Tips to approach turbulent property market

How should the property market players approach the market at this point of time? Here are some tips:

1. They should as far as possible desist from getting caught in long chains. As the age-old word of wisdom goes sellers should try to avoid forming long ‘property chains’. The smaller (the chain) the better, advise experts. They reason that a shorter chain would help in minimising the risk of getting stuck with a buyer who might struggle to receive mortgage finance under tough market conditions.

2. Break the chain if you can and rent. For increasing flexibility and breaking the chain, sellers could try out a short-term rental that would coincide with their sale decision. It puts you back in a position of a first-time buyer and helps break the chain.

3. Choose the reputed and establish agency, which will ensure you the shortest ‘lock-in’ period possible. A lengthy lock-in clause would stop you from marketing your property freely.

4. Do market research. Get quotes from various sources. This will help you get the best deal.

Property Letting – the rights and responsibilities of a tenant

You should be aware of your rights and responsibilities as a tenant. As a tenant, you have certain rights that are protected by law to ensure that you are treated fairly. For example, the law does protect the tenant from any harassment and you can claim the damages from the court. On the other hand, the landlord can force the tenant to leave if any of the following circumstances:

• Landlord has the right to come back and occupy the property after the completion of the contract.
• Landlord can force you to leave if you owe him two months’ rent.
• If you refuse to carry out any important maintenance work and misuse the property, the landlord has the right to evict you.

If your behaviour towards the landlord is rude and the landlord is not happy the way you are behaving as a tenant then he can approach the court to request eviction. You are liable to be evicted if you do not follow the terms of your contract.

Aspects to consider while seeking cover for your property

All buy-to-let investors often ignore the importance of seeking cover for their property. Here are some suggestions as how they can go about the task:

Thoroughly evaluate your property insurance plan. Carefully consider the add-ons required when seeking cover for your property. For example, check whether accidental damage cover is really required.
By skipping accidental damage cover, you can significantly cut down on premium outgo. Instead ask your tenant to greater precautions for avoiding fire hazards. Things like not smoking in bed and not leaving half-burnt cigarettes around can avoid such mishaps.

Do not claim unless you really have to! Avoid claims for routine issues which you bear on your own. The fewer the claims made, the greater your ‘no claims’ discount, so think twice before making an unnecessary claim.

Look out for subsidence (It is a rather common problem that affects the property, but usually covered as part of your building insurance policy.)

Get proactive on safety aspects. Be part of a neighbourhood safety or watch campaign that would help in bringing down your premium. The insurance firm will take note of it, and grant you some concession on your premium outgo.

Lettings through the Internet

Estate Agent, being a professional is always updated with the properties for rent or sale. An agent can definitely help you to choose your ideal property depending on your needs. However, they can not guarantee any level of lettings as it all depends on the area in which the property is located and if it is in a good condition. If you have a property in a good area, then chances of letting a property are pretty good, but still it depends on various factors.

Agents can help you in various ways. They save your time and free you from the chore of doing your own marketing. However, the costs can be as high as 20 to 30%.

You can get your own letting and they will be cheaper for sure. But do you think that it can as successful as agent letting?

Self lettings are impossible without the internet. Your webpage, photos and details can be viewed by anyone if that person has a internet connection. The process is fast as you can update the details anytime you want and can change anything if required.

It is always better if you invest in listing charges in popular sites. This will help you because it has an existing property base and good audience.

Acquiring the right property to rent for an assured money flow

Buying and letting out property can surely lead to an assured money flow. It is a good investment that can give you a regular and decent income for years to come. But the task of selecting the right property to rent is not as easy as it seems.

It is advisable to seek help from property experts for choosing the right property. They have better idea of the prevailing market conditions. With the help of internet and some fieldwork, you can conduct your own research as well about the renting prospects in a particular area.

Your property selection will depend on the proximity of shops, schools, hospitals and availability of public transport. The choice will also be guided by the type of tenants you have in mind, high end, mid-level or low end. The area of your property will depend on your budget as well as the requirements of the customers whom you are targetting.

The condition of the property is very important. A well-maintained house with clean, open spaces, backyard and garden will have many takers.

Displaying a property for rent

Before letting your property you should keep in mind the following important tips:

• Make sure that the property you are going to show is clean and tidy.
• Get some flowers of different attractive colours to make the living room look nice.
• Painting the rooms is a wise thing to do before putting up the property for rent.
• Let the light enter the room, and ensure proper ventilation. Open up the curtains because it creates a more spacious feeling.
• You should give enough time and freedom for a prospective tenant to have a look at the place, atleast 15 minutes.
• Be positive, enthusiastic and dress up well for a meeting with each visitor. It can be dangerous for you to be alone with the strangers. Therefore, ask your friends to be with you if possible or stay in touch with them during the visits by strangers to your property. Valuables should be left in the car or home.
• All the applications you accept should be duly signed. Mention your contact number on the application.

Things get tough for homeowners looking for a replacement deal

Mortgage market experts warn that the big jump recorded in the cost of fixed-rate mortgages was bound to hit consumers hard. Darren Cook, a mortgage expert with Moneyfacts, warned that consumers, needing a mortgage, would face a stark choice, with the SVR (average standard variable rates) now costing 6.66 per cent.

Homeowners, who sought two year fixed-rate deals a couple of years ago, were getting rates close to 4.5 per cent. However, with rates now heading northwards, consumers are in for a rude shock when they start looking for a replacement deal. Many – forced on to their lender’s SVR – could witness their payments go up sharply, by several hundred pounds on a monthly basis.

The mortgage arm of Barclays, Woolwich, had already decided to withdraw its two year fixed-rate deals. Nationwide’s increase that has just come into effect, takes its most expensive two year fixed-rate deal to 7.85 per cent for those customers borrowing between 90 per cent and 95 per cent of the property’s value.

How to go about the property letting agreement?

In order to rent a property, you need to have an agreement with the owner. A rental agreement is a written contract between the two parties and is often known as lease.
The amount of the rent, parties involved, the property and the term of rental should be specified in the agreement.

Details like the condition of the property can also be mentioned in the agreement. Therefore, you should understand those conditions, too. In case of housing lease, the agreement may go into details like whether you are living alone or you are with your family, children, or friends.

The start and the end date of the lease are mentioned in the contract. Therefore, you have to renew the agreement if you are staying beyond the agreed term. In order to terminate the contract, notice must be given at least 15 days before the end of the month. The first and the last months’ rent needs to be paid by the tenant and the payment can be done monthly, yearly or in advance. Tenants are also asked for a security deposit, which is held by the owner until the property is returned in a good condition.

Fixed-rate mortgages costs rise to their highest level in a decade

The cost of fixed-rate mortgages rose to their highest level almost in a decade as banks were compelled to pass on sharp rise in the borrowing costs. Britain’s second-largest mortgage lender Nationwide has increased the cost of several of its mortgages by at least up to half a percentage point. This move follows several other increases from many leading UK banks last week.

The developments have led Moneyfacts, the financial data compiler, to announce that the average two year fixed rate mortgage now stand at 6.75 per cent, the most expensive level in a decade. Darren Cook, a mortgage expert there, remarked that the curse of Friday 13 brought more pain for borrowers. Swap rates scaled a new high of 6.49 per cent.

The situation is likely to worsen before it gets better, with lenders having to pay an exorbitant price to secure funds compounded with a lag time of at least a few weeks before this cost gets passed on to mortgage seekers.

How to find Property to Rent becomes easier with the help of internet?

Properties are being put up for rent everyday. It is not hard to find a property to rent. Finding a property to rent can be every easy thanks to the reach and spread of technology like Internet. You can find your property to rent by following several efficient and convenient ways:

Finding a property on rent on the internet can be very fast. Search engines are getting more and more advanced. You can find a property on rent by just typing the name of the city/locality/area in the search engine and you can do that from anywhere. You just need a computer and the internet connection.

With the help of classified property directories, you can find out all kind of properties that are available for rent or for sale. You will also get the complete details of the agents, including contact number, street address, size of the property, and whether it is an apartment or duplex, etc. You can also view the picture on the website before you can actually check out the property.