Feel the fear and do it anyway

...was the title of a well-known book by Susan Jeffers, all about making the most of the gift of life by recognising what holds us back and addressing those fears. Fear is part and parcel of any new project or change. Perhaps it is the brain's way of counteracting the adrenaline and excitement that can also be generated with the prospect of a new direction. Any project that feels bigger than one you've undertaken before, or bolder than one you've experienced personally, or braver than you currently feel, is likely to create fear. Sometimes that fear can actually help us as we examine a particular course of action in more detail - it enables us to be less emotionally involved and more analytical. However, generally fear is a tether which keeps us tied to a post made from our previous experiences. These previous experiences include our failures; reminders of things we think we cannot do; messages from our past (childhood, school, university, relationships) which tell us 'DON'T DO THIS AS YOU WILL FAIL'!

So we only move in a circumference dictated by an invisible lead, tethered to the post of our past.

Let me tell you I have felt fear about the various housing projects I have (and am) involved in - regularly! Not a day goes past when I don't wonder 'Can we really do this? Have we bitten off more than we can chew? Are we being too ambitious? Are we crazy taking on all these complicated projects' (because that's how they often feel).

But then I stand back and wonder 'What's the worst thing that can happen?' and usually I realise that actually  even those apparently terrible things aren't actually the end of the world. There are usually ways out of a situation that appear when you are desperate, and the human spirit is indomitable in its creativity - particularly when under pressure.

And I also remind myself of other people who have tried and failed - what happened to them? Often, they've gone on to accomplish even more than they first dreamed of by persevering and overcoming problems. It seems to me that it is perseverance and tenacity that really overcomes fear.

In property development, as in any area of life about which you are uncertain, fear comes with the territory. There are so many uncertainties in property which admittedly I do  worry about. But I try not to let those fears affect me as I know how stifling they can be. Sometimes I need to remind myself of the plan and what we need to do to make it work - this helps me re-focus and regain confidence. Sometimes I need to remind myself of my beliefs in why we're doing it - thy 'whys' of our plan. Sometimes I need to remember the facts about our situation - that our service, product and business are meeting a real need and are in demand.

Sometimes I just need to take time out and pray!!

Jeffers wrote 'The Five Truths about Fear' which I quote below:

The Five Truths About Fear

FEAR TRUTH #1 The fear will never go away as long as you continue to grow! Every time you take a step into the unknown, you experience fear. There is no point in saying, "When I am no longer afraid, then I will do it." You'll be waiting for a long time. The fear is part of the package. FEAR TRUTH #2 The only way to get rid of the fear of doing something is to go out and…do it! When you do it often enough, you will no longer be afraid in that particular situation. You will have faced the unknown and you will have handled it. Then new challenges await you, which certainly add to the excitement in living. FEAR TRUTH #3 The only way to feel better about yourself is to go out and…do it! With each little step you take into unknown territory, a pattern of strength develops. You begin feeling stronger and stronger and stronger. FEAR TRUTH #4 Not only are you afraid when facing the unknown, so is everyone else! This should be a relief. You are not the only one out there feeling fear. Everyone feels fear when taking a step into the unknown. Yes, all those people who have succeeded in doing what they have wanted to do in life have felt the fear - and did it anyway. So can you! FEAR TRUTH #5 Pushing through fear is less frightening than living with the bigger underlying fear that comes from a feeling of helplessness! This is the one truth that some people have difficulty understanding. When you push through the fear, you will feel such a sense of relief as your feeling of helplessness subsides. You will wonder why you did not take action sooner. You will become more and more aware that you can truly handle anything that life hands you.

Great rant from the RLA about Local Authorities

I loved this rant that I read today from the Residential Landlords Association:

The latest campaign news from the Residential Landlords Association

January 2013

Welcome to the January edition of Campaign Watch.

January may herald the beginning of a new year but that has not made the slightest difference to a plethora of local authorities, who are committed to implementing a series of ineffective and bureaucratic anti-landlord policies in 2013.

Whilst 2012 was dominated by Newham’s draconian proposals for a blanket selective licensing scheme (coupled with a blanket Article 4 Direction for good measure), this year could well be dominated by events in Liverpool, where the new Mayor has announced plans for an even bigger licensing scheme than that foisted upon Newham.

Increasingly, the RLA is perturbed at the growing number of local authorities who ignore their own failures to enforce existing rules and regulations governing the private rented sector, and are unable to correctly manage their budgets. Instead, their answer is to add a new layer of bureaucracy that masks these failures and creates non-jobs to keep members of staff employed.

If local authorities truly want to improve standards in the PRS then they should begin to work constructively with landlords – the vast majority of whom provide good quality and affordable accommodation – by encouraging the growth of self-regulating, accreditation schemes. At the same time they should use their armoury of existing powers to hunt down the small number of criminal landlords who bring so much shame to the industry. It is that message that the RLA will be spreading during the forthcoming year, as it continues to challenge these failing councils.

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Hear hear!!

D-Day

For many people they were preparing for the big night out (or in). Ironing party frocks, chilling champagne, and preparing canapes ready to pop in the oven later for when their guests arrived.  Me - I was sitting in the County Court room keen to do legal battle with our recalcitrant and uncommunicative tenant, who I was HOPING would be finally evicted from the property. So at 4pm New Year's Eve there was I in my best Next suit, looking as professional and competent as I possibly could, listening to the judge describe, reiterate, explain and emphasise the law. Section 21 of the Housing Act 1988 to be precise. 

It was not the most exciting thing to be facing on the last night of the year. As I sat there wondering when he would give me an opportunity to state my side of the case,  my mind drifted to what I would prefer to be doing. And funnily enough it was not facing a rather dour-looking man talking to himself, and a dastardly tenant sitting on a bench next to me sheepishly glancing across, hoping for a full reprieve. It was a very short hearing, the majority of which was a discussion of the judge to himself as to whether we had presented the correct documentation for this eviction at the correct time. There is a HIGHLY specific time frame for issuing notices to quit under Section 21 - beware if you get this wrong!

He decided (after much humming and hawing and commenting this way and that without any reference to the other two people in the room - they being me and the tenant) that we HAD followed correct procedures and therefore, he duly passed judgement that SHE (the tenant) had fourteen days to vacate the property.

Yee haw!! I nearly broke out the New Year champagne there and then. Having received no rental payments from her for the last 7 months, funds had been coming from other sources to pay the mortgage on this property and it had not been easy. Which meant that it was only a cheap sparkling white from Aldi that we actually had chilling in the fridge. 

I don't want to celebrate other people's misfortune, I actually have a lot of compassion for this tenant. However, not paying your rent and not communicating about it is a sure fire way to get evicted from a property. 

It was an annoying and upsetting process to go through, but we learned a great deal as you can imagine. The tenant has now vacated the property and we are redecorating and improving it ready for the next phase (including removing the garish wallpaper which was put up without permission - another story)!

Does it make me regret anything? No, I actually feel that this has been an important learning curve for us. We've learnt about the law and the process which underpins its execution. We've also learnt about the absolute imperative to vet and check tenants, and double-check again! We've also learnt that there are ups and downs to any business. Plan for the worst and hope for the best is probably a good motto to have. 

And suffice to say, later that night  we enjoyed every drop of that sparkling white from Aldi!

Renting forever..?

According to a recent poll by Barclays 44% of people think they will be renting FOREVER. 30% think they will be renting LONG TERM, and 26% think they will be renting SHORT TERM.  I'm not quite sure what long term and short term means in this poll, but I am sure what forever means!

It seems that we are not the home-owning country that Maggie Thatcher opened the way for.  Although many people aspire to own their own home, it seems to be a dream that remains a long way in the distance for most. So many young people are priced out of the market by the need for large deposits and secure incomes to qualify for a mortgage, it is no wonder that it remains a life goal that one day they might achieve. And for those who replied to the Barclays poll, one that they think they will never achieve. 

However we have also become a nation of 'spend now, pay later' junkies. Consumer credit is still cheap and plentiful and so in the absence of owning your own plot, perhaps you satiate the desire for roots by spending cash til it's going out of fashion.

Unfortunately that is not going to help to save for a deposit on a property! There are places in the UK where you can buy small and suitable 'starter' properties at not much cost. Ok so they're not perhaps the most desirable locations, and yes the interior may need moving into the 21st century, but that's why they're cheap. Yes you may have to compromise - but that is part of the growth process of learning about property. Knowing what is something worth compromising on to get a better deal later. 

It takes discipline, determination and time to do it, but it is possible to save for a deposit and to start at the very lowest rung of the property ladder. And from there, who knows where it will lead? 

If you write a plan, stick to it and rigorously work to make it happen, you can turn your forever into long-term, and your long-term into short term, and your short-term into NOW!

The Green Deal

The Green Deal is a government scheme to make houses and properties more energy efficient. I suppose this means the householder paying less for fuel (electricity and gas) due to extra insulation in lofts, walls or floors which then retain heat better, plus the installation of modern boilers which use less gas to heat the same amount of water, plus double glazing which also loses less heat from the house.

All fairly simple and self-explanatory. 

How the Green Deal works

You can make energy-saving improvements to your home or business without having to pay all the costs up front through the Green Deal.

Energy-saving improvements include:

• insulation - eg loft or cavity wall insulation
• heating
• draught-proofing
• double glazing



Then you too can use this logo! Smart!

• renewable energy technologies - eg solar panels or wind turbines

Getting involved

1. Get an assessment of your property - this will tell you what improvements you can make and estimate how much you could save on your energy bills.
2. Choose a Green Deal provider to carry out the work. You discuss with them what work you want done and whether the Green Deal is right for you.
3. If you go ahead with the improvements you must sign your Green Deal Plan - this is a contract between you and the provider stating what work will be done and how much it will cost. The provider will then arrange for a Green Deal installer to do the work.
4. Once the work is done, you’ll pay off the money in instalments through your electricity bill

You can get an assessment now, but work can’t start until 28 January 2013.

If you’re a landlord, you must get your tenant’s permission before you sign up, and if you’re a tenant you must get your landlord’s permission to sign up - this also applies to social housing.

Download a Quick Guide for Landlords here 

Top ten tips: Buy to let

Love this article from About Property.com

Thought you might like it too, so I have reproduced it here:

Buy-to-let is a hot topic at the moment, with lending on the up and more and more people choosing to become landlords.

While sales in the housing market are flat, the rental sector is booming, particularly in major cities like London and Manchester.

Average gross rental yields are far in advance of the interest you can earn in a savings account, but with that comes a challenge.

We've caught up with Nick Cooper, managing director of national letting agent Northwood.

He gives his top ten tips on how to be a winner from the buy-to-let boom.

1. Always research the market

Check local rental conditions and determine the types of renting in your area. Look for tell-tale signs that there’s a healthy rental market, like large company relocations, the opening of young/upmarket bars and shops. Don’t forget to consider the proximity of good schools and choose property with features that will appeal to the general market.

2. Decide on your target tenant

The kind of tenant you are hoping to rent to will influence the location and type of property you buy.  If you want to let to students, it will need to be close to the university or at least have good transport links to it. Don’t worry about luxury – it just needs to be clean and comfortable.

Families, on the other hand, are likely to have their own furniture and belongings so they will be more interested in ‘blank canvas’ properties which they can rent over a longer time period.

3. Look for bargains

You may be able to get a discount on a property if you can promise a quick sale or if you can pay in cash. Auctions can also be a prime place for property bargains too.

4. Ensure that the property is in sound condition

It seems obvious but it’s worth a reminder: Buyers should always visit all properties, pay for an independent survey and get a solicitor to check the paperwork.

5. Compare the mortgage market

Research the various buy-to-let mortgages on offer to find the one that’s best for you. Mortgage comparison tools enable would-be landlords to research and compare a comprehensive range of products and quotes from across the mortgage market and submit an application.

6. Account for every penny

Before you buy, make sure that the sums add up and don’t forget any extra ‘hidden’ costs.  As well as mortgage repayments, think about landlord insurance, gas safety certificates, maintenance fees etc.

Look ahead too and don’t just look at the present and near future. Try to calculate projections for five, ten, twenty years' time. You could use a rental income calculator to help with the sums.

7. Brush up on the Green Deal

The Green Deal is a government initiative aimed at improving the energy efficiency of properties, through the installation of energy efficient boilers, double glazing, draught proofing, loft or cavity wall insulation to name a few.

Under the Green Deal, landlords will be able to make energy efficiency improvements to their properties without having to pay for them upfront. Tenants will repay the cost of the measures through their energy bill savings whilst enjoying a more energy efficient home. Financing for the Green Deal will become available in early 2013.

8. Consider using a letting agent to manage your property

Agents can handle a range of letting-related jobs, charging commissions based on the level of workload that they take on: from simply finding a tenant through to fully managing the property.

Therefore the right choice of letting option for any landlord depends on the level of responsibility, time, energy & risk that they personally are prepared to take on, compared to paying for a letting agent to do it for them.

9. Embrace the opportunity to have your rent guaranteed

The most common day-to-day risk to the landlord is having a vacant property or a tenant who stops paying. The most recent statistics from the National Landlord Association revealed that 49 per cent of landlords have experienced rental arrears in the last 12 months with the average void period lasting for 69 days – more than two months rent.

Northwood’s guaranteed rent service is a minimum 12 month contract whereby Northwood effectively becomes the tenant: it guarantees fixed monthly payments to the landlord, regardless of whether the property is vacant or whether the tenant stops paying.

10. Take your time

Investing in several properties can spread risk, but invest in too many of the same type, in the same area and you may risk oversupplying the demand.

If your first buy-to-let investment has gone well and you’ve caught the property bug, keep a level head about investing in more. Remember the points above, think carefully about your next investment and thus reap the rewards of buy-to-let investment.

Be warned - do your homework first!!

As anyone who went to school with me will testify, homework was not my strong point. When asked why I had not completed a particular piece of work, I would launch into a pre-prepared speech exonerating the values of verbal debate over written expression, explaining how homework had lost its value in an age of discussion, where an era of feminist thought was leading girls into professions of the highest calibre where only verbal repartee characterised true proficiency.  This did not fool my teachers though, and I had to do some quite expert and creative editing before my parents saw my school report. Much of it contained the phrase 'needs to stop talking'.

Nowadays, though, I can see the importance of homework. No not essays and the such like, useful though they may be in structuring thought and language. Homework in this case, which is akin to research. It should be a familiar and necessary process for anyone considering becoming a landlord. Homework about the area, the possible rental yields, the preparedness if things go wrong, the systems you will utilise to manage the property effectively. If you don't do this and jump in with both feet before you're really ready, you may have some problems later down the line which no amount of banter can talk you out of!

http://www.thisismoney.co.uk/money/mortgageshome/article-2236164/Buy-let-landlords-risk-left-pocket-fail-simple-checks.html