Abstracts » Business

Through the keyhole

Article Abstract:

Investing in residential real estate in the United Kingdom appeared simple. Investors used a deposit of some 25% and a buy to let mortgage, then covered the mortgage by renting out the property. The hope was to own the property after some years, and it would have risen in value. There wre attractions both in terms of income and capital gains. Domestic rental demand has dropped since fall 1998, while demand to buy properties has increased. Investors are not always informed about their market or the costs involved, and may encounter problems. They should be realistic about returns on the investment, and focus on yields.

Finance, Return on investment

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Building bricks

Article Abstract:

Real estate investment may not appear a safe choice when investing for children, but prices look set to rise in 1998, and the market is steadier than in the 1980s. Parents may buy real estate in the city where their children are studying, which allows the children to live rent-free. Children are too young to inherit real estate at 18-years-old, so buying real estate for minors can create problems. Grandparents can buy real estate, however, and trusts can be used to channel income to pay expenses like school fees.

Personal finance

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Property investment in the capital of cool

Article Abstract:

The residential real estate market in London, England, has become less dependent on Asian buyers, and British buyer have dominated the investment market since 1997. Yields are being eroded as capital values increase, and less fashionable areas have attracted developers. These secondary areas could be especially affected by a drop in the capital value of real estate if there is an economic downturn. The price of apartments could drop in 1998 except for those in prime locations in London.

London, England

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