Increase of rental properties have resulted in fall of rent values
March 3, 2009
A new research on property in the UK showed that as the number of rental properties available in the market has increased, there has been a decrease in the rents on these properties. One of the leading property search engines in UK revealed that there was an 88 percent increase in the number of properties that were listed to go on rent. The figures showed that from last December’s 28,489 properties, the number jumped to 53,547 in January.
The group said that the cause of the increase in rental properties was because people were finding it hard to sell their properties and opted to rent them out instead. This increase is what has resulted in the decrease of rents because landlords are competing for tenants. Research has shown that from a rent of £ 950 a month last May, rents have dropped to £ 795 this February.
It was also reported that since the beginning of the year, the new rental properties coming into the markets were increasing drastically and this caused rental values to decline from mid 2008. Experts say that values may drop further should supply of properties continue to exceed demand. Although there is still a high demand for tenants, it is not enough to keep up with the number of new properties that are coming into the market.
Popularity: 15%
Property developers letting out newly built properties beware
February 20, 2009
The unfavourable economic climate almost all over the world and slowdown in property markets has made some property developers let out newly built properties which are proving difficult to sell. Although this seems to be a source of income for property developers in these difficult times, it is essential that they are made aware of the VAT implications of these situations which could include penalties and liabilities.
However, ways have been devised to recover VAT incurred by developers based on the intent with which the property is used. This includes leasing newly built property for over 21 years or selling it and is categorised as zero-rated supply. Those developers, who chose to lease their newly built properties for VAT purposes, will be unable to recover the VAT costs incurred during construction. The reason behind this is that they will be seen as investors rather than developers.
Once the market recovers, it is likely that developers will resume their intentions to sell the property. If this is the case, only a certain part of the originally recovered VAT will have to be paid. Keeping the interests of property developers in mind, it is important to make them aware of these consequences so that during the slump in the property market, they can choose to either let out these new properties or leave them empty while looking for buyers.
Popularity: 19%
A few tips for buying and developing property
January 29, 2009
In the present economic situation where the global economy is experiencing a set back, the property rates have also come down. This is thus the right time to buy your dream home at a reasonable and affordable price. When you have a limited budget, it is preferable that you buy a not so good property which can be developed further.
Developing an already bought property is cheaper than buying an already developed readymade property. Buildings with old kitchens, shabby bathrooms and unused lofts are cheaper to buy. Once you buy such a property you can easily add to the property and increase its value.
Another benefit of this is that you can install a bathroom or kitchen according to your wishes. This way, you pay less for the property and also enjoy the benefits of having a luxurious bathroom with modern accessories or using a modern modular kitchen while you pay a much lesser price.
If you require a property that has three bedrooms, it is preferable that you buy a two bedroom building which has a loft room since it will be cheaper. After buying the property you can easily convert the loft room into a luxurious bedroom or living space, according to your requirement.
Such additions to any property offers many advantages. Apart from increasing its value it also lets the user enjoy the luxuries of having the most modern equipments, which are a visual treat and highly useful.
Popularity: 14%
Property development as an investment opportunity
December 26, 2008
If you’re looking for a way to invest money, there are plenty of different opportunities open. For example, you could put your savings into a high interest account and leave them there to grow, where they’ll increase by the interest rate each year. It’s not the best way to maximise your savings, but it is a very safe one.
You could also try investing in stocks and shares, which is a more high risk enterprise, but yields higher returns. It does represent a minefield of pitfalls though, so isn’t for everyone.
Another way to make the most of your savings is to invest in property. Footballer Robbie Fowler is one of the richest footballers in the world, not because he was paid so much as a player, but because he invested his money in property in Liverpool. It worked for Robbie, it could work for you as well.
The collapsing housing market has caused many people to get twitchy and sell up, but property is still a safe investment. Especially if you follow the standard investing mantra of buy low and sell high. Right now, property is very low, making it the right time to buy and invest.
Popularity: 18%
Can you still develop property in the current financial market?
December 18, 2008
You cannot have failed to notice the global economic downturn the world has been experiencing of late. Banks are going under, businesses are going out of business and the housing market has crashed. Financially speaking, it’s doom and gloom for all.
But is it really? Can you still develop a property in today’s economy and make a profit, the way you could a few years ago when the market rises were so profound that they made up for any errors and overspend from property developers.
Well, as a result of the crashing market, it does mean that properties are a lot cheaper to buy. This means you can pick up some real bargains, and in some cases this means houses half the price they were two years ago. Of course, the difficulty is in getting a mortgage, with many lenders only offering 75% mortgages most people will struggle to raise a deposit, so the situation only really favours those with ample capital.
If that describes you, you’re in a very strong position. You can purchase a property for a fraction of the cost from a few years ago, taking advantage of very cheap interest rates to keep your repayments right down, and letting the property out for a serious profit.
It’s a buyer’s market, so haggle hard. With house prices set to fall even further early next year, either your offer gets accepted now, or you go back with a lower one next year.
Popularity: 12%
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