Anyone can become a landlord with little capital and a phone. However, taking the plunge into property investment is not as easy as one might think. Have you any idea how much of the world is owned by just 10 people? The answer then is quite simply: very little. We can help secure your UK Property Investment for sale.
More than 90% of the world’s wealth is controlled by 10 people or more. Why are they so wealthy? Do you really believe that just 10 people decide all those properties that are put up for rent? The answer is yes, they do; that is, 10 people invent or develop the property. They then sell those properties and therefore make a profit. Usually they retain the properties and rent them out to tenants. If you thought that was the case, then you should read about the ” tailswept concessions” for maintaining the properties and rent them out. Anyone reading the newspapers or magazines over the last few years would know that there has been an explosion of new residential properties being constructed and new property owners becoming well-known all over the world.
The problem is that most of the new properties are very unattractive. Most of the new properties have unattractive design, unattractive fixtures, unattractive floor plans and unsuitable Tenancy agreements that generallyState that tenants are responsible for renovating the Themselvesat possnello replace the carpets and most tenants quite reasonably expect (as I stated before) that tenants thereforeat Well be responsible for all the maintenance of the property if they move out. The slope of these properties is however generally slope downward forever. Tenants have no gardens and no outside area to set themselves in at All. They must search ever so low and search for the elusive, Edenic area where there are all these absolutely normal looking new properties with attractive architecture and floor plans in large blocks only to find that all these properties have been constructed on a very steep slope or on very poor foundations and will therefore infrequently have tenants.
It amazes me that so many tenants believe that they are getting a decent, brand new property. Of course they are not purchasing a new construction which is in the nature of the Tenant Improvement Notice that I mentioned earlier. Property developments of this nature merely provide a name and a price for the developer to sell the property to a prospective purchaser.
Property Investors see the term “Developer Guarantees”. This serves two purposes:
1. The Developer will offer to provide selected tenants of his new project a period of free lock-ins on the property (usually 2 months) from the date of the completion of the property to allow the tenant to have time to make the correct decision whether to remain resident in the property and, in particular if so, to get professional advice as to whether it is a property they wish to purchase.
2. The developer will always attach a “Developer Guarantee” to the new property. This is a very strong under strain which is imposed upon the developer by selling the Specified Contractswill Right upon the signature of the purchaser. It stipulates that the developer is liable for the Purchase Price and all costs associated with the purchase if the purchaser should fail to complete the purchase.
I have personally seen developers remove this clause within 30 days of the signing of the contracts, but always with an express warning to the purchaser if they should not complete on the purchase. The reason why they do this is that they do not want the purchaser to go and charge the developer a fee for introductions to the property prior to marketing it. They know that if and when the purchaser completes the purchase the developer will be very eager to produce suitable documentation giving notice of final completion and handing over keys etc. Therefore, by losing the chance to have a free shock over the set period of the developer arranging for a mortgage to be agreed, the purchaser is 11 times more likely to drop out. Naturally the developer is always happy to re-lett the property and collect the deposit.
Property Investment is a serious business and should be engaged with great care as you do so. It takes considerable financial and time resources to invest in property of any description. You must be completely aware of the nature of the project and buy with this in mind. Suffice it to say that entering into property is a relatively complex affair. I can’t therefore layout a detailed timetable for almost all the entry points. However I can tell you that property investment is one of the liveliest forms of investment around and certainly amongst those which help set the house of the world on fire. And I feel that those who earn the huge money are property investors. I hope this basic information about property investing has been of some assistance. I am always pleased to pass on my ignorance in as creative a manner as I can.
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