How to Invest in the Uk Property Market

After years of successfully building and managing his own property business, Gerry FitzGerald has produced a thorough and comprehensive guide to investing wisely and profitably in residential property. Areas covered in this book The right properties to buy, and where to find them; the best tenants to look for, and how to find them; use an agent, or do it yourself; pros and cons of student houses; how to buy well at auction; choosing the right mortgages and bridging loans; tax and how to reduce it; and, the law and how it affects the property investor.Gerry's long and successful experience also leads him to challenge much of the accepted wisdom surrounding the buy-to-let market. He offers genuine inside information for the new how to manage the risks of buying new-build and off-plan; the real meaning of the developer's 'rental guarantees' and instant 'discounts'; the realities behind the slick marketing of investor clubs; how letting agents can damage your wealth; and, avoiding the pitfalls of the bridging loan industry. This book is essential reading for the residential property investor whatever their experience. Contents......Page 6 Preface......Page 12 Part One: The Concept......Page 16 Late developers......Page 18 Immigration......Page 19 The job market......Page 20 Price falls......Page 21 Interest rate rises......Page 22 Voids......Page 23 Part Two: Finance......Page 24 3 The Buy-to-Let Mortgage......Page 26 The letting......Page 28 The buying......Page 29 5 100% Finance?......Page 30 First-time buyer......Page 33 Charges......Page 34 Maximum mortgage......Page 35 Drawdown facility......Page 36 Property restrictions......Page 37 Builders’ incentives......Page 38 Adverse credit......Page 40 7 Mortgage Products......Page 41 Repayment......Page 43 Interest only......Page 44 Regulated brokers......Page 45 Advised and non-advised......Page 46 Brokers and packagers......Page 47 Brokers’ fees......Page 48 What to ask......Page 49 Decision in principle (DIP)......Page 50 Credit check......Page 51 Credit score......Page 52 Illustration......Page 53 Online application......Page 54 Valuation/survey......Page 55 Valuer’s report......Page 56 The offer......Page 58 Buildings insurance......Page 59 Transfer of funds......Page 60 11 Bridging Finance......Page 61 Misconceptions......Page 62 Bridging finance costs......Page 63 Lending criteria......Page 65 Where to find a bridging loan......Page 66 The scams......Page 67 The process......Page 69 Part Three: Properties......Page 72 Capital growth......Page 74 Investment term......Page 76 How to buy......Page 78 Over the passage......Page 80 HMOs......Page 81 Leasehold and freehold......Page 82 Lease term......Page 83 The freehold flat......Page 84 Pros and cons......Page 85 Conversions and share-of-freehold......Page 86 Service charge......Page 87 Ex-local authority......Page 88 17 Auction Properties......Page 91 The property......Page 92 Tenants......Page 94 The basics......Page 95 Preparing for auction......Page 97 At the auction......Page 102 After the auction......Page 103 Rental guarantees......Page 104 Slick marketing......Page 105 Instant discount?......Page 108 Capital growth before completion?......Page 110 No deposit to pay?......Page 111 Sell before you complete?......Page 112 Join a club?......Page 113 Part Four: Tenants......Page 116 Finding tenants......Page 118 Managing......Page 122 Preparing the property......Page 126 Finding tenants......Page 127 Initial contact......Page 129 Interviews and references......Page 130 22 What Tenants?......Page 134 Students......Page 135 Housing benefit tenants......Page 138 Councils/housing associations......Page 142 Company lets......Page 143 Houses of multiple occupation (HMOs)......Page 145 Tenants in place......Page 150 Assured shorthold tenancy (AST)......Page 153 Joint or single agreements......Page 155 Latest version of agreement......Page 157 Periodic tenancy......Page 158 Bank standing order......Page 159 Inventory......Page 160 Utility companies and local council......Page 161 Part Five: Legal Matters......Page 162 Tenancy deposit schemes (TDSs)......Page 164 TDSs: summary......Page 171 Section 21 notice......Page 174 Section 8 notice......Page 176 Accelerated possession......Page 179 Repairs......Page 181 Furniture and furnishings......Page 183 Gas safety......Page 184 Electrical safety......Page 186 Part Six: Tax......Page 190 Introduction......Page 192 6 April 2008......Page 193 CGT and the property investor......Page 194 Delay the sale......Page 197 Move in immediately......Page 198 Form a limited company?......Page 200 Mortgage interest......Page 202 Repairs and maintenance......Page 203 10% wear and tear......Page 204 Ongoing bills......Page 205 Rent-a-room exemption......Page 206 Personal allowance......Page 208 Sole purchase......Page 210 Buy in unequal shares......Page 211 Useful Addresses......Page 213 Useful Websites......Page 216 B......Page 218 F......Page 219 I......Page 220 M......Page 221 S......Page 223 Y......Page 224 A guide to investing in residential property. It covers areas including: The right properties to buy, and where to find them; use an agent, or do it yourself; pros and cons of student houses; how to buy well at auction; choosing mortgages and bridging loans; tax and how to reduce it; and, the law and how it affects the property investor.