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5 Ways to Buy a House Without a Mortgage

Josh Haines
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No mortgage? That seems too good to be true, especially in these days when mortgage rates have surged and many applications have not been approved. Usually, a buyer or investor does not have sufficient cash flow and a mortgage enables purchase of property of a higher value with a down payment partial deposit, followed by monthly repayments including interest. However, these repayments can sometimes go on for a lifetime – hence the old French meaning of mortgage as “Dead Pledge”!

In the current scenario, however, there are other means of buying property without a mortgage, as the letting agents in Witney can explain. A few suggestions are given below:

Cash payment:

Cash payment is the obvious alternative to taking a mortgage. However, with inflation and the cost of living, it is rather difficult to put down such a large sum of money. Unless the buyer has saved enough money, inherited a large sum or looks at buying in an affordable area, it is not likely that payment by cash can be made. The benefits of cash payment are not having monthly mortgage + interest payments, saving on closing costs, a quick sale and being debt-free. The disadvantage of cash payment is that the money is tied up and there may not be sufficient cash to deal with unforeseen calamities and expenses. At times, investing the money in a variety of portfolios can bring forth higher gains than the interest saved on a mortgage.

Owner Financing:

The seller extends enough credit to the buyer to purchase the home. The buyer then makes regular payments to the owner until the full payment (less any deposit if any) is covered. The property title will usually be kept in the owner’s name until the buyer completes the payment of the agreed sale price. Then the property will be legally transferred to the buyer. However, while the instalment payment is ongoing, the buyer has the right of possession of the property. This type of financing can be mutually beneficial to the buyer and seller as it will not involve banking costs. While this type of agreement is usually between people known to each other, such as family members, the transaction should be documented with the sale, payment and other details mentioned in a Real Estate Purchase Agreement or Land Contract.

Lease option:

A feature by Oasis Living says, “A lease option agreement is a property contract that allows you to take control and profit from a property.” This agreement allows the buyer to lease the property for a monthly fee payable to the owner. There will be a downpayment deposit, with a fixed period for the length of the lease and the amounts of the monthly repayments. There is an option to purchase the home in the future for an agreed-upon price. When a lease option agreement is entered into, it gives the buyer the right to rent the property and benefit from the income.

Shared ownership:

The buyer pays for a share of the property (usually between 10% and 75% of the market value) and then pays rent to the landlord for the remaining amount. The monthly payment will include the rent and service charges including maintenance. A deposit for the share amount will need to be paid but it is generally lower than the open market. There is an option to buy more shares, known as staircasing, which can go upto 100%. Stamp Duty will have to be paid when the owned share equals 80%. Shared ownership properties are all leasehold based.

Flipping:

For experienced investors, flipping property and market tracking can be a profitable investment. The property is purchased off-plan (before it is built) by putting down a deposit of perhaps 20-30%. While it is being built, the price increases and, on completion, the buyer sells the property at the new value with a good profit. Of course, the risk is if the market value does not increase as hoped or if the demand in that area decreases. Research should be conducted to ensure that the property is in a prime location and to check out other properties under construction in the area.

Conclusion:

These are just a few options to buy a house without a mortgage. However, before deciding on any of the above, the checks a normal mortgage lender would do should be carried out to ensure that the property is saleable. A property survey will show whether the construction meets the regulations. Homeowners’ insurance, even though not mandatory, would be an investment protection. So, it is still possible to own a home without obtaining a mortgage – you just need to see which option suits you best!

Considering a Loan? Here’s All You Need to Do First

Josh Haines
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When you’re considering a loan, there are a lot of things to think about. How much money do you need? What’s the interest rate? How long will it take you to pay it back? These are all important questions that you should answer before taking out a loan. In this blog post, we’ll give you a step-by-step guide on what to do before you get a loan. So, if you’re thinking about borrowing money, read on!

Assistance in finding the best conditions

Everyone has different needs, and MyFin can help you find the loan that’s best for you. MyFin offers different types of loans, including personal loans, business loans, and home equity loans. This site also offers competitive interest rates and flexible repayment plans. It’s designed to help you find the loan that’s right for you. 

Credit score

A credit score is a number that represents your creditworthiness. It is based on your credit history, which is a record of your borrowing and repayment activity. The higher your score, the more likely you are to qualify for loans and other forms of credit. Your credit history is important because it shows lenders how you have handled debt in the past. If you have a good credit history, lenders will be more likely to approve you for a loan, but if you have a bad credit history, they may be less likely to approve you or they may charge you a higher interest rate. You can improve your credit score by paying your bills on time, maintaining a good credit history, and using less than 30% of your available credit limit.

Income and Monthly Debt Payments

Loan payments can often be a big drain on your monthly income. It’s important to remember, though, that there are ways to lower your payments and make them more manageable. One way to do this is to extend the term of your loan. This will lower your monthly payments, but it will also increase the amount of interest you pay over the life of the loan. Another option is to refinance your loan. This can help you get a lower interest rate, which will in turn lower your monthly payments. Finally, you may be able to negotiate with your lender for a lower monthly payment. If you have a good reason for needing a lower payment, such as a loss of income, they may be willing to work with you. Whatever option you choose, it’s important to remember that there are ways to lower your monthly loan payments.

Assets and Additional Applicants

You may want to consider adding additional applicants to your loan if you have strong credit but limited assets. This will give the lender confidence that you’re able to repay the loan and reduce the risk that they’ll lose money if you default. Adding an co-borrower who has their own income and assets can also help you qualify for a larger loan amount. Keep in mind, however, that the more people you add to your loan, the greater the risk of default. If you’re not sure whether or not adding an additional applicant is right for you, be sure to speak with your lender about all of your options.

Before you make your final decision, it’s important to do some research on the lender. Make sure that they are reputable and trustworthy. Check out their website, read customer reviews, and find out as much information as you can about them. This will help you make an informed decision about the loan.

Conclusion

Taking out a loan can be a great way to finance your dreams, but it’s important to make sure that you’re prepared. Before you apply for a loan, be sure to check your credit score and review your income and assets. You may also want to consider adding additional applicants or extending the term of the loan in order to lower your monthly payments. Once you’ve done your research and are ready to apply, be sure to shop around for the best interest rate and repayment terms before signing on the dotted line. By following these tips, you should be well-prepared when you take out a loan.  With a little bit of preparation, you can make sure that your loan will help you achieve your financial goals.

Good luck!

Post Office reveals the most common misconceptions about life insurance & answer what is covered by life insurance

Sam Allcock
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Post Office reveals the most common misconceptions about life insurance & answer what is covered by life insurance
  • The most common misconceptions surrounding life insurance relate to how the policy pay out works and how life assurance differs from insurance.  
  • Providing financial security for their family is named the most popular reason for taking out life insurance.  
  • Policy holders were just as likely as those without life insurance to fall victim to misconceptions. 

Almost a fifth of people (18%) with life insurance do not understand the terms by which their beneficiaries would get a pay-out from their policy in the event of their death according to a survey from the Post Office. The study also revealed that around two fifths (38%) of us are unable to correctly explain the difference between Life Insurance and Life Assurance.  

Post Office found that the most common misconception relating to life insurance was related to how the policy pays out.  Around a fifth of respondents (21%) believed that a life insurance policy allows the policyholder to withdraw money at any point to cover life events, which is untrue, unless you have an investment linked life insurance policy whereby this might be possible.

Most policies only allow for a lump sum to be paid out to the chosen beneficiaries upon the policy holder’s death. However, it is possible for the policy holder to leave alternative instructions for the pay out, such as being invested or used to pay off outstanding debts like a mortgage for example.

The research found that 53% of respondents currently had a life insurance policy in place, almost half of which (40%) were aged under 35. However, when asked to explain how the pay out of a policy to their beneficiaries worked 18% of those with cover answered, ‘I don’t know’. This means that policy holders did not understand the steps their beneficiaries would need to take in order to claim and receive the pay-out.

This figure rose to 24% of respondents in general, regardless of whether they have a life insurance policy or not – meaning nearly a quarter of UK residents don’t know how life insurance works on the most fundamental level.

So, what does life insurance cover?

Funeral Costs – 63% of people believed life insurance covers funeral costs as standard. Funeral costs, while a popular reason for taking out cover, is actually an add-on and so is often not included as standard. Post Office Over 50s Life Cover product offers a funeral benefit option as a free add on, but if the customer expects the pay out to contribute to funeral costs without this, that is something they would need to arrange as a private matter through a Will or alternative arrangements.

Critical Illness – According to the Post Office research, 68% of people would expect their life insurance policy to cover critical illness as standard. Critical illness cover is similar to life insurance in the sense that it can help protect your loved ones against financial issues, however critical illness cover comes into effect if the policy holder is diagnosed with an illness from a list of conditions – as opposed to the policy holder’s death. While they are similar, this type of cover is also an add-on and often does not come as standard and at a cost to the consumer.

Income Protection – Another add-on, income protection is designed to help you to replace lost income if you’re unable to work due to illness or injury, rather than help your loved ones financially. Additionally, income protection often pays out in monthly instalments to mimic an income as opposed to in one lump sum. Despite these differences, Post Office found 51% of people would expect their life insurance policy to include income protection.

Ed Dutton, Director of Financial Services Products at Post Office, explains:“Life Insurance cover is by no means a ‘one solution fits all’, our lives and personal situations are all different and so your policy needs to reflect that. Our findings show that 80% of people were fully truthful about their situation when taking out their policy, which is important because the more accurate the information given when applying, the more likely it is that the policy will pay-out what is expected if the worst should happen.

It’s important for any individual considering taking out life insurance to take the time to properly evaluate their individual needs and what it is they want covered. In its simplest terms, life insurance covers your life and so will provide a cash pay out to those who may be financially impacted by your passing.However, according to our research, much of what people expected to come as standard within their policy is an optional additional cover and not automatically included in their policy. i.e critical illness cover. It’s clear the biggest issue when it comes to life insurance is the genuine gap in people’s knowledge or misconceptions about how their policy or life insurance in general works which is why it’s vital to do your homework or speak to a trusted brand such as the Post Office.”

Other Misconceptions  

Life Insurance Won’t Cover You with A Pre-Existing Condition – While a pre-existing medical condition can make it harder to find cover, and may drive up premium prices, it is still possible to find cover.  It is important for consumers to shop around because specialist providers will have a solution for pre-existing conditions. or circumstances.

Life Insurance Covers You for Life – Life insurance will only cover you for a specific term, for example the length of your mortgage, and will only pay out if you pass during that time. It is possible to be covered for your lifetime, but this is life assurance or whole of life cover. Only 36% of people correctly knew the difference between the two.  

Life Insurance Won’t Cover Over 50s – While your age can play an important role in what type of cover you can receive, with the older you are when you apply often meaning the higher your premium will be, it is still entirely possible to get cover later in life. Many providers including Post Office offer specialised over 50’s cover.  

ENDS

The data comes from a survey of 2000 UK adults, commissioned by the Post Office in order to delve deeper into ‘The Nation’s Relationship with Life Insurance’ and determine how much the general public knows about life insurance.  Research was conducted January 2022.

About the Post Office  

  • With over 11,500 branches, Post Office has the biggest retail network in the UK, with more branches than all the banks and building societies combined.  
  • Post Office is helping anyone who wants cash to get it whichever way is most convenient. Partnership with over 30 banks, building societies and credit unions means that 99% of UK bank customers can access their accounts at their Post Office.   
  • Cash withdrawals, deposits and balance enquiries can be made securely and conveniently over the counter at any Post Office; and the biggest investment by any organisation or company in the last decade is being made to safeguard 1,400 free-to-use ATMs across the UK.  
  • Post Office is simplifying its proposition for Postmasters with a focus on its cash and banking; mails and parcels; foreign exchange; and bill payments services.   
  • Research has found that visits to the Post Office help drive another 400 million visitors to other shops, restaurants and local businesses equating to an estimated £1.1 billion in additional revenue for High Street businesses.   
  • 99.7% of the population live within three miles of a Post Office; and 4,000 branches are open seven days a week.  

5 Differences Between Bookkeeping and Accounting

Claire James
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5 Differences Between Bookkeeping and Accounting

Booking and accounting are the necessity of every business. These are the practices required to prepare quarterly or annual financial records. Furthermore, practical bookkeeping helps companies to evaluate their worth to make decisions regarding their growth. 

Although accountants use the terms bookkeeping and accounting interchangeably, there lies a difference between the two. While both are inseparable when working on the financial transactions of a business, they are different. Bookkeeping is part of accounting, but accounting has a much broader scope.

We will share five key differences between bookkeeping and accounting for easy understanding. 

Definition 

Bookkeeping is mainly related to maintaining and recording all financial transactions in the books of entry of a business. It involves organising and summarising every financial transaction in the company in a systematic chronological manner. The bookkeeping services focus on the day-to-day economic activities of a business, such as payment of taxes, payroll, sales revenue, interest income, expenses, etc. The accuracy of bookkeeping determines the accuracy of the accounting process.

Accounting involves interpreting financial data, analysing and summarising it for insights, and reporting financial transactions. As a comprehensive process, the financial statements generated in accounting provide a precise summary of the finances over an accounting period of a business. Accounting consolidates financial information that helps stakeholders understand a business’s financial health and practices. 

Decision making

The data from practical bookkeeping needs to be more comprehensive to help prospective decision-making. Bookkeeping reflects on the financial transactions of the business. It tracks sales, profits, debt, bills, purchases, and other financial transactions, which are essential for the balance sheet.

Accounting maintains and compiles the daily transactions into financial statements and helps management anticipate and forecast the company’s performance. It helps provide an accurate and transparent view of the prospects of a business to all stakeholders so they can assess the company’s performance.

Financial statements 

Bookkeeping doesn’t involve preparing financial statements. It is kept simple as it does not require analysis of the expenditure or auditing of the financial transactions. 

Accounting involves creating comprehensive financial statements that help the management and stakeholders understand the financial performance, stability, and prospects of the business. 

Level of learning 

Bookkeepers are not required to have any high-level skills. Bookkeeping services are just needed to have knowledge of financial topics and be accurate with their data entry. On the other hand, accountants oversee bookkeepers and must have sufficient experience and education to be Certified Public Accountants (CPAs).

Bookkeeper vs. Accountant 

While accounting & taxation services offer both services, there is a significant difference between the duties of a bookkeeper and an accountant. 

Bookkeepers recommend, implement and manage accounting software for single or double-entry accounting. They are responsible for monitoring bookkeeping policies and procedures. They must handle all financial and banking transactions and maintain debit and credit accounts. 

Accountants perform a much more significant role, including data management, financial analysis and reporting, consultation and regulatory compliance. 

Conclusion

Bookkeeping and accounting are integral parts of every business. If your business doesn’t have qualified professionals, you can hire accounting & taxation services for practical bookkeeping and more.

Alexander Studhalter on investing in Private Equity on a low budget

Josh Haines
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Alexander Studhalter on investing in Private Equity on a low budget

Private equity (PE) investing is often associated with high-dollar investments and exclusive networks. Due to the high cost of private equity investments, this is generally true.

However, there are some cheaper ways to get involved in PE. Alexander Studhalter offers PE recommendations for those on a budget. Read on for some insightful tips whether you’re just getting started or looking for more affordable alternatives.

Who Should Consider Private Equity Investing?

A great investment option for those with time and risk tolerance, private equity has the potential to yield high returns.

Furthermore, it has always been said that one must have massive financial resources.

That is why you only see private and accredited investors and venture capitalists taking part in PE deals.

Who are these investors?

Well, a private investor can be a random high-net-worth individual with the right financial capacity. On the other hand, an accredited investor is a person who meets certain criteria set by regulatory authorities.

Accredited investors have the following:

  • At least $200,000 in yearly income
  • Classified by the SEC as a qualified investor
  • Net worth exceeding $1 million

Venture capitalists are institutional investors such as banks, pension funds, or other investments that provide capital to startup ventures.

Now, back to the matter at hand – who should consider investing in private equity?

Generally, anyone with the time and money to invest should consider investing in private equity.

That said, some investors might be better suited for this type of investment.

For example, those who already have a diversified portfolio and are looking to add another asset class may find PE to be a great choice. Similarly, those with the better market knowledge and in-depth research may find private equity to be a good fit.

However, there are several ways to invest in PE without having to break the bank.

Do You Have To Be Rich To Invest In Private Equity?

Alexander Studhalter is an entrepreneur and businessman with 30 years of experience. He is a seasoned private equity investor who uses his time to educate people on the benefits of investing in this sector.

Studhalter gives his perspective on private equity and whether you need to be rich in order to invest in this asset class.

Is Traditional Private Equity Only Open To Accredited Investors?

The answer to this question has been “yes” for a long time. Traditional PE deals were only open to accredited investors, who met certain criteria set by the Securities and Exchange Commission (SEC) and other regulatory bodies.

However, the SEC has recently started pushing for reforms to open up this market to more individuals. So, for the first time, non-accredited investors can invest in PE deals.

The SEC has some offering rules that let non-accredited investors participate in PE deals. Rule 506 of Regulation D is the fundamental and most well-known rule which allows such participation.

What is Reg D Rule 506? 

As per Reg D Rule 506(b), the Securities Act’s Section 4(a)(2) provides an exemption to non-accredited investors for buying private securities. This means the company making the offering can privately let in non-accredited investors — which is also why the exemption is known as “private placement.”

However, the purchasers or non-accredited investors must fulfill the following conditions:

  • You must either be educated enough to assess the risk and merits of the investment or have a sufficient appetite for risk. (In both cases, they are considered sophisticated investors).
  • Have good relations with the issuer or the company making the offering. (To have inside information and insights)
  • Commit to not reselling the securities to the public

On the other hand, while the exemption offers a “safe harbor” to investors, it requires the company selling the securities to follow some rules:

  • The company can’t market the securities using advertisements or general solicitation.
  • The company can’t sell the securities to more than 35 non-accredited investors.
  • The company must provide true and accurate information to the investors as they would do in the case of Regulation A.

Despite all restrictions, the company can raise unlimited money under Reg 506.

So, Reg 506(b) opens up a whole new world of opportunities for non-accredited investors to invest in private equity.

Following Are Cheaper Ways To Invest In Private Equity

If the whole idea of Regulation D seems complicated, there are many other cheaper ways to invest in private equity.

One of the best and most popular alternatives recommended by Alexander Studhalter are:

  1. Angel Investing – Angel investing is a great way to invest in private equity without having to break the bank. This type of investment involves a group of individuals who pool their money to invest in startups and early-stage businesses. Angel investors usually make investments of between $25,000 and $1 million.
  2. Equity Crowdfunding – Equity crowdfunding is similar to angel investing, but the difference is that it takes place online through platforms like SeedInvest and FundersClub. With equity crowdfunding, you can invest in PE deals with very small amounts of money, typically as little as $100.
  3. Fund of Funds – A fund of funds is a convenient way to diversify your portfolio. This investment strategy involves investing in other types of funds instead of directly buying stocks, bonds, or other securities. They allow you to invest in multiple PE funds without having large sums of money.

Funds of funds are typically structured as limited partnerships and are often known as multi-manager investments.”

  • Private Equity ETFs – Exchange Traded Funds are another way to invest in private equity. ETFs, provide investors with exposure to multiple asset classes, including private equity.

PE ETFs track the performance of different private companies and provide investors with diversified exposure to the PE market. One of the biggest advantages of ETFs is that they are low-cost, liquid investments.

Bottom Line

Private equity is no longer the exclusive domain of accredited investors. With the right knowledge and research, non-accredited investors can participate in PE deals.

However, regardless of your investment type, it’s important to remember that investing in private equity can be risky, and it’s important to do research and understand the risks before you invest.

The Truth about Real Money Games Vs Demo Play Games

Josh Haines
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Since Ontario launched its regulated and legalized online casino market in April 2022 this year, there has been an explosion of sites and apps trying to tempt players to try their sites. Big-name international companies like bet365, Bet MGM, Unibet and BetRivers, amongst others, are now operational in the province. Having obtained their licenses from the AGCO, you can feel confident that these platforms operate to the highest standards and that they are safe places to have a flutter or play online games. They have entered into an agreement with iGaming Ontario and are ready to welcome you as a customer.

You might think you are already familiar with everything in the online casino world. However, technology is constantly evolving, and new games and playing styles are being developed at a pace. A hot new franchise could mean new video slots, or the latest innovation could see an unexpected advance in live dealer games. You might be wondering if there are any casinos in the metaverse or which are the best teams to bet on in the FIFA World Cup. When everything is so new, it is sometimes best to give yourself space before diving in headfirst. Take your time to look around and familiarise yourself with the latest in online gambling.

This is where demo play comes into its own. You cannot win money on a demo version of the game, but you can get an idea of how the game will play, what browser it works best in on your desktop PC, or if you prefer how it performs on a mobile app. The great thing about a demo game is that there are no financial risks involved. You get to practice how to play before playing at real money online casinos.

A brief overview

Demo slots are free to play, and you do not need to part with any cash to try them out. Even if you win in a game’s demo version, you will not receive a cash payout. Instead, you play with digitized coins and can keep playing until you run out.

Reasons to play demo slots

As well as being free to play, there are plenty of reasons to play demo games before committing to play with real money.

  1. There is no financial risk. The player is not required to place a deposit or make a wager. There is nothing to lose in terms of money.
  2. Demo slots allow you to get to know the game’s features. Each game has its own specific features, which make it unique. There is only one way for players to find their way around different game modes, regulations, and bonus features by being in the game. However, it is possible to do all of this in demo mode. Therefore, there should be fewer surprises or lost opportunities when playing with real money
  3. The demo games are replicas of the money games and, therefore, fun to play along with as long as you don’t mind not being able to get your hands on any winnings. In addition, you can master a game’s technicalities when playing in this mode.
  4. Demo games are a great way to explore and discover what you like. This is particularly the case for beginners who need to find the right level of play for their skill set. Also, a themed slot might appear very attractive, but when played, you might find it does not live up to its promise. Forewarned is forearmed and all that.
  5. Demo games allow you to familiarize yourself with your chosen game. Practice makes perfect before you opt to play with your hard-earned cash.

At this point, you would be forgiven for thinking that if demo games are so great and entertaining, why play for real money? The answer is, of course, now you have mastered the game, it would be fun to try and turn those wins into real cash. Of course, everyone starts somewhere, but eventually, graduating to the actual game is good.

We can probably remember learning to play cards or dice while adding up scores or gambling for matchsticks and pennies. It is fun, but the adrenaline rush comes when real money is involved. Now that you have mastered the trial version, it could be time to turn your attention to real money games.

Anyone aged 19 and over who is resident in Ontario can play for real money on an extensive range of games. All forms of online gambling are legal in the province, so you have a vast choice. Bear in mind that there are also downsides as well as the upsides to real cash prizes, thrills and casino rewards, and loyalty offers. The downsides are that you can lose your money, so do not gamble more than you can afford to lose. Casinos are businesses, and therefore the house always favours the casino. Also, getting an account set up and verified can take a while, so you might not be able to instantly switch from demo games to real money mode without a short delay.

If you have decided that you want to play at real money online casinos, there are several things that you need to consider. These include finding the right casino to play at and determining what you have to spend in advance. Setting yourself a budget will ensure you have a fun experience. Also, ensure that the online casino you like accepts your preferred payment method and has good customer support 24/7.

Here are a few tips for playing real money games as a beginner. They are good tips if you are a more seasoned player too.

  1. Choose a casino that has good reviews, don’t just plump for the first one you come across or the one that has the loudest adverts
  2. Double-check that the casino is licenced and regulated before you deposit any money. Reputable casinos will display their licence details proudly in a prominent place on their website.
  3. Don’t just tick the ‘I have read the terms and conditions’ box without reading them. For example, different operators have various clauses regarding payout times and bonus features.
  4. Play the demo version at least one more time just to be sure this is the game you want to be playing.
  5. Keep your individual bets low, and don’t let the software make you go faster than you want to.
  6. Stick to the budget you set for yourself
  7. Play for fun, and don’t get angry or frustrated if you don’t win. Ultimately, the house always wins in the end.

So, there you have it. They are called games because they are fun. Remember that, and you can enjoy yourself whether you play for real money or just stick to demo play mode.

Is now the right time to become landlord? Mike Collins Mortgage Advisor Explains

Elliot
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Is now the right time to become landlord? Mike Collins Mortgage Advisor Explains

Mike Collins, a financial planner and property manager is ahead of the curve when it comes the rental market. He stated that if you are a landlord already and are planning for the future, your biggest decision will be this year whether to grow or reduce your portfolio.

“Interest rates are climbing, taking many people out of the mortgage marketplace and with a complete absence of affordable housing, it puts private landlords where they may have to accept tenants out if necessity rather than choice.”

Because of the ongoing housing crisis, the UK’s ability to function well is dependent on landlords. According to the English Housing Survey in 2010, the number of private landlords rose from 3.1million in 2008 up to 4.4million by 2020. This is roughly equivalent to one-in-five homes.

A mini-budget is the arrival of higher mortgage rates, due to the current cost of living crisis that has impacted many Americans.

Buy-to-let landlords (BTL) are the ones most affected by government legislation. It’s leading many to leave. The situation is even worse for tenants who are being forced to pay spiralling rents in some badly managed properties.

However, in such a difficult market, is this a good opportunity to become a landlord? Mike Collins explains.

Government rules

Different government ‘interventions’ have made landlords less profitable. There are higher stamp duty rates for 2016 and no relief from mortgage interest taxes in 2017.

Recently, legislation was passed to require landlords and tenants to make sure their properties are at least C in EPC ratings by 2025 for new leases and 2028 for existing leases. You should also remember the rules against evictions based on fault.

Unregulated lending

Landlords being a major player in the bridge borrowing game, there are many instances of unregulated lending. In addition, many landlords use cash for investment purchases. BTL will become less appealing as the UK’s population ages, which could result in an increase in regulation.

The government predicts that 25% of the UK will turn 65 in 2043. That means there will be a lot more downsizing. Also, we all know just how popular short-term loans can become in a rapidly changing housing market.

Maintaining compliance with legislation

Paul Conway developed Yuno to aid landlords with keeping tabs on changes in legislation. Conway thinks that regulations for landlords are updated approximately nine times per day. Many landlords state that their primary reasons for selling are due to forthcoming or recent changes.

Have spare cash

Although it may sound easy, becoming a landlord involves more than simply buying a place to rent and then sitting down. It is not. Residential property is going to require some effort. It is not uncommon to feel stressed out, especially when you consider rent arrears, property damages, and evictions. And all of this at a time where money is extremely tight.

It is likely that your investment will need repairs and refurbishment.

Experts will all agree that there will always be an imbalance of supply & demand. This will continue to drive rental growth in 2022. So if your finances are strong, you might consider buying your first buy–to-let.

Kireina-Suiso committed to creating carbon-neutral power sources

ABC Staff
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Kireina-Suiso committed to creating carbon-neutral power sources

Kireina Suiso, a leading provider of cost-effective and reliable green hydrogen and zero-emission fuel cell solutions, is pioneering carbon capture and offering clients climate friendly ways to transfer energy. Announced today by the company, the initiative aims to create more environmentally friendly ways to process and generate energy. The business is developing an end-to-end green hydrogen ecosystem, assisting its customers in achieving their objectives and reducing carbon emissions. 

The problem

Currently, multiple devices guarantee that energy reaches consumers reliably every day. For instance, wind turbines and substations are in charge of electrical distribution.This has a negative impact on the climate, with the process producing potent greenhouse gas. 

Nagao Akimasa, the company’s Chief of Research and Development, commented: “The repercussions of rapidly accelerating global warming necessitate a radical shift in our energy management, including electricity transmission.  In the near future, Kireina Suiso plans to sell only F-gas-free high-voltage switching technology. We are establishing the basis to reach this aim and meet the growing demand for climate-neutral switchgear through new vacuum interrupters”.

The solution 

The new manufacturing unit will meet the most recent industry standards. As a result, it will be totally digitally networked and equipped with highly automated technology. The modern manufacturing complex will essentially run on electricity generated from renewable sources. As such, Kireina Suiso is showcasing how traditional technology may be transformed in a way that is both environmentally beneficial and long-lasting. 

Some of the businesses new manufacturing techniques include vacuum interrupters. At the heart of the green portfolio, this method provides climate-neutral high-voltage power transmission components that employ industrially cleansed air for insulation and vacuum. The vacuum is therefore able to switch medium, avoiding any unnecessary damage to the climate caused by fluorinated chemicals. This new manufacturing technique, amongst others, will begin operating in the near future. 

About Kireina Suiso 

Kireina-Suiso.com provides energy supply, recovery, and storage solutions that are efficient, affordable, and environmentally sustainable. We develop, manufacture, install, operate, and maintain fuel cell systems for utilities, industry, and large power users, with solutions that include utility-scale and on-site power generation, carbon capture, local hydrogen production for transportation and industry, and long-term energy storage. Our mission is to transform natural resources into green energy, thus contributing to social and economic growth through building a clean and secure energy future.

Where would be the best place in London for you to base your business?

Josh Haines
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0
Where would be the best place in London for you to base your business?

As London is reputed as one of the world’s major centres of enterprise, you may understandably be excited by the prospect of starting a new business in the UK capital or even shifting an existing company to it.

However, exactly which part of London you ought to set up corporate operations can depend on the type of business you will be running. Here are just some examples of London areas you could particularly consider when endeavouring to select a fitting backdrop for your organisation.

Shoreditch 

There is one especially obvious reason why this part of East London warrants recommendation as a business base: the presence of Tech City, a high-profile cluster of tech firms. 

“In recent years the tech sector has played a crucial role leading economic recovery, accounting for 27% of new job creation,” Joanna Shields commented in 2014, during her tenure as chair of Tech City UK.

In further words quoted by Hult International Business School, Shields enthused that the UK capital had turned into a “digital powerhouse”.

Central London 

As also reported by Hult International Business School, 69% of businesses have cited not only technology but also creative sectors as crucial to London’s economic development.

If you are looking to run a creative business in London, which part of it should you choose as the setting for your corporate base?

A place somewhere in Central London would be a good shout — given, for example, the wide range of serviced offices in Mayfair, which is well-served by transport connections.

Westminster 

This London area is, of course, strongly associated with the UK Parliament — so much so that the Westminster name is often used as a metonym for it. This is similar to how ‘the White House’ and ‘the Kremlin’ are commonly used as references to, respectively, the US and Russian governments.

According to statistics posted on the Startups. website, Westminster is also one of the London boroughs with the highest start-up rates — and boasts a particularly strong concentration of both micro-businesses and small businesses.

Camden 

This Inner London borough has a long history of prestige as a hub of commercial activity — having, for instance, been recognised in the Small Business Friendly Borough Awards 2014.

Like Westminster, the Camden area also fares amazingly well in not only its start-up rate but also its tally of micro-businesses and small businesses.

Camden is also noteworthy for its corporate versatility, with businesses of many different types likely able to feel comfortably at home here.

Lambeth 

The district of Lambeth is located in South London, where creative start-ups can particularly thrive. Still, even if the business you would love to run in London won’t be in the creative sector, there remain compelling reasons for you to seriously consider taking up a Lambeth office space.

For example, Lambeth joins Westminster and Camden in having one of London’s highest start-up rates. However, Lambeth isn’t just a good business hotspot — it’s an exceptional one, as it has been credited as having a higher percentage of micro-businesses than any other London borough.

Why and how to reconcile supplier statements

Josh Haines
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0
<strong data-src=Why and how to reconcile supplier statements" title="Why and how to reconcile supplier statements" />

If you are in the accounts payable (AP) department, you may have heard of reconciliation and supplier statement reconciliations. It is an incredibly important aspect of AP processes, but why and how exactly does it work? Keep reading to find out more about why and how to reconcile supplier statements.

What are supplier statements?

Firstly, supplier statements are documents that show the business’ position with a certain supplier. It can contain various items that have been invoiced by the supplier and not yet paid by the business, meaning that any outstanding invoices and credit notes are visible on a supplier statement.

As a result, once you have been issued the supplier statement, you are able to then reconcile this statement with the business’ own account to account, checking for any differences to ensure that the overall business ledger is accurate.

Why is it important to reconcile supplier statements?

As mentioned above, reconciling supplier statements can help the AP team keep track of any unpaid invoices and credit that is due to the supplier so that the cash flow of the business can be maintained. This also means by validating that the business balance is correct, you can rest assured that any financial reports produced will be accurate. This is useful for informing business decisions and gaining valuable insights into the financial state of the business.

By reconciling supplier statements, fraudulent and erroneous invoices are able to be identified before the money leaves the business account, allowing time for the AP team to fix any issues that could cause both money and time problems. Regularly reconciling supplier statements is also beneficial for improving supplier relationships as many businesses only tend to start the reconciliation process when the supplier demands payment.

How reconciling supplier statements works

Although it is possible to manually reconcile supplier statements, this is often a time-consuming and tedious task. Instead, with certain softwares, AP teams can simply automate supplier statement reconciliation processes to improve efficiency and for better time management.

For example, automated reconciliation platforms often have the ability to spot and highlight any errors on their own, saving AP team members time and eye strain from constantly scrolling through a spreadsheet for discrepancies. This means that AP staff are thus able to focus on other important tasks that require their full attention. Automated reconciliation platforms may also provide the option to notify suppliers and keep them updated on the status of their invoices which is helpful for both the business and suppliers alike.

So what are the steps taken in the supplier statement reconciliation process? If you are using an automated system, this is how a typical supplier statement reconciliation may occur:

  1. The supplier statement is inputted in the reconciliation system
  2. The system extracts key information from the statement
  3. The extracted details from the supplier statement is reconciled with your business’ invoice data (that should already be on the system)
  4. Any discrepancies or errors are immediately identified and summarised in a report for your benefit

This report is therefore able to be shared with other AP members or external sources, allowing you to easily communicate the discrepancies.

And there you have it – all the basics of why and how to reconcile supplier statements.

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