Tag Archives: no void periods

Bank of England has no intention of dampening UK property market

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Bank of England has no intention of dampening UK property market

Some good news for landlords and property investors and those house holds trapped in negative equity, but not so good news for those looking to get their foot on the first rung of the property ladder as The Bank of England has appeared to rule out intervention to cool the UK’s housing market and escalating signs of inflation nationwide, saying policy was ‘not the right tool’.

Speaking at the launch of the Bank of England’s Inflation Report, BoE governor Mark Carney said the Bank’s financial policy committee would monitor affordability and debt overhangs, however.

Despite annual house price growth breaking into double digits for the first time in four years this month, with the Nationwide index up 10.9%, the Inflation Report downplayed inflationary pressure.

‘Activity in the housing market picked up by less than expected at the time of the February Report,’ it said with mortgage approvals averaging 70,000 a month, 10,000 below forecast.

‘Approvals are likely to rise over the rest of the year but to a lower level than expected three months ago. A growing share of recent mortgage contracts has been attributable to borrowers with loan to value ratios above 90%, though this proportion remains below pre-crisis levels.

‘New lending at high loan to income ratios has surpassed pre-crisis levels, particularly for high-value properties, including those in London. With growth in the stock of lending remaining subdued, however, the debt to income ratio of households in aggregate has continued to edge lower.’

It added that the current historic low in interest rates mean that repayment requirements remained a relatively low percentage of household income.

The report toned down recent warnings by the BoE’s deputy governor for financial stability Jon Cunliffe who said it would be ‘dangerous to ignore’ the momentum of house prices.

That followed testimony by BoE officials Spencer Dale and Andrew Haldane to Parliament in which they cited the housing market as a source of risk for the UK economy.

If you are a landlord with investment property in Cardiff or South Wales and like to continue receiving the benefits of house price inflation but do not like the hassle of managing tenants then Rent Guarantee Cardiff may have the ideal solution.

Rent Guarantee Cardiff offer a no fee letting solution in Cardiff and across South Wales. Our unique guaranteed rental scheme offers landlords complete piece of mind as they received their rent on the same day each month with no void periods and none of the hassle associated with managing a tenancy and a buy to let property.

Rent Guarantee Cardiff are often able to offer up to 90% of the open market rent increasing rental income by at least 20% when using a traditional letting agent.

If you would like to find out more information about Rent Guarantee Cardiff no fee letting solution, please complete the short form below to receive a call from one of our team.

Cardiff Landlords Does Your Tenant Pay The Rent on Time?

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Cardiff landlords does your tenant pay the rent on time?

As landlords and property managers we all know how infuriating it is when your tenant doesn’t pay the rent on time. The time consuming process begins: making phone calls, sending texts and emails which often go unanswered. The longer the calls, texts and emails go unanswered as landlords we become anxious and begin to doubt whether the tenant going to pay?

 What is the solution?

If you are a landlord with an investment property in Cardiff or other areas of South Wales, we can guarantee your rent is paid on the same day every month as we become your tenant. No more wasting time on the phone calling, texting or emailing your tenant chasing the rent. No more anxious waits and sleepless nights wondering if your rent is going to be paid.

At Rent Guarantee Cardiff we ensure you are paid on the same day every month with no void periods and no tenant hassle and best of all absolutely no set up fees or management fees!

Using Rent Guarantee Cardiff we guarantee to increase your rental income by at least 20% if you currently use a Cardiff letting agent to manage your buy to let investment property.

If you would like to discuss how Rent Guarantee Cardiff can provide a guaranteed rental income and ensure you never have to chase a late payment again, please complete the short contact form below:

Cardiff Landlords the No Hassle 1200 Per Cent Return Investment

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Cardiff landlords the no hassle 1200 per cent return investment, if you were a landlord and began investing in property in 1996 when the first buy-to-let mortgage was released 18 years ago you would be sitting pretty right now!

The research carried out by Wriglesworth Consultancy and commissioned by Paragon Mortgages uses the following reinvestment assumptions, every £1,000 invested in an average buy-to-let property purchased with a 75 per cent loan-to-value (LTV) mortgage in the final quarter of 1996 would have been worth £13,048 by the final quarter of 2013.

This is a compound annual return of 16.3 per cent. The same investment in UK commercial property would have grown to £3,654; in UK equities (shares) to £3,082; in gilts (UK government bonds) to £2,924; and in cash to £1,949.

Around a third (32 per cent) of the total return to the mortgaged buy-to-let investor was income (rent less costs), and 68 per cent capital gains.

A buy-to-let purchaser buying entirely with cash would have seen each £1,000 invested grow to £4,791 by the end of 2013 – a compound annual return of 9.7 per cent.

The alternative of the investor who remortgaged to release equity to expand his/her portfolio more quickly would have turned £1,000 into an astonishing £33,051.

Future projections for landlords in Cardiff, South Wales and across the UK also look promising with projections suggesting that every £1,000 invested at the end of last year using a 75 per cent LTV mortgage would be worth £2,910 by the end of 2023 – an average annual return of 11.3 per cent.

So how can landlords across Cardiff and South Wales lock in the capital appreciation while removing the risk and hassle associated with buy-to-let investment property? The answer is quite simple, Rent Guarantee Cardiff offer landlords a no fee letting solution that guarantees up to 90% market rent with no void periods. So Rent Guarantee Cardiff remove the risk and tenant hassle from the letting process, so landlords can concentrate on receiving their rent on the same day each month and take advantage of the huge potential for capital appreciation.

If you would like to find out more about of no fee letting solution and how we can remove the risk and hassle from the letting process by providing a guaranteed rental income each month, please complete the short contact form below:

Rent Guarantee for Cardiff Local Housing Allowance & Housing Benefit Tenants

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Rent Guarantee for Cardiff Local Housing Allowance & Housing Benefit Tenants

Most landlords will run a mile at the mention of Local Housing Allowance (LHA) rates and tenants on Housing Benefit (HB) and insurance companies just aren’t happy with the risk of providing rent guarantee insurance to this tenant demographic, but guess what at Rent Guarantee Cardiff we are more happy to provide landlords across Cardiff and South Wales a guaranteed rental income for a period of 3 years or more!

Yes, I will say it again, we will provide landlords across Cardiff and South Wales a guaranteed rental income for 3 or more years, with no set up costs, no managements fees or void periods even if your property is located in a predominately LHA area and only like to attract tenants on Housing Benefit!

This gets better as well! We can provide Cardiff landlords and property investors across South Wales with up to 90% of the open market rent each month on the same day, with no void periods, no council claw backs and no tenant interaction, what a dream!

Could renting your property get any better? We yes it can! On top of guaranteeing your rent for a period of 3 years or more, with no management fees or void periods we can also provide at least a 20% increase on your rental income over the 3 year period compared to a standard letting agent charging 10% management fees and 50% of the first month’s rent as a tenant find service. Take a look for yourself:

TRADITIONAL LETTING AGENT RENT GUARANTEE CARDIFF
Rent Agreed   £650.00 £585.00
– Agency Fee 10% + VAT £78.00 £0.00
– Guaranteed Rent Insurance 1.9% + VAT £14.82 £0.00
Net Rent to Landlord Rent After Monthly Fees £557.18 £585.00
3 Year Period Net Rent x 36 Months £20,058.48 £21,060.00
– Tenant Find & Set Up Fees 50% 1ST Months’ Rent + VAT (Assumes 3 Tenancies) £1,170.00 £0.00
– Typical Void Periods Over 3 Years 2 Months Out Of 36 £1,114.36 £0.00
– Inventory Costs Sign In & Out £150+ VAT (Assumes 3 Tenancies) £540.00 £0.00
Total Rent Received By Landlord Over 3 Years £17,234.12 £21,060.00
Average Monthly Rent Total rent Divided By 36 £478.73 £585.00
   
Extra earned renting with us £3,825.88
Extra Average Monthly Rent Earned With Us £106.27
Increase in rental income using our rent guarantee 22.20%

So let’s recap:

  • Yes, we will guarantee to pay you rent even if you property is in a predominately LHA area and likely to only attract tenants on Housing Benefit
  • You will not have to put your hand in your pocket to pay any set up fees, tenant finder fees or management costs
  • We guarantee you no void periods for the full 3 year term and will even cover any legal fees if we need to evict tenants
  • We guarantee you will have no interaction from the tenant regarding maintenance issues, we take care of that
  • Here’s the good bit again, we can offer up to 90% of the open market rent through our rent guarantee scheme
  • One more thing, we can increase your rental income by at least 20% if you are using a traditional letting agent

So if you are a Cardiff Landlord or South Wales property investor with a property either vacant now or with a tenancy coming up for renewal and the property is a Local Housing Allowance area and only likely to attract Housing Benefit tenants, why not contact us today and make your life a whole lot simpler