Freeing Up Cash for Purchases

Almost daily there is a news story from some part of the world that claims landlords are looking to expand on their portfolios and buy, buy, buy! This may be because we are coming towards the bottom of the perceived dip in market prices, or it may be that investors are losing faith in other assets. Whatever your reason, though, if you’re thinking of expanding your portfolio, there’s one thing that really counts: cash.

Why does cash matter?

If, as is the case in 90% of property purchases, you’re looking to take credit (i.e. a mortgage) to purchase a property you’ll need to lay down a deposit. This can be as low as 5% if you have a good credit rating, but the more you can put down, the cheaper your mortgage will be in the long run. The key, therefore, to getting a good return, is putting down the biggest deposit you can afford and securing the cheapest mortgage possible.

Existing Sources of Cash

If you have cash in savings or in other investments, your property deposit might be the ideal time to use it. Remember to account for the opportunity cost of the returns you’ve foregone in moving these assets and if you’re earning highly from a share portfolio then it may be best left along. However, it’s usually cheapest to tie in whatever cash you have available to you before looking elsewhere. Equally, chase up any monies you are owed, whether that’s from your tenants, the taxman or even your landlord insurance provider.

Liquidating Assets

If you don’t have huge amounts of savings to spend then your first option is to sell off a little property. Releasing equity may help you fund a new purchase or, possibly, several new purchases. Oddly enough, it may be possible to use other sources to maximise your deposit: using funds from an overdraft for a few months might work out cheaper in the long run.

When looking to free up cash, always thing of the other side of the debate and do remember that you will need some cash to keep running your existing portfolio. It’s around this stage that most landlords turn to a financial adviser to help them keep things in shape, so don’t be afraid to ask for advice.

Five Steps to Make your Home Winter Ready

Even after the washed out summer, there are still some essential steps that need to be taken now to avoid finding problems once winter has set in. We all know that we should make our cars winter ready by checking windscreen washer levels, anti-freeze, tyres etc., but how many of us do the same with our home?

Here are five things that you need to look at now before it is too late!

1. Gutters

A sadly overlooked servant of our home, gutters sit at the base of our roof with the endless task of collecting rainwater and diverting it to the nearest drain.

Spare a thought for them this autumn and make sure that they are not full of debris and are aligned correctly to avoid the nuisance of overflow in heavy rain which can cause serious problems such as damp penetration into the home.

2. Ventilation

It is human nature to want to seal every crack and to stop every draught, making our homes as air tight as possible. Unfortunately, this leads to poor ventilation which in turn leads to condensation possibly leading to mildew and in some extreme cases health issues - triggering ailments like asthma.

As winter sets in, remember to warm the home, but also provide adequate ventilation. Most double glazed windows now have a secure locking function leaving the window slightly ajar. Do this in at least two rooms to create a through draught, which means your clothes will not go mouldy in the wardrobe.

3. Draught Proof and Insulation

There is a crucial difference between drafts and ventilation. Ventilation is a friend whilst drafts are your enemy. Draughts will chill your feet and give you neck ache, so take a look around the home now and draught proof your letter box, door frames, wooden window frames and any other place that might let in that cold North wind. There are still plenty of grants around for cavity and loft insulation. Take advantage of these and cut up to 25% off your heating bill.

4. Check your Boiler

Plumbers love the onset of icy weather almost as much as car body repair shops. It is probably the most profitable time of year. Beat the rush by checking your boiler works now. Remember, you should run the boiler for half an hour once a month throughout the summer months to make sure that the pump does not seize.

5. A Stitch in Time Saves Nine

This phrase applies so well to your home. Walk around the outside and quickly apply primer and paint to any bare wood that you find. It may be too late to have the outside of your house decorated before winter, but applying a small amount of paint now will avoid rot setting in through the cold and wet winter months.

Once all of this is done, just put your feet up and count the days to Christmas!

The top cause of all fires in British homes

Not using appliances properly is the top cause of all fires in British homes, according to the Electrical Safety Council.

http://tinyurl.com/cevjxvq

Client Testimonials

Another great Testimonial from one of clients ......

As a landlord who has self-managed all of his properties for the last 8 years I was quite reluctant to pass the reigns over to a letting agent. Barry has exceeded all my expectations, void periods have been kept to a minimum, tenant issues have been dealt with professionally and promptly and it has allowed me to free up my time for other pursuits. Would highly recommend Barry to any Landlord that wants a reliable, trustworthy and good value letting agent. August 20th 2012

Fraser Gordon, Glasgow

  Landlords Concerned with Negative Equity

Though a general air of confidence does seem to be building around rental property, there is still an overriding worry which could leave some landlords in a difficult situation. House prices are still falling and that could leave landlords in negative equity. Early estimates suggested that the number of landlords in negative equity could rise to around 30% by the end of this year, but even a more conservative estimate could mean serious financial problems for some landlords.

Is Negative Equity a problem?

Not necessarily: if you’re in a position where your tenants are paying your mortgage comfortably and you are hoping to hold onto your property for a few more years, then a negative equity is unlikely to have any impact upon your investment. It’s likely that property prices will continue to fall for at least a few months, but we should reach the bottom of the trough soon. Even if prices remain flat, a negative equity situation can be resolved with no net loss if you generate enough income from your tenants.

Access to Finance

However, there will be impacts of falling into negative equity on your financial potential. You will find that taking out extra loans on a property that is in negative equity almost impossible, and you might find it tricky to take on another mortgage on another property if you want to expand. Keeping your options open is a wise idea, so make sure you’ve got a reasonable overdraft or some savings and a good landlord insurance policy to protect against the worst.

Selling Up

If you’re in a position where you’re desperate to sell, negative equity could be a serious problem. If you absolutely can’t wait, your best bet may be to pay off your mortgage as much as you can, and hope to cover debt you owe with savings. It may be worth consulting a financial advisor for a full range of options.
Negative equity is a difficult concept to get your head around and it’s even more tricky if you’re working with old valuations. If you’re not selling anytime soon then it’s unlikely that you have too much to fear, but do be aware of the implications on your financial power.

Tenants and Guests

Whether a landlord should or should not have the power to decide whether friends, partners or relatives come to stay in a rental property is hotly disputed topic, and it can be difficult to draw the line between who is a guest and who is an extra tenant. The law tends to be murky and unspecific in these cases, and all landlords will have their own approach, but here are a few words of caution about tenants hosting guests for extended periods.

The Laissez-Faire Approach

In theory, there is nothing wrong with leaving things as they are: the truth is, you probably don’t know half of the guests that your tenants are entertaining! There’s also something to be said for the fact that it really doesn’t matter, and so long as these guests are not interfering with the normal running on the property, there are no issues.

Guests in HMOs

Due to the laws surrounding HMOs and the number and makeup of the occupants, a little more care may be required. If guests stay for a long time, they may well fall into the definition of a ‘tenant’ and, thus, your HMO agreement may be violated. Alternatively, if you’re letting a property on the verge of being an HMO, having a guest in frequently could put you over the edge.

Fire and Theft

Of course, there are considerations surrounding fire and theft and your landlord insurance won’t necessarily cover guests as well as tenants. You’ll almost certainly find that a guest’s possessions are not covered if stolen or damaged by fire, and you may also come into difficulties if a guest was a cause of an incident. In generally, it’s better to know who is who.
Most tenants will, from time to time, have guests in the property and there is not necessarily anything untoward about that. You do need to be careful about insurance and the risk of your property becoming an HMO, but why not seek to turn your difficulties into an opportunity: there’s no doubt that you could let a couple who have been living in a studio apartment a good deal on a two-bed!

Universal credit: Frank Field warns of 'disaster'

The government's flagship welfare reform programme is heading for "disaster", its "poverty czar" Frank Field has warned.

http://www.bbc.co.uk/news/uk-politics-19555748

2 bed Central Falkirk £395 pcm

Central Falkirk £395pcm, Victoria Rd

Bright 2 Bed flat located on top floor , newly decorated and new kitchen.
short walk to retail park,town centre, train station etc

FRESH PICTURES COMING SOON
ZERO DEPOSIT SCHEME AVAILABLE
http://www.propertylocker.co.uk/details/46/9VRF/

Lovely 2 Bed Cottage Flat in admired are of Denny, £450 pcm - Zero Deposit scheme available

Lovely 2 Bed Cottage Flat in admired are of Denny, £450 pcm - Zero Deposit scheme available

http://www.propertylocker.co.uk/details/20/wbore/

Condensation Dampness ?

Wise Property Care 
When treating condensation it is essential to combat the source of the problem. Here are some tips 
http://t.co/nUyuifXd

Bridging lender in landmark identity fraud case

A well-known bridging lender was unsuccessful in its endeavour to make two legal firms responsible for losses as a result of fraudulent individuals who stole the identity of innocent property owners, as per the Legal Knowledge Scotland.

http://t.co/wBL9rAuu

ZERO DEPSOIT

Property Locker now offer zero deposit schemes for tenants via www.depositapprove.com/
call now to discuss

UNIVERSAL CREDIT

Scottish pilot areas for the controversial new "Universal Credit" scheme of paying benefits have been announced by the UK Government.

Dumfries & Galloway, North Lanarkshire and West Dunbartonshire areas will be first to trial this. Members with tenants in receipt of benefits in this area are asked to please make contact with SAL now. Please email  policy@scottishlandlords.com

Local authority led pilot projects that will support people to claim Universal Credit were named by Lord Freud, Minister for Welfare Reform, today.

Twelve pilots will run from Autumn 2012 to explore how local expertise can support residents under Universal Credit, setting examples for other local authorities across the country.

The pilots, spread across Great Britain, will include help for claimants to build online skills to claim Universal Credit and look for jobs, as well as to develop financial management skills.

The pilots include:

• Birmingham City Council’s pilot will introduce a digital logbook of government services for residents and highlight those who need extra support with financial skills and digital literacy.
• A joint bid from Melton and Rushcliffe Borough Councils will identify the most vulnerable members of the community in order to provide support in increasing financial inclusion and get customers ready for work, working with the local voluntary sector and the county council
• Oxford City Council will build on their work with DWP as a Direct Payment Demonstration Project to work with residents not in contact with Jobcentre Plus.
• North Dorset District Council will work with a credit union, Citizens Advice, DWP and the social housing provider Spectrum to provide money advice, budgeting support and employment skills for people living in remote areas.

Lord Freud said:

"We know some people will need support when they first claim Universal Credit and these projects will highlight how councils can use their local expertise to help residents."

"Helping people to claim online can combat social exclusion; getting online can improve people’s jobseeking skills and help people get ready for the modern workplace as well as giving them the ability to shop, bank or use many internet services for the first time."

Sir Merrick Cockell, Chairman of the Local Government Association, said:

"Universal Credit marks an enormous shift in the way benefits and tax credits are administered and it is vitally important that people receive the right support both during and after the transition."

"Councils are uniquely well placed to provide people with the face-to-face help they may need to navigate the new scheme. The pilot councils will be instrumental in smoothing the changeover for their local residents and will provide invaluable pointers on how the scheme should be rolled out more widely in 2013."

"All the pilot applications were of an incredibly high standard and we were very pleased to see such a positive response from the sector. It is very clear that local authorities feel they have a strong role to play. We look forward to working with the pilot councils and the DWP to ensure local people receive a high level of service and support."

The twelve areas chosen to run pilots are:

• Bath and North East Somerset Council
• Birmingham City Council
• Caerphilly County Borough Council
• Dumfries and Galloway Council
• London Borough of Lewisham
• Melton and Rushcliffe Borough Councils (as a partnership)
• Newport City Council
• North Dorset District Council
• North Lanarkshire Council
• Oxford City Council
• West Dunbartonshire Council
• West Lindsey District Council

Two further pilots by Oldham Council and Wigan Council will be run as part of the Pathfinder preparations.

Universal Credit has been designed as an online service, but the Government understands that some people may still need face-to-face support.

The pilots will examine how councils can help to provide these services and how face-to-face services can help people to become digitally independent.

Further pilot projects are due to be developed after 2015 to set the longer term role for councils in supporting Universal Credit claimants.

Notes to Editors

1. The choice of 12 areas was made following long lists presented to DWP by the COSLA, LGA, and the WLGA.
2. The local authority led pilots will complement work already underway as part of the preparation for Universal Credit, including Pathfinder and the direct payment demonstration project.
3. Universal Credit will replace income-based JSA, income-related ESA, Income Support (including SMI), Working Tax Credits, Child Tax Credits and Housing Benefit.
4. Universal Credit will help to lift as many as 350,000 children and 550,000 adults out of poverty.

Media Enquiries: 0203 267 5123
Out of hours: 07659 108883
Website: www.dwp.gov.uk
Follow us on Twitter: www.twitter.com/dwppressoffice
 

Requesting a Guarantor

Though you need to try as hard as you can to seek out trustworthy and completely secure tenants, it’s not always the case that letting profitable property has to mean letting to A+ credit rated tenants. There are plenty of situations where letting to someone who hasn’t got a completely clean past (or perhaps has no past at all) is economically sound: there wouldn’t be many student lets, social lets or first time properties if landlords weren’t prepared to offer them property.
However, there is a way to ensure double security when letting and that’s to ask for a guarantor.

Defining a Guarantor

A guarantor is anyone who will cover the costs of the tenants if the tenants are, for some reason, unable to pay. Often, landlord insurance policies are obliged to pay out because the tenants have been unable to cover the cost themselves. Asking for a guarantor to sign up as well as your tenant’s means there’s a second chance to recover any damages.

Choosing Wisely

Just like your tenants, your tenants’ guarantors are a part of your risk. It’s possible, remember, that they might fail to pay too. This is unlikely, but you still need to choose wisely: it’s preferable for a tenant to have a parent or even grandparent as a guarantor because they are likely to have greater accumulated wealth than a friend or partner of the same age. It’s a good idea to avoid closed loops, too: flatmates cannot be each other’s guarantors if you want to manage your risk properly.

Legally and Officially

Of course, there is no point nominating a guarantor if you don’t follow through with the legal obligations. It’s wise to talk to a specialist solicitor, but whatever the outcome, ensure your tenants’ guarantors sign the papers before you allow your tenants access to the property. This will probably be time consuming and require posting copies of contracts, but it is vitally important.
Asking your tenants to provide a guarantor isn’t always necessary and it might be problematic for tenants who are older and probably have a reasonable level of assets themselves, but it can be a winning idea. Not only does it spread your risk in the event of a damaging situation, it disincentives your tenants from causing damage in the first place: particularly if they know mum or dad will be forced to pay!

54% of tenancies now last 2-3 years

Landlords are providing their tenants with stable long-term tenancies as people shift away from home ownership toward more flexible forms of accommodation, according to research from the National Landlords Association (NLA).

The NLA's latest quarterly landlords panel shows that over half of tenancies now last between two and three years and that almost a third (32%) last in excess of four years.

However the report also finds that almost half of landlords surveyed have experienced rental arrears in the last 12 months and 37 per cent are worried about instances of arrears in the months ahead.

The research also shows that the proportion of landlords who have added property to their portfolio has risen by 2 per cent this quarter (from 10 per cent), with 22 per cent of landlords expecting to purchase additional property in the next 12 months.

However, investment to meet growing property demand seems to be problematic for some, with nearly a third (31 per cent) of landlords unable to expand in the last three months due to difficulties accessing finance.

  Water Hygiene

Waterborne diseases might appear to be a thing of the past, but the truth is there is a very real danger of contamination even by today’s standards. One of the main responsibilities of the landlord is to provide the facilities for clean water and it’s one that can easily be taken for granted. Though most properties these days automatically provide hygienic water outlets, there are some things to be wary of.

No Water is an Emergency

It’s frustrating to get calls from tenants who claim to have an ‘emergency’ situation on their hands, only to find that whatever problem that has arisen could very well have waited until the morning. However, tenants who have no running water have every right to complain and it does need to be sorted out. You may want to divert their issue to the water board, but often it’s best to just call out a plumber.

Limescale, Blockages and Cleanliness

It’s important to regularly maintain taps and ensure they don’t become clogged up with limescale. A simple wipe over with a damp cloth should do the trick, but harder blockages may need some limescale remover. Run the tap thoroughly after using any product to clean it – the solution may be worse than the problem in some cases.

Unused Systems

One of the main causes of contamination for landlords is stale and unused water. If your property is empty for any period that might warrant you needing unoccupied property insurance, you need to ensure that the taps are run for a few minutes to expel any potentially harmful water. This applies, too, to hot water pipes, so make sure your tenants are informed if this is the case.
Problems with water supplies aren’t that common, but it’s too easy for landlords to assume that all will be well if you just switch the tap. You need to be on the end of the phone for your tenants if they have a faulty water supply and you should expect a call, and make sure that anything supply that goes unused for some time is allowed to run clean before use.

5 Gadgets Every College Student Should Have

With the college season finally here, it’s now time to buckle down and start studying.  Back in the day, college used to be about bulky books, pencils and a cheesy folder.  Those days are no more.  Instead, there are some fantastic gadgets on the market that can help you with your day-by-day activities on the college campus.  To help make college a little easier, here are five gadgets you may want to consider:

#1 Runaway Alarm Clock

One of the hardest problems that college students have is waking up.  If you’re the student that has this type of problem, you probably risk the chance of missing class or even that important exam!  To prevent this from happening, the runaway alarm clock will sound off, but it will run away from you.  This is going to force you to get out of bed to turn it off. By the time you get up, you should have enough energy to start your day.

#2 Netbook

Netbooks don’t get as much publicity as they should.  These little laptops have 7 to 10 inch screens and take up very little space.  These books are great to bring into the college classroom since they won’t take up much space. No, you can’t really game on them or play software, but they are enough to surf the web and do word processing.  The great thing about them is that they usually cost less than $300.

#3 Note Taking Apps

Taking notes are extremely important during class.  Instead of using paper, consider bringing in your laptop to record the teacher’s lecture and take notes while she’s talking.  This is a great way to record the lecture during class and add things to it while the teacher is talking. Some of the best note taking apps for the iPad include Evernote, Springpad
and Simplenote.

#4 iDock

If you have an iPod, the iDock is the best way to turn your iPhone or iPod into a stereo system.  Whether you want to play back the lecture from class or you want to listen to some tunes while studying, it’s a small gadget that takes up no space and the best thing about it is that it costs less than $75.

#5 Flash Drive

Long gone are the days where you have to carry around a bulky floppy disk. A flash drive can now store up to more than 32 gigabytes worth of data. Since you’re going to have to save a lot of documents, a flash drive is an awesome way to back up your work, print stuff at the library and take files from one computer to another.  The best thing about it?  It’s only going to cost you a few bucks to buy one.

These are just a handful of the great gadgets available to college students.  As you can see, most of these gadgets can make your life a lot easier.  Before you head to the classroom or your dorm, be sure to keep these in mind!

Author Bio;

This post was written by Hannah M. She helps run the website HowMuchIsIt – a massive resource that shows you the price of just about anything from health to home goods. If you want to reach out to Hannah, send her a
Tweet- @howmuchisit