Showing posts with label property development. Show all posts
Showing posts with label property development. Show all posts

Friday, July 31, 2015

There are plenty of reasons why remodelling your home might be a smart move, but if you don’t have enough money to pay for home improvements you will need to look at other options. But is borrowing money to remodel a property a sensible idea – or are there better ways to finance the project?

Reasons to Remodel
If your home is starting to feel a bit cramped or your kitchen is falling apart, one cupboard at a time, you might be tempted to move to a bigger and better property. But stop and think for a few minutes. Moving house is stressful and there are no guarantees you will be able to find a new home that is affordable and right for you. You will also need to sell your existing home, which is not always easy. And if you have kids, do you really want to uproot them from the neighbourhood?

Remodelling can make perfect sense and if you do the job right, it can also be more cost effective. Improving a property will usually add value to it, so when you do eventually come to sell, you will have made money on the cost of remodelling it.

Different Types of Finance
There are lots of ways to finance a home improvement project:

  • Personal loans are useful if you don’t plan on spending too much money.
  • Secured loans are more suitable for luxury home improvement projects such as home extensions or new kitchens.
  • Re-mortgaging can work if you have equity in the property.
  • Credit cards can be used to pay for smaller projects, but the interest rate will be higher.
  • Cash is always a good way to finance home remodelling projects, particularly in the current economic climate where interest rates are low so savings earn very little.
When is a Loan a Good Idea?
Unsecured and secured loans are a popular way to finance home remodelling. Most lenders are happy to lend to customers with good credit ratings and with interest rates so low right now, it is an excellent time to borrow money. Secured loans are a better option if you need to borrow larger amounts of money because the repayments will be lower.

Reasons Why a Loan Could be a Bad Idea
Taking out loans to pay for home improvements is always a bad idea if you are up to your eyeballs in debt or your financial situation is currently very volatile.

Always make sure you can afford the repayments if you do decide to apply for a loan of any kind. Defaulting on a loan will seriously damage your credit rating and should be avoided at all costs.  If you don’t have a good credit rating but are confident you can afford the repayments on a loan, look at products offered by a bad credit loan provider. It won’t be a cheap way of borrowing money, but remodelling your home should add value to it, so in the long run the investment could be a smart move.




Should You Get a Loan to Remodel Your Home?

Tuesday, July 21, 2015

First time real estate investment is an exciting and exhilarating step, but if not carefully entered into, it can quickly become an overwhelming move that’s fraught with anxiety and confusion.
There are numerous variables for the first timer to consider, and it is advisable that they familiarise themselves with these facets because with a little planning and smart research, success is certainly achievable. Here are five tips to help get you started on the long road to success with your real estate endeavours:

1.       Set appropriate goals
Be realistic about your budget, your time frames, your desires and what you want to achieve. It is vital to sit down and draw up a plan for all of these variables, so that you can search accordingly, have real expectations and know specifically what type of investment you are looking for. Without establishing key factors like your budget, your location, your access to credit and your required schedule, the project will lack definition and may overwhelm you.

2.       Learn about the wider market
The Internet is a great source of information, as are the numerous books and case studies written about real estate investment that are full of actionable wisdom. Choose books and articles that offer practical step-by-step procedures backed up with evidence, instead of dubious ‘get rich quick’ schemes. Read up on relevant strategies, tactics and standard procedures so you know what to expect and how to prepare.

3.       Learn about the local market
Begin to research the properties on offer in your area and talk to the relevant local estate agents and sellers about opportunities with the ones that interest you most. It’s important to choose a reputable and reliable agent and you’ll quickly notice that long-standing companies such as Linley and Simpson (Leeds) stand out from others that do not have such a great selection of investment prospects and knowledge of the market. You can track local sales and begin to establish the going rates for properties in your desired budget and location.

4.       Do not limit yourself geographically
It can be very easy to look only in your immediate locale, but you may be surprised by the difference in opportunities only one town, county, or borough away. At this stage, it pays to be very open-minded geographically; to cast your net far and wide in search of the best opportunities and to ensure you have a wide understanding of the local market fluctuations.

5.       Establish your financial position before proceeding
Closely tied to establishing your goals, it is vitally important that a plan is drawn up regarding any credit plans. Do you know your credit rating and is it possible for you to get a mortgage? Do you need to switch banks or find a new provider? Which establishment offers the best deal? Does this limit the type of property you can invest in? All these questions, and many more, will need exploration and clarification before you can proceed beyond the research outlined above.

If entered into correctly, real estate investment is a highly rewarding and secure source of long-term earning; but it will require goal setting, smart planning and lots of research.


5 Top Tips for First Time Real Estate Investors

Wednesday, July 1, 2015

Property is always a good capital investment. The property market usually remains on an upward trajectory, so as long as you are willing to take a long-term view it is pretty easy to make money. Investing in property can also generate income when you let out a buy-to-let unit to tenants.

Because there are so many different types of tenants out there, you do need to consider which market you are targeting. Different tenants will expect different fixtures and fittings and if you decide to target the professional market, your rental units should appeal to high-end tastes. So how should you fit out a rental unit aimed at more exacting tastes?

Short Term or Long Term Lets?
One of the decisions you need to make is whether to let your property out on a short-term vacation let basis, or work at attracting a long-term tenant. There are pros and cons both ways, but if you decide to go with the vacation let option, be aware that your property will be subjected to a lot of wear and tear, which means carpets and furnishings will need to be replaced more often.

Carpets are not always the best choice in a rental property. You may be better off looking at more expensive types of flooring if you want to attract more affluent tenants, although distributing a few choice rugs here and there will be a nice touch. Solid wood flooring is a good choice as it can be sanded down in the event of damage. Polished concrete is also extremely hard wearing and can look very attractive in modern properties. For bathrooms and kitchens, look at ceramic, natural stone or marble tiles: all three are resistant to water and very attractive.


Furnished or Unfurnished?
Business executives looking for short-term lets may prefer renting a fully furnished unit. The same applies if you are marketing at the more affluent vacation market. In this instance, it is essential that you invest in the right quality of furniture. There is nothing wrong with Ikea, but it won’t be a good fit if you want to appeal to the high-end market – they will expect to see bespoke designer pieces rather than plastic chairs and flat-pack furniture. If you go down the unfurnished route, the only things you need to worry about are installing suitable kitchens and bathrooms.


Sophisticated Kitchens and Stylish Bathrooms
Kitchens and bathrooms need to be stylish, sophisticated, and packed full of the latest high-end appliances. Look at granite or marble counter tops, solid wood cabinets, gorgeous lighting and extra appliances such as wine coolers, espresso machines and the like. Your tenants will expect the best of the best – and be willing to pay extra for it – so indulge their tastes and don’t be afraid of spending money on designer brands.


There is a lot to think about before you let out a property for commercial gain, but don’t forget to prepare a full property inventory using hertsinventories.co.uk to protect your assets. If you don’t, you may belatedly discover that some of your more expensive pieces of furniture have gone missing at the end of a let.

Tips for Fitting Out High-End Rental Units

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