Research rental valuations

Novice buy-to-let investors should be careful of relying too much on potential rental income quoted by letting agents and would do well to take a conservative view of what to expect. New research shows that letting agents in some regions of the UK are overstating potential rental returns on investment properties by up to 25 percent.

Posing as first a tenant and then a potential property investor, researchers asked what the potential rental return on a two bedroom flat in specific developments was. London (25 percent) and Birmingham (13 percent) boasted the most inflated prices for the second year running. However some agents, possibly fearing their figures would be used by an investor to obtain a buy to let mortgage, where the maximum advance is a function of the rental income, were conservative about the potential rental return.

Letting agents in Manchester and Liverpool massively under quoted rental returns by 25 percent and 15 percent respectively. For the second year running, Sheffield appears to boast the most honest agents who quoted the same to both tenant and investor.

The results show how important it is for all investors to conduct their own extensive research prior to purchasing buy-to-let property

Back to top

Dividing the Financial Pie by Jim Rohn

I believe real-life economics must be one of the most glaring omissions in our educational system. I say this because it appears that huge numbers of people including even doctors, lawyers, top corporate personnel and entrepreneurs haven't the vaguest idea how to manage their finances. So if you will indulge me, I would like to share a simple formula of how money should be allocated for the creation of wealth.


The 70/30 Rule -

After you pay your fair share of taxes, you must learn to live on seventy percent of your after-tax income. This is important because of the way you'll allocate your remaining thirty percent. The seventy percent you will spend on necessities and luxuries. The thirty percent? Let's allocate it in the following ways:


1) Capital Investment

With your first fifteen percent of your after-tax income you're going to create wealth. This is money you'll use to buy, fix, manufacture, or sell. The key is to engage in commerce, even if only on a part-time basis.

So how do you go about creating wealth with the fifteen percent of your income you set aside for that purpose? There are lots of ways. Let your imagination roam. Take a close look at those skills you developed at work or through your hobbies; you may be able to convert these into a profitable enterprise.

In addition, you can also learn to buy a product at wholesale and sell it for retail. Or you can purchase a piece of property and improve it. And if you're fortunate enough to work at a place where you're rewarded for additional productivity, you can work for more income and use this income to invest in an ownership position through the purchase of stocks.

Use this fifteen percent to purchase your equipment, products, or equity -- and get started. There is no telling what genius lies sleeping inside you waiting to be awakened by the spark of opportunity.

Here is an exciting thought! Why not work full time on your job and part time on your fortune? Why not, indeed? And what a feeling you'll have when you can honestly say, "I'm working to become wealthy. I'm not just working to pay my bills." When you have a wealth plan, you'll be so motivated that you'll have a hard time going to bed at night.

2) Savings

The last fifteen percent should be allotted to savings. I consider this to be one of the most exciting parts of your wealth plan because it can offer you peace of mind by preparing you for the "winters" of life. Through this method you can accumulate a princely sum over the years.

Let me give you the definition of "rich" and "poor." Poor people spend their money and save what's left. Rich people save their money and spend what's left.

Twenty years ago, two people each earned a thousand dollars a month and they each earned the same increases over the years. One had the philosophy of spending money and saving what's left; the other had the philosophy of saving first and spending what's left. Today, if you knew both, you'd call one poor and the other wealthy.

So, remember that giving, investing and saving, like any form of discipline, has a subtle effect. At the end of the day, a week, a month, the results are hardly noticeable. But let five years lapse and the differences become pronounced. At the end of ten years, the differences are dramatic.

And it all starts with the same amount of money -- just a different philosophy.


Back to top

"You are never given a dream without also being given the power to make it true." - Richard Bach, Author

"Everyone's got it in him, if he'll only make up his mind and stick at it. None of us is born with a stop-valve on his powers or with a set limit to his capacities. There's no limit possible to the expansion of each one of us." - Charles M. Schwab 1862-1939, Industrialist


Back to top

Time management made easy

Time management is an essential part of a wealth generating strategy. Without good time management creating wealth becomes exponentially more difficult. So here are a few pointers.

Learn how to separate the majors and the minors. A lot of people don't do well simply because they major in minor things.

Don't mistake movement for achievement. It's easy to get faked out by being busy. The question is: Busy doing what?

Days are expensive. When you spend a day you have one less day to spend. So make sure you spend each one wisely.

Sometimes you need to stay in touch but be out of reach.

Time is our most valuable asset, yet we tend to waste it, kill it, and spend it rather than invest it.

We can no more afford to spend major time on minor things than we can to spend minor time on major things.

Time is more valuable than money. You can get more money, but you cannot get more time.

Never begin the day until it is finished on paper.

Learn how to say no. Don't let your mouth overload your back.

Remember, time is the best-kept secret of the rich.


Back to top

"Do not wait; the time will never be 'just right.' Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." - Napoleon Hill 1883-1970, Author

"Don't be distracted by criticism. Remember the only taste of success some people have is when they take a bite out of you." - Zig Ziglar Author and Speaker

Back to top

Alleviate your financial hangover

It is estimated that this Christmas we spent an incredible £615 each on gifts, food, drink and entertainment. However, with many people having to use credit cards to help pay for the festive season the financial hangover is lasting well into the New Year. If you are one of these people then why not offset the cost be re-mortgaging onto a competitive deal to help avoid the January blues this year?

Now don't misunderstand what I am saying, this is not about using a new mortgage to borrow money, so we are not talking about taking on more debt. In fact it's all about saving money by getting a better deal on your biggest monthly expense. Homeowners currently languishing on their lender's standard variable rate could save around £150 a month – £1,800 a year – by moving onto a market-leading deal (based on a 100k mortgage). This more than compensates for the festive flurry.

Moving from your lender's standard variable rate onto a competitive deal is advisable at any time, provided any early repayment charges do not make it uneconomic to do so, however, around Christmas time, with all the associated expenses, it makes perfect sense. That way you really can have a happy New Year without the usual financial headache.

Homeowners are three times more likely to shop around for car insurance than think about how to switch to a better deal on their biggest financial commitment, according to the Department of Trade and Industry. Just because a mortgage seemed a good deal when you took it out does not mean it still is now. New rates and deals are becoming available all the time. Why pay more than you need to in interest when there are much better rates available?

Back to top

Need mortgage advice?

Maybe you're thinking of buying an investment property, or you need to release funds tied up as equity in your house. Perhaps you just want to find the best mortgage rate for your own individual circumstances and cut your mortgage payments. Why not call our mortgage department today? Our resident mortgage advisers will give you the best possible advice to suit your requirements. Call them today on 0870 1670996.
Back to top

Completions

Congratulations to everyone who completed on their property purchase during December. A number of developments reached completion at this time and a large number of units completed within a very small period of time. We wish all of you the very best of luck with your investments and look forward to working with you again soon.

If you were not one of these why not take a look at our current availability and make 2006 the year you changed your financial destiny for the better.

Back to top

What's available?

We currently have the following investment opportunities.


Equity Chambers, Bradford
Marco Island, Nottingham
Mill Hill Gardens, Budapest, Hungary
Sun Palace, Budapest, Hungary
The Verandah Resort, Antigua

Please go to www.propertyforlife.com/property/ for full details and look out for more great opportunities coming soon!

Back to top

Upcoming events

Over the coming months we will be attending several exhibitions in addition to our ongoing Property Academy programme. If you would like to attend a property academy session please call Laura on our 01252 737575 or email laura@propertyforlife.com stating which session you would like to attend and how many places you require.

February 3rd - 5th 2006 – The Dublin Property Expo - RDS centre, Dublin.

February 18th 2006 – PFL Property Investment Academy – The Coppid Beech Hotel, Bracknell.

March 17th-19th 2006 – The Homebuyer Show – Excel Exhibition Centre, London

For further information regarding the Property Investor Academy Programme please follow the link www.propertyforlife.com/whyinvest/education.html

Back to top

New service - Snagging

We have now introduced a new service in an effort to further increase the already substantial benefits of purchasing property through Property for Life. With immediate effect, each and every property purchased through us will receive a completely free snagging report.

The report – compiled by Inspector Homes – will cover all aspects of the property requiring attention from the developer. Covering everything from potential electrical and plumbing issues to general levels of finish, this service will provide an extra level of confidence to our clients when purchasing through us. Each report has a value of at least £300 but all purchasers will receive this with our compliments.

Back to top

Do you fancy a spending spree at one of the UK's leading department stores?

The new look Property for Life referral programme can offer you just that.

All you need to do is tell an interested friend about Property for Life and you could soon have a minimum of £250 in gift vouchers to spend in any John Lewis or Waitrose store.

Quite simply, for each person introduced by you who then purchases a property through us you will receive a cool £250 in John Lewis gift vouchers. If they purchase more than one property you will receive £250 in gift vouchers for each property they purchase. You could soon be well on your way to that spending spree.

Remember, the more people you introduce the more chance you have of grabbing at least £250. So why not tell your friends and family about Property for Life? Make sure they register on-line at www.propertyforlife.com/register/ and select the recommendation option at the end of the form and include your name in the 'other' box.

Please note that the referral programme is on a per property not a per person basis.

Back to top