Property values in the UK have been steadily rising during the past few months, albeit in smaller increments when compared with pre-07 figures, but nevertheless rising.  Our BMV portal also shows a sharp increase in private registrations recently, with increasing demand from institutional investors seeking property en-masse; so, we have to say the time for waiting, if ever there was one, is now definitely over.  If you are serious about starting or adding to your portfolio, do it now as increasing demand may see availability of suitable property fall and purchase prices rise.

You must satisfy yourself as to who you are dealing with.  During the process of your own due diligence, be sure you are offered terms of business (and, study them) before you part with any money.  Possibly with the exception of the surveyors fee, shy away from any firm who wants large sums up front without written guarantees you will get it back if the deal is withdrawn for example, following a significant down-valuation of the property. Remembering you always get what we pay for, choose a firm you feel confident will continue to deliver a professional level of service before, during and after sales.  This might mean a slightly higher fee, but it is worth it providing their overall terms of business stacks up to scrutiny. 

A prudent investor will always have a balanced investment of cash and medium/long term assets.  Cash funds need to be easily available for rainy-day emergencies.  Property however, fits within medium/long term investment planning (5 years+) attracting capital growth AND income for the landlord. It is no coincidence that wealthy people hold property and even taking into account the four UK recessions we have experienced during the past 30-years, property has proved a most robust investment. Companies exist that allow you to make money with their money (Lenders). For every £1 you invest in a BTL property, an appropriate lender will typically add £3 (that’s 75% of the total purchase price). Yet a lot of people still don’t understand that this ‘enhanced’ investment is exactly what the Buy-to-Let investor enjoys again and again.

Taking into account just one of the favourable tax treatments on BTL property: all the interest you pay to the lender is from pre-taxed income.  This means that if for example, you borrow money at 4%pa, the taxman pays almost 1% of it (at 23%).

When you consider our Below Market Value property is currently acquired for a typical cash investment of round *£5,000, you can see why most of our deals are snapped up on the day of listing.

  

Spain ~ we have temporarily withdrawn our current interest in Spain (until the banks get their heads on straight)!

France ~ since 1995 average values have increased by 140%. Even with a small decrease in 2008, the first half of 2009 saw a slight increase. Prices for 2003-08 averaged +7.6%pa (source FNAIM). We Brit's seem to particularly like Brittany and Normandy as they are close to the UK with frequent and affordable travel options.

 

Portugal ~ is a place that appeals to many due to cheap transport links and we are seeking more BMV deals as we write. Prices between '03-08 averaged +21%pa (source National Price Statistics Office).

Cyprus ~ since 1990 has been averaging 16%pa across the island. Prices flattened during the last 12mths but still show a 41% rise since '04 (sources MAP Platis, GP Index).

 

NOTE: If you are thinking about buying outside the EU, make sure there legal system is compatible with the UK and that there is a lawful land register.

*we expect this figure to increase with the advent of FSA regulation anticipated within the next year or so.

 

What we say ~ the message is clear: do not delay your BMV property purchases! 

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