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Home Loans: Your Options for Purchasing a Property

March 30th, 2018 Posted in Money Tips, Property Investment
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The vast majority of homebuyers in the UK will require some type of home loan to fund their property purchase. Yet many aren’t aware of how many loan options are available to them. Buyers don’t have to just rely on a mortgage from a high street lender if they wish to buy a home. There are a number of different loan types and government back schemes that can augment or completely replace the need for a mortgage. This guide will explore all of the different options available to you so that you’re in the best position possible when it comes to finding finance.

Home Loans: Your Options for Purchasing a Property - sold sign image

A private mortgage

For many, a mortgage will be the only loan they use to buy a home. Individuals can rarely pay for a house in cash, so banks and high street lenders will typically loan up to 95% of the cost of the home. In return, the mortgage provider will charge interest on the loan, which the homeowner must pay every month. Failure to keep up with payments will result in losing the home. Mortgages usually last 25 years, but they can be shortened to any length of time. Mortgages are the most common form of home loan, but they aren’t suitable for everyone. Banks have become increasingly cautious since the recession and it is much harder for people with small deposits, low incomes or bad credit histories to secure a mortgage.

Help to buy equity loan

First-time buyers have been hit particularly hard by high property prices, which have made it almost impossible for many young people to get on the property ladder. In response, the Government launched the Help to Buy Equity Loan scheme to help first timers get a foot on the ladder. With a 5% deposit, first-time buyers can secure a 20% loan from the Government on the cost of a newly built home meaning they will only need a mortgage of 75% to complete the purchase. This will result in much more affordable repayments. The Government’s loan is interest free for five years and then charged at 1.75%, rising annually by any increase in the Retail Price Index plus 1%. To qualify you must be a first-time buyer, use the property as your permanent residence and be buying a home that costs under £600,000.

Shared ownership

Another Government-backed initiative is the Shared Ownership scheme. Rather than buy the entire property outright, this allows buyers to buy a share of the property and then pay rent on the remainder. As a result, you pay the mortgage payments you can afford to start off with, and then buy the remainder of the property over time as your finances allow. There are strict criteria that you must meet to become eligible for this scheme, however.

  • Your household income must be less than £80,000 (or £90,000 if you live in London)
  • You can’t own any other property
  • You can’t have outstanding credit issues

Only specific properties are available to buy under this scheme, too. They will typically be new builds and will be purchased from a Housing Association.

Right to buy

A final Government-backed initiative to help people get on the property ladder is the Right to Buy scheme. If you are council tenant who has been living at your property for at least five years, you could be eligible to purchase the property at a discount. Discounts can be as large as £104,900 in London and £78,600 outside of the capital. Not everyone is eligible, however, and you will need to check the Government website to confirm your eligibility.

Bridging loans

The problem with mortgages is that they can take up to six months to get approved. For many buyers, this delay can mean missing out on the property of their dreams. In cases where time is of the essence, a bridging mortgage specialist like Top 10 Finance Bridging Loans can help you find finance that’s an excellent alternative to traditional mortgages. A bridging loan is a short-term loan that aims to “bridge the gap” until more secure funding is obtained whereupon the loan is repaid in full with interest. A common scenario where a bridging loan is useful is where a family want to purchase a new home before their current property has sold. Getting a mortgage will take too long but a bridging loan can be approved in a fraction of the time. The bridging loan is used to buy the new home and is repaid when the previous family home has been sold. Bridging loans aren’t for everyone so it will be important to speak to a bridging mortgage specialist to decide if this is the right solution for you.

So there you have it, there are all of the types of funding available to you. But don’t forget to speak to a specialist before you apply for a home loan or government scheme. http://credit-n.ru/zaymyi-next.html

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Money Lessons Children Need to Learn Early

March 22nd, 2018 Posted in kids and money, learning about money
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Money Lessons Children Need to Learn Early - stack of coins image

Image – https://www.pexels.com/photo/money-coins-finance-cash-8556/

As children grow up, there are a lot of important lessons that they will need to learn. A number of these lessons are going to revolve around money. It is important to educate your kids so that they do not make any silly mistakes later in life. After all, managing your finances is not something that is taught in schools. However, you don’t want to overwhelm your child with information, so you need to choose your money lessons with care. Let’s take a look at some of the pivotal money lessons that children should learn early in life below…

You may have to wait to buy something you want – This is probably one of the best lessons you can teach your child, and one of the earliest. You can start teaching them this from the age of three or five years old. It is all about not giving your child what they want straight away. If you go into a store, and your child asks to buy something, or you even want to buy something, make a note of saying you cannot afford to right now, and then purchase it at a later date. This will show your child that you have had to work hard to secure the purchase you wanted to make.

The true cost of every purchase – One of the most valuable money lessons to teach any child is about working out the true cost of any purchase. Rarely any cost is as simple as it seems. There are always extra expenses and costs that may not be financial to think about, such as time. The most obvious example would be buying a house, of course. A lot of young adults think that the only thing they need to save for is the deposit. They are then alarmed when they see other costs. Not only do they need money for a deposit, but they need to factor in expenses on the day of moving, for example, removal services like those from businesses listed on Shiply. They also need to factor in legal expenses, as well as the cost of a professional home inspection.

You need to make choices about how you spend your money – The third and final lesson you should teach a child is that every purchase comes with a choice. You cannot buy everything you want, and it is all about making wise decisions. At this point, introduce your child to goal setting, as well as saving. Set up their own savings jar at home.

Hopefully, you now have a better understanding regarding some of the key money lessons that children should learn from an early age. If you teach your kids the lessons that have been discussed above, you can help to prepare them for the future and you can make sure they learn the value of money from a young age. It is very much about small lessons and baby steps that will ingrain valuable money lessons into your child’s mind so they can carry them forward into the future. http://credit-n.ru/kreditnye-karty.html

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3 Ways Introducing Loyalty Programs Can Improve Your Small Business’ Bottom Line

March 18th, 2018 Posted in Entrepreneurship
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If you are new to the small business world, the chances are that one of your top aims for the next financial year is to improve your business’ returns. One of the most effective ways that come to mind? Well it begins and ends with your customers. With the rise and globalisation of ecommerce, businesses have seen their reach extend beyond borders. On the other hand, they have also seen a rise in competition on a worldwide scale. In addition to building great employee relationships and securing any financial risks to your business, it is incredibly important that you focus on both attracting potential customers to your new small business and of course, retaining them.

3 Ways Introducing Loyalty Programs Can Improve Your Small Business’ Bottom Line - customer image

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It Can Cut Your Costs

Customer loyalty schemes and programs are a great way to help your business achieve this. It is also one option that many businesses are increasingly embracing. There is a great rationale behind this as well. It can cost businesses between 2 and 5 times more to attract new customers than it would cost to retain them. The amount of funds to be spent on advertising campaigns and market research to specifically target new customers along with introductory discounts can add up to a sizeable amount at the end of the financial year.  With the reduced spend on marketing and the increased repeat sales benefits of a successful loyalty program, you can see increased profits in no time. In the end, a low customer turnover is much more cost efficient than repeatedly attracting new customers every day.

You may have seen major corporations advertising their alternatives to this customer retention tool but it can also be applied to smaller businesses across the UK and worldwide. This goes beyond incentives such as discounts for repeat purchases and extends into your customer service as well. One thing to be noted is that loyalty programs are no longer effective being structured as they were a decade ago. In Deloitte’s 2017 Customer Loyalty survey, over 54 percent of people still valued a points based system but an increasing 32 percent of them would prefer to be given rewards that are better suited to their lifestyles and interests. So when you are considering the different customer loyalty programs to incorporate into your business, take the time to understand your customers’ expectations and your business goals.

It Can Help You Attract New Customers

It may seem counteractive but yes, focusing on retention tools can also help your business to attract new customers. Customers in the UK are increasingly loyal compared to their worldwide counterparts with65 percent considering themselves as loyal shoppersin 2017. It is therefore increasingly important to get customers to make first time purchases and have the chance to win their loyalty. A customer loyalty program can help you do this. In a study by Deloitte in 2017, over a quarter of the respondents said that a customer loyalty program would be a factor in them remaining loyal to that business or brand.

The benefits offered by the loyalty program are attractive to new customers. The idea of their purchase being rewarded every time they shop can be quite alluring to not only keeping customers but getting them in the door initially. Why choose a competitor and be rewarded for their support? Be aware that the relevance of your loyalty program is paramount. The rewards should be something your customers would appreciate and be happy with.

It Can Act Be A Great PR Tool To Build Your Brand

Great marketing and promotion can play a huge role in generating income as a business and if you need professional help, feel free to contact GK & Partners. Using a well tailored loyalty program can improve the communication channels between you and your customers. In addition, you are able to better tailor this communication to your customers’ needs and interests including through emails and follow up offers. By recognising your customers individually, you are building a great foundation for customer satisfaction. In the end,customers will feel valued, differentiated and appreciated for their choice in shopping with your business.

Happy customers are a significant aim for all business  regardless of size. Positive word of mouth from satisfied customers is one the most powerful marketing tools a business can employ. Positive messages can improve a business’ market share by up to 20 percent in two years. On the other hand, a dissatisfied or unappreciated customer can tell up to 15 people about their experience. This tackles both aims of attracting new customers through word of mouth and also keeping current customers happy to encourage repeat business.

There are a variety of strategies you can adapt to achieve a better bottom line for your business. These three ways are great examples of why a customer loyalty program would be an essential strategy to include in your plans for business and profit growth. Customers are a key part of any business and encouraging their loyalty should be a priority. http://credit-n.ru/vklady.html

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The Best And Worst Reasons To Sell Your House

March 15th, 2018 Posted in Jobs and Careers, Money Tips
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Selling your house and moving is a big step and a decision that shouldn’t be taken lightly. It’s going to cost you a lot of money in legal fees and if you’re moving into a larger place, you’ll be putting more strain on your monthly budget. Sometimes, moving house is absolutely the right thing to do. But in some cases, people move for the wrong reasons and end up regretting it afterwards. Before you make any drastic decisions, you should think about why you actually want to move house and if those reasons are good enough to make this huge lifestyle change. To help you work out whether it’s the right move or not, these are some of the best, and worst reasons to move house.

The Best And Worst Reasons To Sell Your House - house contract image

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More Space

This one comes under both categories, depending on your current situation. You might think that you need more space, but you might not be right. If you’re starting a family and you’re living in a fairly small house, you’ll struggle where you are right now. It’s not too much of an issue with a new baby but as soon as they start walking, you’ll need to move into a bigger house with more rooms. However, a lot of people think that they need more space because the house is feeling cramped, but there’s a different problem. They just have too much clutter around the house. Have a clear out and see if that makes a difference, you might find that you don’t need to move after all. If you think that you need more rooms in the house, ask yourself what you’d actually use them for. Unless you can come up with a solid reason why you need a bigger house, you probably don’t, in which case, there’s no point increasing your mortgage just yet.

The Markets Are Good

When you’re in two minds about whether to sell up or not, the state of the markets can help you to decide. If they’re bad, you risk making a loss on your house which is obviously never a good move. But if the markets are good and the value of your house has increased way past what you paid for it, it might be a good time to take that opportunity and make a profit while you can. You can put the extra money towards a deposit on a bigger house. Even if you don’t necessarily need the space, you should consider it an investment for the future.

Moving For Work

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Moving for work is another reason that could be good or could be bad. If you’re offered a new position that’s miles away from where you are now and there’s no way you could commute from your current house, it’s worth considering. However, you need to weigh up whether the job is really worth uprooting your life and moving house. You might be able to speak to your employer and see whether there is a similar position going at your current company and go for that instead. If you do take the new job, you might not actually have to move. If it isn’t that far away and you could reasonably commute there from where you are now, and you like the house, it’s probably better to just stay put and save yourself the hassle and expense of moving somewhere new.

Divorce

When your marriage breaks down and you decide to get a divorce, the house can be a real issue. There may be disputes about who gets to stay in the house if you decide not to sell it which causes a lot of complications and makes the whole process harder than it needs to be. The simplest thing to do is sell up and split the money, then you can both start again fresh. Click to find out more about selling your house after a divorce. The first thing to do is agree on how you’re going to handle mortgage payments until the house sale goes through, especially if it’s your name on the mortgage. If you don’t sort it out right away, you might find yourself liable for all of the debt if your name is on the agreement. http://credit-n.ru/about.html

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Real Estate Investment: 4 Properties You’ll Never Struggle To Find A Tenant For

March 14th, 2018 Posted in Property Investment
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As attractive as the idea of property investment may be, many people find themselves put off by one huge concern: the ability to find tenants. Tenants, after all, are crucial to your ability to generate a profit from your property portfolio— but there’s no denying that landlords often  have huge problems relating to consistent tenant occupation rates.

Tenants are, to an extent, inherently transitory. This is one of the major benefits of only renting a home; it offers a flexibility that allows people to move from place-to-place with relative ease. As attractive as this ability may be to tenants, it can make prospective landlords rather edgy about the viability of property investment as a whole.

If you have contemplated real estate investment and then pulled back over concerns regarding finding tenants, then the properties below are well worth considering…

#1 – Student accommodation

Real Estate Investment: 4 Properties You'll Never Struggle To Find A Tenant For - student accommodation image

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Student accommodation is always difficult to find. Simply put, there are more students than there are student-friendly properties. Thus, thanks to the eternal rules of supply and demand, choosing an investment property that can be rented to students is a surefire way of ensuring consistent occupation.

There are many decisions you will have to make if you investigate this kind of property. Are you going to let to a single student, who occupies a single apartment? Or are you going to let a single multi-room dwelling to a number of different students, who may or may not know one another? The second option is by far the most common, as few students have the funds available to live completely independently of one another.

If you let a property to a number of different students, then you will need to satisfy the rules and regulations involved in the process. You will be letting a property under a “house in multiple occupation” (commonly abbreviated to HMO) designation, which does require compliance with extra conditions. However, if you find a property close to a campus and contact HMO specialists to ensure you meet all the necessary requirements, you should be able to expect a high occupancy rate— which helps to protect both your initial investment and your profits.

#2 – Properties close to a beach

Real Estate Investment: 4 Properties You'll Never Struggle To Find A Tenant For - beach front properties

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As with student accommodation, this option is a different form to the standard “buy to let” that most prospective property investors imagine. However, again like student accommodation, buying properties close to a beach can be an incredibly savvy move.

First and foremost, you’ll be able to consider letting a beach-adjacent property in the conventional way; to one individual or family group, and renewing the tenancy on a monthly basis. Properties close to a beach will always be popular, but you are still going to be subject to the need to find consistent tenants. This, as discussed, can be difficult.

So buck the norm and opt for a different method of generating an income with your property investment. Rather than letting your property on a standard basis, offer your property for holiday rentals and AirBnB listings. These rentals might be short, but the close proximity to the beach should help ensure a continual stream of tenants, and those tenants will be easier to manage than conventional renters. Renting to holidaymakers gives you flexibility to reclaim and use the property whenever you want, allowing your investment a sense of freedom without all the red tape involved in managing a conventional tenant.

#3 – City centre apartments

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It doesn’t matter what city it is; city centre apartments will always be a great choice for rental properties. These properties are so in demand for one simple reason: everyone hates commuting.

If you find a property close to a business or financial district, there’s no doubt it will be an excellent investment. Dedicated workers in these areas will love the idea of a short commute combined with great access to the city’s nightlife, or you may find tenants who prefer to use the property as a pied-à-terre during the working week. Either way, a great city centre location is a reliable choice for any property investor.

While you may naturally be drawn to family homes in beautiful locations as a property investment, ultimately, you have to follow the people. City centres will always be bustling hubs, so you can expect a constant stream of city-centre workers wanting to rent from you. You’ll also be able to charge higher prices per square foot than you would on a family home. The one downside is that you will also pay more for the property itself, but you should be able to earn this investment back in consistent rental income.

#4 – A property with nearby transport connections

Real Estate Investment: 4 Properties You'll Never Struggle To Find Tenants For - transport hub image

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It’s not just a nice neighbourhood or close proximity to a good shopping mall that you need to keep an eye out for when buying properties; transport connections matter too. Ideally, you want to find a property that offers at least two of the following:

  • Easy access to any railway or underground stations, preferably within less than 10 minutes walking time.
  • Easy access to bus stops.
  • Good road connections; less than 10 minutes drive away from a connection to a major highway.

Transport is often a key decision for tenants, especially those who are going to be commuting. You could have the nicest investment property in the world, but if it’s in the middle of nowhere and only serviced by a few buses a day, then tenants just aren’t going to want to live there. Tenants will accept smaller properties with excellent transport connections, so don’t think that the property itself is the only consideration you have to make. Your chosen property has to be as nice as possible, but its location — and particularly its proximity to transport links — is just as, if not more, important.

In conclusion

So if you have always wanted to try property investment but have worried about obtaining tenants, choosing one of the options above could be the perfect solution for you. While you will inevitably occasionally have gaps between tenants, the four property types above can help to ensure those gaps are relatively short.

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