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.
Read More:
Wealthy Investors Urged To Consider Affordable Flats >>
Boom in 100 per cent mortgages - Published:21/09/07
Lenders are winding their criteria to adapt to the affordability crisis in the UK, as the figure of no-deposit mortgage loans available has doubled over the course of the last day According to research by MoneyExpert, the number of loan products of this type has soared from sixty to over 120The chief executive of the corporation, Sean Gardner, reportedly commented: "Affordability is the buzz word at the instant as lenders look to find novel ways to bring first-time buyers into the possessions market Offering 100 percent mortgages is another example of this, as saving for a deposit on even the standard property can take years"The climate of rising interest rates, joined with sky-high house prices, have conspired to keep many unparalleled buyers firmly out of the market Thousands of mortgage applications are twisted down every day The average house price in Britain at present stands at well over £210,000London home information pack exemption insist rejected, mortgage holders told - Thu, 14 Jun 2007Today's Most Popular Results Mortgage Enquiry Form require existence Insurance ------ Mortgages - Information Mortgages - Home ------ monetary Services - HomeNone of the information on this website is intended to endorse any specific mortgage product or provide mortgage recommendation Mortgagescouk is a non-regulated trading name of Financial Services Net Ltd[Terms & Conditions]more sites:automobile insurance| home insurance |.
Read More:
Boom In 100 Per Cent Mortgages >>
Alliance and Leicester launches 6.1% current and 12% savings accounts - Published:10/05/07
coalition and Leicester has launched a new account offering customers 61 per cent interest on the contents of their current explanationsIn addition, the bank has upped its savings explanation offer to 12 per cent for the first 12 months, and added a 12 month interest-free overdraft optionThe offers will be applied to its Premier Direct explanation Following the initial 12-month word the overdraft will charge 59 per cent for authorised and unauthorised borrowingThe current account will present one per cent below the base speed – or 375 per cent at the current interest rate"These changes are all about choice," supposed head of present accounts at Alliance and Leicester, Helen Palmer"The restructure of the financial records ensures we offer a choice of market leading accounts with dissimilar benefits based on differing customer preferences"The best current account speed only applies to balances at or below £2,500, lessening to just 01 per cent above this cut off pointAll changes will be obtainable online from September 2nd 2006 and in twigs from September 4thMoneyExpert Limited is authorised and regulated by the Financial armed forces Authority (FSA Registration No 301654) The monetary Services Authority does not regulate some forms of mortgage contract, credit cards, individual loans, current.
Read More:
Alliance And Leicester Launches 6.1% Current And 12% Savings Accounts >>
