Overseas Investments: Buying Property Abroad

by Magical Penny on August 7, 2017

dubai bankingProperty investment is one of the most tempting options out there for people looking to make extra money in normal life.

If you can afford it, buying a second home to rent to someone else can be one of the best investments you ever make. But, for some people, buying a property in their home country will be a boring prospect. Instead, you might like the idea of branching out a little bit. Buying an overseas property can be a hard game, required help at each stage, though. So, to give you a hand, this post will be going through some of the steps you’ll need to take, as well as the support you can find during each of them.

Finding It

To start this journey, you will need first to find the property you’re going to buy. Normally, people would use an estate agent to help them with this part of the journey, and buying overseas is no different. In this case, though, you’ll need to have a specialist to help you. An agent who works with overseas property all the time will be able to help you choose the best location for your new venture, maximising your return. Then, they will work with other businesses in the area you’ve chosen, giving you the chance to look at some properties. It’s important to go to viewings for these, even if it costs money. Eventually, your professional support will find something which you love, and you’ll be able to make your purchase.

mortgageFunding It

With a property you like on the horizon, it will be time to start considering how you will fund the purchase. In most cases, people don’t have all of the money they need to buy property. Instead, they will get a loan called a mortgage to help them afford it. When buying property overseas, it’s best to stick with a lender in your home country. As your property is an investment, it’s unlikely you’ll live there, so it makes sense to keep the debt at home. A company like Enness can help you to find a mortgage for property outside of the country. Using this approach can make the whole process much smoother, as you will be able to understand it much better.

Managing It

Once your mortgage is approved, you’ll have a lot of work to do. It’s likely some renovations will have to be done on the property, and people will probably have to be paid to do this. But, along with this, you also have to consider how the property will be managed while you’re at home. At this stage, you might need the help of a real estate company local to the property you’ve bought. This will be to rent the property out and make sure that it’s kept in good condition, though. Read reviews from other international property owners whenever you’re choosing a company like this.

Hopefully, this post will give you the help you need when you’re looking for an alternative to the usual property investment options you have. Buying a home overseas can have a lot of benefits. But, of course, only you can decide which option is right for you.

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Buying Bigger – What Are Your Options?

by Magical Penny on August 7, 2017

stamp duty change 2016We all have dreams and aspirations, but life will often get in the way of making them come true. But sometimes life forces your hand in a more positive way. You find you need more space, and you’ve finally got the opportunity to shop around for that elusive dream home you’ve always hoped for. So what are your options now?

Bigger Rooms

If you have more members of the family on the way, you might need bigger rooms. Open plan living areas certainly make everything a little less claustrophobic when you’re all together. Of course, it works the other way too. If you have lots of people around, you might need a bigger home office, or a bigger bedroom to satisfy your need for escape! Let’s not forget our outdoor rooms – gardens and outside dining spaces are ideal for large families. This may mean you have to look for properties in the suburbs or rural areas to find that space.

More Rooms

As well as a larger scale of property, you might need more rooms to satisfy all of your hobbies, interests, and other requirements. Playrooms, music rooms, dens and home offices are common requirements these days. Then everyone wants their own bedroom, all with ensuite! Properties like this are easy to find if you put yourself in the right price bracket. You may need a high value mortgage to cover the asking price so consider how far you’re willing to go. Plentiful rooms come with traditional townhouses on multiple levels. These are quite common in the city.

house mortgage UKBigger Footprint

Of course, you don’t have to go up to get a bigger property. Many barn conversions are spread over a wide plot. Be wary though, because not all of them come with ownership of the beautiful countryside around them! Building your own on a sizeable plot can also give you plenty of options regarding layout and size. If built to a good budget, it could be quite the investment opportunity. Single storey living is still really popular. It’s ideal if you’re hoping to stay in that house for the rest of your lives. Still, you can find large properties that have a second or even third floor.

 

Multi-properties

Many families have resigned to the fact that caring for the older generation at home will be a necessity. Purchasing a property that has a second self-contained property on the same site can be an ideal solution. This gives your senior family members the space and privacy they need for independent living. It keeps the kids out, but means you can be there in an instant if necessary. You can choose to enjoy meals together or have a quiet evening separately.

 

It buys you an enormous amount of choice. You can also choose to rent that space out as a long-term or holiday let if you prefer. And who wouldn’t love to give their young grown-up kids a chance at independent living rent free?

Everybody’s dreams are different, and our futures will be different too. If you’re ready to size up what will you make you make the move? Ultimately, this is an investment so make it work for you.

 

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Everything You Need to Know about the PPI Claims Deadline

by Magical Penny on July 28, 2017

The PPI scandal has been going on for years. It was back in 1998 that Which? first raised concerns about PPI being a poor value-for-money product. Since then, various investigations highlighted how banks have been misselling PPI to people. Many customers didn’t understand all the terms and conditions, or felt forced to purchase it.

Since 2011, a staggering £27 million has already been paid to customers for compensation and refunds for mis-sold PPI. In the upcoming weeks, you may hear about the PPI deadline more and more. So, here is everything you need to know about the PPI claims deadline and how to make a claim.

What is the PPI Deadline?

In an attempt to get people claiming who haven’t yet, the Financial Conduct Authority (FCA) has set a PPI claims deadline for August 29th, 2019. Official promotion of the deadline will begin in August 2017. Many believe that this will create an increase in calls from PPI claims companies and put extra strain on the banks.

While there are plenty of people who believe the PPI deadline is good, one claims management company feels the deadline is “clearly unlawful”. It believes there shouldn’t be a deadline for customers reclaiming money which is rightfully theirs. As such, they are launching a judicial review of the decision made by the FCA.

Whether you believe the deadline is good or bad, it seems pretty concrete right now, which means it’s time to take action.

How Long Will a Claim Take?

A claim can take a number of months to complete, which is why it’s important to get started on PPI claims as soon as possible. The banks can take up to eight weeks to reply to an initial response. The whole process takes approximately three to four months. If the banks receive more complaints when the PPI deadline is widely promoted, the process may be much slower.

If you are unsatisfied with the result of your claim, you can refer the case to the Financial Ombudsman. However, due to the backlog, this can take up to two years to be pushed through.

How Can I Make a PPI Claim Before the Deadline?

Making a claim against your bank is a relatively simple process, but not all banks are forthcoming with information about how to make a claim. Although some banks have actively contacted customers who may have been mis-sold PPI, the response rate from these letters has been low. This could be due to people moving address and no longer being a customer of that bank.

To make a claim, you can either contact the bank directly or use a trustworthy PPI company. If you have the relevant paperwork relating to the account, this should help speed up the claiming process. If not, a PPI claims management company should be able to find this for you, or an independent creditor.

How Can I Find the Best PPI Claims Company?

If you decide to use a PPI company, ensure that you choose a reputable firm that is registered with the Claims Management Regulator. To find the best PPI claims company, ask friends and family who have made successful claims against their banks.

The amount charged by PPI companies can vary dramatically; some claims management companies charge over 30% if your claim is successful. The best PPI claims company will charge less, as they want you to succeed and receive money that is rightfully yours. Look for a company with a fair charge and offer a personal service. The best claims management companies often operate on a PPI no win, no fee basis, meaning that unless your claim is successful, you won’t have to pay a penny.

As always, check the terms and conditions before entering into any contract with a claims management company.

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Self Building: The OTHER Way

by Magical Penny on July 27, 2017

 

stamp duty change 2016All over the UK, thousands of people are out there right now viewing properties and sighing with frustration at yet another property that just wasn’t right. It’s a frustration that anxious house-hunters face all over the country. In the face of a severe housing crisis, the UK has many (especially young people) convinced that homeownership will be forever out of reach unless they settle for a property that’s wrong for them. What those people may not realise, however, is that there is another way… self building.

While many may be put off by the huge and ostentatious self build projects featured on TV programs like Grand Designs, the simple truth is that self building is a perfectly viable option for many Brits who are frustrated by the stagnation of our property market. In fact, over 13,000 people decide to build their own house, every year. It’s a prospect that appeals to people from a variety of backgrounds. It’s as appealing to young couples keen to get a foot on the ladder to retirees looking to downsize, or even experienced builders looking for the perfect project. From steel-made Armstrong pole barn homes to tiny one-bedroom cottages, self build properties are a viable option for virtually any budget and taste.

Complete customisation

Everyone wants to make their home their own, but self building enables you to do this literally from the ground up. With developed homes, we pretty much have to get what we’re given, but a self build allows us to construct a home that’s uniquely suited to our sense of style, personal taste and family priorities. You’re liberated from the ‘one size fits all’ mentality that developers are, by necessity, have to adopt and can develop something that reflects you. You can also build to reflect impending changes in circumstances. If you’ve always wanted a walk-in wardrobe… You’ve got one, but if you have a baby on the way you can ensure that they spend their early years in a nursery that’s designed specifically for them.

mortgageCheaper than you may think!

If you’ve ever seen a property show then you’ll know the drama that occurs when a self build goes over budget, but don’t let this put you off. These often lavish designs face a very different set of circumstances and challenges to the average self build. Unlike a property developer, who has to account for a projected profit margin, you’ll be able to get significantly more for your money. It’s one of the few arenas in which bespoke offers better value than pre-fabricated.

What’s more, you’ll likely pay significantly less in Stamp Duty Land Tax as taxation will only be due on the plot of land and not the property itself. You’ll also make significant savings on VAT. New build homes are zero-rated for VAT meaning that you won’t have to pay a penny of the tax on your labour costs. Compare that to a standard renovation and you’ll see how much more you’d be getting for your money.

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Things To Consider So Buying A New Car Makes Financial Sense

by Magical Penny on July 26, 2017

The lure of buying a modern car can be all too great because the technology of most manufacturers has evolved so far.

There may be some that saying buying a brand spanking new car is insane, because a couple of models down the series line, is a car that can fulfil your every need. While there is some truth to that proposition, sometimes needs outweigh the slight hindrances. Indeed modern cars are going to demand a certain price, even for the entry models, but modern manufacturing trends have prolonged the life of each machine substantially. Looks, speed and tCarhe feeling a new car will give you aside, another important aspect of buying a new car is whether it makes financial sense or not.

 

Budgeting your purchase

Before you think of going for a test drive in a car you’re interested in, work out how much you’re willing to spend on a car. Do you personally have enough money to buy the vehicle, or are you going to seek financial assistance in the form of a loan to so? Although a budget may be a form of simple calculations, remember that it’s a blueprint for how much financial strength you have behind this purchase. Factor in unexpected bills and routine maintenance because although modern cars don’t break down like models from previous decades, the cost of repairs may be high.

Keep safety in mind

Think carefully before you make a short list of the vehicles you may potentially buy. It’s important to physically interact with the car before even setting off on a test drive. Consult your family because if you have drive a lot with your children present, the child seats may not be compatible and up to industry standards. Defective design can lead you to need Houston Law Firm for a car accident that hurts your children. Safety should be the bar, placed above all else because if the seat belt is positioned an unorthodox position, children in child-seats can be injured under heavy braking. Manufacturers have often had to recall cars because they didn’t design a child-safe environment, so be prepared and choose wisely when it comes to rear seat safety.

You need to make sure you've covered with breakdown coverageReliability gives longevity of life

The lifetime cost of owning a car stacks up due to the challenges you throw at it, in everyday use. Reliability should be high on your checklist of things to ensure before signing the dotted line. A cool, sleek design and fast accelerating engine, doesn’t mean you the manufacturing standard has been high; the same with slow, blocky family cars. The key things to notice in the latest models is the miles per gallon the car offers.

A car with a balance of adequate power and high MPG means the engine has been extensively tested, and geared toward working for long periods of time without fault. Equally, the materials that have been used in the production such as high-quality steel or refined iron is noteworthy. You should check the customer reviews on website that sell used cars to figure out what kind of pattern leaps out, regarding malfunctions. There are also car magazines and websites that review the latest models, giving you a better picture of the hiccups and flaws of the car.

 

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What To Consider First Before Choosing A Health Care Insurance Plan

by Magical Penny on July 25, 2017

three-fingersChoosing the right health care insurance involves a lot of analysing of your health, the lifestyle you lead and what your future plans are. It’s never been an easy process and can at times be a bit morbid, but contemplating a serious injury is something you must do to make the best choice. Laws and legal obligations always change, which makes things more complicated but, besides from the national health care statute that are the parameters of all else, an insurance plan is purely for an individual. Sorting through the many health insurance companies is quite frankly, too large of a task. You must boil it down to what type of coverage you want, which washes away the irrelevant extras and streamlines a plan to your lifestyle and current medical condition. The specifics of an insurance plan may need to be bartered, so before you contact a potential insurance company, come prepared with the right questions and queries.

Here are 3 considerations to get your started.

1. Act inside budgetary constraints

Sizing up the cost is going to be the largest challenge ahead, but in truth, even this can be made simple. Ask yourself if health insurance is really for you because you can only act in the boundaries which are financially possible. The choices you have for an insurance plan are immediately narrowed and focused on a number of funds you have, available to pay for the care. Depending on how much money you have saved and are ready to depart with, you can either get the basic amount of options, or an intricate and entirely bespoke insurance plan. The bottom line is you must draw up a budget before you go to the marketplace to see what’s on offer.

 

2. The liabilities

A health insurance plan is subject to the company that provides it, so although companies may use the same terminology, you should check what the liabilities are. If you are involved in an accident through no fault of your own, the costs may be entirely picked up by your insurance plan. If you are the one who has caused the accident and the authorities have decided as such, some companies demand you pay an out-of-pocket surcharge. If you suffer medical malpractice by the hands of a hospital employee, often times you’re on your own, and insurance companies see no obligation to step in and cover the charges of corrective measures. In which case you will need the help of a private legal service to point out incorrect procedures or low standards that caused your additional pain. If you’re unable to afford the additional operations or prescriptions, going to court to recuperate money to pay for the bills is many times the only way.

 

3. Keeping your doctor

Over the years or months, many people build a relationship with their doctor. They slowly become a friendly and most importantly, a trusted face. If a doctor knows your medical history like the back of their hand, you’re mostly going to want to keep them as your doctor. However, some insurance plans don’t allow you to select your favourite doctor, physician or other specialists as part of your provider network. Either the costs may be too high, or the medical practitioner is not on their certified list. If this is important for you, as an emotional connection is to some, make sure your insurance plan can allow this before finalising anything.

 

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Learning About Trading – An Introduction

by Magical Penny on July 20, 2017

financial newsWhen it comes to investing in markets, there are long-term and short-term approaches.
Long term investing is typically defined as investing for 5 years or longer and investors (try to) ignore the ups and downs of the markets believing that over time the values of their investments will trend upwards.
Short term investing is much more fast paced and rather than ignoring the ups and downs, known as volatility, investors attempt to profit from the fluctations.
Both types of investors attempt to follow the adage ‘Buy low, sell high’, but the timelines are vastly different.
Investors hoping to profit from the rise and fall of markets often make a lot of frequent trades and therefore are called traders, and their activity is known as trading. A lot of money can be made trading if you do it right, and in a much shorter time frame than the long term investors who buy and hold investments over multiple years and decades. In contrast, traders tend of hold onto their investments for only a few days, hours, or even minutes and seconds! Holding an investment overnight is sometimes considered to be ‘long term’ for some traders!

investingSo should you get into trading?

Trading has become a lot more accessable in recent years with the rise of the internet, and more recently still, smartphones and trading platform apps such as Alvexo. No longer do traders need to be tied to their desks. Traders now can make money in the markets whereever they can get decent phone reception, including on the bus or even the beach.

But just because you can doesn’t mean you should.

Traders need to understand what shares and securities they are trading and become familiar with the markets before they start putting large sums in. With electronic trading through electronc communication networks (ECNs) its quicker than ever to make a trade, and speed can lead both quick profits and costly mistakes.
As well as trading with your own money, some trading platforms allow you to invest ‘on margin’ meaning they lend you money to invest. This can increase your profits but can also mean you could be forced to put more money into the trade to keep it open should the value go down. If you don’t have more money to put into the trade, the trade could be closed i.e. be forced to sell, crystalising the loss without the oportunity to let the investment grow back to the level you started with. But if the trade goes your way, it’s a powerful money-maker. Trading on margin ultimately magnifies your trading results, good or bad.

Contracts for Difference

A popular way to trade is through a service called Contract for Difference, known as CFD Trading.
Introduced first in the UK, these tradable instruments change in value in line with the underlying assets they represent. You don’t own the actual investments directly and it’s easier to get into leveraged trading this way. For example one provider, Alvexo, offers CFD trading with a leverage of 10 to 1. So £10 can get you £100 worth of underlying shares. If the price of the £100 worth of shares went up 5% over the day or even the hour or minute, and you then sold out of the trade, you would get £5 plus your intial £10 investment. That’s a 50% return on a 5% price movement. You can therefore see how quickly profits can build up.
If you do decide to start trading make sure you learn about trading, are diciplined with how much you are willing to put in, and follow the golden rules of trading . And whilst it can be fun and profitable, make sure you are also doing long-term investing and have a sufficient cash-based emergency fund for your own financial security.

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Venture Into The Wonderful World Of Contracting

by Magical Penny on July 18, 2017

Stepping into the world of contracting can be daunting, exciting and scary.

You have decided that you’ve had enough of being employed by somebody else only to see a huge chunk of your earnings making their way to the tax man. Your contracting colleagues are encouraging you to go for it, to relinquish the security of permanent reaching the summitemployment and to become your own boss. The financial rewards are plentiful, but there is always something niggling at the back of your mind preventing you from taking the plunge. The onus is now on you to sort out all of your financial affairs from PAYE to VAT and from corporation tax to indemnity insurance. The task to set yourself up ready to become a contractor can seem huge, but it can be done. In fact, thousands of people across the UK are enjoying the freedom of setting up their own limited companies and contracting. Could it be time that you did the same?

 

On Your Own

As a contractor, you are branching out on your own using your IT, business or technical knowledge to work with companies for a set length of time to complete a specific project. Once the project is completed, you then move on to the next company. The work is varied, and the financial gain can be phenomenal, earning up to £800 a day. But how do you manage this money on your own? It’s vital that you source an accountant that specialises in working with contractors. These people understand the intricacies of financial regulations and are always clued up on the latest legislation. These specialist accountants will help you to set up your limited company and sort out your taxes, VAT and set up your company bank account.

If you choose to go it alone and use Google as your only source of information when venturing down the path to contracting, you may be in for some nasty surprises. Put bluntly, you are risking too much professionally and personally. Even though it may be a novice mistake, if you don’t pay your VAT on time or don’t pay up enough for your corporation tax, this may be a red flag to the HMRC, and you may find yourself under a tax investigation. At this point, you will need the help of a specialist tax firm that can represent you and defend your position to resolve any tax disputes. An investigation into any part of your business is stressful, can affect your health and prevent you from working, so it’s vital to get the professionals on board.

The list of tasks that you need to do before you begin to contract can be bewildering. You’ll need insurances, a company bank account, a registered business address, and you need access to some intuitive and accurate accounting software. Many of these tasks can be fulfilled by an accountant for a monthly fee. Others do require some research on your part, and if you scout out the right deal, you can further enhance the financial benefits of contracting.

moneyYou may have heard the phrase IR35 bandied about when it comes to contracting. This is the UK government’s fine line between applying a tax status to a role that constitutes a full-time employee or a contractor. This is where your specialist accountant will earn his or her fees. They will ensure that you never fall into the trap of working with a company on a contracting basis only to find that your contract does not fulfil the IR35 criteria. You don’t want to find yourself being taxed as a full-time employee and not enjoying the financial benefits that contracting brings with it.

Contracting is a Mindset

Get it right and contracting can be relatively stress-free and can see you develop an exceptional CV. Contracting is a mindset. There will be times when you are out of work or ‘on the bench’ but this could be time that you spend gaining another qualification, doing some voluntary work or travelling. Many contractors find themselves falling into a routine of working nine months of the year, with three months spent doing other things such as hobbies or spending time with family. The world of contracting offers a great deal of flexibility and freedom. However, some people thrive on routine and stability. You’ll never know until you try. If you find that contracting isn’t for you and that you prefer the security of a permanent role, you can always slip back into the world of full-time employment. Do your research and look into the contracting job market where you are based in the UK. If it is currently buoyant, there may never be a better time to dip your toes into the wonderful world of contracting.

 

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How To Protect Your Property From A Crash

by Magical Penny on July 18, 2017

The property market is in a regular zig zag of ups and downs regarding value. Many home owners hold concerns over whether their home or investment property will devalue over time. There are many ways to ensure your property is safe guarded so it does not drop in value during the next property fall. However, many people are still not aware of these. Have a look at some of these tips to ensure your property is protected from being undervalued during a property crash in your area.

british pound notesDeposit

This may sound obvious, but to ensure you don’t lose money on your property, or not overpaying on your mortgage it is best to put a deposit larger than the standard 10%. Avoid opting in for a zero deposit plan, because in the long run, you may end up paying a lot more than you would for other properties in your area.

Buy for the Long-Term

If you don’t plan on keeping the house for more than five years, don’t buy it. It often takes anywhere between 5-10 years for your property’s worth to rise. If you sell within the first five years of purchase, you could be losing money rather than gaining capital. To get the most out of your investment, consider holding onto it for over five years. For further growth in the price, you may even want to consider renovations. This will see the value of your home rise further. If you are unsure about your investment options, you may want to consider booking an appointment with a property investment company to chat about your options.

house questionLocation

Consider where you’re buying and when you buy. If the area you are considering purchasing a property in has high crime rates, you may want to consider another location. The top things to look for when you buy a home is whether there is a lot of young families around, crime rates, distance and access to schools, shops and public transport. Being in an area with a lot of young families suggests growth in the area, while the lack of crime rates ensures more security in your home. The distance and access to facilities help with driving up your property’s value when you choose to sell.

Tenants

If renting your property out, ensure you choose the perfect tenants. Young families are always an excellent choice, as they respect the home and treat it as it were their own. Although university students can be good tenants, they may also be a risk if you are looking for someone to respect your neighbours. If you are looking for long term tenants, young families are the best option for yours and your property’s security.

Regardless of whether you are purchasing a home as an investment or as a place to live in, there are many factors to consider to ensure your property does not crash and you lose in the long term. Providing a higher deposit is paid, you are buying for the long term in a decent location and the selection of tenants if you decide to rent will all have an impact on your properties value. Hopefully, with these tips, you will be more knowledgeable, and the purchase of your home will be easier.

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Strategies For A Positive Buyer-Estate Agent Relationship

by Magical Penny on July 14, 2017

 

Estate agents have a nasty trick, one which is established as a technique to try and increase their commission.

If you tell them that you have £200,000 to spend, they will show you houses that are £250,000. It’s a trick that’s designed to make you fall in love with the more expensive houses and thus find extra wriggle room in your budget to allow you to afford them.

It’s one that we’re all liable to fall for, too. After all, we want to have the best home we can possibly buy – and if the price difference isn’t that great, it can be tempting to make an offer and see what happens. Of course, this is the quickstamp duty change 2016est route imaginable to overspending and over-committing your family finances – and the consequences could last for the next 30 years.

Rather than falling into this trap, you just need to develop a few ways of thinking smart when it comes to making your budget stretch. With the help of a skilled company like Joe Manausa Real Estate, you should be able to figure out a way to work together rather than against one another.

1) Be Firm On Your Price

If you have set a budget, then that budget needs to be absolute. Set a high ceiling limit and tell your estate agent your budget is around 10% beneath that, but keep your actual budget in your mind. If you’re offered properties that bust both levels of your budget, outright reject them and refuse to see them. The price should be the first thing you ask before you even look at the details of a house, never mind go and view it.

2) Be Friendly

If you want the inside track on new, great properties on the market, then you need to develop a good relationship with your estate agent. Be friendly and personable, though don’t let it cross the line to being too amiable and persuaded towards properties that are out of your budget. You can even express regret at your budget being as it is, saying you know it’ll impact their commission but you hope you can find something with them anyway.

3) Stay In Touch

If you sit at home with your house sold and just waiting for the perfect property to fall into your lap, it’s not going to happen. Keep in touch with your estate agent by way of phone or email, asking if there’s any new tips or just checking to see if any properties have had prices lowered recently. Taking a few cupcakes into their office won’t go amiss either – anything to keep you on their good siflexibility in savingsde and encourage them to go the extra mile for you will help!

4) Have Some Flexibility

Most estate agents need you to have some flexibility. If you’re going to be rigid on price (as you should be), then you need to give them alternate ways to look for alternative options. For example, you could be open to losing a bedroom or forgoing a particular area – anything that shows you’re not being picky for the sake of it, and you’re willing to compromise to find the right deal.

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