| Frequently Asked Questions
This section of our web site is designed to help answer any questions you might have.
If you can't find what you are looking for, please contact us
Q: What areas and types of property do you recommend?
A: It may sound obvious, but successful property investment is about making the right choices. Choosing the right places and the right properties. Nicehouseuk properties are located in areas with strong rental demand and chosen to appeal to that area’s rental market. Typically we target the mass-affordable market through traditional terraced properties and semi-detached family accommodation. We’re so confident of the rental demand for a Nicehouseuk investment property that installing your first tenant is all part of our service to you.
Q: Who manages my properties, can I do it myself?
A: Finding, vetting and installing each property’s first tenants is part of the Nicehouseuk service. In addition we can notify you of local letting agents who are members of the Association of Residential Letting Agents (ARLA). In some parts of the country, we offer ongoing property management services through our sister company, Prime Properties. You may, of course, manage your own properties if you wish.
Q: What are the likely start-up costs?
A: To purchase a typical property that will appeal to the mass-affordable rental market, we suggest you budget for an initial outlay of approximately £17,500 per property. This figure factors in usual costs such as deposit, mortgage broker fee, lender’s arrangement fee, property valuation and survey, legal fees and our fees. Please note, this figure is a guide to likely start-up costs only as costs will vary from property to property and the individual service providers used.
Q: How can I fund my investment property purchase?
A: We aim to make your money work harder for you and for properties to be purchased with minimum initial outlay! You may be able to finance your investment by releasing equity in property you already own. For more information we recommend you talk to our preferred FSA regulated mortgage brokers who specialise in arranging buy to let mortgages. Please refer to the “Links” section of this website for more details.
Q: Can I have more than one buy to let mortgage?
A: Yes. Our preferred mortgage brokers will be happy to tell you more about this and
discuss the options available to you.
A: Our aim is for the buy to let properties we find, to be as self-financing as possible; but you should be aware that there may be times when costs are higher than income. If interest rate rises are a concern for you, a fixed rate mortgage may be the answer. Our preferred mortgage brokers can advise you about products to limit the effect of any future interest rate rises.
It’s worth remembering, however, that interest rate rises can also mean higher tenant demand as would be buyers find it harder to get a foot onto the property ladder. And ultimately, higher demand drives higher rents.
Q: What if house prices go down?
A: The Nicehouseuk philosophy is to find areas at the beginning (or even before that) of a rise in popularity (regeneration areas, new transport links and price rises in neighbouring areas are just some helpful indicators). This can help provide a buffer. We view property as a medium to long-term investment; historically property prices double in value every 7.2 years, any roll-backs in the market should normally be recouped within this time-frame.
Q: Can I use my own conveyancing solicitor/mortgage broker?
A: We strongly recommend that you use the services of our preferred specialists. You should note that fees are not refundable if a property purchase fails as a result of acts, omissions or errors of third parties who have not been recommended to you by Nicehouseuk.
Q: Will I have to pay tax?
A: Depending on your circumstances you may be liable to pay tax on profits generated. If selling a property you will be liable to capital gains tax, however the longer you keep the property, the less you pay under “taper relief” arrangements. We are happy to put you in touch with property tax experts to help you maximise your investment.
Q: Am I obliged to purchase a property you have selected for me?
A: We will have discussed your requirements before we began house hunting for your property and will not put a house forward to you unless we believe it meets the required criteria. Our research and evaluation processes are rigorous, sourcing the right properties for you is time consuming and labour intensive. As we will have already carried out work on your behalf, fees are not refundable if you cancel at this stage.
Q: But I can find my own property, can’t I?
A: Buying a buy to let property is different to purchasing your own home. Successful property investment requires careful unbiased research. Skimping on or omitting this stage can result in costly mistakes. We have witnessed investors over-estimate gross rental income, underestimate running costs, see their off-plan purchase released into a market saturated with similar properties, and just buy in the wrong place.
Most of our clients lead busy lives. You may find the right property on your own, but do you really have the time? It is also worth considering that due to our contacts in the industry, we are often able to source properties that are not on the open market. It is usual for clients to find that our fees are off-set by timely purchasing and the favourable purchase price we negotiate.
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