Have You Been Gazumped? Learn How to Avoid It
22. April 2008
admin
Being gazumped is probably the biggest bane of purchasing a property; it doesn’t matter if it’s a new house for yourself, a commercial property or even a residential investment property. It can also be a massive problem for property investors especially, as they are inclined to offer below market value for a potential property. Meaning someone could come in after them and put in a slightly higher offer, leading to them being gazumped.
The phenomenon of gazumping frequently leads to a massive loss of income, particularly because so much time has been invested on the properties in question. At the end of the day, you may be able to make back any possible profit on these deals that could have been lost, but the time lost, especially as you could have been using it on another deal, will never be retrievable.
The only way to avoid being gazumped is by getting the vendor to accept a “lockout” or “exclusivity” agreement. This type of contract specifies that the vendor will not accept an offer or sell to, anyone else during a certain specified time period. The agreement could be tailored to prevent the vendor from being able to even offer a viewing of the property without you giving your consent.
All decent solicitors will be able to draw up an exclusivity contract that is effective for you. It could cost a fair bit of money but it is well worth it in the end. And if you want to be sneaky about it, once contacts have been drawn up, you could then conceivably use this as a template for any future deals you may have.
Sellers, who may be having problems getting rid of their property for sale in Norwich or indeed needing to sell quickly, should not have any problems entering this type of agreement. They will be conscious of the fact that you’re a professional and are only protecting your prospective investment. Nonetheless, you may have to give a deposit as a gesture of good will; this would normally be about two percent of the property’s value.
Sometimes it may seem pointless on having this type of agreement in place for all of your prospective purchases, because if some prospective sellers have been having difficulties selling their property’s for six months, for example, and no one has viewed it for four of those months, it’s hardly likely that a person will come in and gazump you in a couple of weeks time. You won’t need this agreement on every deal, that’s for sure, but it may be an option to use on a really big deal that is potentially going to make you loads of money.
Buying property | 0 Kommentare »
Buying to Let in the UK
22. April 2008
admin
Buying to let has grown enormously popular within the property market in recent times. Buy to let means to invest in a residential (mainly) property and rent it out for profit or to use as a kind of mortgage payment, which is used to buy the particular property.
The main benefit of buying to let is that you receive a steady flow of income from the tenants. It is also a great way to invest in the property market because of the constant increase in house prices across the country. By entering the buy to let area of property letting, you need a certain amount of knowledge on mortgage products, the marketplace and the various insurance options that are available to you.
One risky aspect of this however, is that when it comes to buying a property on a buy to let basis, is will the property in question be constantly occupied, as you will still have to continue paying the monthly mortgage on top of all the other bills.
Since the middle of the nineties there has been sustained growth in the property market which has lead to huge demand for property to rent. Buying to let though has received some negative publicity recently, with it being described as another way for people to earn money without the need of working.
In saying this though, the people who are involved in the property market think the notion of buying to let and the thought of becoming a landlord, very attractive indeed. The Housing Act of 1988 abolished what was known as security of tenure for tenants which meant that landlords gained the right to evict tenants that caused problems much more easily than when the act was law. When the house market crashed in the late eighties and early nineties, an increase in the number of tenants was observed, as people were losing their homes due to repossession.
When choosing buy to let property, do so carefully and take plenty of time to research and find out the mechanisms of the property market. Looking at property for sale in Acle Another important aspect is making sure that the targeted property is in the correct location for the market you will be aiming for and also that it is furnished to the standard that would be expected for the kind of tenant you are searching for. Make sure that personal taste doesn’t enter the equation because you must remember that buying a property is a business investment.
Letting property is situated in a very competitive area of the housing market business so you will need to make sure that you offer your prospective tenants value for their money. A good way of achieving this is to take on a property management company. They will be able to carry out tasks on your behalf such as rent collecting and property maintenance in an appropriate and professional manner.
Buying property | 0 Kommentare »
Avoiding the Pitfalls of Buying Property to Let in the UK
22. April 2008
admin
Inexperienced property investors in the UK are making more and more elementary mistakes. They try to decide where to invest in property in the UK followed by trying to copy the strategies of successful investors of ten years back. They make the mistake of assuming that if an investor from back then made their money in a particular way then that should still be lucrative and viable today.
We can’t dispute the fantastic wealth some of these property tycoons accumulated from their empires. Prospective investors watching shows on television and seeing the types of houses these tycoons live in and the wonderful array of cars they own and it makes them want to jump straight into copying their strategies from old, not fully comprehending that today’s property market is vastly different to what it was.
If someone invested in a property about ten or fifteen years ago anywhere in the UK, then the chances are that the rent would have covered the mortgage payments. Nowadays, that luxury does not exist and each and every potential investment decision needs to be made with careful consideration.
Basically this is the main problem that comes up when strategies from the past are imitated without totally understanding the implication of all your actions. There is no doubting those wealthy tycoons shown on TV made an absolute killing all those years ago, but it doesn’t necessarily mean that these same individuals would be able to do the same again using the same strategies.
Property investors countrywide who are not meticulous in their dealings are making massive mistakes just by simply following the incorrect strategies in their pursuit of building up their portfolio as fast as they possibly can. They do not understand that a major component of making money through property is being knowledgeable about your market.
Investors in today’s market place need to gain the knowledge of how to respect current prevailing conditions in the market. They have to learn to adapt to any conditions the market can throw at them. They need to be great negotiators and excellent researchers. The question posed in today’s property market should no longer be where to buy the property as almost no any areas in the United Kingdom make any financial sense to buy to let in. I would advise all investors to look at property for sale in Wymondham and property for sale in Attleborough. The new question should read: how far below the market value can a property be bought in any particular location, so as the figures all add up and become financially feasible?
Buying property | 0 Kommentare »