The UK’s annual rate of inflation rose to 4.4% in July, up from 3.8% in June and more than twice the government’s 2% target, official figures have shown.
The rise in the Consumer Prices Index (CPI) was more than expected, with food prices up a record 13.7% on the year.
High petrol prices also helped to push up inflation as the data was collected before the recent drop in oil prices.
Inflation as measured by the Retail Prices Index (RPI) - often used in pay negotiations - rose to 5% from 4.6%.
The Bank of England’s Monetary Policy Committee opted to leave rates unchanged after weighing up the twin threat of rising inflation and the sharp slowdown in the British economy, which is increasingly at risk of sliding into recession.
The decision to hold rates was widely expected by economists, who argue that a rate hike would have sent the struggling economy into a deep downturn, while a cut would indicate that the Bank is less worried about inflation, even though it stands at 3.8pc, way ahead of its 2pc target.
House price slump continued in July according to the latest monthly report from the Halifax.
The lender said prices fell another 1.7% last month, taking the annual rate of decline down from 6.1% to 8.8%.
The Halifax calculates that the average house in the UK is now worth £177,351, back to the value seen in June 2006.
The bank said demand from home buyers had been “significantly curbed” by the lack of mortgage funds, high prices and the squeeze on household finances.
“Pressure on householders’ income, together with a very significant reduction in mortgage finance due to the global financial markets crisis, is constraining potential house buyers’ ability to enter the market,” said the Halifax’s economist Suren Thiru.
“This is resulting in both lower prices and activity levels,” he added.
The Halifax’s survey chimes with that of rival mortgage lender Nationwide, which recently calculated that UK property prices had fallen by 8.1% in the year to July.
According to the BoE, mortgage approvals have dived by almost 70% in the past year. Just 36,000 new loans arranged for people moving home during June - that is 69% fewer than in the same month last year and 12% lower than May’s figure, according to the Bank of England.
Mortgage lending also dropped steeply during the month, with net advances hitting a near eight-year low of £3.1bn.
The number of home loans approved has now fallen for 14 consecutive months and is at its lowest since the BoE first issued figures in 1993.
Lenders have tightened their criteria because of the credit crunch, reducing the availability of mortgages, especially to would-be buyers with small deposits.
The BoE figures come as a report for the Treasury warned there is no quick fix for the problems in the mortgage market.
The Crosby Review, which is being carried out by the former head of the Halifax Bank of Scotland Group (HBOS), Sir James Crosby, says funding of home loans should be left to the market.
Sir James says Britain should avoid setting up US-style government-backed agencies to tackle the funding crisis.
But his independent report stops short of making recommendations on how to tackle the problems caused by the credit crunch.
It moots the idea of possible further support from the Treasury to help kick-start mortgage lending
The Bank of England data shows a fall in all types of mortgage approval, with just 165,000 new loans agreed during June, down from 214,000 just three months earlier.
Retailers are facing tough conditions on the High Street, analysts say
Rising food and fuel costs pushed UK inflation up to an 11-year high of 3.8% in June from 3.3% in May, figures show.
The rise means inflation is now well above the government’s 2% target, and may reduce the chance of a UK rate cut.
The Bank of England, which has already said inflation may top 4% this year, has to balance the need to control inflation with worries over growth.
The RPI inflation measure - often used as a benchmark in pay negotiations - rose to 4.6% in June from 4.3% in May.
The Bank of England kept British interest rates at 5.0 percent today but analysts say a slowing economy will force it to cut borrowing costs next month, even though inflation is heading higher.
The average arrangement fee charged by 3 year base rate tracker mortgages has increased by 121%. In terms of rate increases the most significant increase has occurred in the two year fixed rate market were the average rate charged has increased from 5.42% eighteen months ago to 6.71% now.
A panel of economists has delivered a worrying prediction about the future of UK house prices…
A survey of the Society of Business Economists (SBE) members conducted by ITV1’s Tonight programme found that 60 per cent of economists do not expect prices to recover to the pre-credit crunch peak for at least four years.
The majority of the poll identified 2009 as the year when house prices will hit rock bottom, with most of the sample predicting that they will have fallen by 20 per cent from the peak of the market by then. However, one in five forecast a falls of 30 per cent - which would see the value of a home cut by £60,000.
Heriot Watt University vice-chancellor Anton Muscatelli told MPs: “There is a risk that people will begin to see current inflation levels as the norm and demand pay increases to match. Unless we see inflation falling later on this year… we will see inflationary expectations stick at the current levels which are around 4%.”
Bronwyn Curtis, chairman of the SBE, said: “It doesn’t look like we’re going to see a fall, which is what we’re in the middle of, and a quick bounce back. It does look as though it’s going to go on, and we’ll have slow growth for some time.
“On top of that, house prices were overvalued, according to most economists, and so you have the situation where they remain undervalued for a long time. As the economy slows we will get unemployment … and there will be much less pressure pushing for wage hikes.”
Roger Bootle, of consultancy Capital Economics, added “If the Bank of England doesn’t cut rates quickly enough as inflation subsides there is a risk the economy will be extremely weak, perhaps in recession and said inflation could fall well below the Bank’s 2% target”.
Rising food and energy prices have pushed UK consumer inflation up again, the Office for National Statistics (ONS) has said. The Consumer Prices Index (CPI) measure of annual inflation was 3.3% in May, up from 3% the previous month.
A recent New Statesman article entitled ‘Crash: The housing crisis is just beginning’ contained the following alarming facts about house prices and the UK mortgage market:
- 250,000 UK households in negative equity
- 50% fall in net mortgage lending expected this year (£53bn)
- 12m mortgages outstanding in 2007
- 25% predicted average house-price drop during current crash
- 3,775 mortgage products available now
- 15,599 mortgage products available in July 2007
Source: New Statesman, 5th June 2008
More than 23,200 people who took out 100% mortgages in the year to 31 March could face negative equity. Falling house prices mean the amount borrowed could be greater than the value of their properties. The data from the Council of Mortgage Lenders comes as figures show the housing market is slowing down further.
Separate housing figures suggest the number of transactions per estate agent has hit a 30-year low. These figures from the Royal Institution of Chartered Surveyors come as banks are imposing stricter requirements on borrowers, in the wake of the credit crisis.
The Monetary Policy Committee’s decision came despite widespread worries about the state of the UK economy amid a global slowdown. However, rising fuel and food prices means that there are still worries over controlling inflation.
Property guru David Lee moved into the property industry in 2001 and used his professional training to develop new methods of property investment strategies that were unheard of in the UK at the time. He has pioneered and revolutionised the ‘Rent Now, Buy Later’ concept within the UK.
Tom Toumazou is the Project Manager for Raising Housing Standards in the East Midlands. He oversees Regional Landlord Accreditation and will be discussing this important requirement as well as answering questions about the current market and how landlords are being directly affected.
US investor Texas Pacific Group is to buy a 20% stake in Bradford & Bingley for £150 million.
It follows a profits warning by the buy-to-let lender, which announced that profits for the year would be down about £100 million.
The move comes as its chief executive, Stephen Crawshaw, resigned with immediate effect because of “a serious cardiovascular condition”.
Homeowners refinancing their mortgages are in for a rude awakening as they face the highest fixed-rates deals since the start of the decade…
Hccording to figures compiled by MoneyFacts, the average rate for a two-year loan has hit 6.64% - up from just 4.34% two years ago, which means that someone coming to the end of a mortgage on a £150,000 house they took out in 2005, will see their average repayments jump by £206 a month to £1,025.
MoneyFacts’ figures show that someone taking a typical five-year deal in 2003 on a £250,000 home loan will have to stump up almost £500 more when it comes to their new deal. Typical fixed rates are the highest since 2000.
It is estimated that around 1.4 million homeowners will see their fixed deals expire this year.
With 150 estate agent offices currently reported to be closing every week, Jonathan Haward, Managing Director of The County Homesearch Company says the face of the high street estate agency will change forever, and in today’s market only the very best will survive…
In the latest survey from the Royal Institution of Chartered Surveyors (RICS), 95.1% of surveyors saw house prices fall than rise in April.
That figure is up from 79.4% in March, with all surveyors in East Anglia, and the North and North West of England, reporting price falls. There has also been a continued fall in enquiries from prospective buyers.
The RICS shows price falls are far more widespread than at any time since 1978 and is further confirmation that house prices in the UK are now declining after a decade long boom.
The Council of Mortgage Lenders said 27,100 homes, the highest figure since 1999, were taken over by lenders after people fell behind with repayments.
The figure for the UK is more than the 22,400 in 2006, but not as extreme as the CML had forecast. It is still a sharp rise on the 8,500 of 2003.
The CML warned that the number of repossessions was likely to rise again in 2008 as the credit crunch tightened.
Meanwhile, the numbers of mortgages behind on payments rose by 8.6% compared to 2006, the organisation, which represents mortgage lenders, said.
With March mortgage approvals down 46.2% on 2007, the UK is certainly feeling the gloomy global economic conditions. Credit crunch has quickly become part of our vernacular, but has it entered your home yet?
Whether you’re a homeowner, a parent, retired or a student, let us know your experience of the credit crunch to date, and what you’re doing about it. Maybe you’re worried about mortgage repayments, or perhaps you’re wondering what all the fuss is about? Whatever your situation, we want to know.
Has your credit been crunched?
The Bank of England kept British interest rates at 5.0 percent today but analysts say a slowing economy will force it to cut borrowing costs next month, even though inflation is heading higher.
House prices in the UK have recorded their first annual fall for 12 years (i.e. since year 1996).
Prices fell by 1.1% in April, the sixth monthly decline in a row, and were down 1% from the levels seen in April 2007, the building society said.
Nationwide said the price falls reflected a weakening market which had been hit by “poor affordability and tighter financial market conditions”.
An average home now costs £178,555 which is £1,759 lower than April 2007.
As of midnight on Tuesday 22nd April 2008 Mortgage Express no longer accepts any remortgage business where the borrower has owned the mortgaged property for less than six months.
From the same date, the Extended Criteria 110% rental cover option and all 2 year deals for BTL deals will be withdrawn!
In spite of the Bank of England decision to cut interest rates from 5.25% to 5% last Thursday, mortgage lenders appear not to have passed the cut to borrowers.
This is increasing speculation that the Bank of England has lost control over the actual interest rates faced by borrowers.
Alistair Darling, commenting in Washington, says that he will do everything in his power to resolve the mortgage crisis, for first-time buyers and the economy at large.
He also pointed to an inevitable slowdown in house prices. Confidence in the mortgages market is at a low, and with lenders making mortgage more expensive despite base rate cuts, many borrowers are dreading remortgage costs when their fixed, tracker or variable rate deal comes to an end.
The UK’s fastest growing dedicated property investment event returns to the NEC for a second year 11 - 13 April 2008.
This exhibition is the property event for serious investors. So if you are considering buying residential or commercial property for investment purposes - in the UK or abroad - this show will answer all of your questions.
Features property and property related services from approximately 100 exhibitors including major house builders, developers, estate & letting agents, lenders, brokers, property investment training companies, landlord associations and other leading property experts … many of whom will be appearing at the show for the first time.
The quarter-point cut is the third since December and comes amid signs of gathering economic gloom, with figures earlier this week showing that house prices fell 2.5% last month - the biggest monthly drop since the property crash of the early 1990s.
The decision will be a welcome boost to cash-strapped borrowers, already under pressure from soaring inflation. Monthly repayments on a £100,000 mortgage will fall by £16 if lenders pass on the cut in full, reducing them from £722.80 to £706.77 a month, based on a new rate of 7%.
The latest monthly figures from Halifax, the UK’s largest mortgage lender, reveal that house prices fell by 2.5% in March, the biggest monthly decline since September 1992. Prices are now just 1.1% higher than they were a year ago, the slowest annual growth rate for 12 years.
The Halifax has also revised its predictions and now expects prices to fall over the course of this year. The Nationwide took a similar stance earlier this month after reporting that prices had fallen for five months in a row.
Numerous mortgage providers have removed mortgage deals from the market or increased rates to discourage new business over the last month, with First Direct taking the shocking action of suspending its entire range of products.
The Co-operative Bank has recently withdrawn its two-year mortgage deals, and the US investment bank Lehman Brothers is withdrawing from the UK mortgage market with immediate effect.
Up to 6.5 million people have been forced to consolidate their debts in the past three years in a bid to keep borrowing under control.
And 1.29 million of them have moved debts of more than £20,000 run up on loans, credit cards, store cards and overdrafts to one lender, the independent financial comparison website says.
The study shows 14 per cent of people have moved debts to one lender in the past three years and it is younger people who are most likely to have consolidated - 23 per cent of 25 to 34-year-olds have moved all borrowing to one lender.
House prices fell for the sixth month in a row over March, according to Hometrack’s national housing market survey.
Average prices were down by 0.2% over the month with the annual rate of growth slipping to +0.4%, the lowest level for two years since March 2006. The survey highlighted a continued improvement in both levels of demand and transaction levels although pricing levels are likely to remain under pressure over the coming months.
Why has council tax risen so much more than inflation?
| Item | 1998 | 2008 | Change |
| Council Tax* | £616.51 | £1,435 | +123% |
| Bread | £0.51 | £1 | +98% |
| Av. Wage/Week | £260 | £367 | +41% |
| Pint of Milk | £0.35 | £0.39 | +11.4% |
* for Band D property.
Citizens Advice (CAB) has seen a dramatic surge in consumers seeking help with mortgage arrears in 2008.
In the first two months of the year, Citizens Advice Bureaux across England and Wales saw mortgage arrears enquiries climb by 35 per cent compared to early 2007 - with the total number of debt problems dealt with amounting to 215,000 across three-quarters of Bureaux.
Meeting other household bills such as water, gas and electricity and council tax, was also seen to be a growing issue.
Debts is top priority for consumers contacting Citizens Advice, accounting for one in three enquiries, with those relating to credit, store and charge cards forming the largest individual category.
However the figures for plastic debt bucked the trend usually seen at this time of year, falling by 9 per cent, with overdraft issues up 7 per cent to fill the gap.
Teresa Perchard, director of policy for Citizens Advice said: “These latest figures paint a worrying picture - the combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit.”
Property price panic has seen a raft of high-value properties come to market, pushing up asking prices, Home.co.uk research has shown.
City workers cashing in on their investments were pinpointed by the firm’s Asking Price Index Report as key drivers of this national trend, with the impact particularly being felt within Greater London.
Indeed 23 per cent of the current stock up for sale in Greater London was rushed to market in the last 14 days.
This has had a significant impact on both the average asking price in the region, which has risen by 3.4 per cent since February to £361,414, and on a wider scale in England and Wales - pushing it up by 1.4 per cent. The average asking price in England and Wales in now £259,026.
The increasingly uncertain economic outlook, driven by fluctuations within the financial markets over the last month and the threat of redundancy, has led a number of investors to cut their losses with the hope of selling up before the Chancellor’s changes to capital gains tax legislation take effect.
FTBs are being squeezed out of the housing market by unaffordable mortgage deposits…
Katie Tucker of Online mortgage Broker Charcol, revealed: “A tend towards larger deposits could signal a shift in the mortgage market and, consequently, the housing market. The mortgage market is readjusting and the housing market will follow.
“The accommodating lending criteria of the last decade has allowed many people to buy who otherwise wouldn’t have been able to, which has helped push property prices through the roof.
“Following last weeks mass withdrawal of all mortgages that allowed you to borrow more than the value of your property, first time buyers with no deposit, or existing debt will find it difficult to buy now”.
“The move could mean that the market becomes more attractive to high-end investors, who can raise the capital needed to secure a property, particularly if the cost of borrowing falls as many are predicting in light of widespread economic uncertainty.”
Struggling homebuyers were given no relief by the Chancellor who failed to increase stamp duty thresholds, although there will be some help for those in shared ownership schemes.
The Chancellor announced that buyers who purchase 80 per cent of the value of their home through one of the government’s shared ownership schemes will not pay stamp duty land tax.
While mortgage experts initially welcomed the move, it has been described as “confusing”, because it is unclear how this would actually work in practice.
For example, when the buyer wants to buy the remaining part of the property, do they pay it on the price of the property when they initially bought it or at its current value? And if the house prices increases and the equity naturally increases, what happens then - will they then have to pay this tax bill?”
CLOUDS are gathering over the UK property market, according to the estate agent Savills, but the ensuing storm should be shortlived. The agent predicts a turbulent half-year ahead, with prime Central London property to suffer falls of 3 per cent and the rest of the country stagnating.
But the difficulties, caused by the credit squeeze and worries about bonus sizes, will be swiftly followed by a return to growth. Across the market, prices across the UK will be up 3 per cent by the end of the year, with London, the South East and Scotland outperforming.
The North, Yorkshire, Wales and the Midlands will underperform, according to the Savills weather map, pictured right.
This turbulence will affect the enthusiasm of both buyers and sellers and turnover will drop significantly. Some may be cheered by an interest-rate cut – Savills expects one next year, but says that, in the current economic environment, it will be 2010 before the base rate again drops to 5 per cent.
The balance of surveyors reporting house price falls increased again in January, says RICS’ UK housing market survey published today.
It is reported that the RICS house price balance dropped for the sixth month in succession signalling half a year of negative market sentiment.
Almost 55 percent more Chartered Surveyors reported a fall than a rise in house prices an increase from just over 49 percent in December.
According to surveyors, the only part of the UK where prices continue to rise is Scotland with the net balance of surveyors in that country reporting price rises edging up from 3% to 7%.
This was a 3 week project… But it was acheived and here are the results…
See Aubourn Avenue 3 weeks ago… : 3GP - 3.66MB
See Aubourn Avenue Now… : 3GP - 5.36MB
In the housing market, prices fell again in November by 1.1%. This is the first time that has happened since 1995, and mortgage approvals have slumped by almost a third. Squeezed credit is likely to prove a big problem for an estimated 1.5m next year who need to remortgage and will find it difficult, if not impossible to find an affordable deal.
Recently there have been a number of articles in the press and on TV recently regarding the Below Market Value property industry and its not all been good news!
Most BMVers are extremely moralistic and honest when dealing with vendors, there are many posotive examples of people being helped out of some precarious situations:
Save someone from having their home repossessed.
Help someone who was stuck in a chain, or who had lost their buyer?
Helped someone to secure their dream home by buying their old house quickly.
etc……
The number of mortgage products available to British borrowers has fallen by 40 per cent over the past three months, as lenders have tightened their criteria and withdrawn large numbers of riskier home-loan deals due to the global credit crisis.
Sub-prime mortgages, advances made to those with poor credit ratings, have been the most commonly withdrawn products, Moneyfacts, the personal finance analyst said. It revealed 54 per cent of regular sub-prime home loans have been pulled since July, with 72 per cent of sub-prime buy-to let loans not available.
Well this is our third visit in a row to the London property show and it quite clear where things are going… More and more of the stalls are promoting international property opportunites.
Regular Stalls
The usual suspects are forever present at the show…
- Vanish Patel
- Parmdeep Vadesha
- Glenn Armstrong
- Ranjan Bhattacharya
Summary
If you are keen on investing in Europe then the Homebuyers show is a good starting point to aquire information in regards to international hot spots. The UK side of the market seems to be pushed in the direction of BMV!
House prices growth turned negative for the first time since October 2005. 1.8% more Chartered Surveyors reported a fall than rise in house prices, down from 10.8 reporting a rise in July.
Demand continued to weaken as rising interest rates weighed on buyer affordability.
The trend was most prevalent in the West Midlands, the North West and East Anglia.
New buyer enquiries declined for the ninth consecutive month and at the fastest pace since August 2004 with potential buyers remaining cautious as the effect of interest rate rises filters through.
Interest rate rises start to bite, new buyer enquires declined at their fastest pace since August 2004, with stock of unsold property on surveyors’ books increasing to the highest level since January 2007 says the RICS UK housing market survey.
In any undertaking it is very important to be able to visualise where you wish to end up (your goal). This goal is essential to your own personal motivation and direction.
For example:
If your major goal is to earn £100,000 per year, then you’ll need to earn approximately £10k per deal (i.e. 10 deals). This will require you do distribute 100,000 messages (via leaflets) to potentional clients. Expect 3-4 call per thousand messages (300-400 calls), which should essentially get the phone to ring daily.
Attended the Ipswich PNC last night at the Holiday Inn, where the guest speaker was Vanish Patel the founder of the PNC and very successful organisation builder!
Basic BMV Techniques:
- Leafleting
- Newspaper
- Internet
- Networking Events
A brief description of each of the techniques will follow just to give you an idea of what you should expect and how to move you organistation forward…
Leafleting
Your successs in the BMV property game starts with getting your message out successfully. This requires good reliable leaflet distributer(s) who will ensure your message gets out continuously and consistantly over time. Is is clear that people get ill go on holidays etc, so to account for this eventuality the more sources you have providing this service the less of an issue it becomes.
- Recruiting - Place a simple ad in your local paper leaflet dropper required, flexible hours, text name and address to 07892 xxxxxxx for appliation form. Form should be sent with a return envelope (no stamp), this gets the prospective volunteer to perform the tasks (not you). Form should not indicate salary, instead questions such as how much do you wish to earn per hour or per thousand leaflets
- Maintaining - Offer benefits of maybe £2 to the volunteer for every call you receive, offering a bonus based on a completed deal is too far in the future, hence there is no real incentive!
Newspaper
This a another option to get your message accross to the potentional client. In this case your competition can easily be on the same level with the use of a credit card and a two minute phone call. With this said it is still a good source of exposure for your coorporation.
- Contact - Place a simple ad in your local paper in the classified section (Property Wanted). Try to build a relationship with the newspaper to make advertising as cheap as possible (i.e. long term deals, late deals etc…)
- Maintaining - Run your ad for a least 6 months to a year continuously!
Internet
This provides a more wide spread exposure (i.e. world wide), so you can obtain leads from anywhere in the country or the world. Therefore it is essential to have a network of investors you can pass remote or unwanted deals onto. Essential in maximising your return for all deals that pass your way.
- Website - Build your website offer free information reports ect (repossession, debt managment etc…)
- Autoresponder - Responses to queries should be automated!
Networking
This is where most of your knowledge contacts and even business will come from in your organistion. The strength of the business is NOT money it IS people!.
- Contact - Visit as many networking events as possible and do not break contacts made!
- Maintaining - MAINTAIN MAINTAIN MAINTAIN YOUR CONTACTS!
I guess a lot of newbies are jumping onto the band wagon when it comes to BMV deals… Many could argue this is creating healthy competition in the market. We believe most newbie BMVers just don’t have the knowledge, people skills or system in place to cope with BMV deals. Vendors are now very wary of BMV traders and in some unfortunate circumstances group all investors and bad people with a sole aim of exploiting the position of some poor soul in financial distress.
BMV deals are all around (no matter where you are…). If you are lucky enough to make contact with a potential BMV lead, always remember be fair, be curtious and most important listen to what the vendor has to say!
Attended the JHWalter Property Auction at the Bentley Hotel in Lincoln. Much of the auction items consisited of land and sold for guide price in most cases. As usual there was a bogie, which was a 0.66 Acre of woodland at Winson Hill, Egmanton, Newark. Priced at £5,000 this was clearly going to sell for a lot more…
Upon announcing this lot, the bidding frenzy began and eventually ended up at £16,500. All round a good days work the for the auction house.
Next auction planned for the Autumn 2007, with the typical 20+ lots included, could be more land than property. I guess we will have to wait and see…
Home Buyers Show (HBS) 2007
Travelled to London HBS today to observe the latest strategies for property investing in the UK and overseas. Below is a brief summary of the companies and seminars attended on the day, plus a final summary at the end of my thoughts on the HBS 2007.
Exhibitors Visited
- Property Secrets
- Residential Landlords Association
- Rix Developers
- Property for Life
- Diligence
- Direct Auctions
- Land Registry
- Rightmove
- Mortgage Magazine
- What Mortgage
- Reposession Angels
- Your Property Empire
Seminars Attended
- Five Ways to Buy Property Less Than It’s Worth.
- How to Research & Analyse Your Property Investment for Profit.
- The Secrets of ‘No Money Down’ Deals in 2007.
- Why Houses Really sell: How to Get the most from your Estate Agent.
- How to Make it Big in Property in 2007.
- Landlords: How to stay ahead in a Competitive Market.
- How to start a Property Finding Business & find Seed Money to buy your first Deal.
- How to avoid Common Pitfalls when Buying a Home.
- How to Hunt down Real Property Bargains at Auction.
Summary
At least 85% of the exhibitors were concerned with property outside the UK, mainly Cyprus, Spain, US etc… The remaining exhibitors were focused on the UK, some offering BMV property for investment, with others offering information on sourcing deals via intelligent marketing strategies. Overall a very long day but fruitful, many contacts made, definitely recommend the Home Buyers Show to anyone serious about property investing.
Introduced via Eternal Growth Financial Services, Passive Investments host a seminar aimed at new and existing property investors as well as busy professionals who like the idea of property investment as a means of long term wealth but don’t have the time or the speciality knowledge.
In a nutshell, it’s simply about identlfying and aquiring the right UK property with good growth potential, below its market value (Passive choose to not get involved in overseas or ‘off-plan’ property as its far more speculative and risky).
Agenda:
- How to Find, Aquire & Finance Below Market Value (BMV) Property.
- Passive Investments Client Opportunities, Passive explain how to get started and now they can build a portfolio for any busy professionals who would like it all done for them.
Summary:
- Require £35k upfront to enrol in the service.
- Require a £30k pot to service property purchases. (Money returned to pot once bmv deal complete).
- Passive will purchase 5 properties for you in 5 years and perform any legals, refub, letting (tennant vetting etc…).
- After the first remortgage on each property, passive are entitled to the first £15k, this could leave you having the subsidise the mortage if this leaves a rental short fall.
YOU Get:
5 tennanted bmv properties after 5 years with increased equity.
THEY Get:
110k after 5 years, £35k upfront and 15k from each subsequent property.
Here are some recent pictures taken of Langer Close…
Kitchen: Previously a shell, now restored to former glory…
Living Room: Now given a real lease of life…
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