Posts tagged: mortgages

A Guide To Getting A Mortgage When You’ve Got Bad Credit

mortgage for youIf you’re wanting to purchase a home, but have missed paying a few mobile phone bills or have been bankrupt, you may think that you’ve got no chance. Although it’s certainly difficult to get a loan when you have a bad credit score, it’s definitely not impossible. Getting a mortgage with bad credit isn’t easy, but that doesn’t mean you should just give up. Here are a few options for you to consider before throwing in the towel.

Increase Your Credit Score

If you have a bit of time before you actually want to put down a down payment, then you should definitely consider trying to raise your credit score. This will mean that not only will you find it much easier to secure a mortgage, but you will also generally have to pay less money in the long run, as the interest won’t be as high. Checking your credit report for mistakes is one possible way to do this, as you could have been a victim of fraud in the past. Ensuring that you’re on the electoral roll is also important, as you are unlikely to be accepted for any kind of credit unless you have this as proof that you are who you claim to be and live where you claim to live.

Increase Your Down Payment

Whether you have a bad credit score or not, mortgage lenders are much more likely to approve you for a mortgage if you provide a down payment that is much larger than usual. If you have some extra money saved somewhere, whether this be in a savings account or under your mattress, then you are halfway there. If not, then you need to find a way of securing these funds. Asking family and friends is a possibility, but isn’t always an option. Even if it is possible, you may not want to ask for large amounts of money from your loved ones. Here is when you need to start thinking about a bad credit personal loan. What are personal loans for people with bad credit? Well, they’re exactly what they say on the tin. A bad credit personal loan is there to help people with bad credit secure a personal loan, for things such as making a down payment on a new house.

Have Some HOPE

If you don’t have a large enough income to make a big down payment, then the HOPE program is something you may want to consider. Hope will allow borrowers with bad credit get approved for loans, sometimes with as little as a 0% down payment. This is a great option for someone on a low income, with bad credit, as it will help you to improve your credit history when you start to make your repayments.

Buying your own home, even with a bad credit score, is definitely not impossible. You do need to do a lot more research, and often have to pay more than others with a better credit score, but it will all be worth it when you’re falling asleep in a house that you own.

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Tempted To Invest In Property? Read These Tips First

invesment plans in propertyWhen you think about your monthly budget, some non-negotiables take priority: mortgage, food, utility bills, insurances and your kids education. However, once you have accounted for these necessities, you may find yourself in the fortunate position of having some spare cash. If you are financially astute, you may park this money in a savings account to accrue over time. This is the safest option and requires minimal risk on your part. However, as your cash begins to stack up, you may find yourself wondering whether your increasing stacks of cash are working in the most effective way for you.

One major alternative to a regular savings account with a bank is to test your resolve on the property market. Investing in bricks and mortar has paid dividends for many over the past few decades. Lucrative returns can be had in the short term if you are quickly flipping a house, and also in the long term, if you are building up a rental portfolio. Take a look at these tips to help you decide the sort of property investment that you may be tempted to make.

Research Like You Have Never Researched Before

Although you may be impatient to see some of your hard earned money invested in the realm of property, it’s vital that you understand the styles of property that are in demand. If you are thinking of purchasing an inner city dwelling, the chances are that apartments and penthouses will cater for the needs of young professionals, with their lack of gardens and low maintenance requirements. If you are opting for the land of suburbia, you may want to consider larger townhouses and condos that will accommodate wealthy families, that are spacious and located within highly regarded zip codes.

If you are tempted to try your hand at purchasing a property to renovate and sell on quickly, ensure that you purchase the worst house on the best street and not the other way around. You can always alter a property by bringing in a team of tradespeople and renovating it, but you can never upgrade where it is.

The Rental Option

If you are going to dabble in the property market for the long haul, you may wish to let your investment. You’ll need to do your homework and make sure that the rent you receive each month covers the mtal-ortgage that you have taken out to purchase the property. Try and buy somewhere close to other rental properties. You may want to look at a location close to a university to attract students or a hospital that may appeal to doctors or nurses working nearby. If your property is close to good transport links and is easily accessible, it will appeal to more potential tenants.

You may be worried that you could end up leasing your freshly painted and coiffed property to nightmare tenants who refuse to pay their rent resulting in you getting into financial difficulties. Don’t worry. Use a credit referencing agency if vetting your tenants yourself or pass this responsibility over to a specialist letting agent who’ll take care of it all. For a small percentage of the rent each month they will manage your property, take care of maintenance issues and deal with any problems as and when they arise.

Investing In Property For Your Family

You may disregard the idea of flipping or letting a property altogether. Instead, you may be keen to upgrade your current home and take a few extra leaps up the property ladder. You might even be keen to build your very own dream home totally bespoke to your family. You could opt for an eco-home, a waterfront property or one of the many mansions designed by Playoust Churcher. The architect you choose will create your dream home designed and built specifically for you. By investing in property this way, you are enjoying the fruits of your money, as well as ensuring that you have a humble abode that will increase in value if you come to sell it at any point in the future.

If you have extra money each month, you can, of course, build up your savings for a rainy day. However, if you want to see greater returns on your investment, it pays to consider either purchasing a second property to rent or to flip and sell on quickly. You could also think about building your own dream dwelling. You never know, if you clue yourself up on potential locations, housing types and property market forecasts, you could be at the embryonic stages of forming your very own property empire.

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4 Things You Should Consider When Growing Your Property Portfolio

money property ventureEveryone wants to make money in the real estate business but for every billionaire property magnate there are a dozen bankrupt chancers sitting in motel rooms wondering what they Hell happened. Investing in a property as an absentee landlord is one thing, but going from renting out of flipping one property to growing a portfolio of properties is a huge and expensive transition that carried with it a certain amount of risk. Buy hey, if it was easy, everybody would be doing it!

Buying property for investment is very different from buying a home and it requires a different set of skills and priorities. While neither a seasoned investor or someone looking for a new home wants to buy a turkey, the more you invest, the smarter you need to be. Here are some important things to consider when building your property portfolio…

Focus and strategize

When you’re just starting out, your investment strategy will be something along the lines of ‘buy property’ but buying indiscriminately is the surest way to a loss. When your portfolio grows, however, you need to think a little harder about when and where you buy. Do you want to buy properties, renovate them and let them out while you live off the passive income or would you prefer to buy and flip them, maximizing the profits and reinvesting your capital in your next project? These will determine the types of property you buy and their location.


A portfolio that’s richly diverse in terms of property type and location has a great chance of longevity and profitability. Investing heavily in hip, upcoming area is a great strategy since rental demand will be consistently high and your yield will tend to grow but you run the risk of keeping all of your eggs in one basket. If something happens to compromise the value of property in any given area, though, this can create huge problems for you. Thus it’s a good idea to hedge your bets by investing in a variety of different locations, even if they are similar properties to those in areas where you’ve already invested.

Don’t be afraid to refinance

Making money in property involves considerable and ongoing investment. While you need capital to acquire new property, you also need to have sufficient liquidity to manage your properties in terms of maintenance fees, ground rent and other fees not paid directly by the tenant. It’s important to be able to move quickly in the property game and having all your cash tied up in your investments can cause you to miss golden opportunities when they present themselves. Strategic refinancing can allow you to expand your portfolio, thus generating more revenue from rental income which means more disposable income for you!

Be prepared to let go of a dud investment

Investors can very often be their own worst enemies by obstinately clinging to properties that just aren’t working for them. Every now and then you may need to bite the bullet and take an up front loss. While a bitter pill to swallow, it’s far better than missing out on more opportunities because you’re shovelling all your capital into a money pit.

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That’s Your Lot! Why Auctions Are Great Real Estate Investments

money in real estateWhen a person invests in real estate, he or she doesn’t go to an auction. Usually, they find a realtor, view a variety of properties, and make a few bids. There is nothing wrong with this method. In fact, it’s a tried and tested technique which has provided excellent results on many occasions. But, that doesn’t mean that an investor only has one path to walk. Regardless of how you feel, auctions provide a range of benefits which make them a no-brainer. For the non-believers, below are the reasons why they are great places to find cheap properties.

Seller’s Circumstances

No one likes to address this topic, but the conditions of the seller play a significant role in the price. Anyone who can afford to wait doesn’t have to go to auction. Instead, they can put their house up for sale and go through the normal channels. By definition, people at auction can’t do the same thing. They either have to make a quick sale for financial reasons or have gone bankrupt. Again, it isn’t nice to admit, but this is an opportunity. Because people need an immediate injection of cash, they will accept lower offers and you can pick up a bargain. Sometimes, the bank will set the price and that will reduce the value further.

Less Popular

There is no doubt that the majority of people use the method above to find an investment property. Therefore, auctions are less attractive and not as well frequented. The reason this is important is due to a lack of competition. If there are fewer people at an auction, the price is bound to stay steady. When that happens, you pay less for the building than normal. Yes, auctions are usually packed, but not every person bids on every lot. For the most part, you will have competition from one or two people and that will keep the price low.

Perceived Risks

Another reason an average investor stays away from traditional and online auctions is the risk factor. In their eyes, the negatives outweigh the positives. Yes, there are risks and you will have to take a gamble of sorts. Still, the dangers aren’t as big as people like to imagine. After all, everything is in document form, signed and accounted for. Plus, there is a description of the house flaws. By reading this, you can get an idea of what to expect. Ultimately, the stigma keeps investors away and increases the chances of a bargain.

Play The Game

Think of an auction like a game of poker. By bluffing the other people in the room, you can keep your cards close to your chest. If they don’t know which properties you find appealing, they won’t up bid and increase the price. For example, a great trick is to bid on lots which aren’t attractive. This will get the ball rolling and people thinking the property is a keeper. When it comes to the one you want to buy, the competition will be less as everyone will have made their bids.

As you can see, an auction is an excellent place to find an investment property.

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Second Property: What to Do Before Making the Investment

invest on propertyFor many people who have the funds available, buying a second property is the ideal way to channel their money effectively. But before you get swept away with the amount of rental money that will provide a boost to your earnings or the funds that you will make from renovating it, you should think about all the other costs and factors that are not so apparent. To give you a helping hand, here are a few of the main things that you should consider before taking the plunge and buying that property.

Create a Clear Plan

First of all, you need to have a clear idea in your mind about what you are actually going to do with the property as this will massively influence your overall decision. If you are planning on renting it, you need to choose a place that is an attractive place to live for your target renters – whether they are students, young professionals or families. If you are planning on selling the place, you need to carefully do your sums so you identify a property that can be renovated for a good cost, while still providing you with a healthy return on your investment.

Select a Good Location

Just like choosing your own house to live in, location is everything. We have already talked about how this could affect renters, but you also need to consider how easy it is to get to your new home. This is especially important if you are planning on taking a ‘hands on’ role in the rental or development. If this is not the case, it may not be so much of an issue, but you still need to choose a location that is going to be appealing for people. Also, consider whether you will be buying land with the property as well – check out this guide for more info about house and land packages. Consider all factors including public transport links, proximity to schools and other facilities and the type of neighbourhood it is.

Budget for Unforeseen Costs

Any sort of big investment like this has the potential for unforeseen costs. Aside from the mortgage and taxes, you should also think about maintenance costs, which will play a major role regardless of whether you are planning on renting the place out or selling it on. Decoration and repair bills should all be factored in as well. Many first-time investors fall into the trap of underestimating how much it will be to get their new property up to code, so make sure that this doesn’t happen to you.

Plan Your Involvement

Decide whether you will be heavily involved in all aspects of the project or whether you will be leaving the job to external agencies. If it is the latter, you need to make sure that you choose some organisations that you trust to handle any issues along the way. Personal recommendations are always going to be the best way of ensuring you have the right people for the job. Each approach has its pros and cons, so make sure that you are fully aware of all of these before committing either way.

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