So many questions, and fair enough –
building a house is a big undertaking.

Here are SIX investment questions we get asked a lot:

Q1. What can I do if I do not have any surplus cash to pay a deposit on an additional property?
A1. A cash deposit is not necessary if you have sufficient equity in your own home. You can borrow the full amount plus any additional upfront costs to get you started.

Q2. Will the rent cover the outgoings of an investment property?
A2. This depends on the purchase price and the market rent of the property plus any forecasted property expenses. Generally it is recommended that you budget for an amount each week to service the expenses.

Q3. People say a new home is better for investment rather than an old home. Is this true?
A3. A new home does not have the maintenance needs of an older home. In our experience the tenants who are looking for a newer home tend to take more pride in their home and are more reliable too.

Q4. How do I claim depreciation?
A4. Once you have purchased an investment property you should then instruct a registered valuer to complete an asset valuation on the contents. As of 1st April 2011 depreciation on buildings will not be allowed. It is these values that your accountant will use to determine your allowable depreciation and tax credit. You can receive these tax refunds in your pay frequency.

Q5. How can I manage the risk of keeping the property tenanted?
A5. We recommend that you use a Property Management Company to look after the property. They will manage your tenants and should have a comprehensive database for finding suitable tenants.
Also Horncastle Homes at times can offer lease agreements of up to 10 years on new homes. This eliminates the risk of having the property vacant.

Q6. Who can help me with information to ensure that investment property is right for me?
A6. Give us a call and we will discuss your personal financial situation and provide relevant information to assist you with your decision. It is recommended that you also take advice from an independent accountant and solicitor before committing to any investment property purchase.