Rental Agreements



Although not essential in all countries it is always best practice to have everyone sign a rental agreement.  The agreement should include the Terms & Conditions applicable to the occupant.  The names of the occupant, the dates of the intended stay, the deposit paid, disclaimer for withholding the deposit for early departure or damage fees.

Location & Price

For many travellers location is a must and helps determine the price people are willing to pay.   Remember to always choose your rental fee carefully and ensure it is competitive to other surrounding rental properties.  Look in the local estate agents that rent properties in your area and compare your price.

Employing a Local Agent

If it is a holiday home you are renting then most likely, you will not live close by.  You will need to find a reputable person or company to care for and manage your property while you are absent.  It is important for your agent to maintain your property, give a routine check-up, be able to organise maintenance and clean up after each client.  It is also a very good idea for agents to provide a welcome pack for your customers.  This could include a local map, a dining out or eating in guide, where to buy good local food, a bottle of wine or some chocolates, even some milk and cereal.  Remember a dirty house and poor service does not promote repeat custom.  The welcome pack should definitely include in house instructions and important telephone numbers.  For example instructions could be how to open windows or use the hot water and boiler.

Advertising Property

You can’t rely solely on your agent to find occupants for your home.  If you want to rent your property while you are away you are going to have to do some work. However that doesn’t mean it is going to be hard and you don’t have to pay huge advertising costs.  You just need to know where to get your property seen.  Most people search for holiday properties online.  For this reason it is a very good idea to have your own website with images that reflect the finest qualities of your property with important contact details and descriptions. If you don’t have a website, create one, it doesn’t have to be fancy and you can create one easily for free. Many domain registrars such as domainmonster.com often allow you to create a simple websites using one of their templates for free.  When it comes to property presentation is a must.  If you don’t have a knack for photography it might be worthwhile paying for a photographer to expertly take photos of your property.  You can then publish these photos on your site and submit them to other websites.

Advertising Channels

1)      If you have a website you can submit your website to numerous business and travel directories for free.  There are many directories online which you can submit your website to such as www.onlinetravelworld.co.uk. However these are limited, you can only submit your link. But they are still important to increase your websites presence.

2)      There are also many property sites you can submit your details and upload an image that best showcases your property.  But you will have to pay a yearly subscription fee or commission with each rental.

3)      Another preferred option would be to find websites that allow you to advertise for free.  I found Travel Jigsaw which allows you to submit your property for free on their property pages.  They also feature property in their monthly newsletter which is sent to over 500,000 people.  This option is an excellent way to reach many potential customers without costs of advertising.

4)      One last option would be to pay for advertisements in magazines and newspapers.  Of course newspapers are reaching a mass market and appealing to those people who skim through the paper with no purpose of booking property.  Holiday magazines are ideally targeted towards people looking to go on holiday, but the downside is they are expensive.

My advice is not to follow one channel of marketing but to embrace as many as you can to maximise your reach and optimise your earnings.

Inventory Checklist

Although it helps to offer a fully equipped house you don’t want to buy new equipment with money out of your own pocket each time you rent your property.  By creating a list of amenities and equipment your agent will be able to check everything each time they check out a customer. The agent should make your customers aware of damage fees accrued by any breakages and where to report any accidents if they occur.  You might also want to take photos of inside your property to keep track of wear and tear.

Local Legalities

Don’t forget to check the local rules and regulations when renting property abroad.  Different countries will have different fire stipulations and regulations. Therefore you might have to reconsider the type of furniture you provide, for example is it flame retardant, do you have enough fire exits, extinguishers and smoke alarms?  Although different countries have different regulations when it comes to peoples safety you can’t go overboard. However this area will need researching as your property might need a little redevelopment to comply with health and safety laws.

Accepting Payments

If your agent takes your booking they will probably also deal with the payment and collect a deposit and full payment before they leave.  If you achieve a booking through your online advertisement you will need to consider how you will collect payment.  This can be done through direct bank transfer or through a 3rd party online merchant. Some online merchants such as PayaPal offer online fraud protection.  This means you are protected from customers who use unwarranted and stolen credit cards.  Nevertheless care should be taken when accepting payments.

These are just a few points for consideration aimed to help you think about renting your property abroad.  If in doubt, always research into doing something before doing actually doing it.



Real Estate Professionals

It seems like Freddie Mac CEO Richard Syron is getting the blame for the housing crisis that hit the country terribly. Former chief risk officer David Andrukonis claims that we could have prevented the crippling housing crunch had Syron listened to him in 2004 when he warned the CEO against investing in risky mortgages – loans that can cause financial problems in the future.

Years later, we found ourselves immersed in the very thing that Andrukonis warned about: a housing crisis caused by risky mortgages. From a homeowner’s perspective, it’s frustrating to know that a large-scale problem like this could’ve been avoided had concerned officials been more receptive to signs.

But there is no use in pointing fingers now. The damage has already been done; we must focus more on solving the problem and making sure that it doesn’t happen again. Fortunately, the new housing bill, which provides a number of housing assistance measures for troubled homeowners, was signed into law last month. That takes care of solving the problem.

Now, how do we make sure it doesn’t happen again?

The answer is simple. We just have to be careful with the kinds of mortgages we purchase. Now that we know how risky mortgages can contribute to the problem, we must think of ways to avoid them. And we can do that by acquiring knowledge on the different types of mortgages to eliminate the possibility of being duped by lenders. Be familiar with the following:

· Adjustable rate mortgages (ARMs) – rates change depending on the interest rates in the marketplace. The amount you pay for this kind of mortgage will depend on the interest rates on the loan, meaning, you pay more if the interest rate rises, and less if it falls. There are 10/1 and 7/1 ARM. 10/1 ARM means that your rate is fixed for ten years and then adjusts each year. 7/1 ARM is the same; your rate is fixed for seven years and then adjusts every year. This however, has a high chance that payments will shoot up drastically.

· Option adjustable rate mortgages – you can choose the payment scheme for your mortgage each month. You can either pay a low minimum payment, pay-only the interest, or choose a 15-, 30-, or 40-year amortization schedule. This allows you to base your payment scheme on your monthly budget. However, there is a possibility that you don’t build equity for your house because you’re only making small payments, making you owe more on your house at the end of each month.

· Negative amortization loans – these sometimes result from option ARMs. This type of loan doesn’t lessen your balance because you pay so little that you don’t even cover the interest, making your balance stay the same. This will make you owe the bank more money, because aside from the principal balance, the interest rate you didn’t pay is added to your loan.

· Interest-only loans – allow you to make small monthly payments, especially if you have a varying income. You don’t pay off your balance right away because you only pay for the interest, so you end up not building any equity for your home. However, this makes it possible for people to purchase more expensive homes without paying a lot. You can also customize your amortization schedule with interest-only loans.

Hopefully, you’ll be able to make a sound decision in case you are planning to buy a house, now that you have an idea of how each type of mortgage works. This will allow you to identify which type works well for you. Another thing that would greatly help is communication with your lenders and brokers. If there is something that you need to clarify, ask. It never hurts to ask especially if you don’t want to be the one suffering from all the hurt in the future.

MortagesForEveryone.com ( http://www.mortgages-for-everyone.com ) is a site that aims to provide information about mortgage-related concerns like refinancing your home, interest rates, using your home equity, down payments, home improvement loans, and many others.

Article source: http://www.mortgages-for-everyone.com/news/how-to-identify-risky-mortgages/

 

 



Sell House Quick

How To Make A Repossession Stop

There is really only one way to actually make a repossession stop, and that is to contact your creditors before the repossession process begins. In some areas and states the creditor has to legally notify you of a repossession, while in other’s they don’t. In the case of a home repossession, you will be notified regardless of what state you live in but a car or other item can be repossessed with just one skipped or defaulted payment, depending on the financing agreement and purchase contract that you signed.

Making a repossession stop usually includes being able to make a lump sum payment on the outstanding balance of the defaulted payments, paying off the loan in entirety or coming up with a schedule of repayment for the missed payments plus the future payments that the lender accepts. Using these options to make a repossession stop are the basic options, there may be others such as selling the item and paying the lender from the sale. In most cases in the “short sale” scenario the original borrower will still need to add in some cash to make sure that the loan is paid off in full.

Making a repossession stop, even if it means taking out another loan, often makes good sense if you have the ability to pay both the original loan as well as the second loan. A repossession is a huge negative on your credit score and rating and will remain on your credit record for seven years. Is some cases a repossession, especially on a large item such as a car or a house can prevent you from being able to get a loan for long after the seven years as it is likely that there have been other non-payments of loans on credit cards or other debts prior to the repossession which will often show up after the repossession occurs.

It is important under these situations that you acknowledge and proactively work towards preventing the repossession. Stop hiding or pretending that if you don’t open the letters from the creditors they will just go away. This is probably the biggest mistake that consumer’s make and it is easy to correct. Usually if you contact the creditor either before or immediately after the default in the payment they will be willing to consider your suggestions and work with you. If you allow the default payments to occur more than one payment period or simply don’t respond to their calls and letters the lender has little choice but to move towards getting their property or item back.

Getting the advice of a credit counselor, attorney or other financial expert is a great idea if you are worried about repossession. Often working with these professionals will help your lender understand you are serious about correcting the problem and have a plan for the future.

 

Where To Find Repossession Laws

When you are facing the possibility of any type of repossession it is always tough to calm down and do the research you need to find out what repossession laws apply to your specific situation. It is also common to resort to rely on information on repossession laws from family, friends and even co-workers who are not usually well informed and truly knowledgeable on the subject. In reality not all items are subject to the same types of repossession laws and each state has their own specific repossession laws.

It is not reasonable to think that repossessing a house would be the same as repossessing a car or a computer system that is not being paid for. Generally most states provide a longer grace period or resolution period for higher priced item such as houses and properties and shorter grace periods for cars and appliances or electronics. In addition the contact that you signed with the seller regarding the payment plans, fees and repossession terms are also considered as part of the legal issues around a repossession. In some contracts even one missed payment may be grounds for starting the repossession process.

Each state has their own specific repossession laws and legal requirements for seizing property or possessions. It is important, as the consumer, to understand what the repossession company can and cannot do to take back the item, as if they don’t do it right you may be entitled to compensation and damages. Ideally each consumer that is facing repossession or has had something repossessed should consult with a qualified and licensed attorney to find out what repossession laws apply in their situation and if any legal issues were breached during the process. Some states require that all repossessions be filed through the court and the borrower or consumer provided notice of a pending repossession.

Other states allow the lender to start the process immediately upon breach of the purchase and finance contract; without notification to the consumer. Knowing which option is legal in your state is simple, just use any search engine to look for sites using the search terms of your state name and the phrase “repossession laws”. In addition research books at your local library or contact the Better Business Bureau in your area that can provide specific information for your state as will as the type of property you are facing repossession on. It is critical to use only the information provided on repossession laws for your state and the type of item that is in default payments. If you have the incorrect information you are more likely to make poor decisions that may end up costing you more money in the long run.



Rent Back

Fulfillment of your personal wishes or even meeting urgent needs – money has always been an indispensable part of all our lives. Today fast secured loans are available with the convenient online option. Presence of collateral is the main criterion for secured loans. You are required to offer your home or any other asset (including automobile, jewelry etc) as security for the secured loan amount.

So Why Are Secured Loans UK So Popular?

Lowest Interest Rates: Since secured loans are a less risky proposition for lenders as the secured loan is secured on your assets – normally on your house, they will provide you with the lowest interest rates. The security for secured loans in UK will be your property, regardless of whether it is mortgaged or owned outright. A quick look at the online secured loans options will reveal the competition which prevails among online lenders. Rates as low as 5.7% APR are advertised for secured loans.

Flexible repayment periods: You can choose between 3 to 25 years to pay back your secured loan amount. Since the loan is secured on your home the lender will be comfortable in helping you with Prefential repayment terms and conditions so you aren’t burdened by availing the loan.

Loan for any purpose: Secured loans in UK can be used for any purpose. We all know that loans are a vital requirement for most of us – you might be a student seeking to learn, an auto fan who wants to drive the latest swanky car, a newly wed couple looking for a new home, an entrepreneur who wants help to set up your small business or even a debtor struggling with multiple payments. Secured loans for any purpose will help irrespective of your needs.

Override your bad credit with bad credit secured loans: Your bad credit need not pose a further threat to your financial problems. Since you’re securing the loan on your home, lenders will be more considerate even if you have a bad credit history.

Online secured loans in UK: They are simple to apply and you can deal with all financial adversity by applying online for a competitive secured loan quote in UK. You can compare various secured loan options online and apply for a deal which you feel suits your needs the best. You could also avail expert help online and get yourself the best secured loan deal online.

Optional payment protection on secured loans: You can protect your loan repayments against unforeseen circumstances such as unemployment, accident and illness which would force you out of your job with an optional payment protection plan. Most leading lenders provide this option for borrowers in UK.

The advantages of secured loan in UK have been clearly outlined in this article. However it would be good to keep in mind the inherent risk of choosing secured loans in UK. You are putting your home at risk by securing the loan amount against your home. Incase you fail to keep up to the loan repayments your lender will take possession of your home.



Passive Income

 

Introduction:

Spending a peaceful life without any financial crisis is everyone’s wish. It is a very usual happening in households that the monthly expenses money is exhausted long before the month end. How can one manage the expenses after that? It is very important to do some more hard work for money or to have an alternate source of money in such a situation. Instant secured loans are there at your side whenever you need money.

Main features:

To get instant secured loans you need to spend some of your valuable time online. Due to the rocking competition among the lenders, there are lots waiting for you in local market as well as in national market. Just fill a letter which consists of your name, job proof if you are a job holder, residential proof, etc and paste it over the net in any of the lending agencies web site. In few hours you will get call from the lenders who are ready to offer your loans according to the terms and conditions.

Availing them:

To get qualified for instant secured loans, you need to put forward some of your assets as collateral, which will secure the loan amount. By securing the loan amount, you take care of the risk involved in instant secured loans and for this very reason; the lender offers you nominal interest rates. You can borrow larger loan amounts, as per your particular financial needs. For instance, if you need funds for a holiday trip or any other requirement, instant secured loans can help you with that.

Statistics:

Under instant secured loans, a borrower can access a good amount of money which ranges from £5000 to £100000 pounds. Here you get a wider repayment duration which varies from 5-25 years. This is surely good repayment duration for all in quest of financial assistance. Instant secured loan can be accessed to satisfy any of the personal needs of a borrower.



Rent Back

With globalization and liberalization at their zenith, the world is witnessing a rapid transformation towards a global village. The trend of ‘think global, act local’ (glocal) is also catching up pretty fast, whereby, the big and small business houses are increasingly looking to expand to offshore locations. The bringing together of all the nations closer has an interesting fallout. Now, no country seems far off in terms of investment or tourism purposes. With the prices of services crashing due to increased global competition in almost every country, investing in property abroad has suddenly assumed much more importance in the portfolio of the small time property investor.

Why Invest in Property Abroad?

The past decade has witnessed a paradigm shift in terms of the way people view the investment opportunities abroad. The opening up of international markets has a major role to play in this surge of demand for the overseas property market. Businesses are on an expansion spree, and the developing economies are welcoming the financial conglomerates with open arms. Globalisation has also led to a major increase in the spending capacities of the average man in the street, which in turn, means lots of disposable income and limited local resources to invest in. Resultantly, there is a clamor for investment in property abroad.

The reasons for investing in property abroad vary from individual to individual. But the bottom line is that everyone prefers real estate property investment overseas due to it being a relatively safer option to channelise the surplus funds nowadays. Most developing countries are witnessing a property boom and judging by the long-term policies of governments and the predictions by financial experts, the real estate sector is one of the safest bets to invest your money in.

Here are some of the factors that contribute to the surging demand of property for overseas investment.

The availability of credit options has opened up a world of opportunities for the overseas investors. The financial institutions have been offering attractive products to lend the required finance for investors, since the property mortgage is mostly dealt as a secured loan and much safer bet for the defaulters-wary banks and financial institutions.

The lure of an improved retired life in a country that offers much better standards of living is too good to resist. Finance is not much of a problem for this segment of investors.

Tourists are now seeking holiday homes in places where they enjoy the most. Again, the availability of easy finance has given them the opportunity to realize their dreams at much faster rate.

Most of the developing countries are offering a greater probability of capital appreciation for investing in real estate. As the development cycle is in its nascent stage, the property investment can translate into a windfall for the prospective investors.

There is a trend on moving to safer destinations abroad than suffering from the constant threat of terrorism and extremism. The lure of safer pastures and an easier less stressfull lifestyle has also contributed to the demand for overseas property.

The rising property rates will, more often than not, translate into rising rental values. The lure of good regular income from renting out the property abroad is also contributing to the surging demand for property investment overseas.

Current Hot Property Investment Destinations Abroad

Among major property investment destinations, countries like Spain, Italy, France, and Greece have always maintained a higher ranking among potential property investors. However, with the growing economies of developing nations and the dearth of supply of quality property in the developed countries, the countries of Eastern Europe have emerged as the dark horse in the race for grabbing a piece of the global real estate pie.

Bulgaria is attracting the maximum value for money being invested in real estate within the country. The Bulgarian landscape is rich in natural features like pristine sandy beaches along the Black Sea, wild mountain ranges, lush green hills, fertile plains with scented rose fields, richly colored orchards and sun drenched vine-yards, rivers, magnificent gorges, health spas and natural springs. The weather, comprising of four distinct seasons has also contributed towards the popularity of Bulgarian charm. The recent EU membership has catapulted the status of Bulgaria to newer heights and there has been a constant demand for Bulgarian property from around the world.

Croatia is another country of Eastern Europe that is poised for major gains as a result of its pending EU membership. The country has over 6000 km of vast coastline. Croatia is just waiting for the investors to pour money in its largely untapped tourism sector. Considering the immense potential the country has for the real estate investor, the Croatian property market is offering up property for grabs for peanuts considering the skyrocketing prices in other European nations.

Already a member of EU, Hungary poses a major challenge to the other established real estate giant countries. The economy of the country has seen tremendous gains from its EU membership and generous grants received from one of the richest Unions in the world. The rental property market in Hungary currently offers the best investment deal in terms of capital appreciation.

Estonia and Latvia are the other major East European nations that are emerging as the next destination for the budding real estate investors of the UK and other European countries. These countries are member nations of the EU and have elaborate expansion plans for their economies.



Passive Income

It has been a dismal year for house prices, according to the Global Property Guide’s latest survey of publicly-available house-price time-series for the year 2008. And seen from a global perspective, the downturn is still accelerating.

The collapse of the world’s housing markets can be seen from three points of view, and unfortunately, all of them reinforce the bad news.

During 2008, the downward price momentum accelerated, as compared to 2007.

Only 2 countries saw positive momentum in 2008 (a slower downward house price movement than last year, or faster upward movement), while 28 countries saw their housing market momentum deteriorating, compared to the previous year. The two countries with a positive momentum were Germany and Switzerland.



During 2008, house prices fell in most countries.

During 2008 only 8 out of 32 countries saw house prices rise, after adjustment for inflation, while 20 countries experienced house price falls.

In contrast, during the year 2007, the downturn was just beginning, and only 6 countries saw house prices fall, while 24 countries saw house prices rise (all figures inflation-adjusted).

Many house-price falls during 2008 were extremely severe. Countries with house price falls of over 10% during 2008 were Latvia (Riga) (37%), Lithuania (Vilnius) (27%), the US (20%), the UK (18%), Iceland (16%), Ireland (12%), and the Ukraine (Kiev) (12%) (all figures inflation-adjusted).

During the final quarter (Q4) of 2008, the downward price momentum significantly accelerated, as compared to Q3, suggesting that the situation is deteriorating.

During 2008’s final quarter, 9 countries saw house price falls of 5% or more during just that quarter. Price drops of more than 10% during this single quarter occurred in three countries – in Latvia (Riga), which saw price falls of 15%, in Ukraine (Kiev) (13%), and in Hong Kong (15%). Other countries with Q4 house-price falls of 5% and over, included the UAE (8%), Lithuania (7%), Iceland (7%), Singapore (6%), Bulgaria (5%), and the UK (5%) (all figures inflation-adjusted, except UAE).

These price falls were much greater than during the previous quarter, Q3. During that previous quarter, only two countries experienced house-price falls (inflation-adjusted) of 5% or more, and no countries experienced house-price falls of more than 10%.

REGIONAL SURVEY BY GLOBAL PROPERTY GUIDE

Europe has major problems

The Baltic countries of Latvia and Lithuania suffered the hardest price falls both in nominal and real terms. In Riga, Latvia, the average price of standard-type apartments plunged 37% during 2008. Prices have been going down in Latvia since late 2007, after a remarkable increase of about 70% in 2006. The most alarming decline took place in the 4th quarter, when prices declined by 15%, the steepest quarterly drop in real terms in any country. These price falls were triggered by increased interest rates, and by the tightened credit rules which Latvia imposed in 2007.

Average prices of apartments in Vilnius, Lithuania, fell by 27% during 2008. House prices started slowing in mid-2007, and crashed in early 2008.

House prices in the UK plummeted by 18% in 2008. Although mortgage interest rates dropped slightly, to 4.48% in December 2008, the number of loan approvals for house purchases fell 58% in 2008.

There is serious trouble in Iceland (house price fall of 16% during 2008), Ireland (12%), Ukraine (12%), Malta (9%), Portugal (8%), France (8%) Finland (7%), Norway (6%) and in Spain (6%).

North America’s woes

In the US, the centre of the global financial crisis, in 2008 house prices fell 20% according to the Case-Shiller house price index, which emphasizes urban areas. OFHEO and FHFB figures, which are associated with Fannie Mae and Freddie Mac loans and have somewhat lost credibility, suggest a smaller decline of 6% and 3% respectively, during 2008. The US government recently approved a $ 787 billion economic stimulus package, of which $275 billion will be allocated to rescue the ailing housing market.

Canada has been much less affected than the US.

Pacific heads down

Both Australia and New Zealand saw house price declines during 2008, of 7% and 8% respectively.

Asia no longer insulated

Housing markets in Asia have not been insulated. Singapore, Hong Kong and Philippines recorded house price falls during 2008.

Singapore’s private residential prices dropped 9% during 2008, in sharp contrast to the 26% price increase of experienced during 2007. The developed countries’ economic troubles adversely affected Singapore’s exports, and during 2008, output in the manufacturing sector, particularly of electronics, precision engineering and chemicals, shrank by 10.7%. Singapore was officially in recession in Q3 2008.

Hong Kong has been badly hit by the crisis. House prices were down by an average of 6% in 2008. But during the last quarter, Hong Kong experienced a severe decline in prices of 14%.

In Makati, Philippines, prime 3-bedroom condominium prices fell by 2% during 2008, after an 11% price rise during 2007. Nevertheless construction of high-rise residential buildings continues, with residential condominium stock rising by 7% during 2008, according to Colliers Philippines.

Japan recorded modest Tokyo condominium price rises of 1.2% during 2008. On the other hand, land prices in Japan’s six major cities fell by 6% y-o-y to Sep-2008.

In Shanghai, China, house price rises slowed to 5% y-o-y by the end of 2008, after peaking at 30% y-o-y to May 2008. However Shanghai is likely to be somewhat exceptional, and Xinhua News Agency reported house prices declines in 70 major cities during 2008. Shenzhen suffered the hardest fall, with prices down by 18% during 2008

UAE on shaky ground

In Dubai, UAE, despite the bleak global picture, saw surprisingly large dwelling price rises of 41% during 2008. However during the year’s final quarter, prices fell by 8% in nominal terms. This downturn is attributable to strongly tightening lending criteria, an increase in interest rates, multiple layoffs, and alarm among buyers.

Forecast: No recovery in 2009

History suggests that in a crash, housing markets take many years from peak year to full recovery. In view of this and of the pessimistic IMF forecast for the global economy, no real recovery is likely in the global housing markets this year.

The IMF has predicted that the world economy will grow by 0.5% in 2009, the lowest level in 60 years. GDP in advanced economies is expected to decline by 2% during 2009. The United Kingdom and Japan will be hit the hardest. Output in the UK may contract by 2.8%, while Japan’s may fall by 2.6%.

Growth in emerging economies is expected to slow to 3.3% in 2009, down from 6.3% in 2008. Developing Asia is forecast to be the least affected, with growth of 5.5%. China’s economy is predicted grow by 6.7% in 2009, but this is a substantial decline from 9% growth during 2008.

We cannot be optimistic for five reasons:

• Valuations still clearly remain stretched in most countries, in terms of price/rent ratios.

• Economic growth is slowing or negative in many countries, which is negative for housing values.

• There are no signs that banks are becoming more willing to lend.

• The unprecedented nature of the financial system’s collapse has greatly added to the difficulties facing the world’s housing markets.

• Some national governments are experiencing difficulty in refinancing their national debt, putting their currencies under pressure. Currency instability is likely to aggravate housing sector problems in countries where many loans were taken out in a foreign currency.

The positive news is that the US government and several others are acting with vigour, as has the IMF. Nevertheless, there is a long tough road ahead.

###

Description of the Global Property Guide:

The Global Property Guide (http://www.globalpropertyguide.com) is an on-line property research house, specializing in analyzing residential property valuations around the world.

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On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com Sites and newspapers found not to be providing a link to us will be removed from our press list.

Requests for Comments:

Requests for comments are best made by telephone to +(63) 917 321 7073. UK-based callers should telephone before lunchtime. Our local time is Hong Kong time, i.e., standard time + 8.00

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Phone: (+632) 750 0560

Email: prince@globalpropertyguide.com

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Sell House Quick

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