Thinking about your Buy-to-Let Property?

Yesterday I was thinking it’s a long time since I looked at the papers to check on house prices in my area. So I

picked up a couple back copies of the Enfield Independent lying about in the house and turned to the property

section.

I saw that on average one-bedrooms were selling for £140k with average rental of £650 per month. So I crunched some

numbers in my calculator assuming 6 % interest rates on an 85 percent loan and came up with an interest only payment

of £595 per month. The calculation goes something like this-85% x £140k =£119k. Then 6% of £119k = £7140 per annum.

Finally dividing £7140 by 12 gives a monthly charge of £595.

So what does this mean in terms of an investment proposition? Is it worth buying such a property? Well, I am not

qualified to give mortgage or financial advice so, anyone reading this is advised to obtain professional legal and

financial advice. This article is merely my own personal opinion and is to be considered as information only.

My own view is that it could work but there are some risks. On the positive side of the equation it looks as if

there is some positive cash-flow. If you read the books by Rich Dad he is always stressing the importance of making

sure your property is producing a positive cash flow. A positive cash-flow is the life-blood of your business

without which your business will collapse.

It so happens that in the last week or so I read two books, which I will mention later in this article and, am unto

my third book which is Rich Dad’s book ‘Real Estate Advantages’ by Sharon L.Lechter and Garrett Sutton. I am at page

115 in the chapter on ‘Real Estate and Retirement Plans’. This article is not about a review of the books which you

can check out for yourself.

I have decided to focus on property investments which seem to be at the centre of a lot of the things which affect

my life. Only last week there was some news in the media about sub-prime mortgages. I am no expert in this area but

it appears that these form part of what are known as ‘second chance’ lending.

These are loans to borrowers who do not qualify for market interest rates because of problems with their credit

history. These people have low credit scores or histories of payment defaults or bankruptcies.

I think this covers most people as how many of us with mortgage, council tax, electricity, gas, telephone, water

rates, food, clothes etc have not been late or being in dispute over a bill which has been recorded negatively with

the credit agencies. You would have to be ‘abnormal’ in some way as to have not a single blemish on your record.

I also heard that interest rates are likely to soar in 2008 and people are being advised to take care of their

borrowings before the end of 2007. I checked out current Bank of England base rates which the market follows and, at

the time of writing their interest rate is 5.75%. Over the last few years base rates have steadily crept up from

3.75% in February 2003 to where they are today.

So, if I can borrow at interest rates of 5.75% or less for a buy-to-let property investment as above I may be

tempted. The immediate risk as I see it is potential cash-flow problems because the property is only producing cash

amounts of £55 per month (£650 rental less interest only mortgage payments of £595 per month).

There are other expenses to consider such as insurance of the property, maintenance charges, ground rent, council

tax etc. If I could get the property at a lower price and better interest rate terms then that could make such a

purchase a worthwhile investment. On a worst-case scenario if I could not break-even where all my outgoings are

covered by my rental income then I would have to decline this as worthy of my time and money.

I see property investing as the business it is and not some get-rich-quick scheme or hobby. As a hobby I am

interested in internet marketing and I read as much books as I can. However, by background is insurance which all

ties in neatly with property investing.

As to the two books I mentioned I read last week, the first one is ‘The Millionaire Maker’s Guide to Creating a Cash

Machine for Life’ by Loral Langemeier. The other book is ‘The 4-Hour Workweek’ by Timothy Ferris. These are great

books and I had a great week last week.

I love self-development books and as and when I read one I think is great I will mention it if you are interested. I

will write again shortly but I must go now to check my emails.

Please leave your comments on the above article until we speak again.

2007 Copyright @ www.matrixjones.com All Rights Reserved.

PlayStation 3 – $100 Price Drop & Bonus Giveaway.

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How often do you get an offer like this amazing $100 off the price with bonuses galore to boot. If you are into your

games then this is the best offer available on the market and with these extra valuable bonuses there is really only

one decision. Take a look at all that you get.

Features:
• Gaming Console
• Blue- ray PlayStation
• Video chat
• Internet access
• Digital Photo Viewing
• Digital Audio and Video.

PlayStation 3 or PS3 is a video game console from Sony.The previous platform was PlayStation 2. The PS3 was first released in Japan on 11/11/06.The storage medium is the Blue-ray Disc. This 60 GB model boasts high definition video for both video games and movies with 1080 pixels HD resolution. There were 24 games titles available at launch in Europe.It’s main competitors are Xbox 360 and Wii.Feel free to check these out to compare.However,the PS3 has received excellent reviews from leading game specialists and magazines.Watch out for the 80 GB model it is believed coming in August’07 but at an increased cost.The PS3 is probably not the final word in home entertainment but who can claim such an accolade.

Benefits
• Complete Entertainment System
• $100 price drop
• Bonuses
- Sony PlayStation 3 Blue-Ray DVD Remote
- Copy of Resident Evil – Apocalypse in Blue-ray format.
Amazon’s Product Description
After narrowly escaping the horrors of the underground Hive facility, Alice ( Milla Jovovich ) is quickly thrust

back into a war raging above ground between the living and the Un-dead. As the city is locked down under quarantine,

Alice joins a small band of elite soldiers, led by Valentine and Carlos, enlisted to rescue the missing daughter of

Dr. Ashford, the creator of the mutating T-virus. It’s a heart-pounding race against time as the group faces off

against hordes of blood- thirsty zombies, stealthy Lickers, mutant canines and the most sinister foe yet. Written

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Why not treat a loved one to this fantastic gift?

Alternatively,check out the hottest in mobile phones this Summer:
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वहत इस थे कनेक्शन बेत्वीं तोंसिलितिस ऎंड वेइघ्त लॉस?

There is a connection which I hadn’t previously considered.Recently my daughter contracted tonsilitis and over a three week period lost about a stone.She couldn’t open her mouth and speaking was through her teeth which was barely audible. The doctors detected a sack of infectious puss in her throat the size of a golf ball. The attempted to treat it with medicine but unexpectedly it popped and went down instead of out.It was gross and carried a vile smell to turn anybodys stomarch.If you want to lose weight and drinking puss is not your cup of tea then I came across a website recently that may be able to help you.They are called,no offence intended,Fat Loss4 Idiots.Check it out now.

Everybody Is Getting Fat!

It is a fact.As you grow older you put the weight on disproportionately.Weight and age appear to be inverse elements to each other.But it doesn’t have to be so,absolutely not.My mother-in-law was a big woman.She had a big stomarch where she carried most of her weight.She was one of the nicest person to walk the earth.Everyone wished she was their mother.She passed away in 1995 after battling with diabetes a series of strokes-God bless her soul.My wife is now developing a large stomarch as she gets older and like her mom everyone loves her and call her mum.I find it very strange that the people calling her mum are of different races,some black,some white and some of Indian origin.They are mostly in their early 20′s and are always asking her out to the pub and to dinner and parties.I must say though my wife doesn’t look her age and have one of the most beautiful smiles you will ever see on any face.She completely floored me with her smile when I first met her.I have a little pot belly myself but nothing to write home about.I was very active as a child and I guess those efforts are still paying dividends.I heard an expression recently which I have mentioned to close relatives and,it goes like this….’Too many trips to the Golden Gates will lead to an early visit to the Pearly Gates’.I feel a bit guily after saying it but I am noticing a marked increase in fat people in my family.And the sad thing is that they are so young.I know the motor car is partly to blame as no one walks anymore.I used to walk 3 miles to school and back five days a week and it did me no harm I can account for.I say let the kids all walk to school instead of jumping on buses or driven to and back from school in the family car.If any reader wish to contribute to this blog please feel free to do so.

Accident Claim- for Personal Injury Victims.

Accident Claim- for Personal Injury Victims.

By Author: Matrix Jones

The claim culture has finally arrived in the UK. We are not yet on a par with our American cousins but we are getting there. A greater number of people in this country now know what ‘ambulance chasing’ whereas a few years ago this was not common vocabulary. They know that an accident claim whether at work or in a car or a slip/trip in a car park could entail financial compensation against a negligent third party.

People are now beginning to recognize the size of the insurance pie and they want a slice of it. They pay for insurance on their lives, houses, cars, TV etc. They see it as their right of recovery in an accident claim and who can blame them.

Some people saw the opportunity for profit and jumped on the ambulance chasing band-wagon bringing in their wake a flood of complaints from victims of heavy selling and fraudulent practices. As a result the regulators stepped in and a number of cowboys have been slung overboard. The wagon is now lighter with more room but you need to pay your regulatory fees and conduct yourself properly to get onboard.

The real gun-slingers are of course the solicitors. They are the sharp shooters and their motto is ‘pay my clients compensation or I will shoot’ which translates to mean ‘settle or we go to court’. The accident claim specialist is like a bounty hunter. He finds the victims of accident claims and takes them to the solicitor. In return he receives a bounty known in the industry as commission. This is a good week’s salary for each case, perhaps £500 or more.

However, it is not as simple as it seems on initial observation. Each victim must be scrutinised to establish the circumstances of his accident and the nature of his injuries. To coax the victim o go to the solicitor the accident claim specialist must sugar his language with ‘no win no fee’ persuasion otherwise the victim won’t go with him. The victim wants to be reassured that he doesn’t have to pay a solicitor for the privilege of sustaining a nasty injury which he does not consider to be his fault. That would be like rubbing pepper in the wound.

Some solicitors bark is worse than their bite. The victim has been scrutinised and passed the hurdle of ‘risk assessment’ set by the solicitor who has satisfied himself in the process that there is a ‘fee’ day for him. Other victims are discarded like carcasses to any passing vulture for the picking.

The victim with monetary potential is now awaiting a pay day. But so is the solicitor who may or may not have paid the accident claim specialist at this stage. The accident claim victim has been further tested by medical evidence on both sides, for his own solicitor and also for the insurance company. Still no compensation in sight and his patience is beginning to wear thin. What could possibly be holding up settlement for over a year now since the accident?

He contacts his solicitor but they don’t seem too bothered by the delay in settlement. They advise him that the insurance company hasn’t yet come to a decision over liability for the accident. They are awaiting further witness evidence and will advise their decision in due course. In the meantime the solicitors ‘time machine’ for determining their costs is ticking so no worries there as potential costs are going up everyday.
Then the bombshell drops- insurers have indicated the wish to dispute liability for the accident and have no proposals for a settlement. What now? Does the solicitor drop the case or go all out ‘guns a blazing’ and issue a Claim Form ie court proceedings knowing how deep insurers pockets are or do they seek a compromise settlement?

For further revelation obtain a copy of ‘The Personal Injury Compensation Claims Guide’ at www.personalinjuryclaimsguide.com

This Article is copyrighted and must not be copied or reproduced in any way.
Copyright 2007@ www.personalinjuryclaimsguide.com- All Rights Reserved.

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