mortgage market, and everything to do with lenders not liking the way that BoKloks are constructed from wooden frames as opposed to bricks an mortar.

Technorati Tags: housing, real estate, property, mortgage, finance

photo credit: egarc2

The UK Government is planning to provide free legal advice for those at risk of repossession and foreclosure, and specialist training for debt agencies.

Here fishy fishy

Is this a joke? Can you imagine – you’re at your wits end with worry about losing your home and possessions because you can’t keep up with your mortgage, and the government has come up with some free advice. Specialist training for debt agencies is like teaching sharks to smile before they bite you.

Foreclosure is big business

Property repossession and foreclosure is big business, you wouldn’t think so, but it is. There is loads of money to be made repossessing homes. The guys who operate it will dispose of your possessions for less than they are worth, pay themselves a healthy commission then p*ss off.

It’s just like mugging old ladies in the street, except this is legal. If your down on your luck and struggling to make ends meet, be especially careful who you talk to and what you agree to. Ask yourself a question: Why do these people want to help? Who pays for their services? The answer is – you do!

Investment Opportunities

If you are a property investor on the look out for great investment opportunities, you could make a fortune from somebody else’s bad luck, don’t waste your time browsing round the local estate agents. Go straight to the scene of the accident and make friends with your local insolvency practitioner. Look – that’s him there in Accident and Emergency.

Technorati Tags: repossession, foreclosure, real estate, realestate, investment opportunities, property investment, mortgage, finance

photo credit: -Marlith-

There is a new trend within the UK which is gathering momentum. Property investors, who previously invested in buy-to-let, typically investing in city based apartments, are turning towards an investment opportunity learnt from our friend in the States.

In the US and other locations across the world it is quite common to invest in condominium apartments which are fully managed, maintained and promoted under a brand name that the public recognize. They cater for short to medium term stays of between a day to a week or more and so achieve high occupancy levels compared to that of an apartment let on an Assured Shorthold Tenancy Agreement (AST).

Availability, Accessability, Convenience

Aparthotels provide a level of availability, accessibility and convenience that regular rentals simply cannot match. Typically big cities attract a large transient work force who arrive on a Monday and leave on Friday to return to homes and families. Many employees work on a temporary contract basis or secondment that may be of an indeterminate length. This makes it difficult for them to commit to a six month rental contract as their situation can change with a few days notice.

Step forward the aparthotel which offers benefits to both the investor and the occupier as the space offered is more generous than just a hotel room, and the services are more in tune with clients needs.

Property investment within an aparthotel has many benefits for the investor, as the management, maintenance and marketing aspects are taken care of.

Does Your Property Investment Stand Alone?

Negative aspects of this type of investment need to be considered before you go ahead and invest, such as – if the hotel management company goes bust, what happened to your investment? Also: Does your investment stand on its own as a discreet unit in the same way that a regular apartment does?

More Info…

If you are interested in this type of property investment here are a couple of sources of further information:

Guest Invest – Hotel Investment Opportunities
Telegraph - Room Service Offers More Tahn Just a Smile

Technorati Tags: real estate, realestate, property investment, investment opportunities, business, finance

photo credit: smellykneeA real estate development moments away from Disney World in Orlando of luxury apartments, is particularly tempting to British property investors because of the continuing strength of the Pound against the Dollar.

Rental Yield of Almost 7%

Currency fluctuations aside the yield on these new homes for sale is almost 7% which is definitely not to be sneezed at. The developer sites an example of a two bedroom condo with a price tag of $360,000 with an anticipated rental return of $25,000 and a three bedroom condo priced at $390,000 with a rental return of $27,000 per annum.

A Property Investment You Can Use

If you’re looking for a property investment that you can use yourself for family holidays, this might be just the ticket as the scheme offers two weeks per year in low season. For further details visit the Feltrim Developments website.

Do Your Research

If you are interested give them a call and get all the information, then do your research to see what else is on offer in the area. If you like what you see – make them an offer – a good piece of negotiation now could save you a fortune. Remeber the US economy hasn’t been too clever recently so there may be bargains to be had. It’s got to be worth a punt.

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photo credit: eNil

If you’re hoping for a major drop in the price of property abroad, you could be in for a long wait. That’s the claim made by one overseas property expert, who believes that UK buyers have high expectations that property prices in foreign climes will fall, but are going to be disappointed when they don’t.

“The current credit crunch is giving the UK buying public expectations of dramatic price reductions, but this is a misconception with the overseas high end market,” said Serge Cowan, managing director of Unique Living.

“The world is a big place, the UK market - although important - is not essential, so buyers holding back or expecting major price falls in overseas property hot spots (marketing at £500,000 or above) are going to be disappointed.”

Instead of pinning your hopes on unrealistic aims, Serge suggests that buyers would be wise to look to regions where growth is still strong. “Even though they may lose on the conversion, they gain on the capital growth,” he explains.

One region he highlights as being a good example of an area where there are prices for all budgets, plus steady capital growth and good possibilities for renting is the French Riviera. The Cannes Film Festival and the Monte Carlo Grand Prix alone bring a multitude of wealthy people desperate for accommodation.”

Technorati Tags: real estate, real-estate, real estate news, off plan property, off plan, property investment, real estate investment, overseas property

photo credit: ceonyc

Today the BBC is running a story about a mortgage broker called Isah Attayi who has been banned by the Financial Service Authority (FSA) for trying to fraudulently obtain mortgages for both himself and his clients by exaggerating his income.

In February, the Council of Mortgage Lenders (CML) warned of the scope for fraud by unscrupulous professionals in the property industry who tried to cash in on the demand for newly built city-centre flats.

As a property investor this is something that you at the very least need to be aware of. You will probably be in contact with a number or mortgage brokers that you use on a regular basis. Mortgage brokers tend to be like the sea, which comes in and goes out with the tide. This means that they all are good on their day – then their not so good, then they are good again.

Mortgage rates and deals change all the time. Suddenly one broker has a product from a lender that can’t be got elsewhere – because it’s exclusive. That’s why serious property investors use a bunch of brokers.

So why do you need to be careful? Many brokers fill out the forms for the applicant. If you’re a big investor this is a service you will insist on, otherwise you might as well apply for the mortgage yourself, after all – who wants to spend their life filling out forms? So you need to be absolutely sure that the information they fill out about you is exactly right and consistent. People make mistakes, they forget, they don’t understand.

Imagine for a second that you send the office junior out to get sandwiches and your only instruction is ‘get me anything but nothing that contains nuts’. The chances are you’ll be the one with the peanut butter and jelly sandwich.

Technorati Tags: mortgage, mortgage finance, mortgage fraud, business, real estate

photo credit: Chrispitality

I read this article today in the Telegraph about how the top end of the new homes for sale property market is alive and kicking. Apparently its revival is only paralleled by the top end ‘Super House’ buying that last occurred in the 60’s.

So why is this? When the man in the street is feeling the pinch, the super wealthy are out spending money like it’s going out of fashion. I suppose the keyword is credit. Most of us use credit in some form or other for everything from buying the groceries to holidays.

This means that the moment interest rates change, 99% of us are affected, and if the interest rate moves north – we all have to tighten our belts. This doesn’t apply to the super wealthy – because they don’t live on credit – which is probably a lesson to us all.

It’s a lesson that it’s taken me a long while to learn, but I think I’ve got it now. The ease with which we obtain credit makes us by things that we would never buy if we had to pay with cash that we saved.

As property investors we need to be much more thrifty and careful with our money. It’s a valuable lesson that we can learn from the Asian Community who don’t generally waste money the way the rest of us do.

When I look back at the money I’ve wasted over the years on credit and credit cards, I could retire. My advice – a) stop wasting money on things you can’t afford, b) use the credit crunch as a massive lesson that will make us all change our behavior and c) save your money – then buy a big house for cash. Then you’ll be credit crunch proof.

Quite how that all fits in with OPM – Other Peoples Money – I’m not sure as when it comes to a credit crunch it appears that it’s best to use your own.

Technorati Tags: UK property, UK real estate, real estate, real-estate, homes, new homes for sale

Imagine the luxury and style of a villa, combined with the convenience and proximity of an apartment! This is what Gera Developments are promising with the launch of GreensVille Sky Villas during early 2007. With around 400 of these properties already sold and some 250 remaining, you still have a chance to invest in one of these luxury apartment-villas in Pune.

The idea of combining a villa with an apartment emerged from the feedback Gera Developments received from their customers of what differentiates a villa from an apartment. Comments like ‘villas have sloping roofs and backyards’ and ‘a white picket fence’ were put into place in their new apartment’s design.

Sky Villa’s unique features for luxury living

Each villa has a backyard with a picket fence and an entrance with a slopping roof. A double height ceiling was one of the features the customers liked in a villa for a palatial look and this too was added. So, was a servant room outside, one bedroom downstairs and more.

GreensVille Sky Villas project will offer a total of about 650 Sky Villas in nine towers spread over a total residential space of 1.7 million sq. ft. Each apartment-villa will have an area of 2300 - 3600 sq. ft. space and 3-4 bedrooms. The cost per sq.ft is priced at INR 3,250 ($81). Hence, the total cost of these villa-apartments ranges between INR 75,00,000 ($1,87,500) and INR 1,17,00,000 ($292,500).

The Sky Villas project includes amenities including a lounge, party area, table-tennis tables and pool tables. It also offers a children’s playground, security control room with intercom, separate parking space for visitors, generator back-up for common areas, a walking track, landscaped pathways, entrance lobbies and motion sensor lights in the passageways.

Basement parking, elevators and floor-rise are added advantages to suit the apartment feel of the project. Over-sized windows, the builders, highlight as a unique give-away.

This Greensville Sky Villas project is also environment friendly, incorporating features such as a water treatment plant, drip irrigation system, solar water heating system for kitchens and use of compact fluorescent lamps in common areas to reduce power consumption.

5-year-warranty giving villa-apartment project

Gera is giving a 5 year-warranty on all of their projects, including GreensVille Sky Villas.Notably - the Indian real estate developer to do so.

The total value of this project, which will also incorporate a country club and a hotel is estimated at US$ 125 Million and it is being undertaken in collaboration with Citigroup Property Investors.

Easy access to GreensVille Sky Villas

Located at Kharadi, the plot is easily accessible from Koregaon Park, Pune-Nagar Road and Hadapsar-Mundhwa bypass road, with easy access to shopping locales, educational institutions, hospitals, Pune Airport and the railway station.

Most definitely an original concept, Gera’s Sky Villas could be the right project if you are looking for a balanced combination of convenience and luxury.

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