Currently viewing the tag: "costs"
Government Issue Response To Tax Relief Petition

Government Issue Response To Tax Relief Petition

Government Issue Muted Response To Tax Relief Petition

The Government has published a response to the online petition that opposes the proposals to change the amount of tax relief on buy to let mortgages announced by the Chancellor, George Osborne, in the post election summer budget.

From April 2017 onwards landlords will only be able to claim the basic rate tax relief rather than the higher rate tax relief on buy to let mortgage payments. It is widely feared that the move will severely affect the profitability of the private rented sector (PRS).

The online petition to reverse the planned tax restrictions on individual landlords has attracted more than 23,600 signatures since being posted.

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PRS Tenants Could Be Hit With Rent Increases Despite Falling Inflation

PRS Tenants Could Be Hit With Rent Increases Despite Falling Inflation

PRS Tenants Could Be Hit With Rent Increases
Despite Falling Inflation

The increase in demand for rental properties in the UK’s private rental sector (PRS) from would-be tenants could drive local rental prices through the roof in some parts of the country according to a new report published by the Association of Residential Letting Agents (ARLA).

According to data published in the latest ARLA monthly Private Rented Sector report 31% of letting agent members recorded an increase in the cost of monthly rent for rental properties in UK regions between January and February this year.

41% of letting agents in the South East of England reported landlords increasing rental prices for their properties. However, in Wales only 13% of letting agents reported landlords increasing rental asking prices.

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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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UK Property Rental Prices Reach New Record High

UK Property Rental Prices Reach New Record High

UK Property Rental Prices Reach New Record High

Latest figures show that the new national average property rental price being advertised has reached a whopping £1,006 (GBP) per calendar month (pcm).

This is the first time ever that the national average property rental price has broken the 4 figure ceiling barrier in the UK.

The increase in the national average property rental price has been attributed to continued growth of the London and South East property markets.

Property rental prices being advertised in central London have reached £2,300 (GBP) per month, the highest recorded rental average apart from during the Olympic’s in the summer of 2012.

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End Of Tenancy Cleaning Is Main Cause For Deposit Disputes

End Of Tenancy Cleaning Is Main Cause For Deposit Disputes

Cleaning Causes Deposit Disputes

UK private rented sector landlords know that at the end of a typical tenancy the most common cause of a deposit dispute is the standard of the cleaning.

Deposit disputes have increased 10% in 2013, rising from 46% in 2010 to 56% in 2013, according to new data from the Tenant Deposit Scheme (TDS).

End of tenancy cleaning has consistently been the most common dispute between landlords and tenants arguing over the refund of deposits, in mediation cases brought to the attention of the Tenant Deposit Scheme (TDS) and the number of disputed deposits are now at the highest level since the scheme started.

  • 43% of disputes are over damage to rental property
  • 30% of disputes concern redecoration
  • 17% of disputes brought to the attention of the TDS concern rent arrears
  • 13% concern the state of the rental properties gardens

The TDS figures show that 55% of disputes were raised by tenants, with 21% receiving 100% of the deposit amount in dispute. 45% of deposit disputes were raised by landlords and letting agents, however, only 19% received 100% of the amount in dispute.

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Landlord Fined For Unreasonable Delay On Repairs

Landlord Fined For Unreasonable Delay On Repairs

Landlord Fails To Conduct Repairs And Is Fined Over Delay

A landlord in Northumberland has been fined £2,000 (GBP) by Sunderland Magistrates Court for failing to carry out rental property repairs within a reasonable timescale.

Mr Brij Bushan Chowdhry was fined £1,000 (GBP) plus £900 (GBP) costs and a £100 (GBP) victim surcharge for failing to comply with the terms of a Housing Act Improvement Notice served on one of his properties.

Complaints about the disrepair of the rental property were first made by Mr Chowdhry’s tenants back in September 2010 and the property was subsequently visited by housing officers and a list of essential repairs was passed to Mr Chowdhry, however, the repairs were not carried out.

Sunderland City Council served a formal improvement notice to Mr Chowdhry in October 2012 but he again failed to act.

Sunderland City Councillor Graeme Miller said: “We work closely with private landlords to provide them with what help and support we can to maintain their properties, but will not hesitate to take action against those who fail to do so wherever necessary. Sunderland City Council will prosecute poor landlords who fail to co-operate with us in eliminating poor standards of accommodation in our communities. All tenants have the right to expect to live in safe, secure and healthy housing and we will continue to work with private landlords to ensure that right is respected.” 

This story seems very one sided, however there is little point in landlords ignoring either tenant requests for repairs or formal improvement notices served by county councils because as the above report shows, the landlord will lose. What is worse is that without repairs being done the damage will get worse and the costs to make good any damage will increase, so swift action may have a cost implication but failing to do anything will be far more expensive in the long run.

But, what if these requests were not ignored?

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If you have ever wondered about how property investment could be the way for you to quit your j.o.b and change your lifestyle for the better, then take a look at the offer below from our friends at Platinum Portfolio Builder

How Property Investment can change your life!

  • Are you serious about Investing?
  • Are you looking to build a Buy-To-Let property portfolio but don’t have the time to manage it?
  • Are you looking for properties in prime locations at significantly discounted prices?
  • Do you want higher yields on your investment?
  • Would you like to benefit from lucrative assembled bulk deals?

…If you would answer YES to the questions above, then you might want to talk to us!

 

Whatever your requirements … Platinum Portfolio Builder knows how to invest for your future

8 two bedroom apartments located on a modern housing estate

 

Purchase Price £400,000
Expected Valuation £600,000
Purchase Costs £15,600
Refurbishment Costs £2,000
Equity £182,400
Discount 30.04%
Annual Rent £42,900
Gross Yield 10.27%

Head of Property Buying at Platinum Portfolio Builder, Dean Thompson has this lucrative offer for property investors:

 

An exciting opportunity has arisen to purchase 8 two bedroom apartments located on a modern housing estate, within a larger block. 75% of the apartments are currently let with active marketing taking place for the remaining apartments. A rental income, when fully let is estimated to be £42,900

Now that you have seen a brief snapshot of HOW Platinum Portfolio Builder do it, find out WHY people like us invest with them…

Not only do Platinum Portfolio Builder buy properties on a large scale, they can tailor property purchases to everyones individual needs, just like the property portfolio PPB are building for Chris and his wife Natalya. All at a minimum of 25% below genuine market value (BMV)….

So, why did Chris and Natalya invest with Platinum Portfolio Builder?

  • “Even though we have investment experience, we’re m no property experts. What really attracted us to Platinum Portfolio Builder was the fact that we could get at least four properties in our property portfolio using just £75,000 (GBP) of our own money”.
  • “Without third party property investment services, we could never have got into property investment on our own “.
  • “The great thing with PPB is that all of the properties they secure for their clients are cash flow positive from day one”.

Chris and Natalya, Platinum Portfolio Builder Clients

“Our plan is to get about 16 properties in total that we can use them to support our family, and pass down to our children in the future.”

A typical property from a PPB portfolio

Purchase Price £77,000
Expected Valuation £110,000
Purchase Costs £1,250
Refurbishment Costs £3,100
Equity £27,500
Discount 26.05%
Annual Rent £5,400
Gross Yield 7.01%

  

 

Disclaimer

Please note that Platinum Portfolio Builder is not authorised or regulated by the Financial Services Authority and as such is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage you to consult an FSA-authorised Independent Financial Adviser before committing to any form of investment.

The profitability of this investment can go down as well as up. Historic performance should not be taken as a guarantee of future returns. This investment can increase the risk of losing money as well as increase the possible gains. Bank interest rates may increase during the term of the project. This is a non regulated investment and is therefore not covered by the financial services compensation scheme.

 

 

Buy-To-Let Mortgage Lending Increases By 31%

Buy-To-Let Mortgage Lending Increases By 31%

UK Buy-To-Let Mortgage Lending Hits £5 Billion (GBP)

The resurgence of property investment in the UK means that landlords are extending their rental property portfolios and cashing in on the strong demand for rental property from “generation rent”.

The buy-to-let boom has seen mortgage lending reach another milestone as latest figures released by the Council of Mortgage Lenders (CML) show that mortgage borrowing has hit a five-year high, and the Bank of England’s (BoE) historically low interest rates are predicted to fuel even more growth in the sector.

Buy-to-let mortgage lending has continued to excel expectations as the latest CML data shows £5.1 Billion (GBP) was advanced to landlords in the second quarter of 2013, that’s 21% up on the first quarter of the year and up 31% on 2012 figures.

The new governor of the Bank of England, Mark Carney, has indicated that interest rates are expected to remain low until at least 2016, encouraging further growth in the UK private rental sector (PRS).

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More Red Tape For LandlordsRed Tape Increases For Private Sector Landlords
Despite Government Promises

Despite numerous promises to reduce the amount of red tape property professionals had to deal with, there are now even more legal requirements to let and manage rental properties.

The coalition Government started an initiative called the Red Tape Challenge, aiming to reduce the time and associated financial costs incurred by businesses and consumers in complying with unnecessary legislation.

However, recent Government announcements will increase the amount of red tape and infuriating processes that landlords and letting agents have to deal with

The Residential Landlords Association (RLA) say there are currently over 100 national regulations governing the letting of a rental property in the private rental sector.

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Landlords Suffering Financially Due To Unexpected Costs

A recent survey by a national lettings agency has highlighted financial losses incurred by landlords due to failing to plan for unexpected costs.

Landlords Lose Out Due To Unexpected Costs

Landlords Lose Out Due To Unexpected Costs

Landlords pay an average of £1500 (GBP) per year out of their rental income on covering tenant rent arrears, maintenance and repair bills and void periods; a figure that equates to over £2 Billion (GBP) per year nationally, according to the survey by Northwood.

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There Will Never Be A Better Time To Invest In Property

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