4 Vital Points To Know About Earnest Money Before Investing in Property

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Let’s not waste any time and get to the bottom-line immediately. Earnest money is also known as the down payment home buyers make for buying a house at auctions. It creates an environment of trust between buyers and sellers.

Continue reading 4 Vital Points To Know About Earnest Money Before Investing in Property

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4 Secrets of Buying a House At Auctions By Striking a Good Bargain

auction

Property auctions in UK are considered as a safe alternative for buying or selling a house. It is because everything happens genuinely. The process of buying or selling a house is safe and fast. Property auctions also safeguard the financial interests of investors as well as sellers. All this process takes less than 28 days. Continue reading 4 Secrets of Buying a House At Auctions By Striking a Good Bargain

4 Secrets of Buying a House At Auctions By Striking a Good Bargain

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Property auctions in UK are considered as a safe alternative for buying or selling a house. It is because everything happens genuinely. The process of buying or selling a house is safe and fast. Property auctions also safeguard the financial interests of investors as well as sellers. All this process takes less than 28 days.

But there is a hidden secret you must know about property auctions. You are reading absolutely right! It is important to have a wise head on shoulders while making moves at a property auction. Right moves can help you achieve your investment goals easily. But one wrong move can result in financial disaster to end your investment game.

So, it is important that you know the secrets of buying a house at auctions and striking a good bargain. Here is the list of everything you should do:

Visit The Property:

Visit the property and check everything carefully. Make sure there is nothing like dodgy electrics, water damage. See if someone is already living in it on rent. Investing in such a property could be an invitation to loss and problems.

Know Your Purpose of investment:

A purposeless investment leads to loss of time and money.  It is important that you know your purpose for buying a house at auctionFor example:

  • Are you buying a buy-to-let property for monthly income?
  • Do you want to play a waiting game and then sell it at a higher price after its market worth appreciates?

This is what you should know and understand. It is because a clear purpose will help you understand and determine the kind of residential property you should invest in.

Check Property’s Location:

This is another important thing you should take into consideration. It is because nobody likes to buy his/her dream house in some noisy, troublesome area. No one would like buying a house at auction from where all the administrative offices, educational institutes, main market, transportation, medical, and entertainment facilities are miles away. Therefore, check the location of your property and choose a residential property to invest in accordingly. Try to bid on a property that is located far away from areas known for criminal activities.

Check Property’s Reputation in Legal Records:

Buying a house known for use in criminal activates is an invitation to legal issues. No one likes to purchase such a property. Such property only depreciates with time. Investing in such a property is never a good idea. It is because your ROI will only suffer. So, you are advised to prepare a list of property’s you want to invest in and check their reputation in legal records before buying one of them at the property auctions.

Talk to Your Mortgage Broker:

Mortgage lending rules have changed this year. In case you are funding your property investment through a mortgage, it is important that you talk to some experienced mortgage broker in this regard. His/her wealth of experience will help you get the amount of mortgage you will need to fund your investment at the property auctions in UK. The same will also help you get an idea about the cast-iron limit that you will not exceed during the bidding war. Most importantly, his/her experience will help you get your mortgage approved on time.

To Conclude:

This list of secrets for making wise property investment moves at auctions to strike a good bargain is not limited to the ones’ mentioned above. You will need to know many more such secrets before attending property auctions in UK.

For this purpose, we have the most experienced group of property investment agents in London.

You can call us any time.

We will be more than happy to guide you more in this regard.

Call us right now!

Know How Demand and Supply Appreciate the Market Value of Your House

buying and selling

Property value appreciation is one of the most important terms you learn about at property seminars. It is because it determines returns you get/expect from your property investments. It is increase in the market value of your residential property over a certain period of time.

Only one thing does not appreciate the value of your residential investment property for sale. A lot of things collectively work to increase the market value of your property. For example:

  • The distance of eateries, restaurants, hotels, and the means of entertainment.
  • The distance of administrative offices, corporate sectors, and health facilities.
  • The distance of roads, highways, and markets.
  • The distance of educational institutes, financial institutes, and transportation facilities.
  • The cost of borrowing.
  • The development and growth rate of new infrastructure and other vital market drivers.
  • The supply and demand of property in market.
  • The nature of your neighborhood.
  • The reputation of your residential investment property for sale in legal records.

All of these factors appreciate the market worth of your house in their own way. It is not possible to explain them all in just one post. This is why we are going to learn about all of them one by one. It will be best attending a property seminars online for learning through text.

Now let’s first see the way the law of supply and demand affect/appreciate the market value of your house.

The Law of Supply and Demand:

The most experienced property investment agents in London see the supply and demand of property as the two different sides of the same coin. However, both of these sides are somehow related to each other. It is because when the demand exceeds supply, the prices of residential investment properties for sale touch the sky.

At times, the same thing works vice-a-versa too. When the supply of houses exceeds the count of demand, the prices of houses decrease.

It is Based/Dependent on Location

The appreciation of your residential property is subject to location also. If you attend a couple of property seminars, you will often see agents stressing on the location of your potential house for sale. It is because nobody wants to live too near to a road, cinema, school, transportation facilities or market because of too much noise. At the same time, your tenants or potential buyers don’t want to live too far from these facilities for the following reasons:

  • They have to commute to their office and don’t want to get late for their classes or offices.
  • Nearby main road and markets etc. save their time. They can quickly get to market and get back home after shopping. Nobody wants to waste time on reaching the main road just to get late from office or classes.
  • Availability of administrative office nearby the property gives the sense of security at the time of need.
  • Availability of transportation facilities helps people commute to their offices on time.
  • In case someone wants go to watch movies or games, he/she can get back home quickly, be ready for office/classes on time next day.

This is something that you get to learn at property seminars from the experience of the best property investment agents in London.

Keep coming back to our website until we explore this concept further deep through another text next week. Meanwhile, you can also call our market agents for further discussion on this topic for healthy returns on your property investments.

Factors That Appreciate or Depreciate The value of Your investment Property for Sale

Property investment in UK is a vast subject in itself. You just cannot invest in property just because it yields healthy returns as compared to the share market. This is one of the actual ground realties you need to understand. You have to study it like a subject and learn all of its concepts fully and wisely.

Now we are going to talk about two important concepts of property investment market.  Property value Appreciation and Property Value Depreciation are those two important concepts. You must learn about them before making property investment in UK.

What is Property Value Appreciation?

Increase in the financial value of your property is called property value appreciation. The value of some property appreciates slowly over time. It doesn’t happen overnight. What makes your property’s value appreciate? It is important to seek answer to this question. As for reason, the answer to this question will help you understand the affect it has on your ROI from property investment.

  • Let’s see it below before you plan on investing in property in UK:
  • Dynamics related to supply and demand of property at some particular location.
  • The behavior of fiscal inflation.
  • The cost of borrowing. In simple words, the interest rates charged by the banks for home loans or mortgages.
  • The development and growth rate of new infrastructure and other vital market drivers. For example:
  • Educational institutions
  • Administrative offices
  • Corporate sector
  • Health facilities like clinics, medical shops and hospitals
  • Baking facilities
  • Restaurants, hotels and eateries
  • Main road and market
  • Transportation facilities
  • Means of entertainment
  • Your neighborhood
  • The reputation of your property’s reputation in legal records.

Many such factors collectively contribute to the appreciation of your property’s market value. In case all these facilities are nearby the location of your property then the value of your property will increase slowly and steadily. This is actually one of the factors that determine returns on your property investments in UK.

What is Property Value Depreciation?

This is something you would not want. It means fall in the financial value of your property’s actual market worth. It can happen overnight or even slowly and steadily. The value of your property depreciates fast because of political or market events. But it happens slowly for the following reasons:

  • Lack of educational, health, administrative, transportation facilities nearby.
  • Main road too near to the property.
  • Too much distance of main road/market from the location of property.
  • Loudspeakers buzzing all the time.
  • No means of entertainment nearby.
  • Lack of corporate sector.
  • Property’s use in illegal activities in the past or bad reputation in legal records.
  • Location in remote area.
  • Leakage inside and outside of the property.
  • Piles of trash and leftover food.
  • Too much noise or pollution nearby the property.

 

This list of reasons responsible for Property Value Depreciation could be very long but not limited to the ones’ mentioned above.

You need to be careful about it and avoid making any mistake that depreciates the value of your investment property for sale in UK. This can definitely affect your property investments and reduce your ROI significantly.

In case you are planning about investing in property in UK, you need to learn about these two concepts in depth.

Call us today!

We have a capable team of property investment agents in London to guide you in this regard.

Calculating ROI From Property Investments Made Easy With Cost Method

Investing in property in UK or any part of the world without proper relevant education is never a good idea. You have to learn a lot to be a wise property investor. For example:

  • It is important for you to learn about CGT (Capital Gains Tax)
  • Education about Property Value Depreciation is necessary
  • You must have sound knowledge about Proper Value Appreciation
  • How to bid at auctions for purchasing an investment property for sale that will yield profit
  • The types of auctions to attend as per your property investment needs or goals.

According to the property investment agents in London, the list of topics to learn for being a successful property investor is not limited to the topics mentioned above. It is because you should also know about the way of calculating ROI from your residential property investments.

One of the most used methods for this purpose is The Cost Method. The amount of equity in property is divided by all costs to figure out the ROI using this method.

For Example:

Let’s assume someone buys a house at auction at the cost of £100,000. Now, the buyer spends at least £50,000 more for repairing it to perfection. After all the repair work is done, the value of property reaches £20,000. It means buyer’s equity position in the property reaches the amount of £50,000.

In this situation, you will need to divide the equity with all costs.

£50,000 ÷ 150,000 = 0.33 or 33%

The ROI is .33% or 33%.

You can gain knowledge in this regard only at our property investment seminars in UK.

Call us right now and book your seat!

4 Things Investors Must Ensure Prior to Purchasing a Bank Owned house at Auction

Buying a house at auction could be profitable for you. But every coin has a flipside too! You should be very careful in this process because such houses could burn a big hole in your pocket. Don’t just go after some property just because you have a chance to save 20% or 25% money on purchasing it. Don’t just purchase a house just because it is owned by the bank.

That’s right! Property investment agents in London advise you to inspect the property thoroughly. Banks generally do not inspect the houses they put on auctions for sale. Moreover, you have to keep at least 25% to 40% down payment of the house ready in advance.

Remember, bank-owned properties that come to auctions for sale are not resale properties. Therefore, it is your responsibility to inspect the house carefully and evaluate the deal and inherent risks associated with it, before signing the documents.

For example:

  • Make sure the residential property you want to purchase at foreclosed auctions is occupied by some illegal occupant.
  • Keep a lot of money in your bank account. Make sure your bank account is never short of money to make the down payment.
  • Get your loan approved in advance for investing in property in UK.
  • Banks do not inspect the property. Moreover, banks also do not provide any detail about the property to buyer. Therefore, there could be some pending bills or taxes related to the property. The property could also be legally troublesome. So you would not want to take such a risk to end with the short of a stick.

Thinking about investing in property in UK through foreclosed auctions?

Call us right now!

We are a group of the best property investment agents in London.

4 Key Points First Time Home Buyers and Sellers Must Know to Avoid Legal Issues

Purchasing your dream house at property auctions is never an overnight process. You have to fulfill a number of procedures and relevant legal responsibilities. But it is not enough by the time seller does not fulfill his share of procedures and legal responsibilities. In case you are in queue, this whole process of buying and selling a house could be much longer than 2 or 3 months.

Therefore, it is important for a first time buyer to know the responsibilities a home seller must fulfill. As for reason, you do not want to face any legal issue for no fault of yours. Therefore, make sure your seller fulfills all his following responsibilities related to the deal in a timely manner:

  • Make sure your seller gives you EPC (Energy Performance Certificate).
  • In some cases, sellers do not sell directly. Instead, they utilize the services of estate agents. In such a scenario, you as a buyer can make offers only through the agent.
  • Once seller accepts your offer, it is his/her responsibility to prepare a legal contract for transferring the ownership of the residential or buy-to-let property for sale.
  • Remember, you are not bound to fulfill any condition mentioned in the contract unless seller exchanges the contract with you. It must be according to the rules and regulations.

Finally, there is something for you to do. You may have to pay Stamp Duty Land Tax as per the amount you have paid for purchasing the house.

The Bottom line

The process of purchasing a residential property is time-consuming. Are you also thinking about purchasing a residential property? Everything told above is merely a tip of the whole iceberg. Attend our property seminars in UK and learn everything in this regard to avoid legal issues.

Call us right now!

What Homeowner’s Insurance Covers and What It Doesn’t Cover

Homeowner’s insurance policy is a kind of cover that shields your financial interests. In case you are thinking about applying for it to have a cover in place that helps you pay for the damages caused to your property, you are advised to attend a couple of property investment seminars and learn about the following important things in this regard:

  • What does it cover?
  • Types of homeowner’s insurance policies.
  • The types of coverage provided by the type of homeowner insurance policy you want to apply for.

Generally, most of the homeowner’s insurance cover policies safeguard the financial interests of investors against fire, hail storm. Lightening windstorm, theft, vandalism, and injury to someone within the premises of your property.

Now, there is something that all experienced property investment agents in London advise you to know in this regard. According to them, damage to your property caused by floods and earthquakes. For this purpose, you need to look at the additional options available in market.

The Bottom Line

You should first attend a couple of property seminars and learn everything in this regard.

Need more knowledge about the value homeowners’ insurance adds to your property investments? Call us right now and book your seat for our property investment seminars to know about it.

6 Things Sellers Should Do To Attract Buyers at House Auctions

Property auctions are medium for buyers and sellers to strike good deals. Both attend auction events for their own reasons. Let’s now come to the point. Sellers have to do a lot of work to make sure they get buyers at auction events.

For Example:

No one would like to buy a property that looks damaged or dirty. This is why you should de-clutter your property.

  • Paint it before taking it to house auctions for sale.
  • Make sure your property is personalized for your target buyers.
  • Kitchen, washroom, and lobby should be updated.
  • Make sure the lightening system works perfectly fine.
  • Roofing should be in perfect condition.
  • Fix all kinds of holes and other problems and clean it before it is ready to go under the hammer at property auctions.

Once all these things are done perfectly, your residential investment property is all set to go under the hammer at house auctions to earn you profit.

The Bottom Line:

In case you need guidance to sell your property at auctions, we can help you in this process!

Call us immediately!