Property Investment Archives | Blue Crystal Property Management

How to achieve high property rental yields

What is a property’s rental yield and how to calculate it A property’s rental yield, also known as a property’s yield, is the annual return you achieve from renting out your property; in other words, it is essentially the amount of money you make in profit from rent. A property’s rental yield tells you the percentage return your rental income is generating against the property's original purchase price.

How to calculate your rental yield

Thinking of purchasing a buy-to-let property? Prospective landlords need to familiarise themselves with the term ‘annual rental yield’, which is the gross amount of rent an owner is likely to receive over the course of a year. If you’re new to buying-to-let, working out rental yield is not too taxing. All you need to do is some straightforward sums.

Is buy to let investment right for you

A buy to let property investment is right for you of you prefer investments that are more tangible than stocks and shares. Are willing to tie up your money for a long period of time You accept that property prices can go down as well as up You are willing to take the risk that you may not earn a profit on your investment You understand and accept the additional risks that go along with borrowing money to buy a property You understand and accept the costs and time involved in owning and running a property and the impact that this will have on your potential return. When you become a landlord, you’re effectively running a small business and this comes with important legal responsibilities.

Reasons to invest in a property through a limited company

A limited company is legally recognised as being a separate entity from its owner, which means that when it comes to the limited company’s assets, it is the company itself that owns them. Using a limited company to invest in a property has many benefits The tax-related benefits are much better when using a limited company to invest in property rather than buying it under a personal name. There is no mortgage interest relief restriction for limited companies The amount of tax relief accessible to individual property owners is being cut back, any interest paid on a mortgage to purchase property through a limited company is fully tax deductible. It can often work out more tax efficient to purchase an investment property through a limited company. Since April 2020, landlords have not been able to deduct mortgage interest from their rental profits, which will affect their income tax bills significantly. It is worth considering setting up a limited company and follow this route.

What are development finance pitfalls?

It is vital to make smart desicion when developing a property, it is not all about chosing the right development loan. There are common mistakes that even the most experienced developers can make. Here is a guidance list to follow Shop the market Every lender will give you different loan amounts and different pricing structures. By shopping around and speaking to non-bank lenders, you’ll have far more visibility of the best available deals. Putting down a large deposit can be avoided, simply by finding a more generous loan offer with an alternative lender. This can free up funds for investment in other schemes and bigger sites, and prevent or reduce hefty profit share payouts to investors.

The 5 Golden Rules of Property Investing

When I first wrote my book “Property Magic” I wanted to come up with some simple guidelines which would help investors to minimise the risks of investing and maximise their returns. I observed that most investors, myself included, made some common mistakes which could easily be avoided by following these principles: Always Buy from Motivated Sellers Instead of looking for a property you like, and then negotiating with the seller to try and get a discount, I have a smarter strategy. Look for motivated sellers, who will be flexible on the price/and or the terms of the sale. Once you have found a motivated seller you can decide if you want to buy that particular property. For a quick sale, the owner may sell it at a discounted price. The amount of discount will vary on their motivation and the general market conditions. In a rising market you may be happy with a 15% to 20% discount. In a falling market you would want a bigger discount of 25% to 40%. This is to give you more of a safety buffer in case prices come down further. There is a huge amount of uncertainty in the current property market. There are potentially lots of landlords looking to sell up early, over the next year or so. The next 12-18 months could be the buying opportunity of the Decade.

Buy to let mistakes

In this article, we talk about property investment referring to buying and holding for the long-term, as in 10 years or more, rather than an entrepreneurial activity where one buys with a view to renovate and sell. There are many buy to let mistakes you can make when purchasing an investment property. Cash Flow Most […]

Where to invest in property: the best commuter areas of London

Where to invest in property in London If you’re thinking of where to invest in property, you may want to explore the best commuter areas for your purchase. Here’s a list of tips. Keep in mind to focus on the areas that are within 30 minutes commute to Central London. Leyton – Central Line, 23 […]

West London Property Networking

To bring together, monthly, West London property professionals and people who have a serious interest in Property to network with peers, share opportunities and hear from expert speakers about the latest market trends and news, legislation changes and issues affecting Property Investment and Development. It does not matter how much experience or property you have, everyone is welcome. The meeting is for new or sophisticated property investors or developers, industry professionals or service providers. Investors/ Developers/ Landlords/ Sources/ Lenders/ Mortgage Brokers/ Finance Brokers/ Insurance Brokers/ Lettings Agents/ Sales Agents/ Accountants/ Conveyancing Solicitors/ Architects/ Surveyors/ Interior Designers/ Builders Venue: Clayton Hotel Chiswick Networking starts at 1830 at meeting room dedicated to West London Property Networking.

Buying a property to develop and let it out

Experts in property management know which are the most profitable areas to look for your new property buy, depending on the type of let you have in mind. To explore your options realistically, it is important to start with a clear idea of what your budget is and how flexible you can be with it Great transport links are always a plus, as it is staying away from busy and noisy traffic. But, depending on the letting market you are aiming for, an agent can point you to the areas that may have the right amenities, schools, entertainment, etc., for you to attract the clients that are willing to pay a higher rent in exchange for easy access to those services By employing a Property Management Agency, you automatically raise yourself and your project to the level of many other hundreds of professional property hunters who are also looking for the same great opportunity in buy-to-develop properties you are wishing for.

Capital gains tax on investment properties

The rules on capital gains tax on your home can be quite complicated. Essentially, if you’re selling your main home that you live in you are very unlikely to need to pay capital gains tax at all, because of a tax relief called private residence relief. Capital gains tax is generally not payable on gains you make on the sale of your only or main home. But if you own more than one, there possibly would be a bill to pay. By law as of April 2019, tax digital is mandatory for landlords and the interest relief system is being changed over a period of 4 years. If you’re selling a second home, or selling a home that you rent out to generate an income, you might have to pay, although there are ways you might be able to reduce your tax bill through letting relief or nominating which of your homes you want to be tax-free.

Ways to invest in property

Buying a property outright This is the common well known option. There are several risks when you buy property directly, whether for yourself or as a buy-to-let investment. Money tied up – unlike shares or bonds, it takes a long time to sell property. Big commitment – when you buy a property, you’re putting a lot of eggs in a single basket. You have to come up with 25% deposit in most cases, which is a high amount to tie up for a period of time. Buying and selling costs – with estate agent and surveyor fees, stamp duty, land tax, solicitors’ and conveyancing fees to consider. From 1 April 2016, you’ll have to pay an extra 3% on top of each Stamp Duty band when you buy an additional home or a residential buy-to-let property. Demanding – doing maintenance work and managing property takes time and money. You might need to extend the lease – if you don’t own the freehold outright. This is another cost and can take some time to negotiate.

Where to invest

It is well known; It all comes down to location, location, location. To be more specific, the proximity of the property to key transport links, tube, train or Elizabeth line. A property that would provide the tenant with mobility. It is common knowledge that 75% of tenants want to live 5-10 minutes walking distance from the transport links and most prefer to be 30-40 minute commute to work. How to identify the best areas to invest? Any area that has signs regeneration is taking place, lots of cranes, developments would be a clue. This is followed by investors coming to the area and taking up retail and commercial spaces. Outer area such as Croydon, Colindale, Royal Docks and Canning Town are expected to generate good returns with a low entry cost, anticipated to increase due to regeneration plans.

10 points to keep in mind before buying a property

1) Keep an eye out for big infrastructure projects Even in a weak market, areas undergoing infrastructure investment will likely still see steady growth - both in yield and in capital appreciation. Look at areas being transformed along both the Night Tube and Crossrail line to identify long-term investment prospects. For example - Forest Gate, Farringdon and Whitechapel are areas geared up for regeneration and a rise in property prices thanks to Crossrail. Blue Crystal awarded Most Progressive Property Management Firm in London 2) Look at the high street as an indicator of an area The high street is a great indictor of the demographic of an area, and whether the area is in decline or has growth potential. Some of the factors you should consider include - have there been many changes recently? Are shops closing down with no sign of opening or are they closing with new names moving in? Is money being spent by the council to smarten it up?

Top 10 property investment tips

Having worked as property managers in London for so many years, we’ve collected in this post our top 10 property investment tips. We hope they can guide your choices to purchase the best investment property solution. 1. Choosing the right property at the right price Investing in the property market is usually all about capital […]

Where to invest in a property

It is a well known fact; It all comes down to location, location, location. To be more specific, the proximity of the property to key transport links, tube, train or Elizabeth line. A property that would provide the tenant with mobility. It is common knowledge that 75% of tenants want to live 5-10 minutes walking distance from the transport links and most prefer to be 30-40 minute commute to work. How to identify the best areas to invest? Any area that has signs regeneration is taking place, lots of cranes, developments would be a clue. This is followed by investors coming to the area and taking up retail and commercial spaces. Outer area such as Croydon, Colindale, Royal Docks and Canning Town are expected to generate good returns with a low entry cost, anticipated to increase due to regeneration plans.