People can get foreclosed homes for a steal, usually at auctions. The banks are desperately trying to get rid of these homes because it will be a loss for them if they keep them. You will still be able to make an investment once you get it fixed up and suitable for living purposes. If you stick with the property investments, you will eventually profit from them. Don’t look for an overnight windfall. You have to build your wealth with property investing. There will be those times when the economy and housing market will change.

However, you will still be able to profit from it, as long as you hang in there. When you are making passive or residual income, you are making money when you own rental properties and not having to do the work on the property itself. Rental properties can help to keep money in your pocket. Eventually, you will make enough money from these properties so that you will not have to work a full-time job anymore. For the most part, that is a goal for most people.

They key to building wealth is to stay with it and not get discouraged if you have patterns of lack of rental income. There will be some properties that will generate income all the time, while others may be spotty. Your goal is to make you and the bank happy by bringing in constant income and not having to work long hours for little pay. That will come in time.

In addition to having monthly rental income, there are other factors that contribute as to why people invest in real estate. Some of them include:

-       With appreciation of rental properties, there will be increased value. In turn, this could help with the selling and reinvesting in properties that already have a higher value. Appreciation of rental properties can also make way for an equity line of credit for future use.

-       Speaking of equity, you as an investor can invest in sweat equity, which involves making improvements to your investment property. It doesn’t have to be so far out where you end up spending a lot of money. This can help the value of your property go up faster than it would have if you had not made improvements. So, if you spend £3,000 on cosmetics and miscellaneous items, then the value of the property could be double or more of the amount you spent on improvements.

Being a property investor during inflation times is not necessarily a bad thing. Even though rental payments increase during this time, your mortgage loan payments should remain the same. Because of this, you can have an increase in cash flow.

Another thing about inflation is that you can also gain more renters (if you have vacancies) because some people may not be able to secure mortgages during that time. Since you will have a greater demand for renters, the rent will also increase.

This is part of the agenda of supply and demand.

Using “Other People’s Money”, or “OPM”, is a good reason for people to invest in property. You can find a bank that will secure a loan for you for your property investment(s). The better your credit is, the better chance you have of securing a good fixed rate loan with low interest rates.

You can also look at zero-down loans, but that can be more risky. You would have to pay more in your mortgage payments because you didn’t include a down payment. So when the property appreciates, it will benefit you along with the monthly cash flow.

Property investing is considered a business. You can use the expenses from it and deduct them from your taxes. Anything that your purchased, had repaired, any fees and anything else related to the investment in question.

Even if you have properties that are out of the regional area where you have to travel, those expenses can also be deducted from your taxes. If nothing else, being able to deduct expenses from your taxes is like a marriage made in heaven.

Have you heard of getting cash that is tax free? Say you have an increase in rentals and you end up having a positive cash flow. The surplus can be used for other things. If it’s the right time, you may think about wanting to refinance the rental properties. If you do that, you could secure a higher mortgage about £20 – £50,000 more than the original. You would pay off the initial mortgage, and have a nice surplus afterwards.

The surplus would be considered tax-free money.

The 1031 Exchange is named after Section1031 in the Internal Revenue Code. It discusses how property investors can hold off on capital gains taxes when selling one of their properties. There are three conditions that have to be met before the 1031 Exchange can go into effect:

1. It is a real estate property investment and not a main residence for the investor.
2. The real estate property can be swapped for a property of the same or similar kind.
3. In regard to replacement, there must be certain time frames in place and adhered to.

When an investor uses profits from another property sale and invest them in another property, they can hold off on capital gains for future property transactions. More than likely, the investor will work on getting additional equity and more income and profits from additional property rentals.

Average rents in the UK have reached their highest level for two years as property investment landlords sell up, a survey suggests.

Increased demand from tenants reluctant to buy in the current economic climate has also added to the upward pressure on prices, LSL Property Services said.  The group said that average rents had risen for seven consecutive months, increasing by 1.4% in August.

A separate poll for mortgage lenders suggested people still had a strong appetite to be homeowners in the UK.

The survey, of just over 2,000 people, for the Council of Mortgage Lenders (CML) said that 85% of those asked wanted to own their own home in 10 years’ time.

LSL said that the average monthly rent in the UK had reached £686, as a result of supply and demand pressures.

“Rents are jumping up as more and more potential home buyers opt to rent,” said David Newnes, LSL’s estate agency managing director.

“People are wary of a crash in house prices and concerned over the effect of government cuts on their own ability to meet long-term financial commitments. Additionally, many can not get a mortgage at an affordable rate.

“Furthermore, the huge number of reluctant landlords we saw renting out property last year have now had the opportunity to bank their gains and sell up.”

Reluctant landlords are those who decided not to sell when house prices were in a slump, but rented out their home instead after moving away.

The survey found that rents in the South East of England rose the most – by an average of 2.8% – but dropped by 1.5% in the West Midlands.

The poll for the CML found that although the long-term aspiration of home ownership had changed little, the short-term likelihood of owning a home had dipped slightly.

This reflected the fact that only 42% of those aged between 18 and 24 would prefer to live in a home they owned in two years’ time.

A recent survey of 1,326 UK renters, by flat and house share website Spareroom.co.uk, found that a third of those asked and currently renting did not believe they would ever be able to afford to buy a property.

We have purchased a number of admission tickets for the Property investor Show at the London Excel Centre between Thursday 14^th October & Saturday 16^th October.

 The Property Investor Show is the “MUST ATTEND” event for agents, developers, fund managers, wealth managers, service providers and investors … indeed, for anyone serious about making money from UK property investment.

It is the ideal place for networking, obtaining reliable and up to date property market information and, of course, investment property to buy. Equally it is designed to cater for all levels of property experience – everyone from the novice to the seasoned investor will find an answer to their questions.

We would like to invite you as our guest.  If you are available between 14^th-16^th October please visit:

www.propertyinvestor.co.uk/london/register.asp

 and use our PROMOTIONAL CODE: ONEPORTFOLIO

 Completion of the registration allows you to gain free admission into the exhibition.

 Also at the Event we have 20 FREE places available for:

A FREE 1-2-1 consultation where you can discuss your investment requirements, we can offer advice on how to build a sustainable property portfolio and also Christopher & Nigel Fitzakerley two of the company directors – who built a £15m property portfolio within 3 years and set-up one of the largest letting agents in the North-East will be available to share their advice and knowledge.

If you want to arrange your FREE1-2-1 wealth consultation.

The first thing you will want to do, before even considering a DSS tenant is to contact your mortgage lender and make sure that they accept DSS tenants under the terms of your mortgage. Mortgage companies can be funny with situations like this, and you may find they won’t take a single mother on full benefits, but they will take a couple with a foster child.

Once you have got that out of the way, you will need to meet the intended party. You will need to get 3 references off them, and to be on the safe side a credit reference also.

Also, bare in mind that not all single mothers with 4 kids are going to leave the property in a mess, but the more people/children/pets that are living in the property, then the more likely it is that damage may occur.  You may want to simply increase your deposit to take this into account.

On the plus side, the main benefit of having a DSS tenant is they are likely to live in your property for a long time. They have probably waited on council lists for years, and heard nothing back, so they will hopefully look after your property and treat it more like a home.

One more final piece of advice, if you do get a DSS tenant, be sure your rent covers your mortgage, plus a bit extra. Stick that ‘bit extra’ into a savings account and forget about it.

This way if you ever do find that you are without a tenant, you have a bit extra cash to tide you over until you get it rented again!

There are loads and loads of factors that come in to play when selling a house that can slow down the method. The very first thing does that prevent a fast house sale is the house itself. If the house is not up to standards in things like decor and tidiness, chances are you’ll find it hard to quickly shift the property. If your home is not up to standard in terms of appearance, it can add weeks if not months on to the selling of the property, as buyers will be fast to take their money elsewhere. People will most likely go for no money down deals because these deal are at little risk to them

Selling a house brings with it the dreaded but inevitable surveyor’s document, examining the structural condition of the property. If you are even thinking about selling your home, and you are looking for a fast house sale, you ought to think about commissioning your own surveyor to examine the property. That way, you can avoid any unexpected delays later down the line, allowing you to quickly sell your home. Only use a RICS certified surveyor though, because they will give you an honest price, while others may not.

1. Only use people who are associated with a thing called R.I.C.S because they are the professionals and governmental law over the property market so to speak, they will get involved if something goes wrong or you try to get ripped off,  they will take the said company to court too.

2.  Another tip is to never use a company’s own house evaluator because they will always say a price that will suite them, not you so yet again get your own RICS man in to do it instead of them.

3. Do not get fooled by a flashy website always ring up and actually talk to someone on the phone, if it goes to answer phone before 5’o clock it’s most probably a scam of some sort.

4. Always use some one who is FSA certified if you are using sale and rent back deal because if they are not FSA certified they ARE con artists or scammers and report them to the police or the FSA because if they are trying to con you the will have conned numerous other innocent people too! And this sort of thing has to stop.

All I’m saying is to be extremely careful who you decide to sell it with.