It is not that there aren’t enough properties in the UK. Quite the opposite…

There are supposedly 500,000 properties lying vacant at the moment as local authorities don’t want to use up funding bringing them up to standard. So straight away if we could access those 500,000 properties we would be able to make a huge dent on this demand.

So what is the problem? Lack of finance…

Even with the right investment strategies property investors still need to be able to access quality buy to let deals to enable us to invest. Yet once again, lenders are ignoring this opportunity and seem reluctant to widen their diversity.

Take this statistic…

During the last quarter 61,000 property owners filled in tenant applications. And their reasoning – because they cannot get a mortgage…

Now I know lenders are scared to find themselves in the same situation they were in during the recession. But they are now impacting on the property market in a different way by making it harder for property investors to buy properties such as the 500,000 listed above and thus reduce this tenant demand!

Sorry… I didn’t mean to go into a rant there, but I think many of you would agree with me that something needs to be done soon to alleviate this pressure, especially as coming benefit cuts will make it even harder for property owners to buy.

There is only so much we can do as a niche to supplement this need before the government needs to act i.e. improve lending, build more properties, give buy to let greater recognition…

Anyways on the upside, there is definitely plenty of demand for property lets at the moment so making a profit from buy to let has never been easier.

Let me know what you think.

Wendy xx

According to new reports, the government is now planning to make tax reliefs harder to access to help reduce the country’s deficit. So whereas in the past, this property investment niche offered property investors the attractive prospect of being able to offset their mortgage costs against their personal income, they will now no longer be able to do this.

And you don’t have to be a genius to see that this is going to be a harsh blow for property investors…

Nearly 25% of the 65,000 property owners currently letting their holiday homes will no longer be eligible for this relief from 2011. That is unless they ensure that their properties meet the following requirements.

For instance, their property must be available for let for a total of 210 days of the year. That is 70 days more than it is now and nearly two-thirds of the whole year!

But this is not all…

The property must actually be let for at least 105 days a year – up from 70 days – and any losses incurred from mortgage interest and repairs can no longer be offset against other investment incomes i.e. shares or savings.

Now I can partly understand why the government is being so strict. After all the country is in a bit of a mess; but this is a really harsh blow by the government to both property investors and the property market alike.

Many second holiday homeowners got into the business to keep their second homes occupied whilst they were away, and make a bit of a profit on the side. But with these new rules, they are going to have to go the extra mile to make these second properties a worthy investment…

I personally think the government needs to rethink their strategy, especially in terms of their attitude to the buy to let market.

At the moment they appear to be penalising the one niche which has made up for their own shortfalls in providing new property developments and housing for the country. And with the social housing list expected to hit the 0.5 million mark, they are only working to make the situation worse…

Something definitely needs to change. It is just a question of when will the government come to their senses.

Wendy xx

Judging you on the strengths of your property portfolio; your financial success and your overall personal achievements in the private rental sector; this award is a great opportunity to get yourself recognised as a professional landlord and in turn establish your property portfolio.

Win this award, and you’ll no doubt have no problems finding tenants to fill your property lets!

If you haven’t managed to keep track of this event so far, here is a list of the top 3 finalists (for every region) that the NLA announced last week:

• East of England: Myra McNeil, Karen Murray and Irene Turner
• East Midlands: Tracey Abbiss, Rachel Hutchinson and Tamsin Sapwell
• London: Georgina Bloomfield, Bindar Dosanjh and Coral Humes
• North East: Juliet Ashton-Taylor, Maria Beckwith and Joan Briggs
• North West: Christine Jones, Sylvia Marrs and Tammy Silcock
• Scotland: Mhairi Noble, Nora Rojas-Sinclair and Elaine Stenson
• South East: Anna Bowden, Diane Fry and Hasmita Reardon
• South West: Claire Heale, Anne Jarrett and Fiona Macaskill
• Wales: Jane James, Elizabeth Paterson and Lilly Sharma
• West Midlands: Samantha Collett, Amy Dixon and Glenda Houston
• Yorkshire and The Humber: Shona Davison, Lesley Jackson and Sandra Widdrington

This list definitely goes to show that you don’t have to be a man to be a successful property investor. To my knowledge there were hundreds of entrants for this competition – proof that buy to let is truly for everyone.

But this is not all…

For female property investors who have also managed to remain eco-conscious with their property lets  – despite the recession – the NLA have also announced plans to give a further 2 awards for being environmentally friendly.

And for those under 30, there is also the chance to win the NLA’s Young Property Woman Awards.

I personally can’t wait to hear the results. Every one of these women deserves the chance to win, so it is destined to be a tough competition.

Wendy xx

Well, the housing crisis just keeps on getting better and better…

According to new research by the Association of Residential Letting Agents, 59% of property landlords have now got more tenants than they have got property lets!

Demand is literally outstripping their supplies, meaning on top of the growing social housing list, there is now a growing list of tenants who can not find property lets to lease.

Now, you have probably already guessed where I am going with this i.e. why can’t we property landlords utilise these 500,000 empty properties to fulfil this shortfall and prevent a further housing shortage in the buy to let sector?

Well, here is where things get interesting…

Instead of utilising these 500,000 empty properties immediately – most of which are in a decent condition – the ARLA have instead asked the government to supply property investors will incentives to invest, refurbish and insulate older properties.

Now of course this will include some of the 500,000 properties mentioned above, but my real issue with this situation is: why would the government do that when local councils are already against bringing vacant properties up to standard in the first place?

It is a complete catch 22! Until councils relinquish their reservations to upgrade these existing empty properties, it is incredible unlikely that the government will have any success incentivising property investors!

Anyways… it is great to know that there is plenty of demand for rental properties from tenants with the average vacant property let only remaining empty for 3.6 weeks. But until the government gets their act together and makes councils utilise these 500,000 empty properties, times are going to get tougher.

Wendy xx

Each of these 3 lenders have FINALLY reduced their deposit sizes/interest rates which is fantastic news for property investors like you and me as it will give us more cash to invest elsewhere!

Here the best ones that I have found to date – there are even a few 90% LTV’s in there:

London & Country:

• 3 year fixed rate 80% LTV Loan of 6.49% -  there is a £995 arrangement fee though so be careful to add this to your calculations

Nottingham Building Society

• 3 year fixed rate 70%  LTV loan of 5.59% – this is 0.3% cheaper a month than it used to be despite having a 70% LTV

NatWest

• 2 year tracker 70% LTV loan of 4.99%
• 2 year fixed rate 70% LTV loan now available for only 3.55%
• 2 year fixed rate 70% LTV loan now available for 3.65%
• 2 year fixed rate 90% LTV loan now available for 5.69%
• 3 year fixed rate 70% LTV loan now available for 5.89%

NOTE: all of NatWest’s tracker deals have an arrangement fee of £1,999, whilst their fixed rate deals have traditionally got an arrangement fee of £999.

Hopefully these drops in deposit sizes will prompt other mortgage lenders to act more competitively, so there is more choice in terms of mortgages. We will have to wait and see…

Wendy xx

P.S. If you spot any better buy to let deals out there please let me know and post them here. Thanks x

That is why it is with great happiness that I reveal that leading lenders Santanders are increasing the maximum loan sizes of their mortgages.

Admittedly this news would have been better if these increases were applicable to everyone, but the point to take away from this particular story is the fact that competition is increasing amongst lenders. More importantly, the property market is becoming increasingly accessible to first time buyers again.

To sum up what has happened, Santanders have revealed plans to:

• Change the limit for first time buyers investing in new apartments from 70% LTV to 80% LTV
• Change the limit for investing in property from 80% LTV to 90% LTV

Whilst Santanders also divulged in their report that newly built property developments will remain at 70% LTV for apartments and 80% LTV for houses (for non-first time buyers), it is impossible to see the down side of this news. Especially as I imagine that it won’t be long before other leading lenders change their criteria to include existing property investors too.

All we can do is hope that the competition gets so hot that everyone benefits from deposit reductions and that buy to let mortgages get cut a break.

Wendy xx

I personally would love to retire even earlier than that, and with my extensive range of property lets I am fairly confident that I will be able to achieve this before I am 35. However property investment isn’t for everyone, so the real question is: what other routes are available to you?

Looking at the Co-operative Bank Mortgages figures they revealed that:

• 31% planned to achieve this goal by overpaying on their mortgage every month and reducing the term of their mortgage. And this is a great idea considering the current economic climate and how low mortgage rates are. There is plenty of opportunity to overpay
• 21% planned to achieve this goal by taking advantage of low interest rate deals. Now this one is only good if your current mortgage term is coming to an end. To swap part way through can result in penalties and a lot of paperwork which can get messy if you don’t know what you are doing
• 13% planned to achieve this goal by utilising more of their disposable income. Similar to the one above, this technique is only useful if you are on a tracker deal or are coming to the end of your current mortgage deal, as you need to be on a lower mortgage rate in order to increase your disposable income.

Now out of these 3, I would have to say that the first one is definitely the most viable route. For instance, most banks will allow you to pay an additional 10% on your mortgage over the year without incurring a penalty. However that being said many leading lenders are now considering launching a range of mortgages which will enable you to make additional repayment of up to 50% of your entire mortgage.

Is there another route?

Like I mentioned above, property investment isn’t for everyone, but working solely on my own personal experience, buy to let property investment has enabled me to pay off huge chunks of my own mortgage – fast – whilst leaving my other salary free to offer me the luxuries of reduced working hours.

Take my scenario for example:

Each of my 11 property investments currently produces positive cash flows of between £350 and £980 a month, giving me an additional income of £6,018 (aside from my existing job).

Now aside from the fact that my tenants are essentially paying the entire costs of my property investments – bills, mortgage payments, council tax etc – they are also supplying me with the cash flow to pay off an extra 10% off my mortgage every single month.

See what I mean?! There truly is a diversity of ways to enable yourself to retire when you want to and at an age that fits your lifestyle. So give it a try and see if you too can retire when you want to…

Wendy xx

I was reading an article recently about a property investor who had to pay cleaning costs of up to £1,900 after their tenant left their carpets, walls and gardens in poor repair.

And the worst thing for her was, instead of having her tenants deposit to rely on to help cover the costs of these bills, her rental agent had already given the deposit back to the tenant – all without inspecting the property first – meaning she couldn’t prove they had damaged her rental property in the first place!

It is stories like these that make you really appreciate landlord resource websites which enable you to manage and control your own properties without the assistance of a third party i.e. a rental agent.

From structuring your assured short hold tenancy agreement to utilising an inventory form – which allows you to monitor the condition of your buy-to-let property and its contents during their entire tenancy – to arranging for a tenant guarantor to protect your rental income if your tenant can pay.

With the right forms, you can prevent such mishaps as the one mentioned above from ever occurring, and more importantly save yourself from ever having to foot the bill for your property manager’s mistakes.

Now this isn’t to say that all property management companies are bad. Over the years I have come across a lot of good quality providers who have done a decent job for my friends, but myself – I still prefer to manage my property portfolio myself.

Not only can I make sure – before they move in – that my tenants have got a good reputation, a strong credit rating and will treat my properties with respect. But I can more effectively enforce mine and my tenant’s rights when it comes to maintenance.

After all, the last thing you want is to be paying cleaning costs of over £1,900 on top of your other responsibilities.

If you are genuinely interested in getting a property manager, I recommend searching around and thoroughly researching them first. A general estate agent is simply not enough…

Wendy xx

You may remember the other week that I discussed Economists predictions which suggested that because of static property prices, the buy to let investment sector will grow in popularity.

However, I have also been hearing rumours which suggest that property prices are about to go into a double dip.

Now I don’t know about you, but these mixed reports are driving me crazy. For example should I keep investing in property under the pretext that property prices are not going to fall any further? Or should I believe these double dip rumours and wait for these property price falls to hit?

If you haven’t heard either of these stories I’ll quickly sum them up for you:

-          In the Bank of England’s Financial Stability Report they revealed that property prices are at risk of going into a double dip should banks choose to sell off £200bn worth of distressed properties. Not only will these sales reduce banks ability to give loans, but this sudden increase in properties for sale could disrupt the supply/demand balance.

What’s worse, should they do that, banks may be forced to sell off further properties, causing further price falls.

Now as a property investor, increased properties for sale (which are discounted) is great news as this means more opportunities to invest at a more affordable price. However the indecisiveness of these rumours is completely and utterly frustrating.

What is right? What is simple speculation? When is the right time to move and harness these property opportunities…?

The answer is: who knows? I for one have got no idea, but one thing I am certain of is that I will be paying closer attention to what is happening in the property market over the next couple of months.

Wendy xx

I was reading an article by holidaylettings.co.uk the other day and in it they revealed that year on year UK holiday home enquiries have risen by 73%!

Even by recession standards that is a dramatic increase and one definitely worth taking note of if you are interested in breaking into the sector.

Yet according to their research, these enquiries have been global. South Africa, Turkey, Croatia… all have been witnessing similar increases in holiday letting queries too:

• South Africa – holiday enquiries have increased 13 times above their 2008 figures
• Croatia – enquiries for 2010 are up 113%
• Malta – enquiries for 2010 are up 94%
• Greece – enquiries for 2010 are up 74%

There is no disputing that 2010 is proving to be a profitable year for property investors and professional landlords alike.

In many ways holiday lettings is an incredible way to earn an extra income.

Not only will your ‘Tenants’ cover the entire cost of your mortgage whilst you are not occupying the property, but in many instances your second home will give you monthly bonus. Why? Because rental yields are notoriously higher than mortgage repayments.

Take this scenario for example.

Lets say you own a £120,000 property in Luton (3 bedroom) with a 25 year mortgage of 4.99%. Opt for an interest only mortgage and your repayments will be £499 a month. However choose to rent out this property and you can easily charge rental yields of £741 a month. Do the maths and that is an instant profit of £242.

Now I don’t know about you, but an additional income of £242 a month for simply renting out your second home is just too good to ignore, especially if you only use this property for 2-3 months out of the year. For the other 9 months you can easily earn £2,178.

Taking all these facts into consideration, owning a second home could definitely be a worthwhile venture if you have got the cash to invest.

PLEASE NOTE: rules surrounding ‘Furnished Holiday Lettings’ are changing in the new tax year, so make sure you familiarise yourself with this, before you consider joining the club.

Wendy xx