Archive | July, 2015

What’s your dream lifestyle?

25 Jul

We are taught from an early age that we need to work hard, save for retirement then enjoy what’s left of our lives. 
I believe we should build and live our dream lifestyles as we go along using income from our investments to make the dream affordable and a reality. 

Too many people are in the survival rut of work, eat and sleep. If you are lucky,  you fit in seeing the kids at weekends or school hols. 

Wouldn’t it be better to build a lifestyle that allowed you to spend more time with the kids?

 This week I was asked “how do you manage school holidays and work?” To which I could happily reply it’s no problem. I take whatever time I want with my family whenever I want as I have a guaranteed income through my investments. 

I’ve built and continue to build a lifestyle that I enjoy with the luxury trappings I want. All paid for through my investments. 

Why don’t you take a moment to plan your dream lifestyle? Decide what investments can help you achieve your plan. Then commit to start it. You’ll be amazed at the changes you can make over the next 12 months and how easy it can be. 

When I wanted an apartment in the French Alps, I visited the region. Found a place to suit my needs and budget.  Priced it and worked out the running costs. I bought a rundown property costing a few thousand pounds. It’s a work in progress meaning a little bit of maintenance and decoration is done each time I visit. I put an investment together that pays ongoing expensives and local taxes. I’ve enjoyed the use of the property for  the past 10 years. 

What a change to my lifestyle that created.

So, what’s your dream lifestyle and how quickly can you start enjoying it? 

Karen Newton is the author of Homebiz Millionaire – Building Lifestyle and Wealth. The book will be available from Septmber 2015. Website www.karennewton.co.uk


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Interest Rate Rises

18 Jul

Bank of England Governor, Mark Carney, issued a warning Thursday night that interest rates are on the way up.

What impact will this have on us as investors?

There are 4 categories for investing – Property, Paper, Business and Cash. With the inevitable increase in interest rates just around the corner today we look at the possible impact on property.

Many landlords will have mortgages on their properties. Contrary to newspaper speculation many of the long term professional landlords will have suffered during the recession holding mortgages which cannot be re-mortgaged onto fixed term rates. These mortgages on Standard Variable Rates (SVR) currently have interest rates between 4% – 7%. During the so called boom period for landlords they will have seen annual increases in their interest rates as banks struggled to meet funding targets caused by the bank bailouts during the recession. They will not have benefited from the ‘boom’ period of low interest rates.

New legislation for registration of landlords and properties will see additional costs and reduction in profit for landlords. Many of whom are only operating on a break even basis. With the increase in interest rates they will have no option but to increase rents and sharpely.

Reduction in benefit caps together with rent increases will see many non-working tenants becoming homeless. Homeowners, who bought homes on the low interest rates will have no room in their budgets for increases in mortgage payments. While they might survive the first round of increases we will likely to see increases in repossessions. This will contribute to increased demand on rental properties and in turn fuel rent rises.

Sustainable housing needs requires around 250,000 new properties to be built every year. In the 15 years I’ve been back in Britain that target has never been met. This means there is still huge demand for rental accommodation.

Social Landlords have been hard hit over recent years with funding being cut. Government insisting they become more business orientated and bring rents up to market rates. This has made private renting more favourable to the extent that the private rental market is now the largest supplier of properties in the UK.

So, while investors may be wary of getting into rental property and fearsome of interest rates going up all I can say is there has never been a better time to invest in property than now.

Karen Newton is an Investor – for more information visit www.karennewton.co.uk

 

My Reaction To The Budget

10 Jul

What a great budget work hard and reap the tax rewards for your effort.  Fantastic news for employees and business owners. 

As an investor it was a swings and roundabout budget. Property lost some of it’s perks but business owners gain. 

When investing there are only 4 categories – Property, Paper, Business and Cash.  Property lost some tax relief. Business will gain a reduction on corporate tax. 

ISA’s  still offer some of the best opportunities for shares investing and cash deposits. No tax payable on profits along with tax free withdrawals. 

As an investor with a balanced portfolio, meaning  you invest equally in all four categories, it was a neutral budget.  If you are heavily exposed in one category it’s time to start rebalancing your portfolio by building the other categories and spreading risk and taxation. 

If you don’t yet run a business check my website www.karennewton.co.uk there are still opportunities available with great support to help you on the road to success. 

Karen Newton is an entrepreneur, investor, author and speaker. For more information visit www.karennewton.co.uk