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5 Important Financial Calculators to Use: Why and How

September 18th, 2022 Posted in Investment, Money Tips
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No one is born knowing about personal finance. It’s a topic that we all have to learn as we go along, and it can be tricky to get the hang of. That’s why it’s important to use calculators to help you make the best financial decisions for your life. In this blog post, we will discuss five important financial calculators and why you should use them. We’ll also provide instructions on how to use each calculator so you can get started right away!

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Investment Return Calculator

The first important financial calculator is the investment return calculator. This can help you determine how much your investments will be worth in the future, based on their current value and your expected rate of return. To use this calculator, you will need to input your current investment value, your expected rate of return, and the number of years you plan to invest. The calculator will then output an estimate of your future investment value. Why use an investment return calculator? This tool can be helpful if you’re trying to decide whether or not to invest in a particular stock or mutual fund. It can also be useful for estimating how much money you’ll need to save for retirement.

Mortgage Payment Calculator

The second important calculator is the mortgage payment calculator. This calculator can help you determine your monthly mortgage payment based on your loan amount, interest rate, and loan term. To use this calculator, you will need to input your loan amount, interest rate, and loan term (in years). The calculator will then output your monthly mortgage payment. Why use a mortgage payment calculator? This tool can be helpful if you’re trying to decide how much house you can afford. It can also be useful for estimating your monthly budget after buying a home.

Debt Snowball Calculator

The third important financial calculator is the debt snowball calculator. This calculator can help you pay off your debts, starting with the smallest balance first. To use this calculator, you will need to input your total debt amount, interest rate, and monthly payment. The calculator will then output a plan for paying off your debts, starting with the smallest balance first. Why use a debt snowball calculator? This tool can be helpful if you’re trying to get out of debt quickly. It can also be useful for creating a budget and sticking to it.

Equity Release Calculator

The fourth important calculator is the equity release calculator This calculator can help you determine how much money you can borrow against the value of your home. To use this calculator, you will need to input your home value, mortgage balance, and interest rate. The calculator will then output an estimate of the amount of money you could borrow. So why use an equity release calculator? This tool can be helpful if you’re trying to decide whether or not to take out a home equity loan or line of credit. It can also be useful for estimating how much money you could potentially borrow against your home’s value.

Retirement Savings Calculator

The fifth important financial calculator is the retirement savings calculator. This calculator can help you determine how much money you need to save for retirement based on your current age, retirement age, and desired lifestyle. To use this calculator, you will need to input your current age, retirement age, and desired lifestyle. The calculator will then output an estimate of the amount of money you need to save for retirement. Why use a retirement savings calculator? This tool can be helpful if you’re trying to decide how much money you need to save for retirement. It can also be useful for estimating how your lifestyle choices will affect your ability to retire comfortably.

There are a lot of different calculators out there that can be helpful in your financial life. These are just a few of the most important ones. Be sure to research and find the calculator that’s right for you and your situation.

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What’s the Difference Between A Freehold and Leasehold Property?

September 16th, 2022 Posted in Property Investment
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When buying a home, you may come across the two terms ‘freehold’ and ‘leasehold’. It’s important to understand the difference between the two as there can be different costs associated with each. This post explains exactly what freehold and leasehold properties are and the important difference between them. 

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Freehold vs leasehold explained

The difference between freehold and leasehold all comes down to land ownership. When you buy a freehold property, you own both the property and the land. When you buy a leasehold property, you own the property, but not the land it’s built on.

The terms are also different in both cases. With a freehold property, you have ownership of the property until you decide to sell. With a leasehold property, you have ownership for a fixed term until your lease expires or until you sell. Unless you renew your lease, you will lose ownership of your home. That said, most leases are very long and never need to be renewed. 

In the UK most leasehold properties are flats, while most freehold properties are houses. Of course, there are exceptions, so you need to be wary when buying a flat or house not to assume that it is leasehold or freehold. 

What is ground rent?

Because you do not own the land when moving into a leasehold property, you’ll usually have to pay an extra fee called ground rent. This can vary in cost, but is usually not too expensive – the average ground rent is between £200 and £500 per year.

Some leasehold owners charge very low ground rent rates of as little as £1 per year. This is often known as ‘peppercorn’ ground rent, Some leasehold owners may not even bother to collect peppercorn rent, meaning that you essentially don’t have to pay anything. Such leasehold properties are worth looking out for. 

Is a service charge the same as ground rent?

Many apartment blocks will also ask for a service charge, which is different from ground rent. The service charge covers maintenance of communal and shared areas of the apartment building. The service charge and ground rent may be billed together, or billed separately. 

What are your rights when it comes to renovating?

With a freehold property, you have the right to make any improvements you want, providing that they’re legal and permitted by your local planning committee. This is typically what people think about when they think of home ownership.

When renovating a leasehold property, there are likely to be more restrictions when it comes to renovating. In some cases, it can be just as restrictive as renting – you may not be able to make any structural changes and may even have to ask permission to make minor improvements. That said, you’re more likely to get permission to do things like painting walls, replacing flooring and hanging up shelves than you would renting.

What are the benefits of a leasehold property?

It may seem that there aren’t many benefits to leasehold properties compared to freehold properties. After all, you have a set lease term, you have to pay ground rent and renovations are more heavily restricted. 

However, leasehold properties do still allow you to build equity and get your money back when you sell. You can also rent them out as you would with a freehold property. Compared to freehold properties, they can also be cheaper to buy overall. All in all, a leasehold property is still better than renting. 

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