Wealthy investors urged to consider affordable flats - Published:22/12/07
All times are London time look for News in the FTcom siteSearchSearch Quotes in the FTcom siteQuotesYOUR MONEY Your investmentsBreadcrumb follow navigation:FT Home > Your money > Your investmentsEDITOR’S CHOICEMortgage amount overdue alarm could be falseDon't miss the ship on this homebuying boomHouse prices increase despite interest speed riseFT index shows house prices calmingEducation in hire as landlords look for bargainsUK’s high house prices be unsuccessful to deter buy-to-let landlordsLATEST YOUR MONEY STORIESWelcome defense from exchange-listed funds Green investment is still in its budding stageA halfway house offers a put to shelterPound teeters close to the topMore than a leg up for cash-strapped first-timers Well-heeled tread a trail to the pawn shopCustomers can click on advice beyond compareStellar performance that could become dimmerDon’t fail to spot the boat on this homebuying boomFSA to distribute warnings to shareholders about tank room scamsDisused banks and flats above shops might not be as glamourous an investment prospect as a cabin on the Cote-d’Azure but buying into the development of these types of buildings has good-looking tax perks for wealthy investorsThe government’s promise to increasing the amount of affordable housing means it is offering 40 per cent duty relief on the development costs involved in turning unused space into housing flats for people on near to the ground incomesThis tax break has not been widely promoted and so far there are only a handful of schemes obtainable But new schemes are about to be launched Braemar, a property management corporation in which Vincent Tchenguiz, the Iranian property investor holds a 299 per cent stake, already runs three schemes and is rounding up cash from investors to finance the fourth It expects to raise £5m by ChristmasSince the Chancellor shut the entrance to putting your main possessions or holiday home into your pension, there has been a rising interest in more specialised tax-efficient property schemes Many of these schemes - such as syndicates that invest in student halls of residence, prisons or profitable buildings - enjoy tax compensation only when they are wrapped within a pensionBut by leaving down the route of affordable housing, you can benefit from the duty savings without having to imprison funds until you retire The government has pledged to boost affordable accommodation to cater for groups such as students, foreign nationals and stressed first-time buyersScheme managers, such as Braemar, basis capital from investors - usually a minimum of £25,000 per being - and this, together with borrowed funds, is used to buy and develop large unused buildings, typically in town centres outside LondonSuitable properties include old section stores, banks, empty offices and empty space above shops The bonus of these types of conversions rather than novel builds is that no planning consent is requiredOnce bought, the buildings are developed into one and two-bedroom flats, which can be let out to people on lower incomes Braemar says a growth will hold anything from 12-60 flats The expenses incurred in converting these meet the criteria for tax relief at a rate of 40 per cent Investors can wait for to receive this three or four existence after they paid the initial capitalThe tax relief is, however, only available if the property is held for at least seven years from the day the units become habitable Given often lengthy periods to expand properties, investors therefore have to be willing to tie up their money for around ten existence in totalInvestors receive a share of any increase in the value of the possessions as a result of the change to affordable housing When the property is eventually sold any profits are shared out equallyThe scheme boss does accuse an initial 2 per cent After that, there is an yearly management fee of 15 per cent, although this should be enclosed by the rental incomeJason Butler, a financial adviser at Bloomsbury Financial preparation, has recommended these schemes to a figure of wealthy clients He says they could set of clothes higher rate tax payers who already have diversified portfolios and are looking for an interesting property investment thought“These schemes mix asset in affordable housing with generous and above board tax release,” he saysBraemar says that signing up to a system, rather than trying to invest directly, means investors do not have to get involved in the management of the properties But wealthy investors, or groups of individuals, could purchase properties for development themselves and maintain the tax reliefsOne of the advantages of a tailor-made scheme, however, is that the hassle of managing and rising the properties is handled by a third social gathering“Some investors want exposure to buy-to-let assets but don’t desire the headache of managing them We approach residential possessions as if it was a commodity,” says Marc Duschenes, chief executive of BraemarInvestors also have the safety of knowing that these schemes are regulated and the mortgages used to finance them are arranged on a “non-recourse” foundation, which means the lender cannot call on any individual partner in the event of any missed paymentAlso, because these schemes have right of entry to high levels of capital they can have enough money to develop larger blocks of flats and can therefore good deal down prices for kitchens, bathrooms and other such fittingsSo far obtainable schemes have performed well Braemar first launched a system four years ago Already the investors in that scheme have had more than 60 per cent of their money back - from the tax rebate and an early refund - and they still own their original stake in the propertyHowever, as the first schemes are yet to mature, there is no evidence of how easy they are to sell on Investors are relying on the fact that a purchaser will emerge at the finish of the seven year rental term and offer the right price for the urbanized properties There are no guaranteed returnsBut Braemar estimates that even if there is nothing growth in the capital worth of the assets, investors would still receive an annual return of 5 per cent exclusively on the tax relief on developmentRSS information feeds = requires subscription to FTcom* smallest amount delay 15 minutesAll times are London timeFT HomeSite mapContact usHelpAdvertise with the FTPress enquiriesStudent offersFT ConferencesFT investigate CentreCorporate subscriptionsFT Group© Copyright The Financial Times Ltd 2006 "FT" and "monetary Times" are trademarks of The monetary Times Ltd solitude policyTermsEquity ISAsEquity TradingSaving for your ChildrenInvestment TrustsFourth column.
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Wealthy Investors Urged To Consider Affordable Flats >>
20% of mortgage holders are paying over the odds on their mortgage loan. - Published:17/11/07
According to recent information around 20% – or one in five – mortgage holders in the UK are paying method over the odds on their mortgage loanThe research shows that twenty percent of mortgage holders wait with the least competitive deal that is on present from their lender, which results in them paying more than they would if they were to switch to a more spirited mortgageThe survey was carried out on behalf of moneysupermarket by YouGov, and showed that one of five mortgage holders stayed with the normal variable rate that was offered by their lender, and also that many borrowers were not even aware of the rate that they were paying and were failing to keep an eye on their financesLouise Cuming from moneysupermarket affirmed: "It's unbelievable so many people are live into the lenders' hands and paying the standard changeable rate As this is likely to be at least two per cent above the leading tax available, this lack of action to review their mortgage could be costing borrowers dearly – having both a unenthusiastic impact on their lifestyle and their prospect prosperity"The research was carried out following forecast of another interest rate rise in May, which has resulted in many lenders captivating some of their best rates off the marketplace on fixed rate mortgages Out of those responding to the survey around eleven percent had opted for tracker mortgages, whilst the majority of respondents had left for fixed rates because of the greater than before financial stability provided by these Twenty four percent of those responding to the survey in fact owned their properties outright, and forty percent had a mortgage Tom SmithHow long would you similar to you mortgage to run The simple reply would be as quickly as possible, but not everyone can, which income higher repayments and more strain on the household budgetperhaps some forty years ago mortgages were very solid things that you took out: you would stick with the same company for the whole period of the loan and you could find fixed rate deals that would also last the full twenty five yearsTwenty five years is the average era of a mortgage… Twenty five existence is a long time The dream of many people is to pay off their mortgage early Can it be doneIt’s easy to say “go and investigate the market place to find the cheapest mortgage”, but is it that easy to actually do it and how do you know that you have really got the best mortgage contract when you’ve finishedEarly salvation Penalties - Loan Extras - Debt Consolidation Bad praise - Choosing a Personal Loan - Loan Penalties -.
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20% Of Mortgage Holders Are Paying Over The Odds On Their Mortgage Loan. >>
First time buyers failing to understand finance - Published:28/10/06
unparalleled buyers do not understand all the financial complexities of owning a mortgage claims a novel survey by Ifa PromotionSeventy per cent of all homeowners supposed that they were completely unaware of other products that go with a mortgage, or would require advice on themMany young buyers admitted that they needed help to effectively compare mortgage rate deals beyond now looking at a headline rateThe buyers polled supposed that they were not letting this prevent them from captivating additional mortgage products, with 78 per cent taking one or more cover or investment product to go with their mortgage"Buying a house and arranging a mortgage is often a intimidating experience, especially for unparalleled buyers, and the fact that so many people do not fully understand the full complexity of linked financial matters comes as little surprise," supposed Karen Barrett of IFA Promotion"However, for many, it is also the single main financial commitment they will ever make, and consequently one of the key triggers to consider other monetary productsMoneyExpert Limited is authorised and regulated by the Financial Services Authority (FSA register No 301654) The monetary Services Authority does not regulate some forms of mortgage contract, credit cards, personal loans, current financial records and.
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First Time Buyers Failing To Understand Finance >>
