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Buying Investment Property
Booking
deposits, rental guarantees, transaction, furniture &
finance costs
-
Legal Questions
Solicitors, exchanges &
completions, repairs & maintenance, tax & insurance
-
After Purchase Questions
Renting your property, managing
the tenants, tax implications, surveying your property, snagging
How much is
the booking deposit?
The procedure
in International Property
is to ask for a £3,000 non refundable booking deposit from
potential buyers. This ensures that we hold the property
for the buyer until they exchange contracts with us 28 days
from receipt of the non refundable booking deposit
Is the booking deposit refundable?
No the booking deposit is not refundable,
if you decide to pull out of buying the property your
deposit will not be refunded
What happens after I pay my booking
deposit?
After you pay your booking deposit
International Property
have a strict 28 day exchange policy. In practice one
of our staff will be in regular contact with you to ensure
you have all your paperwork organised and exchange within 28
days
After the initial booking deposit is paid
we will request the following documents:
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Black and white
photocopy of your passport (certified and
stamped by a lawyer or notary or an embassy, consulate or
high commission of the country of issue)
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Two original utility bills no more
than three months old (no photocopies)
What are the
transaction costs?
Most of our UK
properties do not incur stamp duty as they are below the
£125,000 stamp duty threshold or are in
stamp duty exempt areas. Other
transaction costs include solicitor’s fees of around £1,000
and furniture costs of around £3,000
Can I buy
through my pension?
Yes you can buy
through your pension This is a very tax efficient way to
buy property investment as you do not pay tax on your pension payments.
We can put you in contact with authorised
pension providers who can advise on
pension mortgages
How do I
finance my UK property?
There are four
main ways to finance your UK property
1. Secure a sterling mortgage from an
non-UK Lender
2.
Secure a
sterling mortgage from a UK lender
3.
Re-mortgage your non-UK property at a lower euro interest
rate
4. Buy the investment property through a pension fund
Do you
provide a guaranteed rental return?
No
International Property do not
provide a guaranteed rental return as this is unnecessary
anyway because all our properties are in areas with strong
local rental demand
Developers can
often offer discount or rental guarantees, there is no
difference as both are just accounting exercises.
Investment
property
with rental guarantees are turned into financial instruments
far removed from the basic qualities of location, bricks and
mortar making it difficult to value property subject to
rental guarantee mechanisms
Rental guarantees are
sometimes offered in areas where there is an over supply of
rental properties, in our experience many developers who
offer guaranteed rental offer this because they are
developing in an area with limited rental demand. In
practice what they are actually doing is giving you your own
money back
Ask the
developer to give you the value of the rental yield by way
of a discount, this way you won’t be taxed on the rental
income and at least you will know that you have your rental
guarantee in the bank, as rental guarantees are often
provided by separate shelf companies with no financial
strength
However if the population grows in this
area over time, this temporary over supply can balance
itself out depending on the area, the rate of population
growth, the interest rate cycle. The advantage of high
interest rates is that it tends to push more people towards
renting rather than buying
How much
does it cost to furnish an apartment?
The cost of
furnishing an apartment can vary depending on the quality of
the furniture the buyer wants to use, however
International
Property have a
policy to put you in contact with a
furniture supplier direct who can offer high quality
furniture at a fraction of the high street stores prices.
This is a free service to all our buyers, this service will
save you thousands when furnishing your apartment to a high
standard. To view typical furniture pack
click here
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Buying Investment Property
Booking
deposits, rental guarantees, transaction, furniture &
finance costs
-
Legal Questions
Solicitors, exchanges &
completions, repairs & maintenance, tax & insurance
-
After Purchase Questions
Renting your property, managing
the tenants, tax implications, surveying your property, snagging
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