Property Investor’s FactFile – April 2019

April 1st, 2019 by Ruban Selvanayagam

The ongoing Brexit delays continue to leave the property industry puzzled as to what's around the corner. Where possible, some are stalling their decision-making until there is at least some clarity with regards to our future relationship with the European Union and what it means for the economy. Others are taking a 'business as usual' approach and seeing the quiet times to explore what opportunities may exist out there. As the exit process is stretched out further, industry and much of the general public have almost got to the point of just wanting a fixed agreement playbook' unencumbered by a lack of clarity that has characterised much of period since the referendum vote. If you're bored of the Brexit debate and want to geek out a little, take the time to have a look at the Property Solvers Market Insights tool which shows: How quickly houses are selling in any postcode area of the UK; The average difference between the asking prices and the sold values of properties in any given postcode (using data from Rightmove and HM Land Registry). [Read More]

Residential vs. Commercial Property Investment

March 31st, 2019 by admin

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As obvious as it seems, it is vitally important to understand what types of properties and projects you wish to invest in, across both the residential and commercial markets. Specialised commercial property portals are less common placed than their residential counterparts, but listing sites such as Commercial People can help make your first steps into commercial property investment that little bit easier. In general, investing in commercial property is often significantly more cost-prohibitive than investing in the residential market, meaning you’ll often need significant financial backing to enter the market. As with all investment, there is an element of risk involved; however, while investing in commercial property can offer significant financial rewards, there is also an equally significant risk with the financial barrier to entry often higher than a residential venture. As such, commercial investing can be considered more financially... [Read More]

Property Investor’s FactFile – March 2019

February 28th, 2019 by Ruban Selvanayagam

Considering most of us shrug our shoulders when trying to understand the real implications of Brexit on our day-to-day lives, fathoming the ongoing direction of the property market at the moment is an even more challenging proposition. The reality of failed predictions was no more highlighted when wide economic forecasts of a post-referendum house price crash failed to come into fruition. The leading post-Brexit house price indices have all demonstrated that values have remained broadly flat since the vote. Yet, some argue that the real effects of Brexit on the economy and housing market have not played out yet – particularly given the country hasn’t formally untied its relationship with the EU. Irrespective of what occurs over the next month, housing affordability (or lack of it) will remain a pertinent issue – particularly across London and the South East. [Read More]

Property Investor’s FactFile – February 2019

February 1st, 2019 by Ruban Selvanayagam

This month's factfile data saw the main house price indices offering a mixed bag of price movements from an upbeat 2.29% growth estimation from the Halifax to a -0.82% drop reported by the Nationwide (echoing a wide consensus of less bullish price predictions). The Land Registry's House Price Index (HPI), undoubtedly the most reliable measure, also reported -0.2% decrease between October and November – a trend that's likely to continue as the lagged data appears in the public domain. Of course, regional disparities will remain – with growth expectations expected in cities and the surrounding regions of Birmingham, Nottingham, Manchester, Leeds and Sheffield. With an uncertain political backdrop, growing LIBOR rates reflect the increasingly conservative approach being taken by lenders. Heightened Brexit-related risk is likely to remain in the coming months as much will depend on the outcome of withdrawal agreement and ensuing business / consumer confidence. [Read More]

Modern Property Joint Venturing

January 30th, 2019 by Ruban Selvanayagam

The notion of entering into a property project with a partner may seem like the ideal way to combine individual skills or balance a funding deficit. Yet many of the realities and potential pitfalls are frequently understated. Further to her end of year commentary, experienced investor, developer and mortgage broker founder Lisa Orme of Keys Mortgages kindly took the time out to answer some headline questions for us. We explore how investors and developers these days cannot expect to seek debt funding without inputting capital themselves. Lisa then runs through the importance of having a track record, crowdfunding’s impact on seeking debt finance, the meaning of ‘gaining a pecuniary advantage by deception’, due diligence. Further down, some eye-opening case studies are also highlighted… What does ‘skin in the game’ mean in the context taking on debt to fund projects? This varies... [Read More]

Property Investor’s FactFile – January 2019

January 1st, 2019 by Ruban Selvanayagam

Happy New Year! Check out the latest property investor factfile ("facts and stats") aimed at buy-to-let investors and traders. We include the latest house price data / price changes, LIBOR / SWAP rate data, private rented sector growth, mortgage approvals and first-time buyer measures / price to earnings ratios. As we move into 2019, if you haven't had the chance to take a look, it's worth reflecting on the various pieces of commentary kindly provided by over 60 property experts, investors and developers. Of course, making predictions on the future of the property market is often based on sentiment but nonetheless worth observing. Moving into 2019, evidence suggests that most rental property acquisitions will be made through Limited companies (Special Purpose Vehicles). This comes not only in response to Section 24 but also as part of the wider professionalisation of the sector – which, to a certain degree, should be welcomed. Indeed, for cash-rich / low-geared portfolio investors, the impending shake-up could be a unique buying opportunity. [Read More]

Expert Property Market Forecasts (2019)

December 18th, 2018 by Ruban Selvanayagam

The following collection of property expert commentary delves into a range of topics moving into 2019. Rolled out for the second year (see the 2018 version), perhaps unsurprisingly, Brexit’s impact on the market remains a common theme. Yet, while gauging the exact effects is anyone’s guess, the underlying mantra of ‘keeping calm and carrying on’ prevails across this year’s contributions. This is not to understate the risks. Potential interest rate hikes, negligible capital growth (at best), affordability constraints, and the wind coming out the sails of London’s global hub status are a handful of factors that could spell danger for the over-exposed. For landlords, the tightening screws resulting from Section 24 and ever-higher barriers to entry continue to shake-up the industry for the worse. 2019 is also likely to be a testing year for emerging operators in the build-to-rent, property... [Read More]

21st Century Renters: What Do They Want?

December 5th, 2018 by admin

Just Landlords, the UK Landlord Insurance provider, has highlighted a few key features to bear in mind from a tenant’s perspective if you’re adding a new property to your portfolio, or refurbishing an existing one: “With renting remaining a firm choice for many, it can be beneficial for landlords to contemplate who they wish to attract to their rental properties. If you’re looking to focus on city lets, most likely you will attract professional tenants looking for accommodation close to their place of work. With this in mind, you will want to consider exactly what a contemporary working renter will be looking for. Style of the Rented Property When potential tenants look around a property, you will be more likely to gain interest if they get an immediate good impression of the design. When looking for a new home, many... [Read More]

Property Investor’s FactFile – December 2018

December 1st, 2018 by Ruban Selvanayagam

The latest property investor factfile ("facts and stats") aimed at buy-to-let investors and traders. We include the latest house price data / price changes, LIBOR / SWAP rate data, private rented sector growth, mortgage approvals and first-time buyer measures / price to earnings ratios. [Read More]

Selling Your Tenanted Property – Tax Implications

November 21st, 2018 by Ruban Selvanayagam

Now the dust has settled, landlords across the UK have had the time to take stock of the effects of Section 24 of the Finance (No. 2) Act 2015 on their personal finances. As a quick recap, former Chancellor George Osborne’s decision to significantly restrict mortgage interest relief essentially categorises landlords differently to other business owners. Initiated in the 2017/18 tax year, those with properties in their personal names were initially able to offset 75% of their mortgage finance costs against gross rental revenues. From 2017/18, mortgage interest tax relief will be reduced by 25% increments up to 2020/21. After that point, all taxpayers will receive a tax reducer of 20% but will be restricted to the lower of: Total taxable income Property profits Mortgage interest cost For more information on the specifics, see some of Optimise Accountant’s comments... [Read More]