Britain's best places to invest in property

As estate agents report a post-recession boom in house prices, Christopher Middleton finds the best investment hot spots.

It’s not merely a false dawn rising over the rooftops. Following years of doom and gloom, UK house prices are finally on the up. According to the Office for National Statistics, values rose by 3.1 per cent in the 12 months to June 2013, compared to 2.9 per cent in the year to May 2013.

Confirmation comes from the Royal Institution of Chartered Surveyors (RICS), which says that prices are rising at their fastest rate since the pre-crash days of 2006. “The increase is spreading from London and the South East, but this is the first occasion for a long time that we have recorded increased activity everywhere in the country,” explains RICS director Peter Bolton-King.

This is set to continue, with an expected increase of seven per cent in 2014, according to Howard Archer, chief UK economist at IHS Global Insight.

There are three factors credited for this surge in buyer interest. One is the government’s Help To Buy scheme. The second is the Funding for Lending scheme, which allows banks to borrow money more cheaply. The third, meanwhile, is the Bank of England’s recent indication that interest rates will remain at record lows for some time.

Given this sunny forecast, canny buyers may need to move fast to snap up bargains. Here are six of the best investment hot spots:

Wales

A 4.3 per cent year-on-year price rise is reported for Wales, which previously saw some of the UK’s largest house price falls during the recession. “Activity in July was much better than in June,” says Nigel Jones of John Francis Estate Agents in Carmarthen. “Sales agreed were up by eight per cent, and sales exchanged by 11 per cent.”

West Midlands

This area has seen the greatest number of interested buyers since records began in April 1999. Both new stock and new buyers are in plentiful supply, particularly in Worcester. “In our country house department, we have seen several deals come to fruition in the past few days, from £300,000 to £750,000. And that’s in traditionally quiet August,” says George Pickard of Halls estate agents. “We are definitely seeing a more confident market.”

Huddersfield

“There has been increased activity in recent months, and the feeling that a corner has been turned,” says Alex McNeil of Huddersfield estate agent Bramleys. He has 30 two- to three-bedroom properties on the market in the £120,000-£130,000 range. “We are experiencing a general feel-better factor.”

Luke Whitaker of Jowett Chartered Surveyors agrees. “The market is still buoyant, in terms of vendor inquiries and an increase in market appraisal requests. This suggests positive market changes.”

North East

The area has seen the highest level of interest for 14 years, according to the RICS. Surveyors report that prices are generally rising rather than falling for the first time since January 2012. The location most in demand is Jesmond, where four- to six-bed homes fetch more than £500,000: three times what they would have cost in the Nineties.

Leighton Buzzard

This is an area in which property website Zoopla identified a sudden, downward dip. Here, the average over the past three years has been as low as £230,000 for a semi-detached house. Just 33 miles to the south, in Buckinghamshire’s Gerrards Cross (35 minutes by train into London), house values are 60 per cent higher, around £655,000. Now is the time to invest before the Bedfordshire market bounces back.

Cambridge

Far from scanning the horizon for non-existent buyers, Cambridge estate agents are pitting purchasers against each other.

“Every house we have sold so far this year has gone for the guide price or above,” says Ed Mayer of Savills. “Exactly 50 per cent of sales have sold in competition, too, either in sealed bids or during open rounds of negotiations. The largest offer was 21.53 per cent above guide price.”

No doubt about it, says surveyor Mark Wood of Bradshaws. “We have had an extremely high volume of sales throughout July, with a lack of available properties resulting in prices increasing.”

The only cloud on the horizon, it seems, is that this shortage of supply will lead to a sudden surge in prices, rather than a gradual ascent. For the moment, though, there is no rain falling on the UK property parade. Find the right place to invest, and the result could be, if not pounds, at least pennies from heaven.

Article From ----- http://www.telegraph.co.uk/.

 By Christopher Middleton.

How to make your buy-to-let investment profitable. 

Letting agents’ fees can be irksome, sudden repairs inconvenient and void periods stressful. But the biggest cost a landlord faces - one that makes or breaks a buy-to-let investment – is the mortgage. And it’s not something to be forgotten about once the sale is complete and the tenant in place.

“Don’t get comfortable,” says Ed Mead, director at Douglas &Gordon estate agency. “I like to know what I’m doing for five years, but it doesn’t do any harm to check annually. Always use a broker. A broker will know more than you, or the internet, will.”
It is hard for the average investor to keep on top of BTL mortgages, let alone other news in taxation, regulation and the market. That’s the point of The Telegraph’s Property Club. In our weekly articles and fortnightly online newsletter, we provide busy buy-to-let landlords with everything they need to know.

It looks like 2013 will be a busy year for buy-to-let. The average number of properties owned by BTL landlords rose in late 2012 from seven to eight, according to the Association of Residential Lettings Agents (Arla).

New products from existing lenders are becoming ever-more varied and competitive. BM Solutions (owned by Lloyds Banking Group) is to increase its BTL lending from 17 per cent to 21 per cent of its annual lending. Nationwide-owned The Mortgage Works is introducing flat fees rather than percentage-based fees.
Landlords are becoming more savvy about refinancing, too. A survey by brokers Mortgages for Business showed 80 per cent of landlords wanted to remortgage this year, compared with 55 per cent last year.

“Finding a best rate is essential, but this might not be the cheapest; it might just be the one that is right for your investment objectives,” says Kate Faulkner, director of Designs on Property, an independent advice service. “If your aim is for capital growth, get a mortgage that offers a higher loan-to-value so your property covers its costs but won’t necessarily provide much income beyond that. If you want to create income, you need a low mortgage rate to boost your income."

BTL mortgages are traditionally 1-1.5 per cent higher than the average homeowner’s mortgage rate. A good yield in London is likely to be around 5 per cent (and anywhere from 3-10 per cent outside). If you are heavily mortgaged, there is unlikely to be much left each month to provide a significant income, so many investors will be in it purely for the long-term capital gain.

But building societies are proving highly competitive, with lower rates and arrangement fees. “The key is the arrangement fee, which can be as high as 3 per cent - but lenders such as Abbey and Godiva, part of Coventry Building Society, are starting to offer £999,”says Andrew Montlake of brokers Coreco. Skipton’s best BTL rate is a two-year fixed at 3.48 per cent (their lowest owner-occupier’s mortgage is a two-year fixed at 1.99 per cent) with a £995 arrangement fee.

Lenders differ in the number of properties for which they will provide loans. Woolwich, Aldermore and Godiva permit up to 10. Lloyds allows three. If you are looking to remortgage regularly, BTL products without redemption penalties are scarce.
Certain properties may be refused finance - ex-council properties may be frowned upon, as may flats more than five floors up or those above shops.

Investors may also need to provide a 25 per cent deposit to remortgage – hard for anyone who bought at the market’s peak – or they may need to provide a minimum income. It is also usual for mortgage companies to require a rent up to 30 per cent higher than the mortgage cost - so to justify a mortgage of £1,000 a month, most lenders would need to see a monthly rent of £1,300.
Ultimately, your finance must pass the stress test. “If you lost your job, became ill or died, what would happen? Does it all pay for itself?” says Kate Faulkner. “What if rents fell by 5 or 10 per cent? What if property prices fell by the same amount – could you still remortgage? And if the property is empty for months, could you cover the costs of mortgage, service charges and ground rent?”
That’s why getting the right mortgage – and keeping it right – is the most important financial decision you will make.

http://www.telegraph.co.uk/

Article By Zoe Dare Hall

12:34PM GMT 15 Feb 2013

Global Market Trends Analysis Software – Learn How to Identify Market Trends.

Global Market Trends Analysis Software – Learn How to Identify Market Trends.

What is Market Trend Analysis?

All financial markets will go through periods where they exhibit a trend to move in a certain direction. From individual stocks and shares to global indices, commodities and forex, each one will regularly show a tendency to either move up or down. These trends are obvious when you look at historical price charts, in which you can often see trends which last for months at a time.
These market trends can be very profitable for investors who are able to identify them. They can provide very valuable trading signals telling you whether or not you should buy or sell a particular stock, index or commodity In fact market trend analysis – the art and science of identifying market trends, is one of the main types of technical analysis (investor research using charts and tools). If you can identify a medium or long term trend close its beginning, or even in the middle, and then trade with the trend until close to its end you can make very good profits. But, of course, this is not nearly as easy as the description makes it sound. A market can last for hours, days, weeks or months – potentially even years. So just because you spot one in historical price information, doesn’t mean that it will continue.

Read more at http://marketcurator.com/global-market-trends-analysis-software-a-free-guide/#7b1XoEORuqPucBoy.99

The Importance of Timing in Trend Analysis

Timing is absolutely key to trend analysis. Being able to identify when a price movement becomes a sustained trend can help you to get in close to the beginning and ride it all the way to substantial profits. Careful analysis and comparisons can identify different stages in the development of a trend, and give some indications of whether or not it is likely to last and even for how long. It is also possible to spot indicators which give a forewarning of when a trend is likely to turn and if a correction may be on the cards in the near future.

Identifying and Using Global Market Trends

As I wrote at the start of the article, you can identify trends for individual stocks and shares. This should only be used, however, in combination with a careful consideration of the company’s fundamentals and your own intuition about their products and management team. Although identifying a trend in the price movement of a particular share can be useful, it  does not necessarily mean that this will influence the future price movement for that stock.
In my personal opinion broader global market trends are much more useful. Generally speaking, the broader a trend is the larger the number of different factors which are involved. This can make your identification more reliable, but it also means that the price movement is less likely to turn without warning on a single piece of news which you couldn’t have predicted.
You can also use global market trends to help inform more specific investment decisions. If your analysis is giving a buy signal on a specific share within a market (such as the Wall Street Index) which is also giving you a global buy signal, for example, you have twice the reason to think that you are onto a winner.

Read more at http://marketcurator.com/global-market-trends-analysis-software-a-free-guide/#7b1XoEORuqPucBoy.99

10 Tips For Renovating Investment Property

So you’ve bought an investment property that needs some work done – what now? How do you make the most of your investment? Here are ten things to consider when planning your renovations:

1. Check your figures
   Before you start, check your numbers. When investing in property, it makes no sense to spend £15,000 on a renovation that will potentially only add £5000 to the value of the property. Speak to local agents and ask for their opinions on the possible returns available. They will also be able to give you advice on what style and type of property buyers or renters in your area are looking for.
2. Consider your target market
   Who do you think will buy or rent your property? A young professional couple will want an entirely different style of décor and fittings to a retiree or a young family. Keep your target market in mind when planning your work.
3. Set a budget
   Be clear on the money you have to spend and stick to it. Keep detailed records of all spending and make sure you always know how much of your budget is left. Set aside a sum as a contingency fund for unexpected expenses or emergencies.
4. Stay on plan
   Planning is everything in property development. A detailed project plan will help to keep you on schedule, ensuring you know what’s happening and when. The sooner the property is finished and sold or rented, the quicker you get a return on your investment.
5. Keep it legal
   If you are planning major building work such as changing the interior layout or perhaps building an extension, speak to your local planning department first to find out if you need planning permission for anything.
6. Don’t go overboard
   Investing in property is a business venture and while you might choose an expensive designer tile for your own kitchen, you don’t need it in your development. Give your development a high quality finish but don’t go overboard buying the most expensive products every time.
7. Keep it classic
   Don’t be tempted to use very fashionable fixtures as they will date quickly and may not be to everyone’s taste. In order to appeal to the widest possible market, keep the fixtures, fittings and décor of the property simple and classic.
8. Use professionals when you need to
   You might think you can save money doing work yourself, but it’s often more financially sound to pay a professional to do the specialist jobs such as tiling or decorating. Two or three days of work from a professional may work out more economical than you spending two weeks or more trying to do the same job.
9. Shop around
   Shop around for your fixtures and fittings. If you know exactly what you want, the internet can be a great way to find what you need at the best price. Alternatively, if you are prepared to be flexible, Ebay is often a great way to find one-off items or end-of-range products at great prices.
10. Make it unique
    Find some way of making your development stand out from other properties. It can be something as small as a spa bath or a steam oven, or as big as a cinema room or a gym, but a unique touch will make your property stand out from others on the market.

Articles From >>>> www.savvys.com