Tag Archive | flats short leases

Help To Buy Criticised By First Time Buyers Group


sale boards to sitting tenants

The government’s flag ship policy Help To Buy Scheme has been slammed by PricedOut. The organisation which campaigns for more affordable housing said that the whilst the scheme had help just under 19,000 first time buyers get onto the housing ladder a further 245,000 were now unable to buy a home because prices had spiralled out of control. The group has calculated English Housing Survey’s income profile of private renters along with figures from the Office Of national Statistics on the latest house price index to show that three-quarters of private renters could no longer afford to buy their own property.

This is on the basis that a borrower would not borrow more that four times their income. With house prices predicted to rise by a further 8% in 2014 and wages growth not likely to increase significantly there is more concern that more first time buyers are going to be locked out of the market.

Although there are other factors that are pushing up prices the shear volume of buyers that are out there along with the lack of new homes being built the Help To Buy Scheme may have the opposite effect of what is was rolled out for. Instead of helping buyers get on the ladder it is actually inhibiting borrowers from buying. Of course there are two sides to this and many commentators have said that the Help to Buy Scheme has been the main driver for the housing market and has pulled the country out of the recession but this still doesn’t help those that still  can’t afford to buy.

Freehold Ground Rents


Not a lot of people will know that you can invest in freehold ground rents. Most of us will have paid a ground rent to our freeholder at the end of each year if we owned a flat that is, but not many people will have actually invested their money in buying these types of investments.

They are becoming increasingly popular amongst property investment  companies as they generally offer a good return on the money invested and you can more or less guarantee that your ground rent will be paid each year. If you purchase the freehold of a building you will be the person that receives the ground rent income each year. If you decide that you want to try to manage the property yourself (good luck) you will normally be able to charge your lessee a fee for doing so but be warned you will have to deal with the day-to-day running of the block and be on call for any emergencies that need tending to.

Most investors simply just want to collect the ground rent each year without dealing with the management of the building and therefore instruct a management company to look after the building. As a general rule ground rents are paying a return of between 5% – 7% so whilst interest rates are this low they may be worth having a look into. I will be updating this blog regularly but if in the meantime you have a ground rent to sell please visit my site at Ground Rents for Sale

 

Freehold Ground Rents


Not a lot of people will know that you can invest in freehold ground rents. Most of us will have paid a ground rent to our freeholder at the end of each year if we owned a flat that is, but not many people will have actually invested their money in buying these types of investments.

They are becoming increasingly popular amongst property investment  companies as they generally offer a good return on the money invested and you can more or less guarantee that your ground rent will be paid each year. If you purchase the freehold of a building you will be the person that receives the ground rent income each year. If you decide that you want to try to manage the property yourself (good luck) you will normally be able to charge your lessee a fee for doing so but be warned you will have to deal with the day-to-day running of the block and be on call for any emergencies that need tending to.

Most investors simply just want to collect the ground rent each year without dealing with the management of the building and therefore instruct a management company to look after the building. As a general rule ground rents are paying a return of between 5% – 7% so whilst interest rates are this low they may be worth having a look into. I will be updating this blog regularly but if in the meantime you have a ground rent to sell please visit my site at Ground Rents for Sale

 

Ground Rent Investments For Sale | Landlords No Fees


See on Scoop.itFreehold Ground Rents

Ground rents for sale across Britain. This is our up to date list of properties for sale.

See on www.groundrentsforsale.com

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