How to Invest in Property with a Low Budget

real estate investment

Property investment is no longer just for the very wealthy. It can be a great way to save up for the future and it can be more affordable than you might have assumed. By being savvy and thinking outside the box, property investment can be an option even on a low budget.

Choose an Area on the Rise

Properties in areas which are yet to experience the benefits of extensive investment can be a great way to get value for money in property investment. Plans for regeneration and investment can easily be found, allowing investors to buy properties that are going to increase in capital appreciation. It may seem odd to buy a property in an area that currently has a less than perfect reputation, however these are often the chosen location for developers, due to the amount of available space and the lower cost of land. As the number of pristine high rises and new business spaces increases, so does the value of residential property. The future Wirral Waters development in Liverpool will completely rejuvenate the region, and affordable property investment there should increase in value exponentially. This kind of ambitious project is transformative for a region, attracting both new residents and new opportunities. Property investors on a low budget would be wise to consider areas earmarked for future investment and take advantage of the current lower price points.

Look Slightly Further Out

By looking slightly outside the city centre, investors can get far more for their money which is essential when investing with a lower budget. UK cities are rapidly expanding and areas on the outskirts are increasingly becoming city centre locations. Manchester is a perfect example of this, with areas like Salford Quays and Ancoats being totally transformed by new developments and increased investment. Not far out of the city centre, improved transport links make these locations perfect for young professionals. The demand for buy to let property in city centre locations is incredibly high, so looking at a map and moving your target area can pay off in the future.

Look at Student Accommodation

Purpose Built Student Accommodation can be a great investment for lower budgets. This lucrative sector offers great return on investment, with yields up to 8%. Investors can purchase a student apartment for as little as £45,450 from expert property investment firms like RW Invest. The student sector is booming, with the demand for accommodation far outweighing supply. In 2017 there were 2.32 million students living in the UK, making up a significant percentage of the population. International students are also coming to the UK in greater numbers, and are often looking for high quality, modern accommodation. With this record volume of students, the demand for purpose-built student accommodation has never been higher, providing investors with valuable opportunities for profit.

Think Small

Property investment doesn’t have to be an entire house. There has been an increasing rise in demand for rental property everywhere in the UK, with a fifth of households now leasing from a private landlord. With such a large increase in the number of renters, smaller spaces like one-bedroom apartments and studios are becoming highly sought after. Studio apartments are a far more affordable investment property. Many young professionals are happy to sacrifice space for a great city centre location and studio living has become increasingly popular. The quality of studio apartments is also far higher than it has ever been. New developments now commonly incorporate studio flats into their plans, with features like on-site gyms, parking spaces and high-speed internet as standard. The increasing demand for studio apartments will see their value rise, making them a great investment for capital appreciation.

Some Rules to Know about Retirement

Retirement planning

Retirement is one of the most uncertain periods of your life. There is just so much suspense. You have no idea about what you going to do. Though you already know the time of your retirement, you are just clueless about the easy you are going to spend your time or actually earn. this is why it is a very tricky period and people have been known to just go into depression because of the sudden change in lifestyle. This is why you must read ahead to find about some of the golden rules about retirement. This will not make you go any younger but it will definitely help you to plan from now and also better.

  1. Invest till you are able to earn: This is one of the best things that you can do. You must always invest. There are a number of investment options that are available for you in the market. It is true that most of these investment options come with the factor of risk. However, this is why it is recommended that you invest little by little. This way, you do not lose much in case of a loss and actually get profit when the time for you is good and your choice is wise.
  2. Start something from home: Next, you must plan for working from home. There are a number of jobs such as writing and other tasks that you can do form home. This is not as well-paying as a full-time job but it is definitely great for you. in fact, you can also start another business by following a fashion such as cooking or gardening. There is immense demand for it. One of the most recent things that people are taking up extensively in organic farming. This can help you earn for yourself and you will not have to depend on anyone else.
  3. Save when nearing retirement: When you are young, you tend to spend a lot. However, this needs to be controlled faster a certain time. Spending excess at any given point of time can be detrimental for you because you do not know when misfortune may strike. But, that does not imply that you start living in fear and actually give up your enjoyment at the present. This is why, when you cross 40, you must start saving for retirement. This is a good time to calm down and enjoy life as well as think about the future that is to come.
  4. Do not touch your emergency funds until needed: Last but not the least, it is one of the personal financial goals for people to save funds for emergency. These are situations that can just pop up any time without any warning in advance. This is why you must always save your emergency for such a situation only. As you grow older, you tend to fall sick more often and your immune system weakens. This is why you should not use your emergency funds for anything else.

Stock Trading For Dummies- Where To Begin?

You can just walk into a supermarket and choose what you want from variety of products. Stock trading isn’t exactly the same. Stock market investment looks like a golden goose from far, but it comes with its own set of risks. But if you get involved in this smartly, you will surely reap profits. Gold and shares have always been a sought-after investment area for Indians.

If you are just entering this treacherous world, the main question in your mind would be –

“Where do I begin?”

You might choose to ask your friends and relatives and everyone would give you different opinions. Even those who have never invested in shares will start pouring pieces of advices on you. If you search on the internet, you might find a few tips and tricks but these at times are very risky.

Here is a guide to help you get started with stock trading.

  • PAN Card

A permanent account number is a primary requirement for doing any financial transaction in our country. This 10-digit unique number is assigned to every individual by the tax authorities for assessing tax liabilities. To be able to invest in shares, the first thing you will need is a PAN card.

  • Find a Broker

Like we said, stock trading isn’t like buying stuff from a supermarket. You can’t simply go to a stock exchange and ask to buy or sell stocks. Authorised people, called as brokers, sell and buy on the market. These individuals, companies or even online agencies are registered by the Securities and Exchanges Board of India and are reliable people who are licensed to trade. Finding a right broker is very important for starting your journey in trading.

  • Demat and Trading account

After getting a pan card and a broker, the next step is to get a Demat and Trading account. Demat account holds stocks or shares in your name and eradicates the need to store shares in a physical state. All the selling and buying happens through the brokers, while the shares are stored in your Demat account.

Trading account is an intermediary which facilitates the buying and selling. The buying and selling of shares requires a trading account. So, in short, you Demat account shows the number of shares you hold, while your Trading account reflects the buying and selling happening in your account.

If you approach a broker, he will take care of all this and open a Demat account for you.

  • Depository Participant

NSDL, National Securities Depository Limited and CDSL, Central Depository Services Limited are the two depositories in India. They have agents in the form of depository participants who are responsible for providing you with an account to store the shares you hold. These hold the shares you buy and release the ones you sell. A broker will help you register with one.

  • Unique Identification Number

If you want to go all out in the share market and if you wish you invest more than Rs. 1,00,000 at a single time, then you will need a UIN.

  • Buying and Selling

The buying and selling takes place through two exchanges: Bombay Stock Exchange(BSE) and NSE (National Stock Exchange) Usually there is a slight price difference between both the exchanges and hence you need to mention the exchange to your broker.

Let us see an example to understand how the buying and selling actually happens.

You need to start by telling you broker about which share you wish to buy in what quantity. If you wish to invest in SBI, by buying 20 shares at a price of Rs.1000, you will inform your broker about the same. After placing the order, online or offline, the broker processes your order when that price is reached. Selling of stocks is done in the same way. The orders remain valid only for a certain time and if the buy or sell price is not reached, your order will get cancelled.

Stock trading is a dangerous place and always use your common sense before making any decisions. Don’t make mistakes like blindly following “Market Analysts” in fancy suits or by borrowing money to invest which might lead you into a debt trap. Don’t blindly follow any trends and observe a company’s long-term stability before making any big commitment.

Happy Investing!

Effective Strategies for Beefing up Your Retirement Account

Retirement saving

Even if you feel you’re already doing a solid job of saving up for your eventual retirement, it’s possible you can do even better than you are now. After all, it never hurts to have more than you need, and that’s especially true when you don’t know for certain what’s coming down life’s pipeline. Besides working with local insurance agents to save money on your policies so you have a bit more to kick back into retirement, there’s more you can do to provide yourself with a more comfortable lifestyle in your golden years.

Retrain Your Focus

It’s always best to start as early as possible not only when it comes to saving for retirement, but saving as much as possible for your retirement. Rather than put off restructuring your savings strategy for a later date, do yourself a favor and start refocusing right now. Think about the fact that the extra bucks you start putting back today can compound over time, so don’t miss out on a golden opportunity when it presents itself.

Save Just One Percent More

One percent might not seem like much, but that small sliver can seriously add up over the years. Saving just one percent more for your retirement than you do now can result in a sizeable annual return. Short-term sacrifice for long-term gain is most certainly the name of the game when it comes to saving money and setting yourself up for success later on.

Learn Everything There Is to Know About Your 401(k)

If you currently contribute to your 401(k) account with your employer, you’re most certainly off to a great start when it comes to your retirement. That being said, it’s possible you’re not using your account to its full potential. Sit down with the payroll department to get the specifics on your company’s retirement account to see if you can contribute more without negatively impacting your overall income. For instance, there are considerations to make regarding your tax bracket and how your contributions impact your bracket level. On a related note, be sure you take full advantage if your employer matches any contributions you make to your account.

Make Your Raise Work for You

When you receive a raise, congratulations are most certainly in order, but so, too, is a bit of introspection. Rather than buying more with your raise, why not save more? If you’re comfortable with your current lifestyle and financial outlook, you can divert a portion of your raise towards your retirement account.

Invest Your Tax Refund Rather Than Spend It

If it’s your tax refund you’ve received instead of a raise, you still have a solid opportunity to boost your retirement savings. Specifically, think about putting your tax refund into a traditional or Roth IRA or a myRA. If you like, you can even choose to apply your contribution to your tax return for the current year, or the next tax year; talk with your accountant to determine which would be better for your specific financial situation.

Utilize Catch-Up Contributions

Employees over the age of 50 will do well to look into catch-up contributions for their IRA and 401(k) accounts. These contributions can be of serious help if you didn’t start saving up for retirement when you were younger, or if you weren’t able to contribute as much as you wanted to your retirement accounts. Meet with your employer to explore your options and see what your contribution limits are.

The future isn’t certain, and neither is the state of your retirement. To mitigate potential stress in your later years when you should be enjoying yourself, put back as much money as you can now.

How you can Save Money on Home and Auto Insurance Together

Home and auto insurance

Insurance is one of the safest means of safeguarding yourself and your precious possessions from unforeseen losses. An individual or an asset can be easily covered for a seemingly low fee charged by an insurance provider. The risk borne by an individual or an asset gets pooled alongside other policies and premiums collected by the insurance provider. However, a policyholder is expected to check several options and consider certain conditions while signing up.  Policyholders tend to vary in their business policies and this gets reflected in their premium structure and coverage benefits mentioned in the policy papers.

5 tips on how you can actually save money on your insurance have been shared below:

Do Comparison Shopping

In order to achieve the best deals with your insurer, you may consider doing your own research. You must achieve 3 different quotes from eminent insurance providers and check them. All you need to do is to fill out an online application form at a provider’s website. You may do comparison shopping by opting for the same features and calculating the premium costs. Although an insurance agent may help you in obtaining the right coverage, they will charge a commission for their service.

Communicate Directly

You may get in touch with any qualified insurance agent in your attempt to identify the right discounts and cheaper protection, but that will increase your overall insurance cost. Again, there are insurers that will reach out to you directly and lower the cost of a middleman. Progressive and Geico are car insurance providers that reach out to you directly. Direct policies are often an inexpensive option although they may not be the cheapest one for you.

Increase the Deductible

A higher deductible helps an insurer in being liable for a lower settlement value. By opting for a higher deductible, you may reduce your premium cost. You may choose to opt for a deductible worth up to $1000, although the most acceptable amount of deductible is $250 for most types of insurance. The different deductibles enable insurers to develop a flexible cost structure for their policies.

Opt for a Single Insurer

Discounts on insurance policies are offered by insurers for covering multiple cars, precious possessions, and properties. Eminent insurance providers have come up with a wide range of policies designed to match your needs. Another way to save money is by bundling your home and auto insurance policies. The costs pertaining to customer services and issuance of multiple policies are fixed. This helps insurers in extending coverage at lower costs. It even helps them in retaining customers making it more difficult for the policyholders to maintain the coverage discount. A consumer doesn’t want to deal with such a time-consuming process very easily.

Don’t File Small Claims

It’s certainly tough to follow than saying it, but it’s probably the main reason why you apply for coverage. You must avoid filing smaller claims as these claims raise your premium cost in the long run. Saving a small portion of your monthly expenses can help you pay for small things that you file for. Raising the deductible even helps in ensuring that you’ll look forward to larger claims only.

Keeping the factors in mind while comparing your policies will certainly place you in the driver’s seat when it comes to beating risks. Make sure you discuss and get all doubts clarified before signing up.

7 Myths of Early Retirement You Need to Know!

Early retirement

The idea of an early retirement is particularly appealing for the fact that it enters you into a point of life where you have all the three basic requirements to enjoy it – Time, Health and Money. It’s far enough down the road that you’ve earned enough money and it’s not so far that your body has started to give up. For many people, it is an escape from their dull and monotonous corporate lives and follow their passions, do a quirky job they love, live their life on the edge, embark upon social and humanitarian services and take similar risks they’d never have dared of earlier or were unable to, due to the lack of the above three mentioned requisites. For others, it’s a time they could give to their loved ones and focus on their family building and have a nurturing social life. Let’s check out about Retirement Income Guide.

However, like all things in life, Early Retirement isn’t all white. Before you make such a decision, here are 8 myths and facts you need to know:

  1. “I will have all the time in the world to travel!” – Well, busting this myth requires no rocket scientist. It is evident that when you retire early, you will have to save up all of your earnings for a longer period of time. Post retirement, a regular pay is a sketchy deal for most, and pension plans alone will not suffice the travel extravangza that you might be thinking. So yes, any vacations that you’d plan would require a lot of thought into its budget.
  2. “My expenditure would reduce a lot!” – Assuming that an individual does not fall for this trap at its face value and plans his/her budget accordingly to reduce all unnecessary expenses, it is eventual that most or nearly all will face medical issues down the line. Medicines and healthcare in general add a lot to the budget and effectively increases the expenditure. To remedy that, you can find a health and life insurance, which still sucks the money from your wallets.
  3. “I can focus on my health” – one can feel that they’d get more time to exercise and eat healthy, however studies have indicated that people who generally don’t find anything good to do after retirement see a gradual decrease in their overall health due to lack of mental and physical mobility.
  4. “My Children would be my greatest financial aid!” – This would be a tremendous pressure on them in case you opt for an early retirement. For most parents in their 40s in India, their children have either started or will be going to college. A retirement in 50s would indicate your children saving up for you in a time which is their prime in career building.
  5. “I will be happy and can enjoy life” – the realisation that you now miss your work and a lack of routine or a purpose in life leads to disastrous boredom and an eventual ineffectiveness of the mind. This can push people into depression or deprive them of some necessary mental and emotional stability.
  6. “I have earned enough money to sustain myself for the rest of my life” – no other thought can be as detrimental in case of early retirement as this one. As said earlier, not only the medical expenses increase, but it has been observed that with time, lifestyle in general becomes more and more expensive. The more time passes by, the costlier it gets to live.
  7. “I will never turn back to the corporate world/I will never return to my job.” – This again is supported by countless examples that people either want to get back to their older work life or actually do return to it.

These mentioned points are key for any individual thinking for an early retirement. These problems must be taken with utmost certainty of happening in the post retirement plans.