History of BTL
It can be so difficult to write about a topic which you neither have the knowledge nor the interest in. So how do you write an article on a topic which you know nothing about? Start by researching the history…
Buy to let mortgage calculator. That was the keyword, but for the life of me I couldn’t figure out what it was (at least from the name). So I headed over to my trusty search engine to see what popped up. First thing is to ignore all the websites with the term, or some variation of it, as the domain name. Turns out this is a fancy British term for what we’d refer to as an investment property loan.
Turns out this thing has had quite the interesting backstory. Prior to this little financial instrument, it was very difficult, and not to mention expensive, for smaller investors to get loans. Higher interest rates with larger down payments are not very enticing to a potential landlord. But lower interest rates and smaller down payments – now that’s a deal you can’t ignore! Apparently it was such a great deal that borrowers would opt for these loans instead of traditional, residential ones.
Many blamed this instrument for part of the overvaluation of property prices experienced during the peak years and kept prices lingering in a bubble for so long.
It’s always the right time to buy real estate isn’t it? At least that’s what my real estate agent told me last week. Especially with 30-year mortgage rates continuing to hit new record lows day after day. Maybe you’ve gone through a mortgage payments calculator or two and decided you don’t want to settle on purchasing yourself a home, but that you have decided the road to riches is through being a landlord. Follow me.
Save Money This Winter By Greening Your Utilities
Most of the country has experienced a mild winter thus far, with the number of cold days, the amount of snow, and the general gloom of the season well below normal January levels. This has translated into lower utilities bills for those who live in colder regions. Heating costs, which can skyrocket in winter and take a hefty bite out of your budget, just aren’t at those same levels this year.
But don’t get too complacent. Meteorologists predict that the cold will finally arrive in the next couple months, bringing with it those higher gas costs that we dread. If you act now, you can take steps to reduce these expenses and save some money this winter – and, moreover, go green in the process. A greener home can also be more convenient for you and it can translate into lower insurance costs. Getting an Insurance quote can help you determine that with certainty.
Here are some tips for being more eco-friendly and wallet-friendly with your utilities this winter:
Get Energy Efficient Lights. These lights cost more money, but they also last longer and save more energy in the process. At the end of the day, they should result in noticeable savings.
Get A “Smart” Thermostat. High-tech thermostats, developed by a company called Nest Labs, have the ability to learn your habits and regulate your home temperature in a way that best maximizes heating efficiencies. As with light bulbs, this can translate into savings – substantial ones, in fact – despite costing more than traditional thermostats.
Insulate Your Attic. Adding insulation to your walls may be a costly and time-consuming undertaking, but in many homes it is not to difficult to add a layer of insulation to your attic floor. Since heat often escapes through the roof, this layer can be incredibly helpful in the winter.
Caulk Your Windows. Similarly, adding extra insulating protection to your windows can help trap heat in your home. If you live in an older structure, you may be surprised how much heat you are losing around your windows every day.
Taking all of these steps are all great ways to improve the efficiency of your home’s energy use, in the process making your house a more environmentally-friendly place. And, as an added bonus, this efficiency will extend into the area where to you it matters most – your personal finances.
Things First Time Homebuyers Need To Know
The best deals when buying a home are often given to first home buyer. That is because there are so many different programs and incentives that are giving to help first time buyers realize their home ownership dreams. You will find that you are in line for a lot of monetary perks when making your home purchase. Listed below are some of the great benefits of buying a house for the first time.
Home Buying Programs
First timer homeowners have an easier time qualifying for government programs than repeat homebuyers. The federal government has many federal programs that offer low interest rates and loan guarantees to first time buyers. State and local government also offer price discounts to first time home purchasers that enter the teaching and nursing professions. That is one of the ways that they attract candidates.
More Loan Options
New home buyers have a number of loan options that they can go to for financing. You can always go to a bank, credit union, or mortgage broker. There are special VA loan programs for people that have served in the military that guarantees a really low interest rate for first time buyers. The FHA has first timer buyer loan programs that only make borrowers put down 3 to 4 percent of the loan’s value. That is well below the twenty percent mark that most banks are requiring. Take a few days to compare the house loans being offered to you until you find one that fits.
Saving Money On Taxes
One of the big benefits of buying a house is the mortgage interest deduction. You can lower your taxable income and the amount of taxes that you pay by writing off all of the money that you pay in interest. You can also deduct your property taxes from state tax returns leaving you with a much lower tax liability. There is even a first time homebuyer tax credit that you can claim.
Lower Fees
When doing a home loan comparison, take the time to look at the fees that the lender is charging. First time homebuyer loans often have lower fees since they are offered to people who have never owned a property before and have lower income levels. Most first time buyer programs will keep the loan affordable by capping fees and loan amounts.
Now you know why it is so advantageous for a first time home buyer to buy a piece of real estate.
How to Stay Out of Debt When in School
“Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt,” claimed the great playwright Henrik Ibsen. Truer words have never been spoken. The surest way to add more stress to your college days is to get yourself into debt.
Being a student means making sacrifices. While frequenting the local bars or traveling to exotic destinations for spring break may sound like fun, this is not the time to go into debt in order to maintain a luxury-laden life. By managing your funds in school you will be well prepared to take care of yourself after you graduate and well on your way to enjoying the finer things in life.
1. Explore Grants and Scholarships
Always look for any and all free ways to pay for your education and avoid student loans. Student loans are alluring, but remember that loans are not just a way of securing extra money – they must be paid back. Instead, explore the countless private and federal scholarships that target people with all sorts of backgrounds, degree paths (which often even include courses offered through online universities), ethnicities, income levels, etc. In addition, government grants are very generous these days and most students from low income households will qualify for a grant.
2. Buy Groceries/Plan Meals
A student’s life seems to never slow down, making it easy to fall into a fast food lifestyle. However eating out all the time quickly adds up and the term, “freshman fifteen” comes from the weight gain student’s often experience when all of their meals consist of processed foods.
Luckily, both of these dilemmas can be avoided by planning meals and going on weekly shopping trips. Commit to making this a habit while at school. Of course, this takes some preparation. Think of this experience as another lesson; a lesson in life skills. Plan each week’s meals and then shop accordingly, and don’t forget to take advantage of any coupons or student discounts that might be available to you. The average fast food bill for one person is $15 these days. Yet for $30, you might be able enough groceries to last you more than a week.
In Debt?
The following is a guest post.
Most of us have debt, but it doesn’t have to be the norm if you rather pay it off. You can get professional help with debt or tackle the problem yourself. With some willpower, a plan, and some automation, you can be debt free.
Track Your Income and Expenses
The first step to any money issue is to figure out where your money is being used. Track your income and expenses for a month or more to find out exactly where your money is going. This means keeping up with each and every expenditure. If you start blowing off the small stuff, you won’t have a perfectly clear picture, so write it all down. By the end of the month, you will have all of the spending information you’ll need to make a plan.
Make a Plan
You can use what you know from tracking your income and expenses to make debt management plans. The first step is to see if your income is covering all of your spending. If it is, then you can use your monthly extra towards debt. If it isn’t, you’ll need to cut your expenses or increase your income. Can your housing costs be decreased? Have you called your monthly services to ask for discounts? Do you have unnecessary expenses that can be cut?
If you decide to increase your income instead, look into a better paying job or a side hustle. Dog walking, pet sitting, baby sitting, or a part-time job at a local business can usually fit into any schedule. Take a look at all of your skills and see what you can monetize.
Tackle the Debt
Once your income surpasses your expenses, you can throw the extra towards your debt principal. If you make a budget to stick to, remember to include a category just for debt payoff. You can have it automatically applied or at least automatically moved into a different account to keep yourself from breaking your own rules. We are sometimes our own worst enemies.
If you follow your own plans and keep hitting your debt with any extra you can scrape together, you will soon be celebrating debt freedom! Good luck
Using insurance when you need it.
While people understand the purpose of insurance and its role in protecting us against disasters, we may be reluctant to use those benefits when the time arises. Probably because we are in the midst of disaster far less than from a standpoint of safety, people are hesitant when claiming for injuries.
A few years ago, we visited a friend in grad school. He happened to be close to the beach, so we decided to make a short day trip out to the water. But our trip was cut short at the major interchange right before a tunnel. At a standstill from the traffic, someone wasn’t paying attention and ran into the car in front of them. We ended up being part of a four car accident, with us the second to last car to be struck. The last car ran into the rear of the third car, which hit our car’s rear-end and pushed us into the first car’s rear.
Getting pinball’ed like that wasn’t fun, and needless to say, the accident put a damper on the rest of our day. Once we were back home, I noticed some shoulder tightness. During the accident, I was slightly turned around talking to the other guy in the backseat. After a few days, I decided to call my friend.
He said that his insurance would cover the medical bills of any passengers in the vehicle, including compensation due to whiplash. After speaking with his insurance representative, I scheduled a physical therapy appointment to work out the kink. It had something to do with the angle I was at the time of the accident, but the muscle issues were resolved after a few weeks of training.
As painful and debilitating accidents can be, it’s a comforting feeling knowing that insurance premium you pay each month will be there to absorb the shock of the event and get you back on track.
