Ummm probably… but before you discount me as being heartless or ‘callous’ in this judgement let me explain…

You see it is a little known fact that repossessed properties sell for at least 5-10% below market values, meaning you can easily invest in these properties for more than 25% below their original 2007 asking prices, if not more which is fantastic news since property prices have begun rising again…

Now for anyone who doesn’t have a clue what I am going on about, I am discussing Credit Action’s recent report which declared that a new property is repossessed every 11 minutes. That is 131 properties every single day!

Yet this is not the worst of it…

According to Credit Action, the average household has now got a debt of at least £9,161 to their name –excluding their mortgage! Throw that into the mix and household debt rises to an astounding £58,340.

At £58,340, it is no wonder that every 3.97 minutes someone is declared bankrupt or insolvent – the finance market is in a very bad way.

Yet despite all this, it is impossible to ignore the fact that these repossessed properties represent an incredible opportunity to get the property market back on its feet.

With the demand for property growing at an escalating rate and the housing shortage becoming ever more dominant, these properties can easily supplement this demand by being transformed into multiple rental accommodations.

Maybe I am wrong about this. Maybe investing in these properties won’t make a difference. But you have got to admit that at an additional 5-10% off their asking prices it just too good a discount to miss.

Wendy xx

As part of their ‘Hidden Homes Scheme’, Wandsworth council and Notting Hill Housing have teamed up to help convert a disused car park in Putney into 10 spacious apartments. Their reasoning? To help first time buyers find an affordable route onto the property ladder.

And I have to admit, it is a rather clever idea.

Taking boarded up properties, shops and disused car parks – essentially properties that are just sitting there doing nothing – by converting them into attractive apartments/homes they could help to relieve the strain currently on the property market. Especially if more organisations choose to get involved.

Already the Empty Homes Agency is jumping on board with this scheme, as it will help transform wasted space into housing, plus will save on expenditures to knock these properties down and rebuild them. To put it more bluntly – renovating this way will help maximise the UK’s property space.

Now I know what you are probably thinking – for a single investor you can’t get involved in such a scheme. But I don’t think that is strictly true.

All these associations are actually doing is renovating. Yes, car parks may be out of your price range, but boarded up shops won’t be. Negotiate your deal wisely and the savings you make whilst investing could be directly transferred into the renovation itself, creating little costs for you.

I know there is much more to renovation than this, but the point I suppose I am making is that the potential is there. The potential for property investors – like you and me – to get a slice of this idea and use it to create new rental properties.

It’s definitely worth considering.

Wendy xx

PS. If you are interested in reading the full story, here it is: http://www.guardian.co.uk/money/2009/jun/28/empty-properties-converted-accommodation. Enjoy!

You may remember me mentioning last week the importance of using landlord forms in your property investments. Well this statement has never been more true nor more vital than it is today! You see whilst I was browsing the web this morning, I came across a story that really alarmed me. So much so, I thought I should let you know about it.

In this article the writer discussed the issue of older renters who are currently offering fake references and creditentials in order to acquire a rental property.

It was scary to see how high this figure was! I know personally I have had the odd fake reference in the past, but the number of tenants who are actually trying to do this is astonishing, if not incredibly alarming.

In a report released by the Letting Protection service they discovered that 25% of 50 year olds faked their references when applying for a new property. Yet of the 10,000 professional landlords surveyed in this article they found that this issue was not just restricted to the over 50′s market. 42% of them had also encountered problems with tenants aged under 29 too.

Do the maths between these two groups and you are left with a select tenancy group who behave only slightly better than the rest: 29 -50 year olds.

This article really put my rental properties into perspective. If I am completely honest I found myself wondering how many fake references had got past my radar when I first started out.

I know personally I was just thankful to have applicants interested in my properties, so beyond doing the usual credit checks and asking for references, I was more than happy to take them on if I thought they could afford my rental property.

With such figures on hand proving that a large quantity of tenants will willingly give you fake references, it does make you question the vitality of using tenant applications to ensure the success of your rental property. Not only can you ensure that the references you receive are directly from the sources that have been listed on their application, but you can ensure that every facet of information is genuine.

Anyways I thought I would bring this story to light, as I know now that I am going to be more thorough with my reference checks – as well as with everything else.

Speak soon

Wendy xx

PS. If any of you are interested in reading more about this story, here is where I found it: http://www.residentiallandlord.co.uk/news1746.html, plus here is that link I told you about again. They have got a sample tenant application form you can use to improve your reference system:

http://www.propertymentor.co.uk/landlord-resources.php

With the property market as it currently is, I thought I would spend some time this week talking about all the different resources that are available to property investors. Namely property landlord forms.

Property landlord forms are exactly what they say they are. They are forms that we investors can use to acquire all the information we need to make sure our rental properties are a success.

Now at this point I have to admit that when I first started out in property investment I was clueless. I had no idea about these landlord forms, and looking back I really wish I had as they would have made a tremendous difference to my property investments.

But unfortunately for me, beyond the basics of setting up a shorthold tenancy agreement, I had not even an ingling of what Section 8 or 21 meant or how to acquire a tenant guarantor. It was only thanks to a friend that I eventually found out.

But here is  the thing – I WAS one of the lucky few to have someone point out these details to me and send me in the right direction. Not all of us are that lucky. So I figured – for any new investors looking at this blog – that I’d lend you a helping hand. I know I appreciated it when someone helped me

So lets get started lol.

As a property investor there are key forms/ data that you need to be aware of. Here is a quick summation:

Section 8: understand this and you have got the means to end a shorthold tenancy agreement during the fixed period of their agreement with you. Included in this section is the grounds in which you are allowed to end an agreement.

Section 21: or also known as a ‘notice of possession order form’, section 21 is the next step from the section 8 form. This particular form relates to your rights as a landlord to take back your rental property at the end of an agreement.

Rent arrears: this form allows you to contact your tenants when their rent is overdue.

Tenant Guarantor: acquiring one of these from your tenants means you will never be at a loss over your rental property as their guarantor will cover the cost of their rent, when your tenant cannot.

Property Inventory: allows you to keep track of all the contents within your rental property and the condition they were in before your tenant moved in.

Assured Shorthold Tenancy agreement: this is the contract between you and your tenant that works to protect both your rights and your requirements.

Notice of Rent Increase: this form enables you to increase your tenants rent part way through an existing agreement.

These I would say are the main forms that I recommend you check out, but on the site I was looking at, there were heaps of others that you might find useful too. Check them out: http://www.propertymentor.co.uk/landlord-resources.php, I think you’ll be impressed with how thoroughly they are explained.

Anyways, if you have got any questions about any of this, let me know.

Speak soon

Wendy

Hope you all had a great xmas! Now I don’t know about the rest of you, but I have always found Christmas to be a quiet period for property investment. We all seem to drop off the radar, but I’ve started to think that this is a big mistake.

I was browsing on BBC News the other day (I admit it I was trying to avoid having to cook Chirstmas dinner) and I came across an article about falling house prices. Now I know this is old news – we all know that property prices are fallings – but even I was surprised at the extent property prices are falling at.

Commercial properties down 50%
Residential properties predicted to fall a further 15% – bringing it down to an impressive 30%!

The Halifax have even predicted that some properties are falling in price by £1,000 per week! I know, incredible.

So here is the thing – why is the market so quiet? Looking at these figures, the bargains appear to be getting better and better, so in truth what can top your New Year off more than investing in properties at just 70% of the price?

Now I know one reason is because banks are supposedly getting set new targets to achieve in January, and so will be offering more mortgage options, but I can honestly not see the point in waiting.

Can someone help me with this one? Is there really any specific time when it is advisable to wait and not invest?

Anyways happy New year everyone!!

Wendyxx

This is a new segment I will be hosting where my original property investment tutors, Property Mentor, recommend a property of the week to me, for you guys.

Usually you would only get this information from their mailing list but I have been given rights to give it to you for free. Bascially we will look at a property available on the market and see how you could make money from this and similar buildings.

Anyway here is the first entry!

———-

Area - East London

Property Type – Semi Detached

Number of Bedrooms - 4

Been on the Market – 8 Months

Valuation – £289,950

Monthly Positive Cash Flow – £323/Month

What would you say if we could prove to you that in a few short months the lending market is going to turn? That banks will soon be begging you to invest – would you think we were crazy? Well, it’s true! All of it.

You see, whilst it may appear as though lending options have virtually disappeared in the last 6 months, everything is going to change very, very soon. In 2 months in fact.

Confused? Wondering what the hell we are on about? Let us explain.

Every Bank, big or small, has got sales targets; targets which they need to fulfil. So although it may look as though they are sitting back quietly. Content to offer no new deals. All they are really doing is waiting.

Waiting for the New Year, when they will have been set new targets, new goals and new incentives. And let’s just say, you will soon be seeing a completely different side to their strategy.

They’ll be throwing so many deals at you – left, right and centre – you won’t know where to look. You will be in an investors heaven!

Impressed?

Well, what if we were to tell you that there is more to this story? Yes we know, MORE.

That NOW is the time to act on this information. Not next week. Not in 2 months when these deals are coming through. But NOW, NOW, NOW. Would you be tempted to find out why?

It’s simple.

Research… stacking… approaching a broker… they will all take a little time, especially if you’re looking for the perfect property to match these incredible deals.

But if you begin now. Yes this very second, you could soon have a selection of properties ready and waiting to harness these deals, and have exclusive first dibs!

And it will definitely be worth it.

Look in the press. Go on take a closer look. As we speak, the media is filled with stories of 50% rises in rental demand; 1.5% interest rate cuts and 15% falls in property prices… incredible figures that will make all your future investments highly profitable; easily accessible and available at a HUGE discount price.

They are just too good to miss, especially when you add these new deals to the mix.