What is SIPPS? What is A-Day? How could it affect you? Do you have investment property or want to invest in property? These are all questions, that you will want to find answers to.

Referred to as A-Day, April 6th 2006 will be an historical date for pensions in the UK and will mark the beginning of one of the most radical changes in pension legislation for decades. It is because of this, that estate agents, developers, and any landlords looking to sell any suitable investment properties are encouraged to advertise their properties for sale now in the run up to this exciting day.

It will be the first time that a pension saver will be given ability to purchase residential buy to let property inside a SIPP (self-invested personal pension) and many industry experts are predicting a massive amount of interest from private individuals and pension fund managers that will want to be part of this potentially huge market. For those looking to be kept up to date on SIPPS, investment property for sale and other issues relating to buy to let, they can find out more by clicking here

For those looking to take their first step on to the buy to let ladder but not sure about all the technicalties surrounding SIPPS, it may be worth spending the next few months doing a bit of homework and looking at your current pension provisions. It may also be worth getting a simple buy to let guide
to get a basic understanding and also looking at some of the different buy to let mortgage products available. As investors get more experienced and learn more about SIPPS and how they can benefit from it as a landlord, they can then decide at which point to take things further. Once A-Day arrives in the UK, and the activity starts for newcomers to the buy to let market, it is anticipated that this may generate another boom for UK investment property. Most importantly landlords will see this as another ideal opportunity to snap up good quality one and two bedroom first time buyer property especially if it falls below the stamp duty threshold price bracket.

For those not yet committed to the buy to let market, this will be an ideal opportunity to purchase a ‘ready made’ buy to let with the advantage of earning income from day one if they purchase a property with tenants already in situ. For any landlords looking to sell their investment property, this media coverage surrounding SIPPS and A-Day, could create an ideal window of opportunity to sell their buy to lets as the demand is likely to increase for suitable investment property for sale. It may also be worth considering trying to sell investment properties with tenants in situ as investors will be keen to see properties knowing how they are already performing.

As a property investor concerned about cashflow and profit, the opportunity of selling an investment property with tenants in situ is that it can result in considerable savings during the sale process, not to mention that the landlord would retain the rental income whilst the property is being marketed. Plus, if the buy to let is sold to another property investor, they are less likely to be involved in a property chain and many experienced landlords have good relationships with buy to let mortgage lenders resulting in fast turnaround times for mortgage offers. The other benefits of selling your investment property with tenants in situ, is that it gives the newcomers to buy to let, the chance to purchase a ‘ready made’ investment property without the normal set up costs associated with sourcing tenants, tenancy agreements, credit checks etc. If the property is managed through a letting agent, and the landlord sold the property to another landlord, the letting agent will be grateful to maintain the property under their management. Therefore, the new owner hasn’t had the expense of souring new tenants, and paying the usual set up fees associated with letting a property. The letting agents retains responsibility for the property, the seller hasn’t lost any income and finally, the tenants haven’t had to find alternative accommodation whilst the property is for sale. It’s a win win situation.

If the new buyer decides to transfer the property into a SIPP at a later stage, then it is likely that there will be costs involved but a good SIPPS provider will assist in securing the right product for the investor.

Jennifer Tweed is the founder of buytolet4sale.com, one of the UK’s first property portals dedicated to all types of investment property for sale and everything you should need for your sale and purchase. Learn more about buy to let
.

Share This

Everyone has heard of seller financing. But not everyone understands it, or understands how it can benefit EVERYONE from property buyers, property sellers, real estate agents, investors, and of course, flippers.

The Seller

If you have ever sold a home, or are trying to sell a home, you know that sometimes finding someone who is both interested and qualified can be a hassle, especially if you desperately need to sell your home quickly. By understanding seller financing, you can decide on what terms to sell your home, and often demand a higher price. Seller financing simply means YOU are the bank. Instead of the buyer of your home having to go to a bank, get approved for a loan, get a check, then pay you, you would simply receive payments every month for your property until it was paid off. With the recent “creative financing” courses all over TV and the internet, these types of transactions are bigger than ever. However, agreeing to these terms of payment is not the bottom line. Investors purchase these notes because they can get a great return on their money, and have an investment that is secured by property. So you may decide to use seller financing to sell your home quickly, then turn around, and sell that I.O.U. or cash flow note, to an investor. The buyer gets the home they wanted, you got paid, and the investor is getting a return he wants for his money. You can see how greatly you can benefit by using this type of financing, and if you’re anything like me, I don’t like banks. I would much rather be in control and know exactly what I am getting because it’s on MY terms, not a bank’s.

The Buyer

For someone buying a home, seller financing allows someone who might not be able to qualify for a traditional mortgage, to purchase the home he/she would like. But understanding seller financing will allow you to negotiate with the seller to come to an agreement. Often people don’t get what they truely feel their home is worth. Seller financing allows you to structure a payment plan that is giving the seller the money they want for their home, while allowing you to pay them directly without credit approval. This technique has been used by investors and home buyers for years as a way to purchase homes and other property they might not be able to get otherwise. Then as a buyer, you can explain to the seller how they have the option of selling that mortgage to an investor and still getting their money. Once they sell it, it’s not their responsibility anymore.

The Flipper

No, I’m not talking about everyone’s favorite bottle-nosed dolphin. I’m talking about mortgage flippers. This is where you can build a huge source of income without ever investing money of your own. The only costs you have here are for advertising to the mortgage holders. This consist of envelopes, stamps, paper, postcards and a few classified ads. If you can find a way of investing for less than this, let me know, I’d love to hear it. Finding mortgage holders is not hard. There are litterally billions of dollars of new notes created yearly. The first place you can start looking, is where you are right now, the internet. These types of contracts are also recorded in county courthouses all over the country. Go to your local county courthouse, ask for the recorder of deeds, and ask if you can examine the public records. When you find one of these seller financed mortgages, you can simply contact them, explain to them they can sell their mortgage, and gather the information on it. With that information, you can present it to investors who purchase these notes. When you have an offer, then you can arrange for a simultaneous closing in an escrow account. If you’re looking to become a serious investor, this is an excellent way to generate cash for other types of investing, because you can litterally start with nothing. That is exactly why I personally started doing this type of investing.

My goal is to help sort out some of the mess when looking into real estate, as either an investor or a home buyer/seller. My website offers an explanation and the resources to further your real estate education. I offer a Note Listing service to purchase mortgages so you can profit from them.
http://www.getyourmoney.stlhosting.com

Share This

Perhaps the most important process of buying or selling your home is the “contract of purchase and sale”. This one contract must be the strongest link in the chain that holds your purchase or sale together. The intent of each item included in this contract must be clear with no misunderstandings. In other words, everyone understand what to do and when to do it.

The “contract of purchase and sale” has been developed by the B.C. Real Estate Association and the Canadian Bar Association within British Columbia. This contract is mostly suitable for residential real estate and should not be used for commercial transactions. One major issue in the contract of purchase and sale that is often over looked is the numbering of pages. The approved contract and all ammendum pages should be cross referenced. The appropriate page number should be written at the top of each page (i.e., Page 1 of 3, or Page 2 of 3 and so forth).

An amendment to an original contract of purchase and sale is essentially known as a change in the agreement. This new agreement that has been made should be put in writing in what as known as an “addendum form” and signed by all the parties to the contract. Each of these parties much receive a copy and this copy must be dated appropriately. The amendment done on the addendum form must clearly refer to the original contract and “all other terms and conditions remain the same” should be in writing after the change.

Are you out of the country or out of the province? The seller or buyer may appoint someone (realtor or another person) to act on his or her behalf with regards to any real estate transaction. This authorization should explain the exact terms and conditions under what authority the person has to sign on an agreement. For example: A telegram, letter or fax may be perfectly fine for this person to sign for. However, the signing of legal binding agreement may need the signature of “power of attorney”. When a person is granting the power of attorney to another individual, the proper way to complete this is as shown. However, should not be taken as legal advice and should not be used without first consulting your lawyer.

” First-Name Last-Name grants a power of attorney to her friend First-Name Last-Name to enter into contracts for the sale of his/her property.” This friend could then sign both the listing contract and any other contracts including the contract of purchase and sale. This agreement should be witnessed by another person. This should be done on the correct form provided by your lawyer of choice. Legal Counsel is recommended that all parties to a transaction be advised to have legal advice from separate lawyers.

“Subject to” Clauses in the purchase of your new home, condo, apartment or mobile home is a very important binding element of your agreement. If one or both parties are not clear, this can weaken your agreement and could alter the original intentions of the purchase and sale. The ideal subject clause is one whose criteria are so clear that it is completely obvious whether the criteria for satisfying that clause are met. When your looking at your clauses consider this. Is your clause subjective or objective? Here’s the difference:

A subjective - Is one that depends on the personal view of the individual who decides it.

An Objective - (in contrast) Is an objective clause that depends on the external event.

The more subjective the wording of a subject clause, the higher the chases the court system in British Columbia will find the clause to be uncertain. So how do you make your clause more objective? Make it clear so that everyone may easily know whether the clause is fulfilled or not. The more objective it is, the more you can prove whether the subject clause is completed or not.

Your local realtor is required to take a course on proper contractual writing and should have an innate knowledge of the law. If you have questions, don’t only present your questions or concerts to your realtor, but your lawyer as well. For the most part the experience of your realtor and the requirements put forth by the BCREA (British Columbia Real Estate Association) should be sufficient. In conclusion the be sure that all pages are numbered, the addendum is clear with signatures and that your “subject to” clauses are clear and objective.

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada’s Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada’s Fraser Valley Real Estate Market

Share This