Capital Gains Tax Changes Didn’t Change Buy to Let Investors
March 19, 2008
A recent survey carried by the Young Group – property portfolio manager – has found that 84 per cent of the buy to let investors think that the proposed Capital Gains Tax changes didn’t affect their property investment plans.
The survey asked 500 active UK property investors in the buy to let market. Thirty nine percent of the respondents believe that property prices outside London are likely to remain stagnant this year and 95 per cent plan not to sell their residential property investments this year.
A staggering 50 per cent declared that are actively looking to buy London residential properties in the next 12 months, while no more than 6 per cent of those surveyed wish to acquire UK property outside London.
Eighty Six per cent of the participants think property prices in London will raise or remain the same for 12 months, in comparison to 82 per cent in the last quarter of 2007.
Lastly, 89 per cent of property investors anticipate the Base Rate to be below 5.00% in the first quarter of 2009.
The chief executive of Young Group, Neil Young, added:
As purchase transaction volumes in the residential property investment market reduce, it is increasingly evident that the London market is distinct from that of the UK as a whole. Both property and rental values in the capital are cushioned from the cooling in the housing market, buoyed as a result of the inherent disparity between supply and demand.
Popularity: 19%
Financial Crisis Makes Mortgage Lenders Squeeze Home Loans
March 18, 2008
Mortgage lenders are keeping the best mortgage deals for the lower risk borrowers, and reviewing the mortgage contract terms for risky borrowers, as a result of the global credit crunch.
The Citizens Advice has reported an increase by 35% in the number of people seeking their support for problems with mortgage arrears.
The mortgage lenders have withdrawn most of the no-deposit mortgages, and demand large deposits from borrowers to qualify for the best interest rates.
The credit crunch is affecting many aspects of our lives, including buying property, the number of first-time property buyers who must find 25% deposit is at its highest for a 30 year period. There are no visible signs of the credit crunch easing relief, even though central banks and governments across the globe are trying desperately to re-establish liquidity to the seized-up markets.
Popularity: 9%
How to find the best builder?
March 17, 2008
Anyone can set up as a builder these days. How do you know whether you’re just about to hire a professional builder or a cowboy?
You can ask around to your friends, family or colleagues if they know any reliable builders. Builders found in this way are in my opinion the best way to find professionals who won’t let you down. If your friend (as long that is a real friend) was happy with the work carried out, chances are that your job will be done to similar standards.
If none of your friends who’s had building work done in the past. You can also look on the internet for possible reviews of builders in your area. You need to make sure that the review is impartial though. Many sites get paid commission for generating leads, and so the review would be biased, benefiting whoever pay better commission.
If you require more specialised jobs you may need a builder specifically trained for that job. In this case communicate clearly about what you want from the start. You should also have a written contract with the builder. Outlining all aspects of the jobs including legal obligations, timescale, budget, how much the builder gets paid, and how the builder gets paid.
You can download a free building contract draft from the Federation of Master Builder’s web site.
Popularity: 13%
New Property Fund Launched by GIC Real Estate
March 16, 2008
The Singapore based global investment management company, GIC Real Estate, has teamed up with Orchard Street Investment Management, a specialist UK commercial property adviser, to raise the Property Development Finance fund worth £300 million.
This property fund is set out to invest on up to 15 separate acquisitions over a period of 3 years that will spread out between £15 million and £50 million in value.
Chris Bartram, the Orchard Street’s chairman, described that the partnership with GIC Real Estate had specific categories property investment planned:
The object is to buy assets with active management potential for improvement.
He also stated that this was an investment area of “particular experience and expertise” for the company.
Large investments of this type in the UK property market just shows that it is still absolutely possible to make profits out of property investment in Great Britain, with a vast range of opportunities.
Popularity: 9%
CML Reports Decrease in Mortgage Lending
March 14, 2008
According to data released in the past few days by the CML (the Council of Mortgage Lenders), mortgage lending decreased in recent months, which indicates that the current world market’s turmoil is affecting the mortgage market.
First-time-buyers usually took out loans for 88% of the overall property’s value in January, down from 90% in December and January 2007. Home movers on average borrowed 70% of the property’s value, down from 73% in December and 72% in January 2007.
The average first-time buyer borrowed 3.32 times their income, down from 3.38 in December and 3.31 in January last year. Home movers typically borrowed 2.97 times their income, down from 3.04 in December and 3.0 in January 2007.
Interestingly enough remortgaging activity increased by 43%, going up to 85,000 remortgages from 59,000 in December 2007.
Popularity: 10%
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