Property Deals
This Page is being updated. This section will give more information on the complex issue of Property Dealing. It will also enable clients of www.jsinvestments.co.uk to buy and/or sell property. If you know of any good deals, let us have them!
If you are contemplating buying a residential property in order to let out to tenants, it's essential that you do your homework. We have provided you with some tips on the main factors that you should consider.
Know your market
Research the market thoroughly. You can do this by checking local newspapers to see what tenants are looking for in a particular area and by talking to local estate agents.
Get the right location
As a general rule, look for locations where properties are in demand, such as university towns, peripheral areas that are considered as 'market hot spots' and areas that provide good local amenities and access to a reliable transport system. As a further consideration, make sure, when you eventually sell, that the property is suitable for a resale and that the profile of your future buyer fits what you have to offer.
Know your numbers
Your mortgage payments are directly related to the rent you charge, which will need to be higher to absorb the costs and to protect you during periods when the property may be temporarily unoccupied. Typically you would be required to find a deposit of approximately 25 per cent of the purchase price, and the minimum rental cover required is likely to be in the region of 130 per cent.
Get advice
Make sure that you understand the tax implications of owning a rental property. Although the rental income is taxable, you are permitted to offset interest costs, letting agent's fees and maintenance charges.
Letting your property
As a rule of thumb, most landlords use a letting agency to remove the hassle factor of dealing directly with tenants. Letting agents offer varying degrees of service, from 'introductions', in other words finding your tenants, to 'full management', where they collect rent, liaise with tenants about repairs or emergencies, and deal with routine redecoration requirements. You can typically expect to pay in the region of 10 to 15 per cent of your rental income for this type of letting agency service.
www.jsinvestments.co.uk – You can trust us for commercial
mortgages and debt consolidation. Contact us for commercial
mortgages as well as unemployment and redundancy insurance as
and when you need.
www.jsinvestments.co.uk – You can trust us for commercial
mortgages and debt consolidation. Contact us for commercial
mortgages as well as unemployment and redundancy insurance as
and when you need.
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