| |
| |
|
Real Estate Information |
|
|
|
How To Build A Million Pound Property Portfolio
Looking to quickly build a million pound property portfolio? You could try a high risk and speculative technique that has been used over recent years by investors hoping to make big profits from property. The technique relies on re-mortgaging and negotiating good discounts on off-plan property to take a £50,000 deposit and turn it into a million pound property portfolio within a couple of years or less. How does it work? The technique only works in areas where house prices are rising fast and opportunities exist to purchase off-plan properties, where discounts of up to 15% are not uncommon. Investors begin by purchasing one or two off-plan properties. These are properties that are not yet fully developed or have only just received planning permission. Developers tend to offer larger discounts to people who are prepared to buy properties at this stage of the build. On completion, the investor will refinance the properties. A combination of rising house prices and the discounts gained at purchase, ensure that the property is refinanced at a higher figure than the original purchase price. The extra money gained through refinancing is then be used as a deposit for another two properties. This cycle will be repeated a number of times by the investor until they have built up a strong portfolio of investment properties, with a combined value of more than a million pounds. High-risk strategy Sounds easy, so why doesn't everyone do it? Although many investors have made a lot of money using this technique over recent years, it does contain a very high element of risk and relies on a number of market conditions being right. Potential obstacles include: -- Falling house prices -- Inability to obtain genuine off-plan discounts -- Poor quality or undesirable developments -- Difficulty in finding tenants to maintain rental income that in turn pays the mortgage costs -- Potential capital gains tax problems if the properties are sold Further advice Before deciding to use this property investment technique, it is essential to get further advice on the legal, tax and financial issues. A number of property investment companies exist to help advise their members on these very speculative investments, but be wary of the less scrupulous companies that charge their members £1,000s to attend seminars or build portfolios on their behalf. Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development. For more information and advice, search our property investment pages
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
How to Buy a Property in Bulgaria The CostAlthough the property prices in Bulgaria are quite low compared to the other European countries, there is still a wide variety of prices depending on the property type and location (as a rule the properties in Sofia and at the Black Sea are more expensive). The first thing you will need to figure out is how much you can afford to spend and thereafter to determine the price range for your purchase. Real Estate Investing - Free Vacations While Searching for Real Estate Acquisitions Real estate investing professionals look for all possible tax deductions because of the generous profits derived from real estate investing.For example, real estate investors are concerned whether the sale of their real estate is subject to capital gains taxation or qualifies as ordinary income. How To Realistically Get Started As A Real Estate Investor When it comes to real estate investing, most beginners find themselves with plenty of desire, a little bit of knowledge (from books, seminars, online message boards or something like that) and in most cases they have little or no money to get started with. Does this sound like you? If so you are not alone. Product Review of Carelton Sheets No Money Down Course Real estate continues to be a very important part of any financial wealth building strategy. Most wealthy individuals have real estate investments as a portion of their overall net worth. Real Estate Investing - Makeovers vs. Flipping Please don't call it "flipping."Some real estate investors who practice the technique of buying property for immediate fixup and resale call it "flipping houses. Home Not Selling In Todays Hot Market? Tips and Ideas to Help You Sell So, your selling your home. Prepare yourself both physically and mentally for the agony of the endless phone calls and interruptions to your daily schedule. Understanding the Escrow (Closing) Process 1. What is an escrow?Escrow is defined as a process where parties deposit instructions and funds with a "disinterested" third party until conditions of the instructions are met. Successful Real Estate Investing One of the best roads to wealth in America has always been the acclimation and development of good, solid, income-producing real estate. Real estate ownership is one of the best ways to achieve financial independence for the average person. Residential Income Property Financing: Part 2 of 3 Welcome to the second segment of a three-part series about income property. In this second segment we will be discussing financing options for residential income properties as well as the upside (and downside) of owning this type of property. Staging Homes for Top-Dollar Sales Wouldn't it be nice to have Roger Hazard's design team from "Sell This House" come visit for a weekend?Many "redecorators" and designers offer "Staging Homes" services from $250 to $5,000. These services usually give good advice, some help with the actual work involved, and others even move in new furniture for you. When Showing Your Home Here below are some of the reasons why buyers may be put off when visiting your home.1. What To Expect In Closing Costs On A Home Purchase Many are taking advantage of this year's low mortgage rates to purchase a home. Pent up with excitement, many families, who have scrimped and saved for a down-payment, jump for joy when the mortgage lender finally approves their application. Choosing a Reputable Real Estate Appraiser When you are considering purchasing a property; either for investment or personal use you will need to hire a real estate appraiser. If you are financing the purchase through your credit union or another financial institution will most likely be required to hire a real estate appraiser to perform an appraisal on the property. Getting Started in Real Estate Foreclosure Investing Decide to Invest in Real Estate Foreclosure InvestingWith the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live in, to rent out or to resell. The strategy a buyer pursues will determine which foreclosure property to buy and the location. Buying an Unfinished Home Maybe Your Answer For the first time "want-to-be" homeowner, purchasing an unfinished new home maybe just the answer. With mortgage interest rates still at record lows, there has not been a better time to purchase a home in decades. For Sale By Owner: The Inside Scoop On Selling Your Own Home If you're thinking about selling your home perhaps the 'for sale by owner' signs posted on neighborhood lawns have intrigued you. When you browse the newspaper listings you see ad after ad boasting 'for sale by owner' as an added incentive for buyers and you envy the owners that are confident enough to try it. New Home Construction - The American Dream or The American Nightmare? Buying a new home is suppose to be the American Dream. Unfortunately, for many buyers of newly constructed homes it becomes the American Nightmare. Cant Rent a Work Zone So you've picked up your first (or third, or tenth) income property, and it's a real fixer-upper. You've got a great team of contractors, and you know what they need to do and how much time and money it's going to cost to make it happen. Talk to a Lender Before You Sell Your Home If you're looking to sell your home quickly, and for top dollar, the best thing you can do is to be able to offer your buyers some sound financing options. That's why developing a relationship with a lender can be the key to a quick sale, and to more money at closing. Should You Sell Your Home Yourself? Are you thinking about selling your home? Would you like to sell it by yourself instead of hiring a real estate agent? If so it would be beneficial to review the pros and cons of selling your home by yourself before hanging out the sign.PROSSelling your home without an agent means More Money.
|
| home | site map | Contact Us | Privacy policy | Disclaimer |
| Copyright © 2006 realestategainer.com - contact us:- info@realestategainer.com |
