Selling properties, especially investment properties and buy to let properties used to be quite easy. Sorry to all the sales people out there, but it did.

Having previously worked for a property investment company, I know that it was plausible to push through 4 – 5 deals a week, very rarely without any lending problems and mortgage approvals tended to be easier than finding a Manchester United fan in London. Those were the glory days of lending and up until a year ago the level of lending was at a record high and the amount of buy-to-let mortgages that were being approved was staggering, also accompanied by some of the best rates investors had ever seen.

Some would say this is the reason we are in the midst of a recession and struggling, but that is another blog, one of which we have covered and will cover elsewhere.

Recently, I brought a couple of stunning BMV deals to the table, as we felt that after a year in which we would not touch property, we now had a couple of deals that really did make sense to the investor. This was due to better discounts, newer and an increased amount of decent mortgage rates and just the general feeling that property had hit its lowest level and was now starting to recover, according to reports from leading lenders and banking institutions.

We sold Penn Lane within a couple of days and currently have offers on the further two properties that we have on our books, but we kept hitting a common discussion with some of our investors – “would love to buy it, I am just too old, I wont get the mortgage”.

As with anything, previous misconceptions had started to creep back in to investors minds. Some of our investors tried to get a mortgage just as things were starting to look really bad and were hit with many reasons why they would not be approved, one of them being age which is in fact in relation to risk. This had then been indented into their investment strategy and they were probably now missing out on deals that they really wanted to get involved with.

We work with one mortgage broker and a quick call to them to inform them of this supposed age issue and we were met with they reply that this indeed was not really the case anymore, and in fact we could offer mortgages to people in their late 50’s and beyond. Chris then went back to the investor, forms went in, and he is now waiting to complete on the deal next week, which is a bonus not only for us, but also for the investor that a year ago was simply not able to go through with these deals any more.

In April last year mortgage lenders got edgy, they were panicking, they knew trouble was ahead and they were refusing mortgages for many reasons. In fact, I can not mention the name, but I knew of one mortgage that would not go through this time last year because the property had decking!!

With mortgage lending now recovering, new criteria are in coming into play and some old reasons to refuse are falling away.

Are you too old for a mortgage on an investment property? Ask us, you might just be surprised.

After 11 months of continual house price falls, it would seem the run is finally over, at least according to one leading bank.

According to the Halifax, the price of UK homes rose by 1.9% in January, and data based on mortgage approvals showed that the average house price reached £163,966.

A quote on the BBC website reads:

“There are some very early signs that market activity may be stabilising, albeit at quite a low level,” said Halifax chief economist Martin Ellis.

“Nonetheless, continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are expected to mean that 2009 will be a difficult year for the housing market.”

Although this news is somewhat unexpected, it does contradict the survey released from Nationwide last week which reported prices had in fact fallen by 1.3%, so really it is up to you who to believe. But when more banks and mortgage companies release their figures, we will be in a better position to know the more accurate standings. Even so, it is great news that house prices are now starting to rise again, which could indicate the prices have fallen as far as they are going to go, something we are all hoping for.

In other news today, the Bank of England is expected to cut the interest rates again, with most predicting another 0.5% cut, taking the rates down to an amazing 1%, great news for those of us on tracker mortgages. The news will come later this afternoon, with our Managing Director Chris Davidson offering his view on whatever the conclusions may be tomorrow.

The forthcoming cut is not so welcomed by some business groups, based on the fact previous reductions have failed to help; they do not want to see another cut today. They would rather the bank increase lending, which to many small and medium businesses is a very valid point to be making. The Federation of Small Businesses (FSB) is one of the business groups saying it would prefer rates to stay on hold for February, according to the BBC.

So, house prices up and interest rates down, many will begin to ask the question this morning, is the recession beginning to ease, or have we just had a good month ahead of even worse times to come. A pessimist or an optimist will provide different thoughts, opinions and conclusions, but if the report is accurate, it really is a great month to be buying property as you might not get a chance to get it much cheaper.

Don’t forget to check out our latest BMV property deal by clicking here, we only have this one unit left, which we expect to sell today.

Leading UK and international property search portal TheMoveChannel.com has acquired top lead generation agency Lead Galaxy.

TheMoveChannel.com will take over the overseas property website portfolio operated by Lead Galaxy, in a deal which stands to create the world’s largest and most popular international property website.

With more than 45 different ‘venture’ sites dedicated to property sales in countries all over the world, the deal will see TheMoveChannel.com take an even greater share of web traffic, particularly in locations such as Cape Verde, the Caribbean, Egypt, Florida, Italy, Malaysia, Montenegro, Turkey and the UAE.

Whilst all of the property sites will now come under TheMoveChannel.com brand, the combined power of both TheMoveChannel.com and Lead Galaxy will ensure that visitors can browse the broadest spectrum of properties for sale, while allowing advertisers to maximise the number and quality of leads generated for their listed properties.

Dan Johnson, of TheMoveChannel.com said, “This deal will undoubtedly consolidate our position as the leading overseas property portal.

“With a bigger advertiser base and a far wider choice for investors, TheMoveChannel.com will be at the forefront of overseas property search and of course, the more users and more enquiries we attract, the more sales there will be for advertisers,” he said.

Gerard Doyle, Director of Lead Galaxy, said, “I am very much looking forward to joining the board of directors at TheMoveChannel.com.

“This amalgamation between two extremely strong networks will allow existing Lead Galaxy advertisers to reach an even wider audience and attract more interest than ever in their properties.

“The consolidated brand and new technology platform can only help to improve visitor loyalty and maximise value for our advertisers,” he added.

Going forward, the joint forces of these two industry heavyweights will provide a powerful platform for launching into new and untapped markets, with a wide range of planned projects that includes multilingual portals, web services and personal finance.

The consolidated sites will be live today, Thursday February 5th, at www.themovechannel.com

£130 per month profit from month 1, guaranteed for 12 months?  It’s Discover and Invest of course!

Following on from our ambulance and renewable energy offers, Discover and Invest is pleased to announce yet another income generating opportunity that is sure to deliver.

Chris Davidson, Managing Director for Discover and Invest tells us that “whilst sourcing for 2009, and although we usually get involved in alternative income generators, we noticed that the UK property market was starting to show real value.  Prices had fallen, yields had risen, and a good quantity of cheap stock was available to the market.”  Therefore as usual the problem is separating good deals from bad.

Davidson continues: “there are various problems facing would-be  property investment buyers today: lots of stock without tenants resulting in poor cashflow forecasts, problems getting finance because the rental valuation coverage is too low (125% minimum these days), valuations getting downgraded too often meaning valuation funds are risked time and time again only to find the deal falls through.  Finally, in a market where the value is good and the immediate bonus is strong cashflow from rentals, how do you secure the rental income?”

We’ve finally come up with a deal that knocks the socks off just about all property deals at the moment.  Firstly, our deals guarantee a 20% discount from today’s RICS valuation, with only a 5% net deposit down.  The properties we are sourcing are rentbacks, so you have quality tenants in your property from day 1, paying from day 1…so no worries about finding tenants, how long it will take to get them in, and whether they will look after your property!  Remember the property used to be the new tenant’s home, so it will be filled with their own furniture, etc.  This is much more likely to mean you have stable cashflow and good quality tenants.  The new tenants also sign 12 month contracts on premium rent, meaning excellent cashflow and low hassle for you as the rental management company is in place.  Furthermore we have teamed up with Endsleigh Insurance to provide their rent guarantee scheme.  This secures your rental income for a period of 6-12 months.

We are also so confident that the valuations are accurate, we will pay for the buyer’s valuation, means no funds are risked.  If the valuation is downgraded, the seller will have to downgrade proportionately.  If they physically cannot, all parties walk away from the deal and no funds have been risked!  Furthermore, lenders need to see 125% minimum rental valuation coverage, so we will only supply properties that stick up unless the buyers pays in full with cash.

Our first property is being released on Tuesday in Cheshire.  Valued in the last few weeks at £115,000, the property is available for £92,000.  Monthly cashflow after mortgage, rental management and insurance comes to a whopping £134 per month!  Total net buying costs are £8,450 so this gives a return on capital employed of around 19%.  With £23,000 of built in equity as of today, there is sufficient leeway if the markets falls, and also built in profit for when the market recovers.  If you were to sell your property in a year’s time for the same price plus your rental income, you would have made a return of 250% on capital employed!

Chris Davidson Managing Director of Discover and Invest states that: “many analysts believe we are in a U curve recession now.  Property prices are nearing the bottom in a similar way to what has happened in Florida.  The bottom may take a while to turn but it also gives strong investor signals to buy up stock at value prices.  We are all taught to “buy low, sell high” and the first part of this equation is nearing the right point for many.  Now it is about finding the right deal.”

So yet again, Discover and Invest has hunted out the right deal for this market: accurate discounts, low risk, strong cashflow and secure income.  If you take the view that we are nearing the bottom, why not check out the deal at www.discoverandinvest.com

If you’re a global investor, there is one country in the world today that is screaming value for money… and it’s the UK.  Why so I hear you cry?  Well, there are two main reasons why, the same two reasons in my view that has made the USA a value for money buy over the last 2 years.

The first reason is a weakening currency; typical of an economy in a downturn, one that is importing more than it is exporting or of one that is printing vasts amounts of money, or  potentially all three.  The weakening of a currency, relative to your own means better value purchases.  Many Brits indeed found that to be the case when buying American over the last few years at as much as 2 Dollars to the Pound.  Times they have a-changed though!..Xe.com tells me that 1 British Pound Sterling buys me but 1.38 US Dollars, a fall in the last 9 months of around 60 cents, or in percentage terms,  approx. 31%!!!  So if you’re making an investment purchase in the UK, there is certainly inherent value compared to even the most recent past.

The second major reason is falling house prices, which begins to give this type of investment market inherent value too.  Property prices have fallen approx. 20% from their peak 18 months ago, and therefore considered better value.  Discounts are also being offered in the region of an extra 20% on distressed and new build sales, which provides further value.  Therefore investors are  taking the view that these discounts provide built-in equity in case we have another year of falls.

Finally, rental yields are now in the region of 8-9%, which means on the typical mortgage, cashflow positive deals of around the £100 ($138) per month mark are starting to appear.  With interesting new 12 month insurance policies available from major brands to protect rental income, these deals are incredibly attractive.  Some valuers will even pay for your valuation for you so no expenses are necessary until you know you can get a mortgage and the valuation is accurate.

So it’s easy to see why property investors are taking the view that the current UK deals are great value, income producing straight away and extremely secure.  On top of this, a long term view means the profits are much more substantial than in a boom.  We are all taught to buy low, sell high.  Well here is the chance to put the first part of that equation into practice…whether it is property, or an alternative investment, companies like Discover and Invest can help you to see why the UK is worthy of your attention.

My morning started with Take That on the radio telling me this could be the greatest day of our lives, and then a report from the British Bankers Association informing me that the mortgage lending rose in December, indicating the start of a possible recovery for our shattered economy. Coincidence?

With nine out of ten news stories indicating the end of the financial world, it is refreshing and relieving to finally hear some positive news on this cloudy Monday morning.

Figures indicated that approvals for house purchases in December were around 22,000, up from around 17,300 in November. This figure is still 46% down on this time last year, but to see an extra 5,000 mortgages approved in what is traditionally one of the weakest months for selling houses, is excellent news and a sure sign that investors and home buyers are now starting to understand it is a great time to buy, with some amazing bargains on the market.

2008 was undoubtedly a lot harder for mortgage lenders and estate agents than the previous few years, with borrowing at a much lower rate, and the BBA backed this up.

BBA statistics director, David Dooks, said of the latest data:

“This first opportunity to compare 2008 with 2007 shows that gross mortgage lending by the main high street banks totalled £170bn, some 23% below 2007’s total of £221bn. However, lending by the rest of the mortgage market was half the previous year’s total, showing how mortgage lending became much more concentrated during the year. The banks approved less than half the 2007 number of loans for house purchase, reflecting falling demand from households facing greater economic uncertainty and double-digit falls in house prices over the year which led to a wait-and-see mentality.

“Consumer credit was very weak in December as people reined in their credit card spending, despite early Sales and heavy discounting by retailers. This consumer caution was also reflected in personal deposits, which rose strongly.”

There are obvious problems at the moment but we are starting to see a rise in house sales, more mortgage companies offering more products and a general raise in enquiries reported by many estate agents. The question that will be asked is will this continue for the next few months or even the year, or will this rise only last a couple of months before things take another turn for the worse.

We will not know until it happens and I am sure there are more ups and downs ahead, but we must take notice of the fact that more people are now buying homes than in November, which in turn will not only help the economy but also give some relief to the many companies related to property.

With Discover and Invest launching our first Property Investment deals next week, this news is more welcome than a cold beer on a summers evening.