Despite the fall in house prices in the last few months of 2005, recent studies suggest that house prices in 2006 are set to rise. With all the rising and falling it can be hard to weigh up the advantages and disadvantages of buy to let properties. We examine what you need to take into account when considering buy to let properties and where to turn for reliable property and mortgage advice.
The Commitment.
There is no denying that deciding to invest in buy to let properties is certainly a big commitment and the investor would be naive in thinking that it is just financial commitment, as any investment involving people inevitably leads to more involvement than simply investing in stocks and shares. So before you make any decision about investing in buy to let properties it important that you see the commitment for what it is: long-term work. It is not a get quick rich scheme, it is a long-term investment of your time and money which if managed and planned correctly should yield a reasonable source of second income.
The Purchase.
Once you have established that the investment in buy to let properties is one which you are fully informed about and happy to make, you need to begin to plan your next steps for purchasing the right property. The key at the purchase stage of buy to let properties investment is to ensure that you fully research all aspects of the purchase from the property itself down to the mortgage that you decide to apply for and take advice accordingly. An essential part of this research will involve deciding on an area which is best suited to buy to let properties. Your local estate agents are likely to have this kind of information and correctly advise you on the type of property you can buy within a desirable buy to let area for the amount of money that you have and can borrow. Armed with this information you can then begin to search out the houses which are appropriate to your buy to let needs. You should avoid buying a house that you would deem to be suitable to your personal house buying preference and instead consider what attributes the house will need for buy to let purposes. Again the estate agents should be able to offer you advice on this.
The Mortgage.
The mortgage required for buy to let properties is different to your average domestic mortgage which is why it is always advisable to visit a specialist buy to let mortgage broker. A specialist broker will have contact with a wide range of buy to let mortgage lenders and will know which lender is most suitable to your individual set of circumstances. It should be noted however that you will normally be required to put down a 15% deposit on your buy to let mortgage and that these type of mortgages are more likely to be subjected to a higher rate of interest than a domestic mortgage. The amount you will be able to borrow will be dependant on your current salary or the amount of rent you are likely to be able to charge, or both. A specialist mortgage broker will be able to guide on the type of buy to let properties mortgage you will be able to acquire and find a suitable mortgage to suit your buy to let needs.
A condo hotel unit, or ?condotel,? is typically a three-star or higher property with a management company that takes care of all the hassles typically associated with ownership, including maintenance and finding renters when you're not using your condotel unit.
With many new condo hotel properties coming on the market, when is the best time to buy? The answer is easy. In early pre-construction phase of development. Most condo hotels begin selling their units long before the property is built, and often before even the first shovel-full of dirt is overturned. The idea behind a pre-construction purchase is that you're buying tomorrow's property at today's price.
One such property now on the market in the Philippines is Pacific Concord Properties, Inc., Flagship Lancaster Suites Condotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, one of the hottest Condotel Investments in the Philippines
To be called Lancaster - The Atrium [which is the second Tower adjacent to the existing ?Sold Out? Tower I] PCPI is now accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account ?Buyer Safe? Easy Secure Payment Plans? with 6 year interest free payment terms or up to 12 year ?In-House? financing available, full condo ownership, no management costs for Condotel Suites, and minimum monthly maintenance fees, as buyers or sellers of Real Estate you really should take a moment to look at this Philippine Condotel Investment Opportunity
Marketed by PLC International Marketing Networks, the lead Marketing Partners with PCPI, the Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a ?Full Service? Condominium Hotel [?Condotel?] offering Studio, One, Two and Three Bedroom Suites for sale.
To be completed and ready for turnover from December 2009/2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool.
Beth Collingz, PLC's International Marketing Director said ?This is a great investment opportunity for Fil-Am's whom visit Manila for Vacations or Business as they can earn Rental Incomes [at current purchase levels] of some 12-16% ROI per annum as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites one of the Hottest Investment Opportunities in the Philippines?.
All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be finished but not fully furnished. Included in the current price are the interior finishing's such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, living and dining area tiled floorings and lower kitchen cabinets/work tops installed. A complete optional extra interior fit-out package including appliances will be available towards the time the units are closer to being completed towards the latter part of 2009. Monthly condo dues are currently around 80 pesos/square meter of the unit floor area/month..
The Lancaster Atrium Suites are now available on the very affordable and competitive New Payment Plan that provides for Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification ?In-House? Finance Plans?
The current selling price [effective March 1, 2007] for the Lancaster Manila Atrium Tower A Tax Exempt Studio Units is Pesos 75,888 or $1,615.00 per sqm. The One Bedroom, Two and Three Bedroom Suites are priced at Pesos 84,994.56 or $1,808.80 per sqm including Government Taxes [R-Vat 12%]. Units may be purchased on a Six Year No Interest Charge Term of payment or longer term ?In-House? financing plans. Turnover of units for Tower A will be from December 2009/2010
?Foreign Nationals are legally allowed to purchase as much as 40% of the total number of condominium units on the market at any given time. Overseas Filipinos and more and more foreigners are now emerging as a market for condotel units. Many or our clients are coming from different countries like South Korea, Australia, United Kingdom, Saudi Arabia and other parts of the Middle East? Collingz said.
Appreciation Makes Pre-construction Appealing. Some people wonder why they should buy in pre-construction phases. After all, your deposit monies are tied up for one to two years. The answer is you get in on the ground floor when prices are lowest and unit selection is greatest. As the condo hotel is being built, it is gradually appreciating. Developers implement planned price increases at various stages of the selling process, often as many as three to five price hikes.
If you purchase your unit at a pre-construction price, it potentially could be worth significantly more at completion. When you sell, that translates into a higher profit for you. The actual profit of course depends on the general market conditions, interest rates and competition. All preconstruction payments will be made to the Lancaster Suites Manila Atrium Tower A Equitable PCI Bank Escrow Trust Account. It is anticipated, given the track record on sales of Tower I Units that property appreciation for initial buyers of Tower A Atrium Units will be at least 60-70% on turnover of units.
Beth Collingz is the International Marketing Director for PLC Global Pinoy located in Metro Manila, which specializes in the sale of the Lancaster Brand of condo hotels. Visit her web site, www.plcglobalpinoy.com for more information on condo hotels and to see condo hotel listings, photos and prices.
Both Elizabeth Grant & Lancastersuites are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Elizabeth Grant has sinced written about articles on various topics from Mortgage, Retirement and Finances. Elizabeth Grant writes exclusively for specialist mortgage websites. To read more of Elizabeth 's articles on Buy to Let Mortgages please v. Elizabeth Grant's top article generates over 40500 views. to your Favourites.
Lancastersuites has sinced written about articles on various topics from Real Estate, Investments and Property Investment. Pacific Concord Properties Inc., Manila Head OfficeShaw Boulevard. Mandaluyong City.Metro Manila. Philippines 1552Phone: Manila [63 2] 717 1958Fax: Manila [63 2] 718 1828Email: plcsales@pldtdsl.nethttp://www.lancastersuites.comhttp://www.plcglobalpinoy.co. Lancastersuites's top article generates over 550000 views. to your Favourites.