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Property Turn Offs Are Good News For Property Investors

Property Turn Offs Are Good News For Property Investors

The Top 20 Property Turn-Offs
That Are Good News For Property Investors 

There are a number of obvious things that can put the general public off buying a property including damp, rotten windows and lack of a garden among the list of deal breakers for potential property buyers.

A survey by popular comparison website gocompare.com found that 70% of potential property buyers would not buy a property which had damp patches or stained walls or ceilings, 63% were put off by properties in a poor state of repair and 15% were put off by clutter.

Properties with problems are good news for landlords and property investors, as they have experience of rectifying issues in order to turn a profit and problems mean discounted sale prices, allowing equity to be locked into the deal from the start.

Generally, ordinary home buyers are afraid to spend money on issues that they know nothing about, however landlords and property investors can see beyond the solution and realise potential profit by fixing the issues that put off everyday home buyers.

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Free Education - Register for exclusive behind closed door access to Simon Zutshi's Property Mastermind 12

Free Education – Register for exclusive behind closed door access to Simon Zutshi’s Property Mastermind 12

What if we told you that, 12 months from now, you could be in the position where you didn’t have to work for an employer anymore, thanks to the passive income from your property portfolio.

What if I told you that you could have a £1 Million Property Portfolio AND £50,000 income in less than 12 months?

You may think that I was making you an offer that sounds too good to be true?

But…. It is true!

Investing in your own personal development can be far more profitable than investing in just bricks & mortar because Education is the real key to Success!

As many of our readers are already aware, there are always numerous opportunities for property investors to further their personal development and gain a deeper understanding of multiple property investment strategies that work.

Think about it, get an education about successful property investment strategies and then you can use your newly acquired knowledge to make more profit from property than you were originally hoping for, and you use your education to help generate multiple income streams from each property too.

Many property investors may be able to save themselves a great deal of time, effort and money if they also knew what property investment strategies didn’t work, what if other people had tried many different strategies and had mixed results?

Property Magic by Simon ZutshiThat is why top UK property educator, Simon Zutshi, Multi-Millionaire property investor, author of Amazon Bestseller “Property Magic” and founder of the Property Investors Network (PIN) is giving MyPropertyPowerTeam readers the opportunity to peak behind the normally closed doors of his 12th Property Mastermind Programme, at no cost, TOMORROW Saturday 21st September, when five of this year’s top students will share with you the full details of their incredible journey over the last 11 months on Simon’s 12th Property Mastermind Programme.

On this LIVE webcast from 11.30am – 1pm Simon & his top students will share:

  • The exact strategies they have used to become financially independent
  • What worked and what did not (to save you a huge amount of time)
  • How they have used other people’s time, money and experience
  • Their tops tips to help you model their success

This is a unique FREE opportunity to learn from real life property investors, just like you, who have invested in their property education and achieved incredible results in a very short space of time.

If they have successfully done it, so can you!

  • Think you need lots of money to start your education?

NO you don’t, this webcast is free, but places are limited!

We want you to be inspired by this sneak peek behind closed doors, in the hope that you take action and kick start your own property investment ambitions. Think about what you could achieve with the correct knowledge, mindset and support.

Register Now – There is only the capacity for 1000 people to watch this LIVE and spaces are filling up very fast.

To reserve your place to watch this No Cost live webcast – Click Here To Register Now!

We already have our place booked and we hope you can join us for what promises to be a truly inspirational Saturday morning.

Free Education - Register Now To Get Exclusive Behind Closed Doors Access To Simon Zutshi's Property Mastermind 12

Free Education – Register Now To Get Exclusive Behind Closed Doors Access To Simon Zutshi’s Property Mastermind 12

Reena Malra - Queen Of Lease Options

Reena Malra – Queen Of Lease Options

Don’t Attend Another Property Event
Until You’ve Read This!

There are only 12 Places Available on Reena Malra’s Lease Option Vs Instalment Contract Secrets Revealed Masterclass for 28th September 2013

Reena Malra will again share her extremely successful 7-Step Command & Conquer Property Formula with attendee’s of September’s Lease Option Vs Instalment Contract Secrets Revealed Masterclass

Last Few Places For September 28th at Heathrow

Last Few Places For September 28th at Heathrow

Book your place now and discover

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Landlords expected to do UK border agency's job for them

Landlords expected to do UK border agency’s job for them

Private landlords are set to become an extra line in UK Border Control as they will be legally responsible for ensuring that they only let rental properties to people allowed to be in the UK under immigration laws announced in the Queen’s Speech.

This means that Private Rental Sector (PRS) and social housing landlords will have a responsibility to make sure their tenants are in the country legally

Over 3 million buy-to-let landlords are rental property owners in the UK private sector and will be responsible for checking the immigration status of all potential tenants, with fines running into thousands of pounds for those breaking the law.

Employers will also face more substantial fines for employing on illegal immigrants.

It appears that UK landlords and employers are expected to police the immigration system as unpaid members of the UK Border Agency.

Landlords are being given additional responsibility with no recompense other than the threat of heavy fines for failure to comply. Why are we expected to do the UK Border Agency’s job for them when they are paid handsomely for failing to do the job they are employed by the Government to do?

Does this mean that Landlords will be given a financial incentive to turn informant?

I don’t think so…

The new measures are included in an amended Immigration Bill will also limit the ability of European migrants to claim UK state benefits and ensure that the right to residence in the UK on the basis of family commitments is not abused by criminal elements. The UK judicial system will be expected to balance the nature and seriousness of the crime committed against the right to remain resident in the UK.

Temporary migrants will be charged for use of NHS services and only those who have lived in an area for at least two years will qualify for social housing. Regulations will also be amended to ensure that European immigrants cannot claim benefits for more than six months if they do not actively seek legal employment and show they have a genuine chance of obtaining work.

The legislation has been drawn up as the Coalition Government struggles to contain the electoral threat posed by the UK Independence Party (UKIP), which has hard-line immigration policies.

The details of how the measures will be implemented will be set out later in the year. The plans will be the subject of a formal consultation in the coming months.

Ministers expect the legal requirements on landlords will affect those letting rooms in houses of multiple occupancy (HMO) properties. However, the measure will be universal and it will be the responsibility of all landlords to seek copies of passports and appropriate visas.

It is unclear how landlords are supposed to verify the authenticity of documentation, as many employers have already discovered to their cost since the tightening of employment rules surrounding immigrant workers, as falsified information has no way of being checked and is only up to the diligence of the employer to ascertain the true identity of their employees.

The limit of the financial penalties set to be levied on landlords who fail to comply is also yet to be decided but is expected to be severe and may run into thousands of pounds.

Tenant Referencing Is Crucial For Landlords

Tenant Referencing Is Crucial For Landlords

Most tenants are complete strangers, who as a landlord, you may meet once or twice before granting a tenancy agreement to or handing over the keys to the rental property.

If using a good letting agent, the landlord may not even meet the tenant until after they have moved in.

This leaves the landlord with a few questions, including:

  • What are the tenants like?
  • Have they rented previously?
  • Have they always paid their rent on time?
  • Why do they need the property?
  • Do they look after their home?

As a landlord, if you were approached by a person on the street and asked for the keys to your rental property on the promise that a stranger would look after it, would you hand over the keys?

Surely the answer from experienced landlords and clued up property investors should be a resounding NO!

But the scary thing is some inexperienced landlords are not far off doing this exact thing when renting out property to tenants.

Tenants can potentially cause expensive problems that can cost even more to put right and the risk of this increases if landlords haven’t vetted them properly.

As much as everyone would like to live in a world where people can be taken at their word, in terms of their character and reliability, unfortunately the truth is somewhat different. The unfortunate reality is that no-one can be taken at face value and it’s advisable to have a reputable tenant referencing company carry out checks on all potential applicants, which will include credit checks, employer references and previous landlords’ references.

Tenant referencing should be completed before offering a tenancy agreement or allowing tenant’s to move in.

The credit check will detail the tenant’s credit profile via credit reference agencies to determine any adverse history such as missed payments or CCJs (County Court Judgements).

A tenant with a low credit score may not be all bad! They may have had problems in the past making payments on finance, or they may have been assessed by the credit reference agency as a risk because of difficulty making payments.

A low credit score doesn’t necessarily mean that you are dealing with a bad or unreliable tenant – an example would be students who have little or no credit history and as such may possess a bad score.

Legal4Landlords offer specialist services for landlords and letting agents

Legal4Landlords offer specialist services for landlords and letting agents

In situations like this, as long as the other aspects of the tenant reference are adequate, a guarantor can be sought for the tenant. However, the guarantor will have to undergo the same referencing procedure.

The tenant reference should detail

  • The performance of the tenant during the course of their previous tenancy.
  • Payment history
  • The condition of their previous rental property at exit
  • Whether their previous landlord would rent property to them again

This should help the new landlord get a good indication of the applying tenant’s track record.

The employment reference determines

  • Tenant’s employment status
  • How long they have been employed
  • Salary.

This information will enable the landlord to determine if their wages are enough to cover the rent, bills and associated living costs and also the stability of their employment, i.e. whether they are permanent or temporary employees.

Even tenants in long-term employment could be at risk of redundancy in the current economic climate, and landlords should take advantage of rent guarantee insurance, which protects the landlord should the tenant default on their rent.

It is advisable for landlords to offer a 12 month contract (AST) with a 6 month break clause to allow for flexibility in case things do go wrong during the tenancy.

One month’s rent should be taken in advance from the tenant along with a damage deposit equivalent to 6 weeks of rent.

This allows for a financial buffer in case the tenant fails to pay the last month’s rent at the end of the tenancy or if there is damage to the rental property.

Tenant Referencing by Legal4Landlords

Tenant Referencing by Legal4Landlords

Why Does Housing Benefit Cost Taxpayers £22 Billion (GBP) A Year?

The latest figures from the Department for Work and Pensions, (DWP), show there are close to 5,000 families still claiming more than the £400 Housing Benefit cap.

According to a report in the Daily Mail

  • At least 100 families are living in luxury homes and raking in enough housing benefits to fund a £1 Million mortgage each
  • Of the 100 families, 60 have their rent paid by the state to the value of £5,000 a month, according to the Department for Work and Pensions
  • More than 30 of those families are given a staggering £1,500 a week (£6,000 a month) to live on and at least 60 families receive more than three times the national average wage, getting £5,000 a month
  • Unemployed living in luxury homes in upmarket parts of London such as Kensington, Chelsea and Westminster
  • Poor families should not be allowed to live ‘swanky’ lifestyles in postcodes beyond their means, says campaigners
  • Calls for the Government’s £400 per week cap to be properly enforced

Although almost four out of every five people on housing benefit pick up less than £100 each week.

At a time when millions of people are struggling to get on the housing ladder, the handouts would easily cover the monthly payments on a £1Million (GBP) mortgage.

Government ministers last year announced a sweeping range of welfare reforms that included housing benefit, which costs the taxpayer £22 Billion (GBP) every year, should be capped at £400 per week.

The figures have been criticised by campaigners and raised concerns that the Government’s plan to cap housing benefit is not being enforced.

Public opinion has been riled by the cases of immigrants and asylum seekers who have been allowed to live in lavish flats at the expense of taxpayers.

The Government handouts have allowed families to live in upmarket parts of London such as Kensington, Chelsea and Westminster alongside wealthy neighbours such as Roman Abramovich and George Michael.

WHERE HOUSING BENEFIT CASH GOES EVERY YEAR 

  • NORTH  EAST………………………….. £923.8m
  • NORTH WEST……………………….. £2,371.5m
  • YORKSHIRE…………………………….. £1,497m
  • EAST MIDLANDS………………….. £1,112.6m
  • WEST MIDLANDS…………………. £1,736.6m
  • EAST…………………………………….. £1,632.6m
  • LONDON………………………………. £5,539.0m
  • SOUTH EAST………………………… £2,536.9m
  • SOUTH WEST……………………….. £1,525.9m
  • WALES…………………………………….  £892.9m
  • SCOTLAND ………………………….. £1,660.6m

TOTAL  £21,429.5m

 

The figures will raise calls for the Government’s benefit reforms to be bulldozed through the Commons – despite pleading from Liberal Democrats.

The data, made public under the Freedom of Information Act, show the areas of the UK that pay out the most in housing benefit are

  1. Birmingham – £469 Million per year
  2. Glasgow       £337 Million per year
  3. Brent            £306 Million per year
  4. Westminster £281 Million per year
  5. Hackney       £267 Million per year
  6. Newham       £264 Million per year
  7. Enfield          £258 Million per year
  8. Haringey       £254 Million per year
  9. Liverpool      £254 Million per year
  10. 10.  Manchester £248 Million per year

The DWP says the new rules which have been put in place mean that those families currently getting more than £400-per-week will be gradually taken out of the system and moved into cheaper accommodation.

A DWP spokesman added: ‘These figures underline exactly why our Housing Benefit reforms are so necessary’.

Emma Boon of the TaxPayers’ Alliance said: “This is further evidence that it is right to cap benefits. It is unfair to ask taxpayers to pay for swanky central London homes for others when they can’t afford to live in those postcodes themselves. Many middle or low income families have to decide if they can afford to house their family in town, or if they have to move out to somewhere more affordable. It is not unreasonable to ask those on benefits to make the same choice.”

 Read the Full Daily Mail article here

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