How to stress test a potential new buy-to-let investment for free?

The financial phrase of the moment is 'stress testing'. This refers to the process whereby the bank's balance sheets are subject to various dire predictions about the performance of the economies and their loan books.

Landlord insurance - instant quotes - professional rates

Landlords looking at making additional investments should do their own 'stress test' on any future investments. They can do this using Property Hawks own development appraiser which will calculate a landlords likely long-term returns. This should be done using a variety of different investment scenarios including a set of pessimistic figures which are 20% below what a landlord would expect.

I would advise all landlords to 'stress test' their proposed investments before committing their valuable capital to a new buy-to-let property. In this current uncertain market with capital values continuing to fall I would also be looking at an investment return of 20%+. Thoroughly 'stress testing' your investment could avoid a landlord making a rash investment decision that they end up living to regret.


Free property management software, Free tenancy agreements

Buy-to-let mortgage lending falls again

New buy-to-let mortgage lending has fell again in the first three months of 2009, according to the Council of Mortgage Lenders.

Buy-to-lending accounted for 6% of all gross mortgage lending in the first quarter, down from 12% a year earlier.

Free property management software, Free tenancy agreements

Olympic Vilage to be Funded by the Tax Payer

The Olympic Village will now be funded purely by the Tax Payer.

We wait with baited breathe at the true scale of financial burden that these Blairite Olympics will cost - cool Britannia?

I can guarantee that they will be a lot more costly than Tessa Jowells is telling us.

Why would you trust politicians fighting for their political lives?

Free property management software, Free tenancy agreements

Wealth for Fifteen Minutes - Landlords Live the Warholian Dream

Warhol's pronouncement of 'fame for fifteen minutes' has, through the onset of You Tube, Blogs and other Social Networks been proven to be truly prophetic.

What he didn't predict was the brigade of 'wealthy for fifteen minutes' property investors that have flourished over the past few years.

These landlords, speculative property investors, blind believers, greedy wannabes, unfortunate casualties or however you choose to describe them, believed they were millionaire speculators for a few years. Investing in numerous properties, and seeing their enlarged portfolios as a one way bet to a fortune.

However for many of this aspiring 'in crowd' they turned up after the party was already over and Studio 54 had already closed down.

There paper wealth has dissolved and many of them are seeing profits turn to losses.

The Council of Mortgage Lenders has predicted that 75,000 homes will be repossessed in 2009, almost double the 40,000 of last year, how many repossessions will come from these high octane speculators.

Many landlords are seeing rental losses from poorly advised investments, and if as predicted interest rates shoot back up over the coming years we could see thousands of landlords going under.

I can see a bigger hangover than is already predicted with some of these landlords having gobbled up tens and in some cases hundreds of precariously valued properties that could come gushing out as repossessions.

Unprecedented times are always unpredictable, which is why I have been sitting on my hands for the past six years, waiting for the next big thing.

Free property management software, Free tenancy agreements

Every landlord should have an ENFORCER

Landlords who have tenants that frankly take the 'p...s' need an enforcer.

This is somebody like Paul Shamplina and his company Landlord Action that has built a business out of taking out tenants that simply are 'out of line.'

Landlords are frequently tripped up by the complexity of possession proceedings to get their property back and are often left with a tenant who is living legally in their property without paying a rent, meanwhile the landlord is left with the expenses and the mortgage bills.

We agree with Pauls recommendations that the way to avoid problem tenants is to avoid them in the first place. Here 10 tips to avoid rent dodgers.


Free property management software, Free tenancy agreements

Ebay Property Listings

Landlords could soon be selling and buying property on Ebay.

Imagine the rush during the count down for that,..... 2 minutes to go, .......... I could get this 3 bedroom house for £435 ....... 1 minute to go.........and then all of a sudden a rush of bids shoot it up to £97,000. Another auction bargain slips through your fingers.

EBay has started to list properties and a full launch is expected later this year.

Read more speculations on how EBay property might work.

Free property management software, Free tenancy agreements