Buy to Let Property InvestmentWritten by The Chesterfield Group
In recent years buy to let has been a popular way of investing in residential property. Stock markets are out of favour with many investors who have seen values of their portfolios, endowment policies and pension funds shrink, whereas property has generally continued to rise in value. Interest rates are at historically low levels and mortgage finance is readily available on competitive terms from major banks and building societies. This brings property investment within means of more investors than ever before. In these notes we will take example of a foreign domiciled person, a non-resident of United Kingdom, buying a property in London with benefit of loan finance, but general principles can apply to many other markets.Buying to let pre-supposes that there is a tenant willing to rent premises and provide cash flow, which will service borrowing and is only one of factors, which need to be taken into account before entering into a commitment. These can be summarised under three main headings. The Property It has been said that three most important matters to take into account when buying property are location, location and location and this maxim holds just as true for investment property, •It should be situate in an area where tenants are looking to rent •It should be attractive to tenants and be, for example, an apartment, penthouse or a period or modern house. Listed buildings or converted churches may have their appeal but it is to a narrower market •It should be in, or brought into, good condition. •It should be in an area where property is in demand, making a resale easier in future. The Finance For right property mortgages are available both onshore and offshore, at competitive rates, from many of major lending institutions and terms can be negotiated. It is possible to obtain a loan on a repayment or interest only basis and for an agreed period. Whilst higher percentages are sometimes available we suggest not borrowing more than say 70% of valuation to avoid a cash flow crisis if interest rates rise and to allow for periods when property is vacant. The lender will also be looking for a monthly rent of order of 130% of monthly repayment. Taxation In United Kingdom investor will need to take into account three main direct taxes, •Income tax, which is payable on rents. Loan interest and costs of repairs and maintenance are deductible •Capital gains tax, which is not payable by a non- resident on sale of a property held only as an investment and not as part of a trade or business. •Inheritance tax, which is charged at 40% on amount by which aggregate value of chargeable assets exceeds a threshold, currently £263,000.
| | Stafford Loan ConsolidationWritten by Vanessa McHooley
Stafford Loan Consolidation A Stafford Loan, which can help to finance your way through a college or university, comes in two forms: Subsidized Stafford Loans A subsidized Stafford Loan, which you can receive based upon your specific financial aid. When a Stafford loan is subsidized, you are not required to pay any interest on loan while you attend school. The federal government subsidizes interest accrued on your account while you attend school and does not charge you interest until you finish school. Unsubsidized Stafford Loans An unsubsidized Stafford Loan, which you do not receive based upon your own specific financial aid. Rather, you can receive this type of loan but must pay interest on loan even as you are still taking classes and enrolled in school. Two Different Stafford Loans? Often times, college and university students find that Stafford loans will be dispensed to them both as subsidized and unsubsidized loans, meaning that part of loan will be subsidized and part of it will not. As they move through college, this means that they are paying interest on loans, or simply allowing interest to build up over time.
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