nick says...

Property tycoons growing in number in UK

Property tycoons growing in number in UK

Newsletter from 4wallsandaceiling.com

Source Mintel International

The number of Britons owning a second property as a source of income is set to double by 2010, according to new research.

A report by Mintel International has found that an increasing number of people are looking to take advantage of buy-to-let mortgages and supplement their income through the purchase of a rental property, with this sort of activity no longer the sole domain of professional landlords.

The survey found that, among people in the UK, property is now seen as a much more reliable option than a pension in terms of providing money for the future.Mortgage company Birmingham Midshires (BM) has conducted a separate survey which revealed that a lot of investment property is being bought by singletons, divorcees and single parents, meaning the market is "built on very firm foundations".

"The Mintel predictions suggest that the recent growth that we have witnessed in the buy-to-let industry is set to continue and also confirm that people are increasingly looking to property as part of a balanced investment portfolio," said Tim Hague, head of mortgages at BM.

Nick Says...

This research, once again, settle the fact that the vast majority of people in this country recognise that property is a great investment.

But then again this is nothing new!

I distinctly remember my Grandmother stating to me "Put your money in Bricks and Mortar, and you`ll do alright." It was their generation who coined the phrase "Safe as houses"! However, they did not have the access to the Buy to Let mortgage products that we have today.

The point I picked up on in the Mintel report that strikes a cord is that even Birmingham Midshires (BM) state they think the BTL market is built on stable foundations. However, the people BM are refering to are just looking for a safe add-on to their pension, therefore, are only going to buy 1 or 2 other than their own homes. To me this is the news I like to hear, we have a good solid underpinning to this market place and although this type of investor is there we, as professional investors, need to take some further education.

However, even though my Grandparents, 4 generations ago, recognised that property was the safest way to go they also recognised that they themselves were never taught to buy property at school (something which non of us got taught to do). Therefore, especially in todays market, get yourself  educated before stepping into what can be a confusing arena.

You would be wise to go-to Property Mentor as they are the only company i have ever come across that have no "hidden agenda". In other words they don`t sell property or invite you to become an "armchair investor", which really means pay us huge amounts of money to become a member (of what??) and buy property from us (for enormous fees, to buy what you can find yourself!). Lets face it if what they are selling is that good why are they selling it !?!? None of my properties are bought from property clubs, yours don`t need to be either. Just get some proper training.

If you have any questions drop me a line at nick.tadd@4wallsandaceiling.com . If you want some "Proper Training" please go to Property Mentor and try one of their courses.

A Word of Caution About Property Investment Clubs

Paragon Mortgages Issue A Word of Caution About Property Investment Clubs

Newsletter from 4wallsandaceiling.com  

Paragon Mortgages, the third largest lender in the U.K. released their new magazine “The Individual” this month to their buy-to-let investors and professional landlords.  Interestingly, there was an article in there titled “Warning: Property Investment Clubs”.  I read the following with interest:

“Property Investment Clubs promise to make their members “millionaires” practically overnight and claim that this can be done without investing much or any money.  For this proposition and their services, such as attending seminars, clients pay huge fees.  At Paragon, we will not deal with Property Investment Clubs and even the Department of Trade and Industry have applied to the courts to have a number of these clubs shut down.  In practice, their schemes are about property speculation, and not buy-to-let.  We think investors should be very wary of the claims these clubs make and be particularly cautious about the real value of the so-called discounts that these people claim they can negotiate on property.  Buy-to-let is a long term investment that works best for committed investors and landlords who research their market and develop business plans to grow their portfolio – it is not a “get rich quick” scheme and never will be.”

Nick says ..... Having personally investigated many of these clubs, I am inclined to agree.  There is that great saying “Give a man a fish and you feed him for a day.  Teach him how to fish and you feed him for life”.  The fact is that most of these company’s education programmes do not teach you how to fish at all!  They want to sell you a fish and charge you for the privilege.
 
However, I have come across one company with an excellent course whose agenda is solely education – and practical, hands-on education at that.  There are no property sales at the end of the weekend, because they don’t have any membership scheme or properties to sell.  In other words, this company teaches you how to fish, so that you can go and catch your own deals!   During the course, you practice stacking and structuring deals and negotiation skills.  After the course, you have a further 14 days of further training (all included in the course fee) to help you keep moving forwards.  This is an invaluable support network, so you are not left to fend for yourself after the course.  Additionally, you get to network regularly with other delegates who will all motivate you and share their experiences with you. 
Interestingly, this course teaches you how to buy HOUSES, not apartments, with minimal financial input and to generate cash-flow from day one – as you should with any business.  All the other seminars and property clubs will try and sell you apartments, and there is no or minus cash-flow from these types of investments, once you have paid letting agents’ fees and service charges.  Plus, with so many investors all buying apartments, you can offer encounter an over-supply of properties to rent or sell which compromises your position.   So houses are where it is at, and with so many apartments being built, houses are additionally going to become a premium in the future so you will get greater capital appreciation from them in the long-term purely by default.

I was so impressed by the value of this course that I have become a Speaker for them and I am happy to put my name to this particular educational programme.

I am living proof that, as an individual investor, I can achieve substantial and real discounts on property, because I have educated myself how to assess a deal and negotiate effectively. I`ve recently purchased a 4 bedroomed townhouse with a total financial in put from me of £1000 and it still gives me a positive cashflow month on month... and I did not pay a fee for getting it !!   Therefore, I fully support education and training.  (Bear in mind that your course fees are also 100% tax deductable!)
 
In conclusion, you can educate and train yourself to source your own discounted property deals and you do not need to pay a club intro fees to do it for you!  Go and catch that fish yourself and make sure that it is really fresh, not rotten on the inside!

For further details, please go to 4wallsandaceiling.com and click on Recommended Education Programme at the bottom of the page.  There you will find further information about the course, and the chance to book onto a FREE two hour taster session to start exploring some of the main concepts of property investment and how it might work for you.

E-mail me at nick.tadd@4wallsandaceiling.com     

GMAC-RFC storms market with ‘MERC’ mortgage

GMAC-RFC storms market with ‘MERC’ mortgage

4wallsandaceiling.com newsletter.

GMAC-RFC has swept the competition aside with the launch of a new product offering non conforming criteria at a mainstream rate and featuring the UK’s first ever rate/redemption swap.

The ‘MERC’ mortgage stands for …

Mainstream rate
Extended criteria
Redemption swap
Creative solution

… explained thus:

Mainstream rate

The ‘MERC’ mortgage is priced at Bank Base Rate MINUS one basis point (0.01% bringing the MERC mortgage rate down to 5.24%) until 1 September 2010 at which point it reverts to Bank Base + 1.99%. This initial interest rate structure undercuts the terms offered by most high street lenders for mainstream mortgage products, yet is available on extended criteria.

Extended criteria

The ‘MERC’ mortgage embraces GMAC-RFC’s near prime and light adverse criteria as well as the ordinary mainstream terms. Thus, borrowers with up to £3000 of CCJs, or two months’ arrears in the last twelve, will be considered for this product alongside discharged bankrupts or settled IVA clients – all at the same mainstream rate of Bank Base rate MINUS 1bp.

Redemption swap

The ‘MERC’ mortgage features a rate/redemption swap never before launched in the UK mortgage market, giving borrowers security that, if rates rise, their cost to redeem reduces. For every 0.25% rise in Bank Base rate following completion of the mortgage, the early redemption charge will reduce by a like amount, and that reduction is then locked in forever. The redemption charge only applies to the initial 1 September 2010 period (i.e. no overhang), and an illustration appears in the editors’ notes.

Creative solution

The ‘MERC’ mortgage is a creative solution to the current problem where intermediaries would prefer to deal with an up to date, technology-led lender like GMAC-RFC whilst wishing to offer their clients the best possible interest rate. To make it easier to apply, there is no application fee to pay and free legals (or cashback in lieu) on remortgages. An added feature is that purchasers do not pay an application fee.

Commenting on the ‘MERC’ mortgage, Julie Gaskin, Corporate Relations Manager at GMAC-RFC said: “There is nothing in the market to compare with this product - a truly creative solution for intermediaries experiencing long delays with the new lenders, since our technology means that a full mortgage offer need only be 25 minutes away”.

Julie Gaskin added: “Although we have backed the ‘MERC’ product with substantial funding, it is a finite tranche, so only those applying early will benefit”.

Nick Says...

This is interesting!  GMAC are an American company and they are bringing new ideas to the U.K. mortgage market.  This is encouraging information as it demonstrates that mortgage lenders are making money even more available by widening lending criteria.  This is obviously relevant to the buy-to-let market, because it sends a clear message that lenders are thinking of new ways of lending money.  Anything that has a positive impact on the residential mortgage market, will have a positive knock on effect to the buy-to-let market.

So watch this space for further details!

For more information on Investment Properties and/or mortgages please go to 4wallsandaceiling.com or e-mail me at nick.tadd@4wallsandaceiling.com .

Cyprus house price inflation accelerates to 9.9% in March

Cyprus house price inflation accelerates to 9.9% in March 

 
Residential house price inflation in Cyprus has accelerated, rising by 9.9% compared with the year earlier in March, having risen by 9.4% in February according to the BuySell Home Price Index prepared by MFC S. Platis. 

This marks the sixth consecutive month of a rise in year-on-year prices. If it continues at this pace, house prices will record a faster rise in 2007 than in 2006, when the BuySell Index recorded an increase of 6.6%.

Compared with the previous month, home sale prices in March rose by 0.8% compared with February.

The BuySell Home Price Index reached 121.13, bringing the average home price in Cyprus to CYP 94,373 (EUR 162,430).

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

The BuySell Home Price Index was rebased in September 2005, in order to keep the Index updated with respect to the most recent quality characteristics of the housing market in Cyprus. For more information on the methodology of the Index and on Hedonic Prices please refer to: The “Asking Price and Transaction–based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.

Source: Financial Mirror

Nick Says.

Timing...timing will always be key to any solid investment. As the above article states and as we predicted at 4wallsandaceiling.com with all the EU money being spent on Cyprus, Larnaca in particular, is driving prices up. Therefore, to make the best out of your investment 2007 is going to be the optimum year to maximise your returns...preferably NOW this side of summer!

If you are interested in purchasing investment property or your own home in Cyprus, ypu should consider buying this book. It has 31 pages of the most concise information you could ever need when it come to buying property in Cyprus. From the Legal ramifications through to the Banking issues, all of which is complimented by some beautiful photographs of the island.

Available at 4wallsandaceiling.com for only £4.99.

Southern Cyprus investors 'set to double'

Southern Cyprus investors 'set to double'

Newsletter from 4wallsandaceiling.com
 
Although foreign property firms have been underlining the benefits of northern Cyprus as a property investment destination recently, there remain plenty of reasons to invest in the south of the country, it has been claimed.

Overseas property investment company Principal International said that many Brits preferred the south of Cyprus even to France and sometimes to Spain when it came to buying homes abroad.

The firm predicts that the number of British investors in the country will double in 2007 thanks to English being widely spoken on the island and tourism numbers growing each year.

Cyprus is a mature property market and offers homes that are still cheaper to buy than in the UK, the firm advised.

It claimed that the island was a favourite with the retirement community due to its low crime, high-quality lifestyle and stable infrastructure, while buying property was "easy" thanks to the land registry rules being broadly similar to those in the UK.

Cyprus was recently named among the top ten most profitable destinations for buy-to-let investment by Assetz, offering total returns on cash invested of 37 per cent.

If you are interested in purchasing investment property or your own home in Cyprus, ypu should consider buying this book. It has 31 pages of the most concise information you could ever need when it come to buying property in Cyprus. From the Legal ramifications through to the Banking issues, all of which is complimented by some beautiful photographs of the island.

Available at 4wallsandaceiling.com for only £4.99.

Cyprus property investment e-book

"Making Money While the Sun Shines" Cyprus e-book.

As those of you who tune into my blog regularly will know, I have spent the past six months researching the property market in Cyprus.  Well, it seems my timing is impeccable!  Interest in investing in this beautiful Mediterranean island is rising on a daily basis and I am being bombarded with questions.  Therefore, I think the release of my new e-book should be well received.  After six months of research, and several visits to Cyprus, I have written this book to guide you towards a successful property investment.  All the pictures in the book were also taken by my good self, and, even if I say so myself, some of them are truely stunning, and capture the beauty of the landscape.  But it's not all pretty pictures.  I've also included photos to show how the airport is being expanded and how the road networks are being built, as these will fuel your investment in the years to come and provide the transport to bring people to the front door of your villa or apartment to rent it.

While Cyprus is a relatively small island, there are some towns and areas that do NOT make good investment sense, either because they are already over-developed or they are too seasonal.  I have therefore identified the town/area in Cyprus that I believe is the best hotspot to invest in.  In fact, its not even a hotspot yet, as not too many people appreciate its potential.  That's why, if you buy there now, you will reap the rewards.  However, with me shouting it from the rooftops, more people will be heading that way, so my advice is to get in early and secure your property price as soon as possible.

My own investment is a three bed penthouse with sea views 10 mins from the town I have located as the best investment potential.  I paid CYP£ 105,000 for it in October last year, with a 10% assisted deposit from the developer.  My total investment was £12,000.  I had it valued last week independently, and it was valued at CYP£118,000.  That means that I have already made my money back in 6 months and my apartment is not even built until March 2008, so I have loads more capital growth to come!

The book identifies this area, and gives you the low-down on what ingredients make up a successful investment.  There is also a wealth of information about the legal process, financing your property, and much, much more! 

There are 31 A4 pages of information and supporting photographs.

go to 4wallsandaceiling.com for your copy.

Assisted deposits in Cyprus

Cyprus Property with Assisted Deposits...fantastic.

Here we go, I never thought I would see a deal like this...

I have come across a deal in Kiti, just outside of Larnaca. 15 minutes from the airport, 5 minutes from the PGA affiliated golf course, basically in the right spot. bearing in mind everything I have said about buying investment property in Cyprus.

1 Bed apt start from CYP£80 (not including the 10% assist you will be getting).
2 Bed apt start from CYP £105 (not including the 10% assist you will be getting) and 2 Bed houses on 2 levels with terraces and gardens start from CYP £133,500 (not including the 10% assist you will be getting).

If you couple that with Swiss Franc mortgages that means very low monthly repayments on an asset which is appreciating.

Go to 4wallsandaceiling.com

If any of these deals interest you, please get in contact with 4wallsandaceiling.com and ask about Kiti Gardens.

There is no better time to get involved with Investment Property in Cyprus than now.

if you have any questions regarding Investing in Cyprus and/or this deal in Kiti Gardens, Larnaca please drop me a line at  nick.tadd@4wallsandaceiling.com