Capital Appreciation Potential
Property has traditionally been an excellent long term investment but there are no guarantees to future gains and certainly the market crash we have seen from 2007 onwards has reduced confidence in the market to an all time low.
Monthly income which meets the mortgage repayment and also generates a new income for the Investor
Costs to consider
- Stamp Duty
- Legal Fees
- Structural Survey
- Fit out costs
- Letting fees and Management fees (if an apartment)
- USC – applicable on all income from the Gross rather than Net income
Choosing a good Investment property
Location is vital, is the property close to where tenants might work? Good transport links? Good area?
Is the property in a good state of repair? Tenants have high expectations and strong rental income will only be achieved with a high spec property!
Tax efficient property
section 23 and section 50 ( these tax efficient properties will no longer be available after June 2007)
For section 23 it allows a tax deduction on the capital cost of the property. All rental income is liable to tax, with these properties it often means there is no tax due from a ‘section’ property for many years. Section 50 is student accommodation relief which operates in a similar way to section 23.
100% finance for investors? We can arrange this for you, however it will require security coming from other properties, no banks is currently offering a stand alone 100% mortgage product for investors without additional security.
Many people have built up considerable equity in their homes. Using the equity means accessing low interest rates to purchase an investment property and also finance legal costs, stamp duty and the fit out.
The Lending Institutions criteria for Investment Properties can vary greatly. We can help you maximise your borrowing power and obtain the best rates available. We offer free advice to investors on the structuring of the loan in the most tax efficient manner and minimising the cost to themselves. Now more than ever independent advice is vital, some banks are charging exceptionally high margins and if you go direct to a lender you may not spot this, you will also need guidance through the maze of terms and conditions being asked for by banks.