Posts Tagged ‘Sourcing’

Do you need to consider a Contractor Mortgage?

The following article has been submitted for publication by Rob Turner of Contractor Mortgages Made Easy. Walker Fox have no affiliation with Contractor Mortgages Made Easy and this article is published entirely for information purposes only and should not be considered as financial advice or otherwise.

 

What is a contractor mortgage?

Obtaining a mortgage in recent years has become increasingly difficult for a variety of different people. With so many people applying for loans, all of which possess different economic situations, many lenders have begun to recognise the need for a variety of different mortgages, so that an array of people are able to obtain the right mortgage for them.

 

A group of people that often struggle to obtain a mortgage more than any other group is contractors and often the only and best option available to contractors is a contractor mortgage. A contractor mortgage is considered by lenders as a ‘prime rate’ mortgage product that includes bespoke underwriting. Essentially this means that a mortgage lender will carefully and thoroughly assess a contractor’s application on an individual basis rather than a ‘one fits all’ mortgage offered to other borrowers.

 

There are a range of different factors that are considered by lenders for each individual borrower, these factors include the contract rate of the contractor. The current retained profits of the individual. Also the duration of existing contracts held by the borrower and the length of time an individual has been a contractor or freelancer. All of these factors essentially assess a contractor’s financial stability, job stability, current assets as well as assess a number of other aspects of an individual’s employment.

 

A large number of people can apply for a contractor mortgage because many lenders do not have a set of criteria for this type of mortgage. In fact many people will be surprised at the variety of mortgage products available for this type of mortgage, for example first time buyers or those with an adverse credit rating may benefit from choosing a contractor mortgage. Although, contractor mortgages are often only recommended to contractors and the self-employed as it offers these individuals the most benefits.

 

While there are a number of other alternatives for contractors and certain contractor mortgages can be difficult to obtain, most lenders who offer this option strongly recommend it as it can offer the most benefits to self employed individuals.

Contractor Mortgages Made Easy is a trading name of Mortgages Made Easy Limited.
Authorised and regulated by the Financial Services Authority (FSA reg. 414798).
Registered in England No. 4886692 Registered Office: 9 London Road, Southampton SO15 2AE.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Please be aware that Buy To Let, Commercial Mortgages and Overseas Mortgages are not regulated by the Financial Services Authority.

 

Walker Fox Ltd are Commercial Management & Property Consultants who act for property investor clients in and around Wakefield, West Yorkshire.

Please leave a comment if you have enjoyed the article or contact Walker Fox on 01924 896190, via email info@walkerfox.co.uk, Skype: walkerfox or connect on Twitter@walkerfox

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Top 4 investment fund and residential property investment in Wakefield

Your Property Club recently published an article about why now is such a great time to invest in property.

Lambda Alpha, it’s the honorary society for the advancement of land economics, a worldwide fraternity of property professionals, made up of architects, solicitors, town planners, academics, developers and a whole host of other property-related people.

 

Bret Alegre-Wood of Your Property Club is a Board member of the London Chapter, and recently spent a week in Scotland at the annual Land Economics weekend designed to showcase a city’s land economics.

One of the symposiums was hosted by Scottish Widows Investment Fund (SWIP) who are in turn owned by Lloyds who are currently the 4th largest fund in the world, and during the usual dry commentary about Scotland and the benefits of fund management some interesting statistics actually came out that Brett has introduced into his article.

These are the stats that SWIP are basing their investment decisions on over the next five years.

1. They believe that property will be the best performing assets class over at least the next five years (to at least 2016).

2. They believe that it will grow by at least 15% over the next 3 to 5 years due to a lack of supply and a return to lending.

3. They believe this will start in earnest in the middle of 2012.

At Walker Fox, as Property Consultants who specialise in Wakefield, we always maintain that investing in property is a great long term strategy and ‘now’ is always the right time to take action.

 

After the Symposium, Brett reportedly asked the Fund Manager which sector he felt would be a better investment over the next 5 years. Expecting to hear ‘the commercial sector will see a return to fortune‘ or some other version of the usual party line. (This is typical because residential is normally too small a transaction value for them to consider so therefore it’s not an option.)

The initial answer seemed at first to go down that road: ‘The commercial sector will see increasing yields‘, but after pressing some more, he admitted ‘we’re very upbeat about residential, values have clearly bottomed out and nowhere is the lack of supply more pronounced‘.

Not quite a full admission that residential is better than commercial but it’s a very positive sign to read that a fund manager agrees that residential property is a good investment.

If the fourth biggest fund in the world thinks property is a good investment over the next 5 years it might it be time for YOU to seriously consider jumping in too?

The average property in the Wakefield area has historically been affordable, none more so than in the past couple of months. As with many other regions, prices have risen slightly in April to £121,002, represents an increase of 0.2% as reported by the official statistics from HM Land Registry.

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Green Towns – From Eco to ‘No go’ A guest blog by Graham Barnfield

Until the 2010 general election, one of the cornerstone proposals of UK housing policy was the creation of “eco-towns”, pioneered by then Chancellor of the Exchequer Gordon Brown. His push for a new, environmentally conscious type of conurbation has been reinforced by official insistence that new-build flats and houses also incorporate a wide range of energy-saving, carbon neutral technologies. Taken together, these policies represent a new approach to meeting Britain’s housing needs.

Green Home

In a country where the volume of new-build housing is at best insubstantial, all this seems like a welcome development. Britain is still a long way off completing the estimated five million new homes needed by 2010, but optimistic estimates suggest that eco-towns can make a dent in this target. Central government support for these proposals remained strong right up until the formation of a new Parliament.

 

On a more administrative level, local projects are often nudged into accepting “green” technologies as a consequence of the planning process. Developers face an expanded range of technical stipulations when applying for planning permission, with energy efficiency and carbon neutrality as key objectives. In its intentions, it seems the planning system wants to make every future home into an eco-home.

 

Yet public support for such projects is often limited. Ever since the 1969 Skeffington Report, planning decisions require local consultation. Effectively, this meant that well-organised NIMBYs – the “not in my back yard” brigade – can block new homes at will, even eco-homes. According to construction consultant James Heartfield, “this policy is designed to square the circle of a commitment to defending the countryside against expansion, while also getting new homes built. Of course, the policy is all things to all people, which is the same as being nothing at all.”

 

In contrast, supporters of eco-homes argue that skeptics like Heartfield are helping to destroy the planet. This can be seen from the response to pundit Germaine Greer, who wrote in The Guardian newspaper of her constructive criticism of eco-homes, apparently prompting a sack of hate-mail from environmentalists. Greer’s article claimed that Gordon Brown’s eco-towns would need innovative design – specifically moveable solar panels – if they are not to be environmentally catastrophic and useless to their inhabitants. “My view of vernacular architecture is that it is a thing of the past – often lovely to look at, terrible to live in,” she claimed (11 August 2008). Hostility to Greer demonstrates the way that eco-towns invite public divisions, along the lines of existing beliefs and local loyalties.

 

Twelve years ago the Urban Task Force decreed that only land that was already built on – ‘brownfield’ rather than ‘greenfield’ land – should be developed. Following the logic of this, opponents of eco-towns, who often live in adjoining properties, are quick to redefine the sites of new developments as being in the countryside, regardless of the land’s previous function. Such arguments may decide the fate of Pennbury, a proposed settlement in Leicestershire built on land formerly owned by the Co-operative Society.

 

One step down from the creation of green towns is the installation of green technologies in individual new-build properties. Anecdotally, the results so far seem uneven, with residents reporting unreliable services and considerable inconvenience. A trip to Oakhurst Court (now renamed)  – an “affordable housing” settlement built on the site of a former timber yard in northeast London five years ago – shows how some of these projects are shaping up. The Court was marketed in ways which made much of its environmental credentials. In one corner of the L-shaped estate was an electricity generation wind turbine, while solar panels adorn the sloping roofs. In turn, each panel is linked to a water tank, underwriting the promise of free hot water, warmed by the sun.

Here the problems began – as more or less conceded by the developers within months of handing over the last set of keys. First of all the wind turbine was dismantled, allegedly because it presented a safety hazard when faced with, er, high winds. It did not last long enough to assess its real ability to supplement residents’ electricity supplies, let alone sell power back to the National Grid. Once the British winter got under way, the solar panels fared little better than the turbine. Before long workmen were going door to door, installing timer switches to the “emergency only” immersion heaters. This allowed residents to bathe and shower without having to rely on adequate supplies of sunshine breaking through the clouds all year round.

 

In fairness to Oakhurst Court, the causes of some of the residents’ problems are far from technical. The “mixed use” aspect of the development eventually filled the set aside “key worker” flats with actual owners, some of whom subsequently moved house as part of their jobs. Meanwhile neighbouring properties were purchased by buy-to-let landlords, leading to high turnover in tenancies. The promise of community has proved elusive, meaning that the luxuriant, grassy play area is not the site of countless barbecues and get-togethers, but instead a “Panopticon yard” and peeper’s paradise. Communities seldom form spontaneously, but even the diluted eco-housing of a place like Oakhurst Court throws up artificial barriers to neighbours really getting to know each other.

 

In microcosm, the Oakhurst Court experience tends to confirm the wider lack of support for the concept of eco-housing. Residents tend to find the eco-measures inconvenient and time-wasting, whereas the true believers committed to the concept will accept the nuisance associated with these measures. The future residents of eco-towns will tend to be a self-selecting bunch, willing to tolerate the petty inconveniences that will be built into these projects – if they get built at all.

 

About the author

Graham Barnfield is Programme Leader for BA Journalism at the University of East London. He is a domain editor for Reconstruction: Studies in Contemporary Culture and a Fellow of the Wolfsonian-FIU. With Philip Hammond, he co-edited the 2011 Journal of War and Culture Studies special edition on the Global War on Terror in News and Popular Culture.

This article was compiled by Rob Hubbard of Walker Fox Ltd.

Walker Fox Ltd are Commercial Management & Property Consultants who act for property investor clients in and around Wakefield, West Yorkshire.

Please leave a comment if you have enjoyed the article or contact Walker Fox on 01924 896190, via email info@walkerfox.co.uk, Skype: walkerfox or connect on Twitter @walkerfox

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Brief guide to the simple way to value investment property

 

HM Land Registry 2

Image via Wikipedia

A recent report in the FT polarises the subjectivity of value in a commercial marketplace.

Several independent analysts have recently argued that Ocado (the online grocer selling Waitrose food) , which has never made a pre-tax profit and last year reported a £25.5m pre-tax loss on sales of £402m, is worth considerably less than the £800m-£1.1bn range that the retailer set out on it. They put its value at about £500m-£600m.

This can readily be applied to property values.

1. Rightmove

 

Image representing Rightmove as depicted in Cr...

Image via CrunchBase

Most people rely on a search on one of the many property portals that now reside on the web, by far the largest and most popular being rightmove.

The savvier might incorporate usage with the likes of Property Bee to see how properties have been amended, re-listed, re-valued etc. since their original posting. Often useful information can be gleaned.

However, these sites only give us the values that the vendors and the estate agents think that the property is worth. The vendor (in most cases at least) wants to obtain the maximum price, a strategy supported by the agent who normally works on a commission basis.

2 & 3 Mouseprice & NetHousePrices

The next step is usually a visit to one of the property price aggregators such as Mouseprice or nethouseprices

4 HM Land Registry

These types of site, whilst invaluable can only provide factual data based on historic property purchase, information which is obtained from the Land Registry. Although Mouseprice for example provides and estimated current price, by their own admission it can be quite inaccurate.

Here lies the quandary, how can we establish what the true, up to date value of an investment property is?

The fact is you can’t!

Value is entirely subjective; once a purchase has been made the sum paid becomes the cost, an objective number. In other words, a property is worth what purchaser is prepared to buy it from a vendor.

Detailed analysis can be built up using historical data, local knowledge or even “gut feel” However, a valuation even when undertaken by a Chartered Building Surveyor can only be an estimate albeit an educated one.

Another way is to adopt a general rule of thumb, as supported by London-born Cypriot Andreas Panayiotou who sold much of his £1 billion property portfolio before prices began falling between 2007 and 2009.  (Read more of this on the Property Tribes thread started by property expert Lisa Orme here)

Andreas advocates that in the current market, only properties that are available at around 30% of their peak value (2007ish) should be considered for purchase.

Despite the past track record of Andreas Panayiotu which speaks for itself, it remains that this strategy is not without risk and must rely on good due diligence.

Due diligence is a must when researching a property purchase for investment. You should never rely upon a third party to spend your money for you. If you don’t have the time or knowledge to undertake all of the research yourself then it is wise to employ the services of a professional property sourcer, you could ask your mortgage broker for a referral or visit one of the more professional property forums such as Property Tribes. Under no circumstances however should it be necessary to part with large sums of money just to get hold of property details.

Even if you are happy with the information that a trusted professional has provided you with, ensure that you check out the information yourself, just to be certain that any decision that you make is a fully informed one.

We hope that you find this article of interest, if you do please tell your friends too.

About Walker Fox

Walker Fox Ltd act as professional property sourcers and buying agents working with property investors sourcing Below Market Value ‘BMV’ property deals to add to their property portfolio in Wakefield & the Five Towns Area (Pontefract, Castleford, Normanton, Knottingley & Featherstone) of West Yorkshire

Rob Hubbard has over twenty years experience in the construction industry in commercial roles dealing with procurement, valuation of works and variations, agreement of accounts and dispute resolution.

How can I find out more?

Contact Rob Hubbard on 01924 896190 or email info@walkerfox.co.uk

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Walker Fox, the social web, property and how much Google loves us all

In response to yesterdays exercise entitled ‘Me, the social web, property and how much Google loves us all’ another good friend of mine, Nick Parkin of Pimlico Flats left a comment asking about the success of the Google term ‘Wakefield Property Consultant’ as essentially this is what we do and should have at least as much exposure as the founder, Rob Hubbard (me!)

The results however are a little disappointing to say the least.

By clicking on the logo below, you can view them for yourselves.

Property consultant wakefield

The first seven listings on Page One are sponsored, Walker Fox does not feature until position seven and then doesn’t feature again until Page Two, listing four….most disappointing to say the least.

This means that the relevant content that Walker Fox are putting out on the web is not effectively transmitting the message of what we do ie Consult on Property matters. By reviewing the content on the static pages in the first instance and then adding new content on a regular basis which is relevant to the term ‘Property Consultant’ and associated terms, the rankings should improve significantly.

Incidentally, Googling the term ‘Property Sourcing Wakefield’ provides Page One listings One to Three, all of which are articles on this blog and at listing seven.

Please feel free to leave a comment if you have enjoyed this article. Alternatively, why not try your own google search and link back to this as the inspirational source.

Again, a special thanks to Nick Parkin & thanks for reading.

Rob

Commercial Management & Property Consultant,
Wakefield, West Yorkshire
Please visit my website, read the property blog & leave a comment; www.walkerfox.co.uk
E: rob@walkerfox.co.uk M: 07960 753550 T: @walkerfox S: Walkerfox

2011 dates announced for Northern Property Tribes, The meeting for Property Investors


We have pleasure in announcing the 2011 dates for the gathering of the Northern Property Tribe.

19 January 2011

16 March 2011

18 May 2011

20 July 2011

21 September 2011

16 November 2011

The Northern Property Tribe is a regional group born out of the online community ‘Property Tribes’. We stand for 100% Property; networking, discussion and education. Come and find out what is happening in the tribe and uncover the insider knowledge and connections that will help you succeed!

For more details and to book your place, please visit our website

My afternoon with John Paul from The Castledene Group

I had a really interesting day on Monday of this week. I spent the afternoon working with John Paul who is Managing Director of the hugely successful and award-winning property based, The Castledene Group.

The Castledene Group has been operating in the North East of England area since 2008 and is the local company with the local presence. They are one of the biggest lettings agents in the North East of England with over 1,000 properties in their managed portfolio and strongly believe in their strap line

We are big enough to cope but small enough to care.”

Castledene have developed through a mixture of organic growth and careful acquisition of existing Letting Agents. John Paul has clear and decisive expansion plans for 2011 including the opening of further Castledene branded agents across the North of England.

The Castledene Group provide professional lettings, construction and property management service, which embraces the principles of quality and customer care. We do Offering specialist services all under one roof, their aim is to make the property experience more enjoyable for all involved.

John Paul is passionate about development and sustainability in the North East of England and in particular the town of Easington where John lives, works and invests himself.

With this in mind, and the current economic climate with the threat of a potential ‘double dip’ to the UK housing market, John Paul and his team at Castledene are now advocating to investors that they put into each and every property investment a minimum cash deposit of at least 25% of the purchase price.

Due to their detailed knowledge and contacts within the local housing markets, Castledene can minimise the amount that the investors have to put into the purchase at the outset.

John says, “My clients are the most important part of my business and their continued prosperity allows me to develop and grow my own business”

As part of the property investment service, Castledene can offer the use of their team of property professionals including mortgage broker, solicitor and insurance broker. All of these professionals are passed on at cost price, which is negotiated on behalf of their customers by Castledene.

Unlike many package deal companies, the use of any in-house company, including Castledene Construction for the refurbishment works is entirely optional and has no effect on fees payable.

Should you want to find out more about The Castledene Group you can visit their website at www.thecastledenegroup.com or telephone 0191 427 4000 for property management or 0191 427 4007 for property investment.

If you would like to comment on this article our discuss any of the content on this site, please contact me on 07960 753550 or via email rob@walkerfox.co.uk or to visit our website on www.walkerfox.co.uk.

You can also follow us on Twitter.

Walker Fox visits Leeds PIN meeting

Last night I attended the Leeds PIN meeting (Property Investors Network) at the Crowne Plaza hotel in Leeds city centre.

The meeting was held in a ground floor function room in the hotel with seats set in a traditional theatre layout facing the speakers table at the front of the room, their were chairs set for around 40 guests.

I attended with friend and colleague John Paul from The Castledene Group, John had travelled down from County Durham to see if he could meet a few more people in advance of speaking at the PIN Manchester meeting next week.

We arrived at 6.00pm for registration which for us, merely involved writing our names on a sticker to wear as we were both pre-registered onto the event. Interestingly, for new attendees (as we both were) our names were underlined. This was to highlight us as ‘new people’ to other new people so that we all felt more comfortable and not alone.

By around 6.45pm the room was almost full and people were mixing well and chatting between themselves. I had the pleasure of meeting my youngest ever property investor yet, a young gentleman age only 15! He was telling me about his latest deal whereby he negotiated a purchase of a property worth 67k for an agreed price of only 36k, wow! I thought, what a negotiator!

The meeting was opened by Dave Price who is the local host for Property Investors Network, Dave ran through a brief agenda and also advised that this months free prize draw for those who had pre-registered for the event would be a free place on one of Simon Zutshi’s training days.

We were presented with a local Lettings Update by Lee Sykes of Concentric Lettings in Guiseley, Leeds shared with the room some interesting information such as an increase in rental demand of around 19% in Q3 of 2010 along with a note of caution due to a new trend emerging towards bogus letting agents who are tricking prospective tenants into parting with deposit bonds and advance rental payments for properties that don not actually exist.

Leeds PIN something new this month, it was entitled ‘speed networking’ this concept involved the delegates being split into two groups facing each other. You were then given 30 seconds to tell the person opposite about yourself and what your involvement in property is. After 30 seconds, the roles of speaker/listener were reversed. Each minute, the person on the inside line moved down a place and the process was repeated. The general concensus was that this was a great way of meeting new people without waffling on. However, 1 minute per person would have been a better time period.

The main speaker for the event was Glenn Ackroyd. Glenn shared with us his background from growing up within a state benefit culture on a Bradford housing estate through obtaining his first job at the local county court to becoming a successful property investor owning over 100 properties.

Glenn spoke at length about the importance of a good strategy and explained how he faced financial ruin at the onset of the financial crisis back in 2008 and the steps that he has personally put into place since in order to protect his portfolio and now has the opportunity to share some of these strategies with others. Incidentally, Glenn will be having an in-depth article published in the December edition of Your Property Network magazine on this subject.

After the main speaker there was a general networking/discussion period. As it was around 9.00pm I said goodbye to a few people and made my way home having thoroughly enjoyed my evening and an intention to attend the next event in the New Year.

If you would like to comment on this article our discuss any of the content on this site, please contact me on 07960 753550 or via email rob@walkerfox.co.uk or to visit our website on www.walkerfox.co.uk.

You can also follow us on Twitter.

Walker Fox interviewed by Vanessa Warwick of Property Tribes

There is a lot of talk about ethical trading both on the Property Tribes forum where I often hang out and elsewhere, I was invited by Vanessa Warwick of Property Tribes to discuss this topic.


The longevity of posting on the web

We often hear stories of how current or prospective employers check out social media sites of their employees.

It’s not just limited to employers. In fact only yesterday while I was having coffee with a friend, she told me about her cousins wife.

Her cousin is married to a Thai, and they live in Thailand. However, when applying for her visa to UK immigration, they have now asked for access to her Facebook account.

Coincidentally, only a day later I came across the following article by Hayden Smith in The Metro newspaper.

Google exposes data ‘snooping’

GOOGLE receives seven requests a day from British government agencies for users’ internet data, new figures show.

A total of 1,343 requests for information on users of Google services including YouTube and email were made from January to June this year – the highest in Europe and the fourth highest in the world.

Google said it published the figures yesterday as a ‘deterrent to censorship’.

Attempts to acquire user data are mainly linked to criminal investigations submitted by police or other agencies. The figures do not cover all government requests and Google said it may add more categories as its tracking methods improve.

Google said that ‘data requests’ cover a vast number of circumstances.

It did not break down the different kinds of requests but said examples were account registration information and IP addresses from which a user logged in.

British authoritiesalso made 48 separate requests to the search giant to remove content in the first six months of 2010.

Campaign groups voiced fears about internet privacy.  Alex Dean, director of Big Brother Watch, said ‘This is a very worrying statistic which confirms that the government is becoming increasingly concerned with what we do online.

‘it is also a reminder that the internet is not a private place. Every search is made, email sent and page browsed is recorded by someone, somewhere.’

David Drummed, a senior Google executive, said: ‘We believe that this kind of transparency can be a deterrent to censorship.’

Google has a team trained to evaluate and respond to requests from government agencies.

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