Blackstone Properties

INTEREST RATES

admin — Tue, 20 Mar 2012 08:41:07 +0000

Interest rates have remained at record low of 0.5% since March 2009. Interest rates are likely to remain at 0.5% for the next several months because the economy has experienced its deepest recession since the 1930s. With inflation still above the governments target of 2%, the Bank of England have faced pressure to raise interest rates. The Bank of England face a dilemma. On the one hand the economic recovery has been sluggish and slow. Unemployment is still high and the governments austerity measures – spending cuts and tax rises are likely to keep spare capacity in the economy. However, 2012 has seen a rapid fall in the inflation rate predicted by the Central Bank. The latest inflation figures show inflation falling to 4.2% (Jan 16th 2012). This increases the likelihood interest rates will remain at zero throughout 2012.

Headline inflation CPI has been above the government’s target of 2%. But, these inflationary pressures are caused by cost push factors such as rising oil prices, rising commodity prices. There have been concerns that these cost push factors could cause underlying inflationary pressures to rise. But, given scale of economic downturn, this is not materialising.
Headline inflation CPI has been above the government’s target of 2%. But, these inflationary pressures are caused by cost push factors such as rising oil prices, rising commodity prices. There have been concerns that these cost push factors could cause underlying inflationary pressures to rise. But, given scale of economic downturn, this is not materialising

DESPERATE SELLERS IN THE UK

admin — Tue, 14 Feb 2012 09:48:31 +0000

Desperate home sellers slash record amounts off house prices to generate a sale
By LEE BOYCE
Last updated at 10:03 AM on 8th February 2012
Comments (41)
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Over a third of properties currently up for sale have been reduced in price at least once since coming on to the market, research has revealed.
It shows that home sellers are resorting to desperate measures in order to shift their property amidst a backdrop of poor sales figures.
Data from property search website zoopla.co.uk found that 36.7 per cent of properties up for sale have had a reduction, with an average discount of 7.5 per cent – or £19,580 – a record high for the report.
If you add up all the discounts on properties nationwide, £2.5billion has been collectively slashed, as sellers drop asking prices by large amounts to garner interest.

Slashing prices: Homesellers are dropping prices to try and garner interest and generate a sale
Last year, the average discount was £18,475, meaning there should be even more bargains to be had in the current housing climate this year.
Figures from HM Revenue and Customs (HMRC) revealed house sales stuttered in 2011, with just 869,000 residential properties sold.
This was close to the record low in 2009, when just 848,000 homes were sold – the lowest since modern records began in 1978.
Nicholas Leeming, of zoopla.co.uk, said: ‘The current average discount of £19,580 is a new high indicating that sellers have come to terms with the market realities.
‘Pricing correctly remains key when selling a home and whilst there is a shortage of sale stock currently, buyers are more discerning and more informed than ever before.
‘Serious sellers must do their homework and follow the advice of their agent before settling on an asking price – otherwise they may well find their property on the market for longer than they’d hoped.’
Handy tool: Use Zoopla’s calculator to value your house

More…
A storm clouds hang over 2012, what next for house prices?
Can you get a cheaper mortgage: Check best rates
Biggest discounts are found in Glasgow
The biggest discounts on homes currently on offer in Britain are found in Glasgow, Scotland. The average price reduction in the city is 9.2 per cent – £12,566.
Sellers in Scunthorpe and Blackpool are making the next biggest cuts, knocking 9.1 per cent and 9 per cent of property values respectively.
Looking at discounts in money terms, London price drops are the biggest, with the average property reduction coming in at £41,791. However, with the highest property prices in the country by some way, prices have further to fall.
In fact, London is number eight in the table for areas with the smallest percentage reductions, with 6.42 per cent chopped off the average house price in the capital.
Stockport has the highest proportion of discounted properties for sale, with 49 per cent of sellers having to cut their asking prices at least once.
Chesterfield and Rotherham make up the top three positions alongside Stockport, with 45 and 44 per cent of properties receiving a discount in the towns respectively.
Chelmsford in Essex has the lowest reductions, with prices dropping on average by just 6 per cent. York and Swindon follow closely behind as the areas that drop prices by the least.
TOP 10 AREAS WITH BIGGEST ASKING PRICE REDUCTIONS
Area
Avg. Price reduction (%)
Avg. Price reduction (£)
% of homes on market reduced
Glasgow
-9.16%
-£12,566
42.73%
Scunthorpe
-9.12%
-£13,207
43.19%
Blackpool
-8.97%
-£12,316
27.45%
Newcastle
-8.77%
-£21,823
36.99%
Rotherham
-8.62%
-£13,671
44.07%
TOP 10 AREAS WITH HIGHEST PROPORTION OF ASKING PRICE REDUCTIONS
Area
% of homes on market reduced
Avg. Price reduction (%)
Avg. Price reduction (£)
Stockport
48.74%
-8.11%
-£17,384
Chesterfield
45.17%
-7.87%
-£14,028
Rotherham
44.07%
-8.62%
-£13,671
Scunthorpe
43.19%
-9.12%
-£13,207
Wakefield
43.14%
-7.58%
-£14,687
TOP 10 AREAS WITH SMALLEST ASKING PRICE REDUCTIONS
Area
% of homes on market reduced
Avg. Price reduction (%)
Avg. Price reduction (£)
Chelmsford
-5.93%
-£20,329
37.54%
York
-6.01%
-£17,031
31.83%
Swindon
-6.20%
-£12,455
41.58%
Bristol
-6.23%
-£14,658
34.94%
Bedford
-6.26%
-£16,518
41.37%
TOP 10 AREAS WITH LOWEST PROPORTION OF ASKING PRICE REDUCTIONS
Area
% of homes on market reduced
Avg. Price reduction (%)
Avg. Price reduction (£)
Blackpool
27.45%
-8.97%
-£12,316
Bolton
29.11%
-8.11%
-£13,980
London
29.53%
-6.42%
-£41,791
Derby
30.75%
-6.87%
-£11,738
York
31.83%
-6.01%
-£17,031

Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2097824/House-prices-Desperate-home-sellers-slash-record-amounts-off.html#ixzz1mLdwaoDl

WHAT IS A BMV PROPERTY?

admin — Sat, 28 Jan 2012 15:17:56 +0000

What are Below Market Value properties?
In its’ simplest terms, BMV or Below Market Value is an abbreviation. BMV properties are residential properties that are available below their market value. This is normally because the owners are faced with some kind of financial difficulty and want to or need to dispose of their property quickly and without going through a protracted marketing and sales process. The precursor to this is quite often the threat of repossession.

Where do professional landlords go for their buy-to-let insurance?

How to value a property
The guidance from the Royal Institute for Chartered Surveyors on how a surveyor should value residential property is contained in Appendix 5.1 of the Royal Institute for Chartered Surveyors Appraisal and Valuation Standards (Red Book). The basis for the valuation of a residential investment property is normally its’ market value. Market value is defined in the Chartered Surveyors hand book as:

‘The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.’

Therefore if a property has been properly marketed and then a sale agreed, whilst the landlord may consider that they have a bargain and a BMV property because the property is sold at less then similar property sold for previously. For instance an investor buys a property for £180,000. A year previously a similar property sold for £200,000. The investor might consider that they have obtained the property at 10% BMV. This is not the case under the guidance on valuation standards from the chartered institute of surveyors, the investor has actually just paid the market price.

NMD DOWN DEALS LONDON

admin — Thu, 12 Jan 2012 18:10:36 +0000

BSP has a number of new deals IN LONDON that can be bought NMD. Please contact us for more info. Example deal here – IG1 LONDON – OMV 290K, 3 BED FREEHOLD IN GOOD ORDER, AVAILABLE DIRECT FROM VENDOR FOR … Continue reading →

House Prices 2012

admin — Mon, 19 Dec 2011 11:42:39 +0000

The UK residential property market is expected to be stable in 2012 with little change in prices overall although the outlook is uncertain, according to the latest prediction report from the Halifax.
Analysts expect the Bank of England’s base rate to remain at 0.5% throughout the year and although there will be weak economic growth, high unemployment and mortgage funding pressures there are a lot of positives as well.
They point to affordability in the market place, a low lending rate, low levels of forced sales and a long term supply and demand imbalance as being good points for the year ahead.
‘The housing market has proved highly resilient in recent months despite the weak economic recovery and the significant deterioration in the outlook for both the UK and global economies,’ said Halifax’s housing economist, Martin Ellis.
‘House sales and the supply of properties on the market for sale have remained very stable since late 2010. These steady market conditions have helped to stabilise house prices and sales. As a result, the average price is currently little changed from that at the end of last year,’ he added.
He expects that there will be broad stability in house prices nationally in 2012.‘Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction. The prospect of an exceptionally low Bank of England Bank Rate over the foreseeable future is likely to continue to support the market over the coming 12 months,’ he explained.
He also pointed out that largely as a result of low rates, typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in the middle of 2007 to 26% in the third quarter of 2011. ‘This is significantly below the average of 37% over the past 25 years and is at its lowest since 1997. Continuing low rates should further support the favourable affordability position for both those who already have a mortgage and those who are able to raise the required deposit to buy a home,’ said Ellis.
‘The favourable affordability position should also help to keep down the numbers of homeowners forced to sell their properties because they cannot keep up with their mortgage payments. A significant rise in the number of forced sellers is often a factor associated with sharp house price falls,’ he added.
However, weak economic growth and the prospect of continuing high, and probably rising, levels of unemployment led by large scale public sector job losses, will constrain housing demand. ‘Continuing significant pressures on householders’ finances will also limit many people’s ability, and willingness, to buy a home. These pressures will come from a combination of subdued earnings growth, high (but falling) inflation, the substantial fiscal tightening that is taking place and an ongoing rebalancing of household sector finances with many families seeking to reduce their debts,’ he said.
He also predicts some modest variations in house price movements across the country. ‘Prices are likely to be strongest in London and the South East as these regions perform better economically. House prices outside southern England are expected to be constrained by these areas’ weaker economic performance and their greater dependence on public sector employment,’ Ellis explained.
But the supply and demand imbalance will support house prices over the longer term. ‘Further ahead, the imbalance between housing supply and demand should help to support house prices over the medium and longer terms. The long standing deficit between supply and demand, whereby the rate of house building has failed to match the rate at which new households are being formed, has widened in recent years as levels of house building have fallen to record lows,’ he said.
‘Measures recently announced in the government’s Housing Strategy should help to boost housing supply over the longer term, but they are unlikely to be sufficient to eliminate the gap. Nonetheless, with the ratio of house prices to earnings still above its long term average, any price growth is likely to remain weak over the coming few years.
‘There is currently considerable uncertainty regarding the prospects for the UK economy. The path of the economy during 2012 will, to a large extent, depend on how events in the Eurozone unfold. In addition, the extent to which households choose to reduce their debts will also affect growth over the medium term. As a result, the outlook for both the economy and house prices is particularly uncertain,’ he concluded.

Steve (BSP)

Landlords and Tenants: Developing a Good Relationship

admin — Mon, 24 Oct 2011 16:03:59 +0000

1) Increase Your Financial Security

A happy tenant is usually a good tenant. If they have a good relationship with their landlord they will be more likely to pay their rent on time and more likely to renew their lease. Retaining tenants over a new lease removes all the time and hassle you endure seeking a new tenant, and removes the danger of lost income due to a vacant property.

How to Do it:

a) Deal with tenant’s problems promptly and professionally.

b) Respond to communications from the tenant clearly and unambiguously.

c) Let the tenant know that you value them and be clear about your expectations of the relationship.

2) Have a Well-Maintained Property

When a tenant is happy about their relationship with you they are more likely to respect your property and give it greater care. After all, a tenant who is simply waiting for their lease to be up so that they can get away from you is unlikely to bother spending extra time tending the garden or cleaning the walls.

a) Consider offering supplies for tenants who wish to decorate.

b) Consult with the tenant about redecoration plans.

c) If the property is not being kept to the standard you wish, politely inform the tenant of your expectations in writing – and make sure you keep up your end of the bargain.

3) Gain Early Notice of Any Problems

The earlier you are notified of problems in your property the easier and cheaper it can be to fix them. A small leak can be an inconvenience, but three weeks later when it has developed into a deluge you are facing massive bills and a potentially uninhabitable property.

How to Do it:

a) Make yourself easy to contact.

b) Do your best to accommodate your tenant’s preferences when you inspect or fix the problem – after all they will be less likely to contact you if it will require them to take a morning off work.

c) Respect your tenants in their home when you enter the property so that they do not avoid interacting with you.

4) Protect Yourself if Things go Wrong

It is always important to abide by your responsibilities under the law, as if things go wrong with your tenant you may need to call upon the protections that the law offers you. Of course, even with the best of tenants, a property can have problems such as accidental damage, liabilities on your part, and legal fees to sort out any issues that may occur.

How to Do it:

a) Get an appropriate level of landlord insurance to protect you from loss of rent, alternative accommodation bills, property damage and other problems.

b) Keep accurate records of your interactions with the tenant, invoices, taxes and similar.

c) Keep on the right side of the law.

Steve(BSP)

Property Investment Seminar

admin — Tue, 18 Oct 2011 17:03:04 +0000

Learn how the current market conditions are generating fantastic opportunities for the pro-active investor. Discover how working with a buyer’s agent can get you access to the best bargains in the property market.

Our property investment seminars will show you the most common mistakes that property investors make and how you can profit from our knowledge, experience and more importantly how to gain access to genuine below market value property investment opportunities.

stay tuned for more info

Steve. (BSP)

Are you looking to buy repossessed property?

admin — Wed, 12 Oct 2011 14:19:00 +0000

A question I am frequently asked is How to find repossessed property? This is because, most property investors know that if a property is repossessed, the property is usually put on the market for sale, for less than it is worth (below market value). Understandably, investors who are looking to pick up great property investments at a discount, look to buy repossessed properties from estate agents and auctions. Whilst in one way this makes good financial sense for the investor, who will be purchasing property below market value, it does not help the unfortunate individuals who have been repossessed.
According to recent figures released by the Council of Mortgage lenders, some 18,000 homes have been repossessed in the first half of 2011, with another 22,000 predicted for the second half of this year. It is estimated that a total of 45,000 homes may be repossessed in 2012.
My view on property investing is slightly different. Of course my aim is to increase my own personal wealth both in terms of immediate cash flow and long-term pension provision, however I believe that I can help other people along the way. In fact I believe by helping other people we will all become wealthier in many ways, not just financially.
Instead of looking to purchase cheap repossessed property below market value, I find people before they get repossessed, and see if we can save them from repossession by reaching an ethical win-win solution that works for all concerned.
Let me make it quite clear, I’m not a charity, and I am looking to make money from every deal I do, but that does not need to be at the expense of someone else. Far from it, in many cases we can reach an agreement whereby the seller can avoid repossession and so end up in a much better financial situation, then if they were repossessed.
Generally, people who are about to get repossessed are quite motivated to find a solution to the problem. Unfortunately, we can’t help everyone, and some people bury their heads in the sand just hoping the problem will go away. The key to being a successful property investor is to know how to find motivated sellers, and understand their problem, and find an ethical win-win solution.
There are many different types of motivated seller. People who are about to get their home repossessed is just one type of motivated seller. The two most important things for motivated sellers are, speed and certainty of sale, which are actually more important than the amount of revenue generated from the sale.
If you would like to learn more about how to find motivated sellers, then stay tuned to BSP. We are due to be running seminars across the UK through October till December and then into the new year teaching you how to build your own property portfolio using the No Money Down system utilising motivated sellers to create a win win ethical solution.
Steve (BSP)

The UK’s top property hotspots of 2011

admin — Tue, 20 Sep 2011 17:01:59 +0000

Looking to buy your first home or take a step up the housing ladder in 2011? Find out where the hot property is this year with our guide to the Top 5 places to buy around the UK
Are you looking for somewhere cool and happening to live, or maybe hoping to make some money on your property in the next few years? Either way, identifying and buying in the next “up and coming” property hotspot is a good ploy – but it can be a tricky task.
However, there are certain signs you can look out for to improve your chances of choosing a winning location. An area worth investing in could be the subject of a regeneration scheme or improved transport links, or perhaps the location of a big upcoming event.
Chains such as Starbucks and Waitrose opening up on the high street and an influx of estate agents could also suggest a booming housing market. But there are lots of other factors to consider too.

To take the pain out of picking, we take a look at a few of the hottest places in Britain to buy property in the coming year.

• Chelmsford, Essex
Why here? This Essex town is well placed for transport links – just 35 minutes by train to London and a 30-minute drive to Stansted – so it’s ideal for commuters.

“Chelmsford has much to offer homebuyers,“ says Simon Mansfield, director of Charltons estate agents. “Its popularity with families has been boosted by the presence of two of the best grammar schools in the country, with a good variety of housing stock.

“These factors have all contributed to the fact that Chelmsford has emerged relatively unscathed from the downturn – looking forward, this will also ensure that a property investment in the town has a rosy long-term future.”

Hot property: Chelmsford offers everything from period townhouses to pretty village homes.

Typical property price in 2010: £191,644
• Medway, Kent
Why here? Developer Berkeley is launching a waterside village, Victory Pier, in the spring. The development at Medway Waterfront, near Chatham, boasts waterside living just 45 minutes from London.

“We are very excited about Victory Pier, which is transforming a former brownfield site into a highly desirable destination in its own right,” says Matthew Biddle, managing director of Berkeley First. “It will offer a choice of well-designed homes, commercial space for restaurants, cafés and retail uses, a 120-bedroom hotel, residents’ gym, riverside walks and moorings for boat owners.”

Prices at Victory Pier start from just £89,950. In short, it’s cheap, it’s cool and it’s not far from London.

Hot property: New developments by the water are ripe for the picking. However, note that other parts of the Medway towns aren’t half as nice.

Typical asking prices in 2010: £142,768

• Bloomsbury, Central London
Why here? OK, this is really only an option if you’re reasonably rich, but Bloomsbury is set to become a seriously sought-after location in the capital in 2011.

Robert McLaughlin, regional sales director at estate agent Kinleigh Folkard & Hayward, says the area is already seeing increased demand. “Bloomsbury is very much an up-and-coming area in central London,” he says. “This is due to its excellent proximity to the centre of town, strong demand from overseas buyers and comparatively cheaper property prices than neighbouring Marylebone or Mayfair.”

Hot property: Large Georgian houses tend to be popular but rarely come up for sale, so it’s best to act quickly if you see one you like.

Typical property price in 2010: £341,105

• North Northamptonshire
Why here? Kettering, Corby and Wellingborough in Northamptonshire are all becoming increasingly popular, particularly with expanding families and first-time buyers looking to move out of the capital. All three towns have recently benefited from major investment and large development projects.

“[These towns] stack up well against traditional London commuter locations, ie travel costs can be offset by four-bedroom houses costing £170,000, and new two-bedroom houses at ambitious new developments such as Priors Hall Park are available for £115,000,” says a spokesperson for the North Northants Development Company.

“The area also offers great value in comparison to neighbouring cities such as Milton Keynes and Peterborough.”

Hot property: Look out for new builds: more than 6,000 new homes are being built at Upper Redhill and Stanton Cross to the east of Wellingborough.

Typical property price in 2010: £139,015

• West Berkshire/North Hampshire
Why here? Avington, Ovington and Cheriton near Winchester look set to be popular in 2011, as do The Candover Valley, Ibworth and Hannington, which are all near Basingstoke.

Bobby Hall, partner at The Buying Solution, says these areas boast attractive countryside, handsome architecture, easy access to London and a selection of good schools.

“There are a number of good commuter lines into London within easy reach of rural village locations.

(BSP)

What Would You do if You Were Starting to Invest in Real Estate Today?

admin — Mon, 05 Sep 2011 17:00:56 +0000

What would you do if you were starting today?

The very first thing I would do is get down on my knees and thank my lucky stars to be beginning my investment career at absolutely the best time of our lifetime!!! Remember fortunes are made by investing at depressed levels and at the bottom or near bottom of cycles.

Research Phase: Analyze Your Market & Learn What DEALS Really Are

The next thing I would do is get off my butt and start doing my basic homework. I would go out and see no less than 50 and probably 100 properties in my investment area of choice. I am not kidding!!! I would immediately build a spreadsheet with data on no less than 100 properties. Things like Prices, Expected Rents, Repair Budgets, etc. This would give me the basis or foundation to understand what is a good deal, what is a bad deal and what is a great deal!!!!

Establish Your Deal Selection Criteria

After I have built my basic understanding of the market I would decide on what criteria I want to use to decide on what is and isn’t a good deal. I recommend every investor pick one metric that is easily transferable between property types. For me that metric is “Yield” or my expect return on all cash outlaid to secure and rehab a property. Today I personally look for expected yields in excess of 20% in my market.

Start to Make Offers

After understanding my market and deciding on my criteria for identifying a great deal I would start making offers on properties that met my criteria. I would hold fast to my criteria and not let bidding wars drive up prices. In fact you should only expect to get 1 out of every 10 properties you make an offer on. If your success rate is higher than that I believe you are offering too much on your properties.