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Property Investors Should choose Investment Properties Wisely

Property Investors Should choose Investment Properties Wisely

Property Investors Warned To Choose Potential
Property Purchases Wisely

Savvy property investors know that profit is made when buying property, not when it is sold, as equity can be locked in upon purchasing below market value, giving the property investor greater control of the purchase price by negotiating a deal with the seller, (vendor), rather than what the property eventually sells for on the open market.

Property investors are different from ordinary residential property buyers, as they are of the mindset that the property should meet all the financial requirements of a landlord first & foremost, rather than paying the high end retail price for a property just because it looks nice.

Many new and amateur property investors make the common mistake of falling in love with a property and begin to let their heart rule their head, becoming so emotionally involved that they lose control of their finances and let their emotions win, overspending massively and reducing any potential yield.

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Moving Abroad? – Things To Know Before You Go

Moving Abroad? – Things To Know Before You Go

British Citizens Warned To Plan For

The Unexpected When Moving Abroad!

The Foreign and Commonwealth Office (FCO) has issued a checklist for British citizens planning to purchase property, retiring or moving abroad.

Buying property overseas can transform the lives of many property investors, but buyers are warned to take independent advice before completing any overseas property purchases and moving abroad.

FCO staff last year helped a number of British expatriates with a variety of issues, with many people facing heavy fines, financial ruin or finding themselves on the wrong side of the law because they were not fully prepared.

These cases involved issues such as property disputes, bankruptcy caused by changes in personal circumstances, pension complications and unexpected health issues.

A recent FCO report also suggests that high hospitalisation and death rates occur in areas where large numbers of elderly British nationals reside, notably in Europe and South East Asia.

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New EU Rules Will Cause Mortgage Rate Confusion

New EU Rules Will Cause Mortgage Rate Confusion

European Ruling Set To Make Mortgage Rates Harder To Understand

New European rules could make mortgage rates even harder for customers to understand as Euro bureaucrats want to introduce a new way of calculating interest rates on residential property mortgage loans and experts are warning that this could be a recipe for confusion.

Under the new proposed EU directive, mortgage lenders would be expected to tell borrowers the maximum interest rate they have charged over the past 20 years, and display this figure on all of their literature.

However, industry experts say customers are already confused by the rates that lenders are forced to display, and that this will make it even harder for them to understand mortgage rates.

David Hollingworth from mortgage broker, London & Country, said:”I think that there is a chance that borrowers become overloaded with information and APR rates that mean little to them, and so risk them being ignored altogether, the extra information could lead to more customers failing to shop around and remaining on expensive standard variable rates (SVRs).

The EU credit directive concerning the mortgage change is expected to be approved later this year. It will compel lenders to display a new annual percentage rate (APR) on all of their literature. This will be calculated using the highest level that the lender’s SVR has reached in the previous 20 years.

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Renting Costs Outstrip Buying

Renting Costs Outstrip Buying

Another new study by mainstream mortgage lender the Halifax has revealed that renting a property now costs over £130 per month more than the monthly cost of buying a home.

Halifax’s latest research has shown that owning property was more affordable than renting in the UK Private Rental Sector (PRS) in all 12 of the UK regions.

On average, people buying property pay 18%, (£132, per month) less on average than those renting, due to rental prices increasing and the perceived fall in property prices and the rates of UK mortgage approvals having fallen.

However the revelations seem to be falling on deaf ears as demand for rental property in the PRS is at an all time high with up to 10 tenants competing for a single tenancy.

So why the demand?

Obtaining a mortgage can be difficult for many people and with lenders tightening both financial and personal criteria for lending, leaving the majority of renters unable to apply or afford a mortgage.

The average monthly costs for buyers of a typical three-bedroom house, including maintenance and repair as well as the mortgage, was £600 (GBP) in June 2012 compared with £732 (GBP) in rent payments on the same type of house.

The Halifax said “Rent payments have risen steadily over the last few years, increasing by 5% in the last 12 months, as buying costs fell by 3%. Four years ago the average cost of buying and owning was 45% – £324 – more than the average monthly rent paid”.

However, there has been a 33% drop in new buyers in four years as lenders push for ever higher deposits with £40,526 (GBP) being the average loan-to-value at roughly a quarter of the property price.

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