Money Tips Podcast

Prior to the 2008 financial crash lenders were routinely giving out 100% and even 125% mortgages, self-certification mortgages with no income checks and up to 10 times income multiples. 

This all changed after 2008 when several lenders went bust and the government had to bail out High Street banks in the UK such as Lloyds and RBS, which owned NatWest.

But it was not 100% or even self-certification mortgages that got lenders into trouble. Lenders such as northern rock decided to expand into commercial lending which was outside of their experience and comfort zone.

Subprime lending, or giving mortgages to people with poor credit history, previous arrears and even bankruptcy, also cause massive problems for American investment banks who sold derivatives of these products as triple AAA security.  

The vast majority of the actual loans were still being paid in the UK.

Lenders also branched out into buying up estate agencies and other businesses which was a big mistake since they paid far too much for these businesses.

But could we be witnessing a return to more adventurous lending?

Well, that remains to be seen. There has been talk of new lenders, like Propertunity, coming into the market offering 100% no deposit mortgages, but so far they have not launched any product on the market.

Check out: https://www.proportunity.com/blog/zero-deposit-mortgage

We also need to find out more details about the loan terms and the interest rates. 

It appears to be some kind of 90% initial loan with a top up loan, similar to a help to buy loan that was offered by the government.

What we don’t know is whether this loan is just an interest only loan or involves a share of the equity in the property.

There are also schemes out there offering 10 times income and minimal credit checks, but these appear to be rent-to-own schemes rather than traditional mortgages.

As always, take legal independent financial advice before entering into any credit agreement

Inflation rises to 9.4%, the ninth monthly rise in a row. 

Inflation will peak at 11% in the autumn say the Bank of England, which is inside an imminent 0.5% interest rate rise. 

The ECB have just hiked interest rates for the first time in over a decade. 

Public sector workers are threatening strikes, with unions complaining that a 5% pay rise will not keep pace with rising costs. 

Overall, figures show that pay is falling behind the cost of living making the average person poorer. 

Mortgages rates have gone up by around 300%. 

Whilst most people are on fixed rates, those rates will eventually expire.  

The problem for borrowers at the lower income scale is that they may not qualify for certain rates due to affordability tests.   

I wish I could give a less gloomy outlook on the economy, but it is not looking too rosy at the moment.

When the country in recession or downturn property prices fall. However, I have seen high inflationary times when properties went up in line with inflation. Right now property is rising faster than the official inflation rate (13% annually), but how long can this continue in the current financial squeeze?

See previous episodes:

4 tips to save money in property letting and development - https://youtu.be/CM22xqmh3Pg

Big changes in private rented sector, leaseholds & property ads - https://youtu.be/SeOA_zMqaIY

Get cheaper property and higher yields up north

Obtain up to 14% yield on UK buy-to-let property.

Auction Property Bargains From Open House South Herts

• 2 Bed House - £36,000

• 4 Bed Buy-to-Let Rented House £59,000

More deals at: https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #propertybargains #auctionproperty #money #buytolet #rentalproperty #buytolet #investing #property #houseprices #nodepositmortgage #100%mortgage

Inflation hits 9.4% and will peak at 11% in the autumn say the Bank of England, which has hinted at an imminent 0.5% interest rate rise. 

The ECB have just increased interest rates by 0.5% to zero for the first time in over a decade. Rates have been negative since 2014.

Public sector workers are threatening strikes, with unions complaining that a 5% pay rise will not keep pace with rising costs. 

Overall, figures show that pay is falling behind the cost of living making the average person poorer. 

Mortgages rates have gone up by around 300%. 

Whilst most people are on fixed rates, those rates will eventually expire.  

The problem for borrowers at the lower income scale is that they may not qualify for certain rates due to affordability tests.   

Watch video on YouTube - https://youtu.be/aRpFGTJqlUE

Who will be the next UK PM?

I wish I could give a less gloomy outlook on the economy but it is not looking too rosy at the moment.

One possible bright light on the horizon is the change of leadership and government in the UK following the forced resignation of Boris Johnson.

The final two candidates for the prime minister job are former Chancellor Rishi Sunak and Foreign Secretary Liz Truss.  

Liz Truss is currently ahead in the polls and id she becomes the new prime minister she will cut taxes, increase spending and take measures to encourage economic growth.  

Whilst this will mean deferring the UK’s £2 trillion debt reduction, it will provide a much needed boost to the economy and create more tax revenue.

I believe the UK is due for a shift in economic policy and that Liz Truss is the right person to lead the country.  

Tesla dumps Bitcoin

Tesla has now sold off most of its holdings of the cryptocurrency.

The firm has dumped 75% of its Bitcoin, which was worth about $2bn (£1.7bn) at the end of 2021.

It is backing away as the value of the cryptocurrency has plunged, falling by more than 50% this year.

Tesla said it bought traditional currency with the $936m (£782m) from its Bitcoin sales.

Tesla boss Elon Musk has been among the most high profile champions of cryptocurrency, with his pronouncements on social media often driving significant trading activity.

Tesla's $1.5bn investment in Bitcoin, revealed in February 2021, prompted a surge of demand in the currency. The price of the notoriously volatile cryptocurrency soared last year to almost $70,000 in November before crashing.

One Bitcoin trades for less than $25,000.

Musk previously said he would not sell any crypto, but now needs cash. Tesla shares have plunged almost 40% this year.

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Call with me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

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UK economy rebounded in my growing by 5% going to ONS figures. 

Most areas of the economy expanded including construction, travel and manufacturing. 

But business leaders are still concerned about the rising cost of raw materials, as well as fuel and gas. Inflation is set to hit 11% and is soaring around the world.  

US inflation has hit 9.1% prompting fears of another interest rate rise by the Fed this summer. 

The Conservative Party is voting to elect a new leader following the resignation of Boris Johnson.

Most of the candidates promise to increase spending and cut tax. However, the bookies favourite for the next PM, former Chancellor Rishi Sunak, has urged more caution in order to pay off the deficit and reduce inflation. Rishi Sunak increased corporation tax, which is the tax on business profits.

Tax cuts needed to keep us from falling into recession, stimulate growth and long-term prosperity.

The new government and Chancellor must slash corporation tax to 15% to encourage more inward investment into the UK.  

Most leaders want to cut bureaucracy and the size of government, but this seldom happens. There are now more civil servants in the world in 2016 and the state is still growing.  

Half the working population in the UK is directly or indirectly employed by the government, which means they are funded by taxpayers and companies paying corporation tax.   

More signs of cracks in China’s economy?

The BBC reports that authorities in China's Henan province will start releasing money to customers who have had their funds frozen by several rural banks.

The announcement came just a day after a rare protest in Henan's capital, Zhengzhou, turned violent.

The four banks that were the focus of the protests are believed to have frozen a total of 39bn yuan ($5.8bn; £4.9bn) of deposits.

One of China’s many debtor nations, Sri Lanka, is broke and has falling into chaos as the government falls and people queue for fuel and gas tanks.  

I recently heard an Interview with Chris Blackwell of Island records, regarded as one of most influential record executives of all time.

Chris helped launched the careers of the likes of Bob Marley, Roxy Music, Free and U2. 

When asked how he knew that reggae and ska music would become so big Chris replied that he wasn’t thinking along those lines at all. All he was trying to do was make a good record and help people build a career in music. 

Interesting how he wanted to give, not get, and is now worth $300 million! 

Mick Jagger and the Rolling Stones are not only a great band, they also know how to run their business empire making the extremely wealthy.

• Ronnie Wood – US$200 million.
• Charlie Watts – US$250 million.
• Keith Richards – US$500 million.
• Mick Jagger – US$500 million.

The Rolling Stones did a concert tour to celebrate and increase the group's fortune, which is estimated by FOXBusiness at $1.45 billion.

Rolling Stones are celebrating 60 years in the business and have been one of most successful end enduring rock bands of all time

For the first decade of the band Mick Jagger said he left the business side of things to managers, which was a mistake. They ended up in financial trouble having not paid the correct amount of tax. 

The band made a decision to move out of the UK, which at the time had a tax rate up to 98%, to avoid going broke. Lack of attention to tax is a common cause of music and film stars going bankrupt, as I cover in my book Yes, Money Can Buy You Happiness.

Mick then took over the business side of running the group and has never looked back. 

Mick is a very astute businessman and likes to keep control of every aspect of the banned from putting the show together to making sure they minimise their tax bill.   

I once had a ticket to a concert of theirs which was cancelled because it would’ve meant them paying too much UK tax.

It is also known that Mick’s house in Richmond was held in an offshore company.

Earn more than you spend and invest to grow your own ‘u’conomy’. Saving alone will not save you from a bleak retirement.

Obtain up to 14% yield on UK buy-to-let property.

Auction Property Bargains From Open House South Herts

2 Bed House - £36,000

4 Bed Buy-to-Let Rented House £59,000

https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #china #money #borisjohnson #rentalproperty #buytolet #investing #property #houseprices #mickjagger #rollingstones #chrisblackwell #rishisunak #srilanka #bobmarley #U2 

4 Tips to Save Money in Property Letting and Development

1. Get a good property tax accountant and save a fortune
2. Join discount purchasing clubs such as LNPG - https://www.lnpg.co.uk/

China’s economy contracts 2.5% while UK grew .5% last month

Where are property prices going?

Watch video version - https://youtu.be/CM22xqmh3Pg

Get cheaper property and higher yields up north

Obtain up to 14% yield on UK buy-to-let property.

Auction Property Bargains From Open House South Herts

2 Bed House - £36,000

4 Bed Buy-to-Let Rented House £59,000

https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #china #money #borisjohnson #rentalproperty #buytolet #investing #property #houseprices #mickjagger #rollingstones #chrisblackwell #rishisunak #srilanka #bobmarley #U2

In this episode of UK Property Talk:

UK property prices still rising despite global economic slowdown.

Rightmove, the online property listing portal, confirms its compliance with new listing guidelines to include more information on each property.

Rightmove portal details for properties will include:-

• Cost of any service charge and ground rent.
• Details of any shared ownership arrangement. 
• Sale price - no longer “POA”.
• Other changes that affect sales and lettings, including council tax bands.
• Any information missing from a listing will be highlighted and potential buyers will be redirected to the agent.
• Rightmove has also introduced new ‘tool tips’ and a glossary of terms.

Other Updates

• New Rules on unfair Leases and Ground rents
• Boris announces plans to sell off Housing Association properties.
• Lifelong mortgages.

UK government’s ‘levelling up’ measures will involve letting agents directly include a national landlord register, a 'decent homes standard' and abolishing Section 21.

By 2030, more renters will have a secure path to ownership with the number of first-time buyers increasing in all areas; and the government’s ambition is for the number of non-decent rented homes to have fallen by 50%, with the biggest improvements in the lowest-performing areas.

UK House Prices Continue To Rise Despite Global Economic Slowdown

House prices hit a new high in June despite the rising cost of living in the UK would slow demand.

Average house price reached £294,845 in June after rising by 1.8% - the steepest monthly increase since 2007.

Halifax sighted a “lack of available homes” for sale was lifting prices as well as a shift towards people buying larger, detached homes, which rose by over 13% in the last year.

But it expects price growth will slow, as interest rates rise and soaring prices hits people’s pocket harder this year.

Petrol remains high and average household energy bills are set to exceed £3000 this year – a rise of nearly 300%!

Interest rates will rise again says Bank of England Chief Economist, as inflation is expected to reach 11% this year.

The Bank of England warned of more interest rate rises as it vows to bring inflation back down to 2% - roughly 5 times lower than present level.

Boris Johnson ousted as leader by his own party, but does it matter to you?

After Chancellor Rishi Sunak walked out of his job this week, his replacement Nadhim Zahawi has said he and Prime Minister Boris Johnson want to "rebuild the economy" and get soaring inflation under control. 

We could see a new approach, as Mr Zahawi said "nothing is off the table" in terms of cutting taxes and boosting economic growth.

Auction Property Bargains From Open House South Herts

2 Bed House - £36,000

4 Bed Buy-to-Let Rented House £59,000

https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#rightmove #leasehold #propertyprices #money #estateagent #borisjohnson #economy #rentalproperty #buytolet #investing #property #houseprices 

Global stocks down amid war and recession fears, while household incomes are falling. 

US stock markets have suffered the sharpest first-half slump in 50 years, with the S&P 500 down by 20.6% and the tech-heavy NASDAQ tumbling 30% in the last six months.

London and Wall Street shares were down again this week as markets react to fears of a global downturn.

On Thursday the FTSE was down nearly 2% and the NASDAQ was down 3.65% after recovering slightly from previous sell-offs. 

Why the markets matter to you?

• Taxes
• Investment
• Jobs
• Pensions and Savings
• Confidence

The market correction means billions has been wiped off the value of quoted companies, mutual funds, unit trusts and pension funds.

Chaos in Sri Lanka…does it matter?

How can you protect your savings?

5 things you need to know about money

1. How to earn more money
2. How to manage money
3. How to invest money
4. How to protect money
5. How to borrow money and use debt

You are losing money on your bank savings!

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Call with me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

As the number of holiday let properties have increased by 40% in costal regions such as Norfolk, Devon and Cornwall, some English councils are proposing a ban, the BBC reports.

Some tourist areas have become so saturated with AIRBNB holiday lets that locals are being squeezed out and can no longer afford to rent or buy in the area. 

A resident in Scarborough complained that almost every house in her street was a holiday let and no longer occupied by local residents.

A councillor in Brighton said there are 3,500 AIRBNB properties advertised in the popular beach town and wants a planning ban on holiday lets and second homes.

The holiday let or serviced accommodation (SA) strategy has exploded in recent years with many courses on offer to teach landlords how to increase returns on their investment and avoid tax and rule changes imposed on standard ‘buy-to-let’ property.

There is no doubt that you can increase your rental income by using the SA strategy correctly.

4 things to consider before you consider SA or holiday lets as a strategy:

1. Training
2. Lender
3. HMRC
4. Insurance

Free Beginners Property Secrets Training:

https://bit.ly/3NQxm0p

Rail unions strike for higher pay and better working conditions.

More industrial action on the way threatening to stall the economic recover and drive the country into recession.

The US and China, the world’s two biggest economies are also stalling, and Germany is facing gas rationing.

Inflation is at a 40-year high forcing central banks to raise interest rates pushing up the cost of borrowing for millions of cash-strapped consumers.

Stock markets recovered slightly after falling sharply last week.

People buying less at supermarkets as food prices rise, BBC reports.

Interest Free Loans Launched To Help The Financially Vulnerable

A Treasury-backed scheme offering interest-free loans to the financially vulnerable is being rolled out in various parts of the UK to help up to 20,000 people.

The UK government scheme will be run by credit unions and other lenders, with an aim is to offer emergency loans to people who would normally be turned down due to the fact they would be unable afford the interest payments.

The scheme was trialled in Manchester and is now being expanded in a larger pilot phase to various locations across the UK which will last for up to two years, after which a decision will be made on whether to roll it out further.

What will the No Interest Loan Scheme offer?

• Only available to people who have been turned down for normal borrowing
• Can borrow between £100 and £2,000. The average amount borrowed is £500
• Can borrow the money for six to 18 months. The average length of time is 12 months
• Customers can only have one no interest loan

Soaring inflation led interest payments on government debt to hit the highest amount for May on record.

Interest payments paid by the government for last month hit £7.6bn, up £3.1bn from a year earlier.

That’s around £245,000,000 a day just to cover interest on government debt!

Interest payments have totalled £14.1bn, up £4.7bn year on year, in the current financial year since April.

Taxpayers will ultimately have fund the cost of trillions in debt through higher taxes.

Even the Nasdaq darling, Netflix, is not immune to the economic slowdown announcing another round of job cuts as it struggles with slowing growth and increased competition.

The streaming giant is slashing 300 more jobs - roughly 4% of its workforce - mostly in the US, after a sacking 150 people in May. The news come after the company reported its first subscriber loss in more than a decade in April.

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Call with me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

UK PROPERTY TALK

Key things to consider when buying or selling at auction:

Do you know the difference between buying at auction and buying through the traditional private treaty method that most people use in traditional estate agencies?

Are you buying through traditional or modern auction?

Have you done ALL your homework and survey checks before the auction?

Have you got your finance in place ready to complete withing 28 days of a successful bid?

Are you able to complete the purchase within 28 days of the hammer going down?

Have you got your deposit - 5-10% of the agreed bid price - ready to pay on the day?

Watch video - https://youtu.be/cpFTKpiWbp0

If bidding in an online or physical auction have you ensured that you are fully registered to bid?

Have you read the legal pack or given it to your solicitor to check?

Have you done all your due diligence prior to the auction?

Have you considered why this property is being sold at auction?

Have you set your maximum bid limit?

Do you have a strategy?

Here at Open House South Herts we partner with modern auctioneers to help you sell your property fast with no vendor fees.  

We have a number of properties coming up for auction soon listed on our Facebook page Open House South Herts - https://www.facebook.com/estateagentswatfordelstreeandborehamwood

[email protected]

www.openhousesouthherts.com

#property #propertyauction #buytolet #money #propertyinvestor