If your pension is under performing and the stock market is just costing you cash, then maybe property letting is the route you should take to secure your financial future.

Buying a house and doing it up could be a sensible thing to do – especially if you have relevant building or decorating skills that you can use to keep the costs of the project down.

Buy to lets are very important to the UK property market. In the last week, the British Property Federation has said that property letting is key to solving the perceived housing crisis in the UK.

It says that government research shows demand for rented property is now 25 per cent higher than for houses purchased privately. And it believes that difference will continue to rise if prices increase further.

The BPF believes that it is only by renting a home that millions of people who can’t afford to buy a home are going to find somewhere to live. It points to a similar development of property letting in the United States and Germany.

While the BPF believes the solution is a professional rental sector where property managers run domestic lets on a large scale, as with commercial property now, this situation presents clear opportunities for small investors – you.

So if you decide to go down that route, or indeed you already have a home that you rent out to others, how can you make sure that you and the tenant are perfect for each other?

Estate agent Knight Frank recently issued a series of tips for both landlords and their tenants to help them get along.

For you, the key thing to remember is that property letting is a business. And that means if you give the customer (the tenant) what they want, you will maximize your profit from your investment. It’s as simple as that and the reason why it is key to research your intended market thoroughly. Ensure you understand the kind of people you hope to rent to, and the lifestyle they lead.

Families renting a four bedroomed house want space, a garden, safety and no fancy features that could be broken by the children. Professional couples might want more of a show home and will be willing to pay a little extra for the perfect location or feature in the home.

Next up, you must remember to make your property neutral but not bland. To impress tenants you need to declutter and depersonalize the house before viewings. Unless they are renting it furnished, they need to be able to imagine that they will be happy there.

Next in the list of property letting tips is to keep the house in an excellent state of repair. A house in an excellent condition is much more likely to be returned to you that way, whereas if it’s a bit tatty, tenants are less likely to take care of it.

You are legally required to get the boiler serviced each year, and you should ensure the electrics are up to scratch too.

Finally, ensure you tell your mortgage provider and buildings insurer what you are doing. It may seem tempting to keep it quiet and save a little money, but any claims you have to put in may be rejected if they discover you are property letting and haven’t told them.

For your tenants, the estate agent recommends they have references ready in plenty of time, ask for any improvements to the property to be done before signing the lease, and commit to at least a year’s rental, so as to be more attractive to landlords.



Sell and Rent Back

Facing repossession can be a daunting time in one’s life. As daunting as it is, it needs to be dealt with sooner rather than later. It go’s without saying that a situation of this severity will not simply vanish into thin air if ignored by the home owner. Unfortunately many home owners do have this attitude as they simply do not know how to deal with the situation and believe that they are doomed no matter what they do. It can be an extremely emotional time in ones life and can put a lot of pressure on the home owners personal life, as well their health. However, it need not necessarily be this way.

An important thing to remember is that there is no reason to be ashamed of your situation if you’re facing repossession. These things happen in life and often the cause is due to no fault of our own. Rather than groveling and feeling sorry for one’s self, the best thing to do in a situation like this is to take action, immediate action.

Most home owners simply give up and hand the keys over to the bank, this submission can have negative consequences down the line such as receiving a bad credit record and having their name black-listed. Once a home owner receives a bad credit record or black-listing, they are normally banned from the lending industry for the next 5 to 10 years. This means that they will even find it difficult to rent a property in future because the majority of landlords do credit checks on their prospective tenants. Not only will the home owner find it difficult to rent a property in future, but they will be declined for basically any type of credit application that they apply for. This includes things like credit cards, cellphone contracts, store/shopping accounts etc

Having said the above the news is not all bad. There are steps one is able to take in order to prevent the actual repossession from taking place, and if not preventing it completely, then at least soften the blow and improve the situation greatly.

The following actions could and should be taken and would help the home owners situation dramatically:

- Contact the bank immediately and let them know of your situation, they will respect you for this and follow a more lenient and understanding approach from their side.

- Negotiate a ‘holiday’ period. This is normally a 3-6 month period whereby you do not have to pay any installments. This basically gives you time to sort your financial situation out with the hopes that you’ll be back on your feet by the time the holiday period is up.

- Negotiate a longer bond term. If you are currently paying your bond over 20 years, one could arrange to change the bond term to 30 yrs, this will decrease your bond payments to a small degree on a monthly basis.

Then last but not least, there are fortunately people out there who specialize in helping distressed home owners out of their situation when all else fails. These companies are usually property investors who buy houses for cash and are able to provide home owners with a quick sale on the spot before the banks manage to step in and proceed to repossess the property. These property investors might not necessarily offer full market value for the property, but instead will offer up to 70% of the market value for an instant and guaranteed sale. This can be the answer to solving the home owner’s problem very quickly because these investors who buy houses for cash usually understand how the banks work and are able to speak to the bank on the home owners behalf. At the end of the day it is a win win situation whereby the home owners is helped out of their problematic situation, their credit record is saved, their bond is settled and they can carry on with their lives. These property investors will even allow the home owner to rent the property back after the sale which can be extremely helpful if the home owner wishes to remain in the property. 

I’m sure you will agree this is a far better solution than sitting around and waiting for the banks to swoop in and take everything the home owner owns leaving them with absolutely nothing but a bad credit record at the end of the day. Note that it is vitally important that if the home owner decides to go this route that they contact such a repossession service as soon as possible before it is too late. The links below might help you out of your predicament – feel free to check them out today.



Rent Back Fast

Under the terms and conditions of all bank mortgage contracts it states that a home may be repossessed if repayments are not kept up-to-date. This means that the lender has the right to issue repossession proceedings if mortgage payments are not made as required. Lenders take different actions at different stages, because of this the period of arrears permitted varies. Lenders will most certainly contact you in writing within 60-days and will, on average, take action within three months if no attempt to make payment is made.

People fall behind with their mortgage payments for a variety of reasons, redundancy, divorce or separation, bereavement and ill health are just a few. Lenders know and understand this from the onset when granting a mortgage. They do not want to be in a position where they must repossess a home, but they also cannot allow late payment and not take action. This would send the wrong signal to all mortgage holders and foster a culture of late or non-payment. If this were to happen the lender could find itself losing billions in revenue.

Since bankers are aware of the risk that a person may default on their loan, they are sensitive and understanding of the problem. They also know that it is in their interest to help a mortgage holder find alternatives when they have problems. Within reason, lenders usually have a predetermined list of products that can be applied in problem cases. However, most mortgage holders are either, not aware of this or forget when faced with an inability to make payment on their mortgage.

It is common when speaking to home owners that are in the process or have had their home repossessed, to find that they simply did nothing to try and get themselves out of the trouble they find themselves in. They seem to be so struck by fear that they are paralysed into doing nothing. Letters are ignored and calls avoided, almost as though they are wishing the problem will somehow “vanish”.

This is the biggest mistake anyone can make. In fact it is better to make contact with a lender well before getting into this situation. The best action is to contact the lender prior the date on which the payment is due. Have a meeting, explain your predicament to them and see if there is any way they can help before taking any other actions.

The solutions are many and will depend on your particular situation. Some lenders may even give a “payment holiday” where they will suspend payments for a set period whilst the customer sorts out the underlying reasons for not being able to meet their mortgage payments. Again, how they will act depends largely on how early you make contact and the circumstances of each case. It is highly unlikely that they will immediately start repossession action. One this is for sure, ignoring your lenders letters and calls is a sure way to set them on the course to apply for the repossession. So speak to them first and do it early.

If you have an accountant or a financial adviser, it is highly recommended that you seek their advice also. They may be able to suggest solutions or put you in touch with someone who can give you free financial advice to help your situation. A good financial adviser will be able to provide you with the steps you need to ease your financial predicament as quickly as possible. Please note that when we say “financial adviser”, we do not mean an insurance sales person.

Getting into financial difficulty is a source of embarrassment for many people. Don’t be shy, it is better to get it out into the open early any feelings you may have at this stage will be nothing in comparison to those you will have if your lender repossesses your property.

Sometimes people are just plain fed up. Not being able to make a mortgage repayment is the last in a long line of events. It is common for them to think that the repossession of their home will end all money worries. This is generally not the case. Repossession of a home usually happens after a person is finally not able to pay anything and may possibly have a long line of debts with many creditors. As soon as the home is repossessed all creditors will come knocking. The pressure will mount quickly.

Many people mistakenly think that if the bank repossessed a home that they will get some money from the bank with which to cover all other debts. This is not true, generally a lender is not interested in owning the property or the fact that the property is possibly worth more than the mortgage over it. They just want to try to recover the money outstanding on the loan account, nothing more. So if a home is worth a million and the outstanding amount is 100,000, they will quickly sell the property for 100,000 at auction.

Remember, the home must first be attached by the Sheriff and sold at the Sheriffs” auction before it will be in possession of the lender. The lender will in almost all cases, be bidding at this auction. As soon as the auctioneers price goes above the amount outstanding, the bank representative will stop bidding and possibly leave the auction. This is because the person who wins the auction is paying a price higher than the outstanding amount which must be paid to the bank. If the property sells for more than this, then the Sheriff is responsible for paying all creditors before paying the seller. In most of these cases, the property rarely sells for much more than the bank is owed and the remaining balance is mostly, if not all, consumed by creditors.

Another problem resulting from repossession is the effect it has a persons future situation for years down the line. A person who has undergone repossession will most definitely find it very hard to arrange any credit for a very long time. Some people never recover, and if credit is provided it is generally at a very expensive premium.

So first thing to do is speak to your lender, then get advice from an accountant and a financial adviser. If this is not helping, then the next solution is to speak to a property investor that has the experience with which to buy property under such circumstances. Often they will buy your property for less than current market value but more than the outstanding amount to the lender, but they can normally resolve the situating very quickly as they understand how the banks operate and are knowledgeable in such matters.

Within reason, Property Investors, will often offer you enough to cover existing debts and may even allow you to remain in your house after they have bought the property as a tenant. Some will also pay your legal fees or let you stay rent free for a period or arrange a combination package that will give time for you to recuperate. Not having to relocate can be a major bonus as you will not have to find a new place to live, pay rental deposit, pay for removal or storage of belongings. If one has children at school it will also help to leave some stability in their lives and the life of the family during this very difficult time.

In conclusion, it is always better to approach a lender ahead of time and try to solve problems before they happen. It is also highly recommended that a person with financial problems speak to an accountant or financial adviser. Professional advise, combined with assistance from the bank will demonstrate willingness to fix a potential problem. Lastly, if all else fails, speak to a property investor that has experience in buying in such circumstances. They may not pay what you would like, but they may provide a better alternate to repossession and the aftermath that goes with it.



Quick House Sale

City property taxes are a very important means of collecting much need capital for your local neighborhood or city. Although nobody really likes to pay taxes, we realize that have to, or else we face legal troubles. What many people do not realize, however, is exactly what your city property taxes are used for. And people also fail to realize that without such taxes in place, your city might literally fall to pieces.

One of the biggest things your city property taxes go for is the upkeep and maintenance of your city’s streets and roads. For some areas, road repairs can be a very costly and time consuming job, as well as a huge inconvenience to commuters. But this is a job that is absolutely necessary, however. Without it the roads of our nation’s cities would be lined with potholes and lose stones, all of which can severely damage your car and even increase the risk of crash. So next time you curse your city property taxes, just remember that some of the money will be used to improve some roads that you may drive upon every single day in the city.

A good portion of your city property taxes is also used towards city greening projects, too. Because the nation is becoming more environmentally aware, and we know recognize the need for designated city park areas and adequate green space, more and more funds are being put into the development of such areas in cities all over our great nation. Since it is your tax money that is being used for these projects, you can just consider it your way of helping to save the environment. Isn’t that a much better way of looking at city property taxes?

After this, your city property taxes go to essential city services, as well. Things like keeping the roads clean and clear of snow, ice and road kill, maintaining public restroom facilities and a lot more. Without the revenue generated by city residents paying their property taxes you would find that all roads become a slippery mess in the winter months, and in summer they are littered with rotting meat from all sorts of different small animals. Without workers to take care of such hazards, the roads become even more of a danger to everyone who is driving on them.

City property taxes are also used to maintain sewer lines, electrical lines and telephone lines throughout your neighborhood, too. Without these things you would not be able to flush your own toilet, turn on the light or talk on the phone – and it is quite hard to imagine where we would be without any one of these things, let alone all of them. But by paying your city property taxes on time, telephone and sewer companies can make necessary upgrades to their existing lines, and they can better serve you if a problem does arise.

So while you might not like paying city property taxes, they are essential to the operation of our country. Everybody has to pay them, there are no exceptions – you may as well just grin and bear it.

For more information on property tax, visit http://www.propertytaxcity.com/



Sell and Rent Back

If you take out a loan against your home, there is a risk involved in it. You may fail to repay for one reason or the other. It will be enough for the lender to initiate repossession proceedings against you. In the first six months of 2007, the number of properties repossessed was around 14,000. To avoid such things, you can take out loans that do not require any security.

Personal loans exempt you from any requirement of security. You can use these loans for a number of purposes. In the absence of security, you might have to pay a little higher rate of interest. But, the good thing is that these loans are quickly available and you do not have to wait for long time.

Personal loans are among the safest loans available in the market. Brits take out these loans for different reasons like home improvement, debt consolidation, car purchase, home improvement, holidaying and so on. A research tells that two most preferred reasons for taking out these loans are debt consolidation and vehicle purchasing. These loans serve a large section of borrowers – tenants, homeowners, businessmen, self employed, etc.

Personal Loans are suitable when your financial requirements are not large. If you want up to £25,000, these loans can be very useful. You can keep your home away from the loan transaction, avoiding the risk altogether. The repayment period for these types of loans generally extends up to 8-10 years. These loans are available with high street lenders, online lenders, building societies, sub-prime lenders, etc.

In case of bad credit, you can apply with a sub-prime lender. These lenders have strong online presence. If sanctioned, the loan amount is credited to your account. So, if you want to get personal loans and get them in a quick time, you can apply online.



Sell House Quick

1. He’s fast, but thorough.

a. Does your mortgage broker contact you in a timely fashion with detailed reports and requests, informing you that he just got the request in from the lender?

b. Or does he sit on the lender request for a few days before contacting you? When you provide the information the mortgage broker requested from you, does he review it with you while you are there to confirm that it is everything he needs?

c. Or does he set your information aside to look at later, possibly resulting in yet another request from you to get the missing item? If he does not operate with speed and thoroughness, speak to him about this. Let your mortgage broker know that sometimes his requests will take you time to compile or prepare for him, and that you cannot do your part well if he does not do his part with speed and thoroughness.

2. He’s efficient.

a. You’ve been to his office. The mortgage broker has a well organized office, with clean and professional staff. (Of course this only applies if the mortgage broker is not an independent rep with no staff).

b. They are all working and there are no serious signs of disorganization. The phones are active and there is life to the office. If you see this, what you are looking at is an efficient mortgage broker who keeps things moving in his office and has built a good relationship with people who need loans and the lenders who provide them. If you don’t see this, although he may be efficient on some level, he may not have the efficiency that you need overall to get your job done. Watch the signs carefully. You need your mortgage broker operating at maximum efficiency.

3. He listens and solves problems.

a. Did your mortgage broker hear you when you said that you would not be able to provide certain documents that he asked for and come up with a solution of how this problem could be solved? Was his solution an actual solution that you could utilize to keep your loan moving forward? If no, then you’ve got a problem. He is not listening. He is not solving problems.

b. Did your mortgage broker clearly hear and understand the problem the lender had and put forward a solution to the lender that both you and the lender could utilize? If no, you’ve got a problem.

4. He does not try to put you into a loan that you cannot afford.

a. You’ve given him all the info he needs to correctly determine a loan amount that you can afford, and an interest rate that you can afford, yet the numbers the mortgage broker brings back to you are above what you can afford. Walk away and find a better mortgage broker. Don’t be one of the thousands of Americans that got in over their heads and lost their homes.



Sell House Quick

What Happened With the Mortgage Industry?

We have all heard about the collapse of the sub prime mortgage industry, but do we understand exactly what is involved? Certainly if you are a victim in this crisis, you may have some idea about what is going on, but few people are aware of how connected one part of our economy is to the other. The collapse of the sub prime industry has affected everyone in the housing market, buyers and sellers, those with sub prime mortgages and those without. It has also affected contractors, real estate agents and anyone else who makes a living in the housing industry.

To simplify the problem that developed in the mortgage industry, you first need to understand that it is generally assumed that housing prices will always increase. While this is true over the long term, in the short term housing prices had risen rapidly to an artificial high. At the same time, many mortgage lenders where giving sub prime mortgages. A sub prime mortgage is one that is considered more risky that a traditional, or prime, mortgage. Sub prime mortgages went to people with problem credit, were buying a more expensive house than a traditional lender would loan, or had some other quirk that made them unattractive to a traditional lender. Many of these mortgages had an adjustable interest rate. When interest rates increased, the monthly mortgage payment increased as well. Trying to refinance became a nightmare as the bottom fell out of the housing market, and homes were appraising for much less than the amount that was owed on them. Foreclosures increased, and the cycle expanded, as other credit markets became nervous and less willing to loan money, which is one of the driving forces of our economy.

What is a Credit Crunch?

Simply put, a credit crunch is what happens when banks become less willing to lend money, or interest rates rise, making it more expensive to borrow money. A credit crunch has a trickle down effect on the economy as a whole. When money is more difficult to borrow, the economy slows down. Much of our economy is driven by credit, and a slow down in home purchasing, new home construction and auto sales can have a staggering effect on the economy as a whole. Problems that develop in one segment of the economy have a spill over effect into other areas of the economy.

How does it Affect the Consumer?

The effect of the current credit crunch on the consumer that is interested in purchasing a home can be negative. In times of a credit crunch, lenders are less likelihood to lend money, the charge higher interest rates and tighten their lending standards. With as much as 40% of the population considered to be problems borrowers, it is easy to see how the current credit crunch affects the mortgage industry.

Interested in Buying?

If you are looking for a home, don’t let the current credit crunch scare you away. Although lenders are nervous right now, if you are considered a good risk, there is money available. How to know if you are a good risk? Check your credit reports and report any errors. Make sure that you pay your bills, both utility bills and credit card bills, before the due date. Know how much home you can comfortably afford, and do not go over that amount. For the savvy home buyer there are many benefits to the current credit crunch.

What if your credit is not so perfect? It is still possible to get a loan. Banks are going to be less interested in nontraditional loans, such as no-document loans or interest only loans. While you house shop make every effort to reduce your debt and pay your bills on time. Have 20% of the asking price available as a down payment to eliminate the need for private mortgage insurance, a move that can save you over a hundred dollars each month. If you are turned down for a loan, ask the lender what you can do to improve your credit and how long you should wait before you apply again. While the current credit crunch has tightened up the mortgage industry, it has not stopped it.



Sell and Rent Back

Many properties have repossessed this year. Due to recession, there has been an increase in home repossession. According to a survey, there were nearly 19,000 properties that were repossessed in the first half of 2008. It is not easy to digest who have lost their houses. If you are planning to buy your dream home at a reasonable price, you can look for those repossessed properties which are now available for auction, at a lesser price. If you would have purchased a new home you would have paid 50 percent more but if you buy the same house through auction you will pay half the amount. In the past three years there has been an increase in the percentage of repossessed properties that are auctioned by over 300 per cent. In numbers the repossessed properties that were auctioned were nearly 3,102 in the first half of 2008 from 800 in the first half of 2005.

A survey from the Royal Institute of Chartered Surveyors tells that the properties that were sold easily through auction over the past three years are going through a bad phase due to credit crunch. But there is a plus point with less competition in auction you can bargain for the property at a price you wish to buy. Many bankers and lenders sell repossessed properties on a single day itself because they want to receive their amount and so they don’t wait for achieving a higher price. Due to this many properties are sold at a low price which is enabling investors to get some excellent deals. Even newly build flats are being sold at huge discounts. If you buy a property at auction you can save as much as half the value of the property. But remember before you step into the auction room do your homework well.

See to it that you auction the property at a price that you can afford, because if you raise your hand once you have to buy the property. The timescale that is involved in a property auction is much tighter when compared to real estate agent. If you’re planning to buy a property through auction see to it that your finances are in place, as there is limited time frame. You have to make 10 percent of the purchase price on the day of auction and the rest within 28 days. So contact a lender in advance who will help you out. Many lenders will not be able to process the mortgage application in such a limited period of time. So it would be better if you take guidance of a good broker. Remember to inspect the property properly before going for a bid. Some auction properties have legal minefields like bad titles of ownership. So try to spot it in advance. On the day of the bid you should have 10 per cent of your maximum bid, solicitor’s bid, two forms of identification and auction catalogue. If you don’t carry these don’t go for a bid.



Quick House Sale

So, you want to be repossessed? Here are my top 10 tips for getting your property repossessed. (and hopefully by doing the opposite, you can avoid it!)

1. Buy a house, any house. Don’t waste time worrying about how on earth you will pay for the thing or whether it is within your budget – as long as you can get the mortgage, just buy it!!

2. Next, apply for 5 or so credit cards, get the highest limit you can on each one. Don’t forget to get a nice picture on the front of it – a sad puppy maybe, or a sports car (you know, the kind you will never be able to afford once you have really got yourself into debt!)

3. Wait for the credit cards to arrive, and kit your new home out with luxury items which you don’t need. If you start to feel guilty, just tell yourself it makes the place feel more homely!

4. If you can’t pay the mortgage, use one of your credit cards, reassure yourself that there isn’t really a problem here, and something will come up which will miraculously fix the problem.

5. If you can’t pay the credit card bills, simply withdraw some cash out of the one credit card you still have credit on and pay the bills with that. Don’t forget to enjoy the bank charge for withdrawing the cash too!

6. Don’t cut the cards up, just use them to the max, baby!

7. Ignore all letters which look like that may be from lenders falling through your letter box. They will only want money, and you don’t have that. Find yourself a sandpit and bury your head in it!

8. If you really want to get repossessed, then make no attempt whatsoever to contact the creditors. This could put you in danger of working out a solution to the problem.

9. Pack your bags and wait for them to come and evict you. Scream like a wild animal as you are forced out of your own home.

10. Go and knock on your mum’s door with your tail between your legs and ask her to take you in. Congratulations! You have successfully been repossessed!

Alternatively!! (and much more desirable)

Learn to be good with money. Don’t live beyond your means. Take life one step at a time, there is no rush to buy a flashy expensive house in order to prove something to the world. Imagine how you will feel when that home is being repossessed. Living beyond your means will never lead to a life of luxury, only humiliation and a life of poverty being a slave to making debt repayments.

In all seriousness, if you have been repossessed, or are about to be repossessed, don’t despair. You are in control of your own life and you can pick yourself back up again. Treat this experience as a learning curve – as I did.

I actually believe that a little bit of poverty and hardship is a good foundation for making yourself make something of your life no matter what age you are or what your circumstances are. By having been there and got the t shirt, you actually learn to appreciate the true value of money and give yourself aspiration to improve your quality of living.

Although this article is entitled ‘10 surefire ways to get yourself into major debt and get your home repossessed!’ I am in no way recommending you seriously do this! I’m merely highlighting just how easy it is to get yourself into such a dire situation, and hopefully give you a warning if you are already half way down the list to take action now and turn your life around for good.

Build yourself some good major assets. Assets are not residential homes which you live in which cost you your hard earned cash every month. True assets give you cash each and every month just for being there – whether it be a low cost to set up, but highly successful website earning you income, an eBay shop which is truly running in profit or any other business which is really making you a profit every month. Experiment, and don’t take risks. Don’t spend money you don’t have – find an alternative (free) way to advertise for example. Make something of yourself and one day you truly will have the CASH to buy those luxuries which will be 100% owned outright by you.

No hiding when the phone rings, no more dreading the postman. Take action and take control. You only have one life – live it to the max in its true form, not on credit!

If you are facing repossession, an option you may consider is to take a step to avoid this by selling your property if you cannot afford it and using the equity you do have in it to pay off your debts to give yourself a fresh slate. If you have a pending repossession order, you may not have time to sell through an estate agent, in which case a cash property buyer may be a better alternative. The company I run specializes in helping people in situations such as this. Please take a look at my signature below for details.

Whatever happens with your life – make the most of it. Don’t be dragged down by credit cards and the like. Learn from the mistakes of people like me who have experienced it all at the tender age of 19 and have still pulled myself up from off the floor and pushed myself to make a success of my life. I hope my experience saves you the trouble and you don’t have to learn the hard way like I did!

Here’s to your future happiness, health and wealth!



Rent Back