New Development

New Development

New developments look like there on the up with several being offered to us recently. They still have to sell highly discounted though, so that just shows how little money there is in the economy as a whole. I’ve started offering all my own properties up as rent to buy opportunities when they become vacant. This is where instead of just renting; a potential purchaser starts a process where he can buy the property on a more flexible basis. It’s becoming more common place in the UK particularly as the buyer doesn’t need as much deposit and he can determine how much he wants to repay by adjusting the monthly payment, by agreement with the vendor of course. It doesn’t matter how much experience we have there are always new ways of financing coming out and changes to the lending criteria. I still like traditional buying but it has to be said the deals that are available even with little or no funding can be impressive.

I’m looking at moving a mortgage from one property to another as I’ve sold one but the redemption penalties are astronomic. Very few of our brokers seem to have much knowledge about moving a mortgage. By definition a mortgage has to be portable for the process to take place but I’m surprised at the lack of ability by these professionals who really should take some more lessons in this direction. Maybe because it’s an unusual type of arrangement, they don’t come across them too often but to me it appears it’s a simple matter of completing on two properties at the same time. Of course I’m not a broker nor would I want to be so it’s easy for me to say it’s easy when as always regulations have to be followed. It will actually be a first for me too so I would like to see how the procedure works. The two properties I’m hoping to exchange borrowings on are actually being sold and purchased for around the same amount however the one I’m buying is worth three times what I’m paying for it so the potential to refinance later on is massive.

I’ve a couple of chimney pot places coming through that seem to be taking an age to get moving. One has been held back by the bank proceeding on repossession from the previous owner even though we’ve assured them we are purchasing it. The other is being held back by the old problem of access to the finance as certain lenders are going particularly slow at the moment. It’s not just us from what I hear they seem to be dragging their heels with everyone, maybe its staff shortages due to the holiday season.

The listed building in two apartments I mentioned a few weeks ago is undergoing refurbishment now but it has to be a slow business with anything that’s out of the ordinary. I doubt it will make much as a flip deal as the costs will rise on it but as a long term hold it could benefit big style from rising prices, particularly as it in a favourable position is a lovely southern town centre. Again it could be a property to move on as a buy to rent opportunity but my experience is that as the buying scenario is still so new that a lot of people are sceptical and finding those buyers for upmarket properties is not so easy. People tell me they do find them though and they use ulterior motives to find them such as approaching specific venues where certain ethnic groups might frequent.

The old adage ‘There’s no place like home’, still rides high for me as I couldn’t imagine renting long term. There are in fact a lot of benefits to renting over purchase if you want flexibly and less responsibility but if you want income and investment there is still no better medium to make it. I’ve brought a couple more people into the fold recently as they have asked to get involved but sadly we’ve lost one of our partners recently as she has found the demands too much alongside her existing portfolio and management business. It has to be expected in this business as the name of the game is moving forward to create wealth, so we wish her well and look for other people to fill her slot.

Always look at property as a moving business.

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