Finance Tips

Moving home or investing in property, either way, the services of a solicitor will be needed .

At a time of national spending cuts, every penny should work as hard as is reasonable to expect, and the fees paid to professionals should be no exception.

Choosing the right conveyancer is the first battle – and my other articles seek to point you in the right direction – but so too is making sure that you pay a fair price. Naturally securing ‘experience’ is never cheap, nor should you ever have ‘cheap’ as your primary goal, as your money will immediately fail to go as far.

A fair fee should be the goal, as should value for money and extras that benefit you.

Making a Google search for ‘conveyancing’ always brings the usual £99 outfits, and yet a closer look once they have hooked you in can reveal a host of hidden charges, unqualified staff, vague business location when things go wrong, and the usual “here today, ‘dot gone’ tomorrow” risk – certainly witnessed by so many customers recently who were left without redress with their half finished Home Information Packs by collapsed online businesses.

But making a search for ‘forces discount conveyancing’ brings less of a spectacle.

Possibly the odd outfit offering 5% here, 10% there, and often by outfits you should think twice about anyway, for all the reasons given in my previous articles and above.

But talking from experience, at Trethowans Solicitors in Salisbury – Salisbury is of course no stranger to the military – this Firm will offer both a first class personalised conveyancing service with their unique Team of 5 lawyers – 2 solicitors, 2 legal executives and a senior conveyancing executive - but equally attractive is that they offer a 15% forces discount.

There is no reduction in service, just an excitement to ‘give back’.

It is one thing to talk a lot of hot air about how great a Firm is, and how it may be expanding, but the crucial test is the calibre of it’s employees, the view of the local independent Estate Agents and your immediate impression of them.

Give them a call, see for yourself, you will be impressed – http://www.trethowans.com/services_for_you/residential_property/

Introduction

Interest rates for savers generally follow inflation trends and statistics show that these gains are always positive unless you are very unlucky. The reason why so many people invest in Banks is because they are usually a safe bet. Indeed, often your savings will be guaranteed.

Money in a savings account is usually a safe investment but the return can sometimes be limited for the investor when compared to other options.

There are many opportunities for investment depending on the level of risk an individual is prepared to take. These forms of investment might include stocks and shares, endowment insurance policies, pensions etc. We are focusing our attention on the property market where our expertise is.

Stability of Property Values

In real terms although property markets do suffer from peaks and troughs, property does increase in value in the long term. Recently in some areas, property prices have actually gone down, this is due to the economy which has an effect on supply and demand. An over supply of property can easily reduce property prices when the property market is struggling.

Property prices do go down but history has shown that they always recover and they are stable in the long term. Steady or significant increases in property prices are usually the norm.

Whilst there can be no guarantee that property prices will increase over say, a one year period it is generally accepted that a well maintained property in a reasonable area will appreciate in value.

Interesting Statistics

The following statistics make interesting reading:

50% of individuals mentioned in The Sunday Times Rich List made their money through investing in property. A property worth just EUR10,000 some 30 years ago would be worth around half a million Euros at today’s prices. Between 5th October and 6th November 1987 the FTSE share index fell by a massive 32.1%. (Published Bank of England Statistics) It would not be fair to say that money cannot be made on the Stock Exchange and no one could dispute that. Most people take professional advice before investing in the stock market which is advisable.

Property Investment

The most successful property investors usually research the market and build up a considerable knowledge before they invest. Speculators often make huge profits by predicting changes in the property market and investing for gain, often just at the right time.

Most individuals who invest in property do so based on their own research and experience. The success rate for property investments is usually quite high which is why it is such a popular and sometimes enjoyable choice.

Building up a Portfolio

When a property which has increased in value, or if the loan has diminished, equity can be released from that property. Many buy to let investors have successfully used their borrowing ability to build a property portfolio and many have generated substantial wealth for themselves.

Buying property enables the investor to secure borrowing which can then be used to make further investments in property; this cannot be said of most conventional types of investment.

Rental Income from a property can then be used repay the loan which in time also increases the value of the investment. As property prices increase, so to does the investment and the increased equity can therefore be used to secure more funds and increase investments in property.

Many individuals have also increased their gains by investing in property located in up and coming areas or by making improvements to properties. Property improvement will always enhance property value.

Short or Long Term Property Investment

Whatever type of investor you are, property should always be a good long term investment.

If you are purchasing that place in the sun you can still benefit from the same investment opportunities but perhaps also with the advantage of an increased income from holiday letting.

Buying an off plan property can be a lucrative short term investment because Developers usually sell the opportunities at less than the market value in order to attract investors. The reason for this is that the Developer will benefit commercially by the the Investor funding the development cost.

It is not unusual for Investors to make 20 per cent profit by the time they get the keys. The Investor benefits from the enhanced inflationary value of the property during the construction period because the price is fixed before construction. Some Investors are able to sell the property on before it is even finished.

Opportunities for Investment in the Property Market

Prices are probably lower now than they have been in real terms for a couple of years so now is a good time to invest.

We have many bargain properties and off plan property investments on our website, if you need any help deciding on the best opportunities why not contact us for advice.

Many people have realised that investing in property can be extremely lucrative these days, and many landlords across the UK are making a lot of money, both in terms of rising equity levels in their properties and in terms of the rental income that they receive from renting out these properties.

For those interested in purchasing a property to rent out there are specialist mortgages available known as buy to let mortgages. As with all types of finance it is important to compare mortgages in the buy to let sector, as you want to find cheap mortgages that offer competitive rates of interest.

You will find that most lenders charge a slightly higher rate of interest on buy to let mortgages, although the difference in the rate of interest is not usually all that significant. You will generally have to pay a significantly higher deposit on a buy to let mortgage, with many lenders asking for a down payment of 25% of the property value, so you may need a significant sum of money upfront in order to get a buy to let mortgage.

Like other mortgage types the eligibility requirements for a buy to let mortgage can vary, and are based on factors such as your credit history and rating and your financial status. When determining how much you can borrow if you are eligible for this type of mortgage some lenders will take any regular income into account in addition to the expected rental income on the property, whereas others may only take into account the expected rental income.

When it comes to comparing buy to let mortgages the Internet is one of the easiest portals, as this method provides ease, convenience, and flexibility. You can browse and compare mortgages in the buy to let sector from the comfort and privacy of your own home, and at any time of the day or night. You can also take your time and familiarise yourself with buy to let mortgages and the industry as a whole without getting pushed into making a commitment.

When you are comparing buy to let mortgages you need to look at the same sorts of areas as you would with any other mortgage, and this includes the eligibility requirements, the level of deposit needed, the typical APR, and the monthly repayments based on the value of the property and the amount that you are putting down upfront. Also check the small print for details of any hidden fees or set up charges, so that you are clear about what you will have to pay.

As buy to let mortgages have become increasingly popular over recent years, with more and more people jumping on the buy to let bandwagon, the buy to let mortgage sector has become more and more competitive. Many lenders now offer a range of deals to entice potential landlords, so it is important that you do not jump at the first buy to let mortgage that is offered, as there may be a far cheaper mortgage out there.