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5 Tips On Running A Buy-To-Let Business

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Everyone has dreamt of being able to do it. For many, it is part of their retirement plan; buying a property or two, renting them out for a sum that will cover both the mortgage and running costs, all while you sit back and watch the price of your property inflate. What better way is there to enjoy a fruitful retirement?

What’s more, thanks to low-interest rates, a booming property market and an ever-growing pool of tenants, now is a great time to invest. However, it is no walk in the park. Running a buy-to-let business has plenty of challenges.

Read on for some top tips on being a successful landlord:

1. Research The Market

If you are new to this area of investment then make sure you do all the research you can, and not just the property market; there may be better alternatives to investing your money. We suggest going to the experts for advice, someone who has experience in dealing with a wide range of investment opportunities, such as Enness Private Clients. It may be that a high-interest rate savings account would better suit your needs, or the return from an income-based investment fund; something that isn’t attached to the same risk as property and doesn’t tie up a lot of capital.

2. Hire The Right Agent

If you decide property is the route you want to go down, make sure you get yourself a good agent. A good agent will be able to talk you through the steps, from the rules and regulations, you must follow to the setting up your tenancy. They will also ensure all potential tenants have good a credit history and suitable references. They will also be able to consolidate all the necessary paperwork, albeit at a cost. Just make sure they are registered with the Association of Residential Letting Agents.

3. Negotiate Fees

There are a lot of fees you will have to consider, all of which will add to the running costs of a property. But as a rule of thumb, agents will typically expect to be paid ten per cent for finding you a tenant and twenty per cent for managing your property, which will include everyday maintenance. However, you mustn’t be scared to negotiate these percentages at the beginning and to find out what hidden costs there may be, such as renewal costs.

4. Insurance

The only way you will get a good night sleep after a tenant moves in, is if you have landlord insurance in place, one that includes public liability cover. This will cover any damage, as well as any accident or break-in.

5. 24/7

Most of the time being a landlord will consist of radio silence. But be prepared for that dreaded call whereby you found a pipe has burst and water is cascading into the property below, or a tenant has lost their keys or thinks they have carbon monoxide poisoning. These things happen, and you need to be prepared to drop everything to sort it out. Being a landlord is not just a matter of receiving payment at the end of the month, it is hard work too.

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The Help You’ll Need to Make Your Home Move in a Way That’s Affordable

Moving house doesn’t have to be something that you take on alone. In fact, there is plenty of support out there for people who want to get it right. You just need to be prepared and know what the right help and support can do for you. It can make the task of moving from your old place to your new place so much easier and less stressful. So, here is more information on the help you need.

Experts in Home Buying and Conveyancing

If you decide to undertake every aspect of moving home on by yourself, then don’t be surprised when you get caught out. You’re properly not a real estate expert. And, to tell the truth, you need to work with people who are if you want to get things right. Trying to do things that you are not really qualified or experienced enough for will only lead to mistakes being made. Find a helpful estate agent who you can trust. They’ll Be with you every step of the way. And you will also need the help of people who carry out home surveys and do conveyancing work. These people do vital jobs, and they’re experts at what they do.

Professional Moving Help When the Big Day Arrives

When the big day arrives, and you are taking the physical and logistical journey from your old house to your new house, you’re going to need all the help you can get. Professional movers are there to help you, so don’t assume that you are better off doing it yourself. People think that they can save money by not using professional moving services. But what if you do it alone and break things? You will have to stump up the money to get things repaired or replaced, and that could turn out to be even more costly.

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A Useful Checklist

Having the support of a checklist is perhaps the most important thing of all. When you have a list in front of you reminding you what you need to do ahead of and during your move, you will be less likely to make mistakes. That’s a pretty big deal because mistakes cost big. A checklist is not a person either, and anyone can make one. So, you have no excuses for not creating a checklist for yourself and using it while you move. It could be the thing that ensures nothing goes wrong or gets forgotten about amid the chaos of the move.

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Extra Support from Friends and Family

Moving house should be a team effort. It’s much more stressful when one person takes on all the pressure and responsibilities by themselves, so don’t let that happen. If your family is moving house, make sure that everyone is pulling their weight and contributing to the team effort. You should also see if you can get any help from your friends. When everyone chips in, you can save time and save money, and that’s what’s most important of all. Make it happen and watch your move go smoothly.

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Tips to finding new tenants in Slough

It seems expensive for a landlord to continue with longer void periods. You shouldn’t find it tough to identify new tenants once your current tenant moves out. There are some areas in Slough wherein it’s not that easy to find a rental property, although the buy-to-let market seems to be growing fast. The easy availability of tenants in your neighborhood doesn’t guarantee the influx of families depicting good moral behavior and sober habits. The situation might be tricky for landlords in their pursuit for a good tenant.

Few good ways in which landlords can save time while checking out new tenants:

Social Media

It might seem to be a good ploy in stating the fact that your property is registered with Twitter, Facebook, and a few other social media websites. Chances are there that your network has contacts that will show their interest in renting your property.

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Your property can be shared to a much wider audience and you’ll end up saving much on the brokerage charges when you opt for online letting agents in Slough. Your property can’t be listed with online property portals when you’re a private landlord. On the other hand, it gets easier for you to market your property in these portals once you register with an agent online. It will certainly help you fetch potential tenants in good numbers.

Gumtree

Gumtree has a huge network and chances are there that they will check out your property very frequently. Gumtree gets your property listed with them for free. This method is truly recommended for identifying good tenants if you really wish to avoid spending more money.

Word of Mouth

This is a traditional approach for finding fresh tenants. However, this method holds a surprise element. You’ll never know when a tenant might turn up. Once the word is out, people staying close to your property will start spreading the information within their social circles. More often than not you’ll find someone who is interested in finding a rental offer within the same neighborhood. It’s even beneficial for you if you find a tenant through common references.

Letting Agent Firms

In the event you don’t find time to search for new tenants, then you must sign up with a good firm of efficient estate agents in Slough. Prior to getting registered, you must check out the cost involved in it.

It may not seem to be a great idea to choose the very first person who requests a tenancy. However, the risks associated with choosing a bad tenant are certainly curbed to a large extent when you run proper checks and ensure needed diligence.

You may wish to check out his previous tenancy history with the authorities. You must get in touch with the office of the state authorities if you wish to acquire information on a prospective tenant. Likewise, you must also check information pertaining to your tenant in advance. It’s truly essential for you to read through the terms of your contract carefully prior to signing.

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Risky Territory: Protect Yourself from Risky Tenants with This Guide!

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A real estate investor needs to protect their investment. Okay, so that goes for pretty much any type of investor. But a property is a lot different to the more abstract kinds of investments. This is a big, expensive, tangible investment that can be physically harmed. And it’s something that you’re going to want to let people inside if you want to maximize the investment potential.

So when we talk about protecting real estate investments, we have to talk about tenant credit risk. It’s important that you understand the many elements of this type of risk. After all, a lease is only ever as good as the tenant to whom you’re giving it.

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No type of lease is safe from tenant credit risk

No matter what kind of lease you plan to work with, bad credit can pose a risk to it. There are some misconceptions about certain types of lease. Triple net leasing, for example, isn’t immune to the dangers of a tenant who poses a credit risk. The reason that triple net leasing can help protect you from this sort of risk is because of the control it affords you. You can easily modify the terms of a triple net lease. Charging a high-risk tenant more because of their credit history is more feasible with this type of lease. Read more about triple net investing at www.triplenetgateway.com.

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What is a bad credit score?

So you know that you should get a credit report from someone who wants to be a tenant. (It isn’t necessary, but it is advisable if you want to alleviate this sort of risk.) But what “score” results in “bad credit”? Well, the credit scale is ranked between 300 and 850. A lot of people don’t know that it begins at 300. They see three digits and assume that it’s a high and thus “good” score! But if it’s between 300 and 629, the credit can be considered bad. Beyond 690, the credit can be considered good. (In fact, anything above 700 can be considered very good!) Read more about these scores at www.wikihow.com.

Don’t make assumptions

Here’s the annoying thing about credit checks. Depending on the company doing the check, and depending on the purpose of the check, the scores can vary. Where one sees a bad credit score, another may see a fairly good one. So while you should get a credit check done, you shouldn’t jump to conclusions. You should find out the specific reasons for the bad score. Read more about the potential reasons at www.blog.credit.com.

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See if you can speak to the previous landlord

One of the reasons you shouldn’t dismiss someone with a bad credit score is because they could actually be great tenants. There are so many things that could contribute to a bad credit score. It may even be a problem they’re unaware of. But someone with a bad credit score may also have a history of paying their rent on time and in full. If possible, get in touch with their previous landlord. They could have glowing things to say about them!

You must consider tenancy credit risk. But don’t let a bad credit score be the be all and end all of it. Investigate further!


Is Buying Your First Home Really A Good Investment?

Buying your first home will always be the biggest financial commitment you make. It takes months of searching for the perfect property, followed by weeks of form filling to get the mortgage in place. Every area of your financial life will be scrutinized, and you still may not get offered a rate that is affordable. It’s stressful, time-consuming, and hard work. But your time and energy aren’t the only things you’ll be investing in that property.

Saving up to cover that minimum ten percent of the purchase price is very hard to do for young people today. Of course, that isn’t the only upfront cost you’ll be facing. There are legal fees, removal costs, and administrative charges to cover before you get the keys to your place. Even before you’ve moved in, you’ve already paid a lot more than your deposit. Now you’ll be facing twenty-five years of interest payments on the 90% you borrowed. Is it all worth it?

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Many would argue that having a roof over your head and that first foot on the property ladder is an investment in your future. You’ll have the freedom to change the style of your home to suit your tastes. You may even have the space to start a family. Is the home you live in a good financial investment, though? Is there any question that renting is cheaper? Unless you are making a substantial step up regarding the size of your home, it is unlikely that your rent is less than your monthly mortgage repayment. Many mortgage lenders look at this as part of your affordability checks.

Buying wisely can help you maximize your investment. Start modestly. Don’t go for a four bedroom house if you only need an apartment right now. Do your homework. Check websites like www.searchbaltimorerealestate.com regularly to see what properties are on the market. Note the prices. Pay particular attention to the ones described as immaculate or impeccable. Compare them to the ones in need of modernization or refurb. If you’re willing and financially able to do some work, you could increase the value. Check with the agent what the ceiling valuation might be. If you can improve the property enough on a tight budget, you could make just enough to move up the ladder on your next purchase.

Market prices fluctuate. It’s important to buy at the right time for prices, not just the right time for your housing needs. There are usually taxes to pay on your purchase. It’s worth keeping an eye on news that these may change. It might prompt changes in the market. Or it might encourage you to buy quickly. To make your property a good investment, keep an eye on local issues. You should be aware of political and environmental issues affecting properties you’re interested in.

Buying a cheap property that requires a lot of work may be a mistake if you’re not skilled at DIY or building work. And buying an impeccable property now doesn’t mean it will still be in that condition when you want to sell it on. As with any investment, doing your homework can help reduce your risk.


Vital tax breaks that every first-time homebuyer should be aware of in 2017

The wallets of majority of Americans are in great shape since the Great Economic Recession. With steadier job security and higher pay, tax perks for homeowners, especially for the novices can make the entire prospect of homebuying more attractive. Homeownership is special as it offers tax breaks which renters don’t have and this is being considered as the best time to buy a home, tax-wise.

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For the prospective homeowners, a house is more than an asset which can help them cut down their tax liabilities. First-time homebuyers should be aware of the credits and the housing tax deductions which can help them save thousands of dollars and waive off the homeownership costs. Though you may require a little more paperwork to claim these benefits but at the end of the day the savings that you make is worth the effort. Irrespective of whether you bought your home for the first time or you’re planning to do so in the coming year, here are some tax breaks to retain more money in your wallets.

? Mortgage payment interest deduction

Perhaps the biggest tax break which you can get after purchasing a home is the mortgage interest deduction. This is a deduction which covers interest which is paid up to $1 million worth of mortgage loans and this is of particular benefit to borrowers who are new with their mortgages as they have to pay more interest rate initially. As the way in which loan amortization works, the initial payments will be towards highest ratio of interest to principal and hence you will receive a major part of the tax benefit then and there. However remember that the homeowner will have to file an itemized tax return to claim the mortgage interest payment deduction.

? Mortgage Points Deduction

This is not only the interest rate that you pay on your mortgage every month that qualifies for a tax deduction. Majority of the homeowners miss out on the deduction of points which are paid to secure a home loan. Mortgage points are prepaid interest which qualifies the borrower for a low rate throughout the life of the loan. Since it is a payment against interest, it qualifies for itemized deductions.

? Mortgage credit certification

The Mortgage Credit Certification Program can offer yet another opportunity for the first-time homebuyers to get tax perks on their mortgage interest. As per the IRS, this program has been introduced with the aim of helping low-income individuals afford home loans. This is not like a deduction which reduces your taxable income. This credit directly counts against the tax bill that you owe and lowers whatever amount is taxable. This is a cool program indeed but at the same time it is not much known among the prospective homebuyers. In order to grab this credit, you would require qualifying for Mortgage Credit Certificate by either your local or state government.

? Real Estate Tax Deduction

Taxpayers who itemize their deductions on Schedule A are even eligible for deducting real estate taxes that are paid on their primary and secondary residences. There are certified financial planners who say that you can also deduct real estate taxes, provided you pay them within the year on which you file them. One more thing is that the tax that you pay should be for a home that you own as you can’t claim taxes which are paid on a property belonging to someone else.

Owning a home of your own is definitely a huge part of the American dream. Almost all Americans nurture the dream of owning their own home, no matter how costly the affair may be. Fortunately, the IRS still has several homeowner tax benefits which assist families in buying a home with ease.

 


Buying Your First Home: Why Your Job Matters

Buying Your First Home: Why Your Job Matters

There’s a lot to grasp when you’re anticipating the purchase of your first home. And, in no time, you’ll surely find that it’s a lot harder than you might have hoped. Stumbling blocks will be placed in your way, and you’ll need to navigate them successfully. We could do an entire article on the potential pitfalls, but we’d be here all day. Instead, we’re going to focus on a chosen topic: employment.

Yes, your employment status and the details surrounding it are crucial when it comes to buying a home. We’re going to talk about why this is, and the factors that go into it.

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So, why is your job so important? It’s very simple. A mortgage lender will calculate your average income based on the amount of pay you have received over the last 24 months. If they don’t think that you’re going to be trustworthy, you’re not going to get approved. In general, you’ll be fine if nothing has changed over the past two years. However, if you’ve bounced between jobs or you’re anticipating changes in the near future, it might be a little harder.

That doesn’t mean that you’re out of luck, though. If you seek help with a private home loan, you’ll often find that lenders are willing to compromise. You’ll still need as much proof as possible about your current circumstances. They’ll require this information in order to provide you with a quote that works for both you and them. It’s important to be honest, no matter what.

But, what’s the best career choice for you at this time? Is it right to switch jobs now, or should you wait until your home buying aspirations are put into practice? It all depends on the type of work you’re doing, the salary you’re getting, and the hours you work. Importantly, it’s not always a good idea to switch between part-time jobs with varying hours. Ideally, the lender wants to see a steady pattern. If you’re moving from a 40-hour per week job to a 40-hour per week job in another company, it shouldn’t be as concerning.

Also, lenders ideally prefer a salaried job to that of a self-employed freelancer, for example. It’s always beneficial to have a steady income that rarely fluctuates. This shows that you’re trustworthy to repay on time without issues, so keep this in mind.

Ultimately, it isn’t always possible to meet the demands of a lender. That’s why honesty and compromise are important if you want to succeed, whether it’s through a bank or private means. Interest rates might go up if your risk is higher, and you need to carefully think the decision through. If you aren’t willing to abide by those requirements, make it known. It’s much better to back out now than find yourself in a devastating financial position later on.

If you’re in the market for a home, it’s important to remember how important your job is to the decision. Before you go making any rash decisions, keep in mind that stability is a valuable asset.

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Millennials Need To Take These Steps To Get On The Housing Ladder

Millennials Need To Take These Steps To Get On The Housing Ladder

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Millennials are always in the media these days. Most of the time, it’s because they are finding it incredibly difficult to get their foot onto the housing ladder. Is it really that difficult, though? If millennials took the following steps, they might find that buying their first property isn’t quite as out of reach as they think.

Look In Cheap Areas

One thing is for sure. There is just no way a millennial will be able to buy a home in London in the current economic climate. To be able to afford a house, they should be looking elsewhere. The further away from London you go, the cheaper houses get. Just look at Leeds for example. It is often thought of as the capital of the north. There are lots of jobs, and housing isn’t very expensive. You can see the type of prices online at Bridgfords.co.uk/forsaleoffice/leeds/2236/.

Save, Save, Save!

Many millennials don’t have enough saved up for a deposit. You only need a ten-percent deposit for a mortgage on a property. That isn’t that much when you think about it. If you don’t have anywhere close to that amount, you need to start saving right now. Even if you don’t have that much money spare at the end of the month, every little counts. It will probably take a few years to save up a good deposit, but you will get there in the end!

Use Government Schemes

The government knows just how hard it is for millennials to get on the housing ladder. And that is why they have created some schemes to try and make it easier. One of the best is the Help to Buy scheme. People who want to buy their first property can open a Help to Buy ISA to help them save up. The government will give you a bonus on top of your savings. This is to increase the size of the deposit you can use towards a house.

Get Help From Parents

They might not like the idea of this, but sometimes it is the only way they will be able to buy a property. If possible, millennials should ask for financial help from parents or other family members. They might be able to give you something to go towards a deposit. The other way they can help out is by becoming a guarantor for your mortgage. You can find out about guarantor mortgages at http://www.which.co.uk/money/mortgages-and-property/guides/first-time-home-buyers/guarantor-mortgages/

Keep On Looking

Don’t become disheartened and give up looking. You never know when a bargain might come onto the market. And if you take your eyes off the current houses for sale, you might miss out on this fantastic bargain. So keep on looking to make sure you don’t miss out on any fantastic deals on property in your area.

Millennials and property just don’t get on? If they follow this guide, they’ll get on like a house on fire!


Four Clear Signs You’re NOT Ready To Buy Your First Home

Four Clear Signs You’re NOT Ready To Buy Your First Home

First home

Many of us follow traditional career paths. We go through the educational system, eventually concluding by jumping into the world of work. It’s during this period of transition that we start considering where we’re going to live. It’s time to leave the nest, but is renting or buying a home the best option? It all depends on the situation, of course. If you’re feeling confused, follow our tips to help make your decision!

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#2

You’re In Debt

This is an obvious one! If you’re in debt, you haven’t got the money to be spending on buying a home. Purchasing a house is a massive consideration and one that can easily leave you with more debt in the future. First, you need to banish those current repayments as quickly as possible. Consider researching the Obama loan forgiveness scheme, and find ways to repair your credit if it has been damaged. For now, this is the most important consideration.

Future

#3

You’re Unsure About The Future

When you leave the educational system, you might feel a little uneasy. Some people seamlessly transition into the next phase of their career, of course. However, others stagnate and grow disillusioned. It might be that you seek a totally different career path entirely. Alternatively, you might need to look further afield to gain employment in your chosen area. If the future isn’t clear, you don’t want to jump into a decision like this. Buying a house is expensive, and selling it can be extremely difficult. Until you know where your future lies, you need to wait.

#4

The Negatives Outweigh The Positives

Sometimes, there just isn’t a good reason to buy your first home. For those who live on their own, buying a big home with multiple bedrooms isn’t worth it. Alternatively, it might just be that the house prices in your area are unreasonable. You don’t know what’s going to happen in the future, so for now, wait it out. There’s no shame in renting a home until a better opportunity comes along. Write down a list of pros and cons. If the cons are the most prominent, save your home-buying ventures for another time.

#5

You’ve Never Lived On Your Own Before

If you’ve spent your whole life living with your parents, it’s going to be difficult making the transition to living alone. Quite simply, you need some experience before making the decision to buy. This is a massive financial consideration, but how can you make an informed decision when you’ve only ever lived in one place? Before long, that big home you bought might seem too large and overwhelming for your needs. For now, take the time to rent and get used to living away from your parents. As you develop more experience, you’ll get a better idea of what you want out of your first home purchase.

It’s important to remember that buying your first home isn’t a race! It’s a decision that should be thought about carefully, and there’s no need to rush into it. Make sure you’re happy before buying that all-important first home.


Hidden Secrets Of Saving Money Selling A Home

Hidden Secrets Of Saving Money Selling A Home

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You guys know that I am always keen to find new ways that I can help my readers save money. One of the most expensive situations that you’ll go through in life is selling a home. I’m not just talking about buying the new property either. The process of selling can get incredibly expensive if you’re not careful. You need to hire the services of a number of different companies such as removal teams and solicitors. You may also need to complete some expensive work on your property before it’s ready for the market. So let’s look at the best ways to save money during this particular sales venture.

Using Paint Instead Of An Extension

This might sound crazy but bare with me. A lot of people decide to add an extension to their home to make it more valuable. To an extent, this makes sense because making your home bigger certainly increases the value. However, there’s no guarantee that you’ll get the money you put into it, back. If your extension doesn’t cost a lot, there’s a good chance it’s not build to a high enough quality. In the case, it’s likely that your home will lose value which is the last thing you want. A better idea is to instead paint the walls bright creams in most of your rooms. This is going to make them look bigger because they will be brighter. By doing this, you can alter the buyer’s perception without spending a fortune, extending your home.

Double Dip On Services

During your home move, you might need to put some of your belongings in storage. It’s usually crucial to do this so that your home didn’t look cluttered and packed full of items. You will also need to hire a removal team to get your belongings from your old home to the new property. The best way to handle these needs is to combine them. There are removal teams such as A2B Removals that offer both. They’ll keep your excess belongings in a secure place and move everything to your new home. By only hiring one company, you’ll be cutting the cost of paying for two different services.

DIY Jobs

If you are working on improving your property, you can aim to complete the easier jobs yourself. For instance, there is no need to hire someone to do the gardening. Most people know how to cut the grass, plant flowers and make a garden look presentable. Unless you are completely clueless in this area, DIY. You’ll save money that you’ll then be able to spend on other things after you move. Remember, most home buyers complete renovations on the new property in the first year.

Use A Realtor With The Right Price

Finally, you should spend a little time shopping around the market before you pick an estate agent. You need to find the company that is offering the right price, and costs do vary significantly. Some charge a fortune because of extra services that they offer. However, there is no guarantee that you need these services. Most people feel that as long as the home is online, available to view, there’s no longer a need for extra marketing.

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