Wednesday 2 July 2014

The Cinderella effect

Me at the end of a long day 
Ever felt that you were slogging your guts out to no avail? Ever wondered where all those hours went sorting out other people's problems, keeping a watchful eye over your expenses, or bringing up children? The way you use your time TODAY has a massive influence on how you live your life TOMORROW.  As a property investor I have had more times than I care to admit to when I have had to spend time doing things I really did not want to do but knew that NO-ONE else was gonna do them!

Whether that's been arranging a mortgage, sorting out renovations or advertising for tenants. I have painted properties, lifted carpets, cleared out mess, moved bins, called endless tradesmen, managed money, worked with tenants, sorted out paperwork, and done many more other glamorous activities!

Oh yes,  I have at times got my hands VERY dirty. As time has progressed though, I have been able to be much more hands-off by using other people's skills and expertise. I now have a *wonderful* mortgage broker, who is just so cool! I call him and tell him what I want, and low and behold a few hours or even minutes later, he comes back to me with the best possible options for the property I want to buy.

I now also have a team of builders and tradesmen I can call on for specific jobs. I use an agency for some aspects of lettings (I am still holding onto this part for dear life)!! I have a brilliant accountant who tells me each month what my profit and loss is, so that I can plan for cashflow and further investments. Recently I have even met a couple of people who might start to source property for me, so that I can focus on building my property business! WOOO!

At the end of a long, hard week, I do sometimes wonder where the time has gone. Balancing this business with family needs, volunteering commitments and some leisure and exercise time is not easy. However, I came across a great quote from Joshua Kennon http://www.joshuakennon.com/  that made me realise that the small, seemingly insignificant things I do on a daily basis are building my future.

Everyone thinks life is one upward, smooth trajectory.  They think of Cinderella in her big castle and forget that she spent decades scrubbing floors, being beaten, and locked in a cold room.  Between “Once upon a time” and “Happily ever after” a lot happens.  Not all of it is good.
- Joshua Kennon

Thursday 5 June 2014

Real research

I have been asked recently where you can find information on an area when undertaking 'desk research' for your goldmine (or potential) goldmine area!

So here are a few ideas:

Checkmyarea paints a fairly accurate financial picture across different social groups.

Fix my street which is a somewhat hilarious and useful tool for seeing the problems as neighbours perceive them!

Stats-wise Neighbourhood Statistics takes some beating but to get the most from it you'll need to get familiar with undertanding the nitty-gritty and finding the most appropriate datasets down to LSOA level (Lower Layer Super Output Area). Some datasets are as far as a census behind whereas others are very recent.

Walkscore gives an area a rating on how 'walkable' it is - useful if you have no access to a car or there is limited public transport. My town gets a 'thumbs up' and is described as 'very walkable'! 
If you have come across other useful sites that give 'insider info' about what it's really like to live there, please do get in touch!

Thursday 15 May 2014

Tasty morsels




Although I was only a 'B' grade maths student at school (mainly due to algebra and geometry) I think had we studies statistics more I would have definitely got an 'A'. I think statistics are very interesting actually (8 out of ten property investors say they find this too). Particularly when those stats have an impact on the numbers in your bank account. Which is always the bottom line.

So, I was pleased today when into my inbox dropped a plump survey carried out by Mortgages for Business (savvy lot they are). This one, focusing on the behaviours and intentions of the property investor. Not the tenant (as per my previous post).

I liked the report because as well as words, it included pie. And as I read it at a time when I was feeling particularly peckish,  the idea of consuming pie while learning something appealed quite strongly to me. Also I like the fact that they refer to Vanilla quite a lot, which is one of my favourite flavours. I suspect the person writing this report was either a) on their lunch break when they wrote it or b) about to go on their lunch break and visualising the menu: 'steak and kidney pie and ice cream for pudding'.

Follow the link above and see if you can find any more foodie words embedded in the report. It will only make you hungry for more ...

Monday 12 May 2014

What do tenants want?..

I came across this fascinating study carried out In September 2012 and thought I'd share the information with you! it is always useful to understand your market more!
(http://www.finders.co.uk/news/2013/01/what-do-tenants-want/) 
Here is the article:
Context: Ages & Segments
The 600 respondents skewed towards the younger age brackets: 42% were below 30 years old and 75% under 40 years old. About 9% were over 50 years old and a further 3% over 60 years old. We have to assume this is a typical breakdown of those in rental accommodation although a research bias may be at work, eg younger people might be more willing to complete an online survey.
57% of the survey defined themselves as living alone or with a partner, 22% were families and the rest were a mix of sharers, post-graduates and corporate tenants.
The big question: Are you a “reluctant renter?
The results are fascinating: 40% of the survey said ‘yes’ and 60% said ‘no’. However, as with most research, the headline answer is misleading. We asked why people are renting reluctantly and found that 35% of them (so that’s 35% of the 40% who are reluctant, which is 14% of the total sample) are more ‘frustrated buyers’ than ‘reluctant renters’ as they are waiting for the market to fall, in the process of buying a house or ready to buy but unable to find the right property (Figure 1). The latter reason may be indicative of the relatively strong sales market in Oxfordshire.
The remaining 65% of the 40% (or 26% of the total sample) are those ‘reluctant’ people you might have been reading about in the press. They tend to be saving for a mortgage deposit or struggling to agree a mortgage. Mortgage lending criteria have changed dramatically in the recession and now it is the younger, first-time buyers who are feeling the effect.
 
 

Why are 60% of the survey happy to rent?
The main reasons being that they like the freedom to move; they are not ready to buy; or they are getting to know the area. Interestingly, 22% of this 60% say they can live in a better property by renting than by buying a home, which could be a reflection of both the increased standards of furnishing and the fact that sales prices are still beyond many people.
What do you look for in a property?
We are firm believers that good furnishing attracts the best tenants, but even we are surprised that ‘Lowest rent possible’ only comes 5th in priority (Figure 2) and that the cleanliness and quality of the interior is more important. Even though many tenants are saving for a deposit, they still want to live in a clean, comfortable and stylish home. This supports the long term trend of the past 15 years of ever-increasing aesthetic expectations among tenants. The answers about gardens and schools may be reflective of the relatively young age of the respondents. The low score on ‘nightlife’ is ominous for Oxfordshire’s leisure industry!
 
 

Would you like a long tenancy?
Some stakeholders (eg think tanks, charities) in the rental industry are advocating long, European-style tenancies of 5+ years, but our survey does not support this. Only 6% of respondents want a tenancy agreement beyond 3 years and 80% want an agreement between 6 and 18 months. It could be that we are really a nation of homeowners – or aspiring homeowners – and so a 5-year tenancy is not part of enough people’s goals.
What would make you stay in the rental sector longer?
It makes sense that ‘Investing to keep the property in good order’ and ‘Swift repairs’ are the most popular answers (Figure 3) as these directly affect the quality of life in the property. The desire to personalise the home is understandable but a very difficult area as individual tastes can negatively affect the re-letting of a property. Any ‘personalisation’ must be agreed in detail and in writing between tenant and landlord. The option to ‘Rent to buy’ (where the rent goes towards a potential purchase) will suit a minority of landlords and a formal contract is required.



 
 

Thursday 10 April 2014

Court fees... going UP!

Just thought you might be interested to know that IF you are going to be taking one of your lovely tenants to court, the fees are increasing!

According to Tessa Shepperson of Landlord Law:

"The court fee for eviction proceedings for example will go up from £175 to £280 and the PCOL fee (the possession claims online service used for rent arrears claims only) will go up to £250. 
 
Other changes are:
 
  • the introduction of a generic issue fee (£280) for all non-money cases across the civil court system
  • increases to issue fees for money claims with a value of over £1,500
  • the removal of the fees to submit a directions questionnaire and listing fees – the cost of these processes are now included in the issue fee and the hearing fee
  • increases in small claims track hearing fees
  • the introduction of the same general application fees across the civil court system, including family proceedings
  • increases to fees charged in judicial review proceedings from £60 to £140 for an application for permission and from £215 to £700 for a hearing or oral renewal application
I understand that the enforcement fees are currently unchanged but that they will be undergoing a separate review.

If you are thinking about bringing legal proceedings you may want to consider starting them now so as to avoid the fee increases.  Although I expect a lot of people will be doing this which will probably put a lot of strain on the courts and may result in delays."


If you want to know more, read this report.

Monday 17 February 2014

Planning to reach your financial goals?

It is not really the done thing in the blogging community to post other people's blogs (and NEVER done without fully acknowledging their work)! But as I follow The Kiyosaki's every move - well almost - I was catching up on some of their writings and found this excellent article. So it is reproduced here for your delectation, education and enjoyment!


"As the clock strikes 12 ringing 2014, amongst all the celebration there is inevitable chatter about New Year’s resolutions. We are now almost to the end of January and that vigor and excitement about the changes you’ll make in the New Year are fading. But why? Change is hard, harder than we really give it credit for. If all it took was a little will power we wouldn’t keep making the same resolutions year after year. This week check in with your financial goals because total wellness should be physical, mental, spiritual, and financial. By now your credit card bills have arrived and the reality of the holiday shopping extravaganza are hitting. Don’t despair, with some good planning and self reflection next year this time could more satisfying.
It all starts with getting back to the basics of Robert Kiyosaki’s Rich Dad Poor Dad. Do you know what your balance sheet looks like? As you get your taxes ready to file, it’s a great time to be looking at the past year and taking stock of all your assets and liabilities. As you probably already realize your financial goals for 2014 should include steps to decrease your liabilities and increase your assets.
Let’s start with liabilities. Look at all the cash going out on a monthly basis and assess which one’s you are over paying, duplicating, or unnecessary. Start looking at other providers that can offer you lower rates. In many areas, cable, internet, and phone services have a lot of competition. Before you decide to change to that other company’s lower introductory rate, call your current company’s customer retention department and offer them the opportunity to keep you as a customer by lowering your bill. Beware of their offer to give you more for your money. Remember your goal is to lower your liabilities not get more doodads. If they refuse, schedule to have your service shut off. You’d be surprised how they change their tune. Please remember to be nice. This isn’t about being a hard negotiator or being rude. You’ll get farther by simple stating the facts and explaining that you’d like to be loyal. I’ve been able to cut my cost by almost 50% by using this method. Also, look into different electric and gas providers. Many people don’t realize you have some choices that can save you money.
Now that you are starting to save money on some of your household expense, don’t turn around and buy more doodads. Take that monthly savings and work towards putting it into assets. Starting out you may not be able to buy that asset that throws off enough passive income to cover your expenses, but start small. Looking into investment opportunities that don’t necessarily require a lot of money like wholesaling real estate, buying mobile homes, or investing in tax liens may be a good starting point. Also, don’t forget the difference between good debt and bad debt. Good debt is debt someone else pays for you. Start looking at what kinds of credit you can use to invest. Those checks that your credit card companies send can often be used to purchase small deals. No credit left? Look for my future blog about strategies for paying off those doodads to free up your credit for investing. Look at your bank for lines of credit. The banking industry is highly competitive, so talk to several and see who can offer you the most bank for your buck.
Be specific about how much savings you are looking to achieve on your liabilities this year and how much you will gain in assets. Without a clear goal there is nothing to work towards. If you find yourself off track it’s time to step back and ask yourself why. Often times it is deeply rooted in old beliefs. Are you creating rules that are holding you back based on past experiences? For example, you might feel like you will miss out if you don’t have ALL the cable channels. Why not just try it out? Do a little test and block all your premium cable channels for 1 week. If you can’t find something on TV that is entertaining to you, use that time to do something else that will advance you toward buying your next asset. Research some areas that might be up and coming for your next real estate venture. You just might discover that your success is much more satisfying than a million cable channels.
If all else fails, get help. This is exactly where coaches can be helpful. There are many different specialized types of coaching out there, so do your research and find out what type of coaching might be right for your situation. The most successful people all have mentors and coaches who help them when they get stuck. You’d be surprised what you uncover when someone helps you create distance from your situation allowing you to get a new perspective. We almost always find that the biggest hindrance to reaching our goals is in our own head.
With all this being said, leave room to forgive yourself for your failures. Sometimes we get so wrapped up in our mistakes it stops us from even trying. You are far too important to neglect. Instead of making your New Year’s Resolution something just fun to discuss, make it an important part of the business of you. Lastly, don’t forget change is uncomfortable and if you aren’t challenging yourself you aren’t going to achieve your goals. Learn to love discomfort like a scary movie or a thrilling roller coaster ride. Wishing you a happy, healthy, and financially rewarding New Year."

Taken from: http://blog.richdadeducation.com/2014/01/28/planning-to-reach-your-financial-goals/

Wednesday 12 February 2014

Section 21 help

Anyone who has had to evict a tenant will know the sheer pain and heartache that can go with the territory - making sure you fill in the form correctly, making sure your dates are correct, wondering if you'll ever get any rent ever again ... and other such positive thoughts.

I came across this website recently to help ease the suffering (of landlords I mean!) to help you if you are using Section 21 of the Housing Act to evict a tenant:

http://www.nationalpropertygroup.co.uk/SECTION21CALCULATOR.asp


I am going through a Section 8 process with one of my tenants - and that is not particularly pretty either ; (

You do need guts of steel and a heart of gold to be a good landlord. I try and be fair, reasonable and helpful but it is sad when tenants behave in ways that put other people's wellbeing at stake. So unfortunately this tenant has to leave.