Do what you love and the money will follow

Tips LIFESTYLE | 03. June 2019

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy, and property business.

ABOUT ME

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, insurance companies and as a qualified Independent Financial Adviser running his practice.

Do what you love and the money will follow

Tips LIFESTYLE | 03. June 2019

asdasdasd Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy, and property business.

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ABOUT ME

Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, Insurance companies and as a qualified Independent Financial Adviser running his practice.

Latest podcasts.

Banks Ripping Off Customers, As Millions Move Money Into Property

Listen to Banks Ripping Off Customers, As Millions Move Money Into Property

In today’s Money Tips Podcast:

  • Banks short-changing savers
  • Investors turn to property for better returns
  • Walmart issues profit warning as ordinary people in America struggle with cost-of-living crisis.
  • Property prices are falling according to official figures.

High Street UK banks, like Natwest, have failed to pass on several Bank of England base lending rate rises to millions of savers. Base rates have been steadily rising from a low of 0.10% in October 2021, which banks have not passed on to savers.

At the same time, they are INCREASING interest rate for borrowers who owe money on their already expensive credit cards.

NatWest has just announced a 2.5% increase on their credit card from 15.756 to 18.276, an effective increase of 15%.

The current UK base lending rate is 1.25%.

Credit card companies were charging similar rates when base rats were over 10%, which means they are profiteering from people’s misery.

Meanwhile, banks leaving millions of savers out of pocket in accounts paying almost ZERO interest – which means their savings are LOSING 9.4% (the official UK inflation rate) every year.

Savers should vote with their feet and move their money to obtain better deals – if they can find a local branch!

Years of artificially low interest rates have pushed millions of investors into buy-to-let property, where the can receive much higher income, as well as growth on their capital.

Open House South Herts is advertising property deals in the north of the UK from just £30,000 asking price with yields of between 10 and 15%. – see https://www.facebook.com/estateagentswatfordelstreeandborehamwood

Banks are closing hundreds of branches all over the country as the reset to cash continues against people’s wishes. Older customers will struggle to get to branches and many do not use, or want to use, complicated online banking systems.

Many old bank branch buildings, such as this on in Loughton, Essex, are huge with much of the space no longer required and can easily be converted into flats, shops, restaurants or other mixed usage.

Mortgage rates have also jumped in the last year adding significantly to the cost of buying a home. For instance, a 2% increase on a £200,000 mortgage will cost borrowers an additional £4000 per annum or £333pm. On a £250,000 loan, the extra cost is £5000 a year or £416pm.

Most lenders will take this additional burden into account when working out the affordability test and adjust the borrowing level downwards. In other words, the borrow must put down a higher deposit or pay less for a property.

Walmart issues profit warning as ordinary people in America struggle with cost-of-living crisis.

IMF calls on central banks to raise interest rates further – this will drive the world into a recession.

Property prices are falling according to official figures.

 

See omnystudio.com/listener for privacy information.

No deposit 100% Mortgages and 10 X Income Borrowing are Back

Listen to No deposit 100% Mortgages and 10 X Income Borrowing are Back

Prior to the 2008 financial crash lenders were routinely giving out 100% and even 125% mortgages, self-certification mortgages with no income checks and up to 10 times income multiples. 

 

This all changed after 2008 when several lenders went bust and the government had to bail out High Street banks in the UK such as Lloyds and RBS, which owned NatWest.

 

But it was not 100% or even self-certification mortgages that got lenders into trouble. Lenders such as northern rock decided to expand into commercial lending which was outside of their experience and comfort zone.

 

Subprime lending, or giving mortgages to people with poor credit history, previous arrears and even bankruptcy, also cause massive problems for American investment banks who sold derivatives of these products as triple AAA security.  

 

The vast majority of the actual loans were still being paid in the UK.

 

Lenders also branched out into buying up estate agencies and other businesses which was a big mistake since they paid far too much for these businesses.

 

But could we be witnessing a return to more adventurous lending?

 

Well, that remains to be seen. There has been talk of new lenders, like Propertunity, coming into the market offering 100% no deposit mortgages, but so far they have not launched any product on the market.

 

Check out: https://www.proportunity.com/blog/zero-deposit-mortgage

 

We also need to find out more details about the loan terms and the interest rates. 

 

It appears to be some kind of 90% initial loan with a top up loan, similar to a help to buy loan that was offered by the government.

 

What we don’t know is whether this loan is just an interest only loan or involves a share of the equity in the property.

 

There are also schemes out there offering 10 times income and minimal credit checks, but these appear to be rent-to-own schemes rather than traditional mortgages.

 

As always, take legal independent financial advice before entering into any credit agreement

 

Inflation rises to 9.4%, the ninth monthly rise in a row. 

 

Inflation will peak at 11% in the autumn say the Bank of England, which is inside an imminent 0.5% interest rate rise. 

 

The ECB have just hiked interest rates for the first time in over a decade. 

 

Public sector workers are threatening strikes, with unions complaining that a 5% pay rise will not keep pace with rising costs. 

 

Overall, figures show that pay is falling behind the cost of living making the average person poorer. 

 

Mortgages rates have gone up by around 300%. 

 

Whilst most people are on fixed rates, those rates will eventually expire.  

 

The problem for borrowers at the lower income scale is that they may not qualify for certain rates due to affordability tests.   

 

I wish I could give a less gloomy outlook on the economy, but it is not looking too rosy at the moment.

 

When the country in recession or downturn property prices fall. However, I have seen high inflationary times when properties went up in line with inflation. Right now property is rising faster than the official inflation rate (13% annually), but how long can this continue in the current financial squeeze?

 

See previous episodes:

 

4 tips to save money in property letting and development - https://youtu.be/CM22xqmh3Pg

Big changes in private rented sector, leaseholds & property ads - https://youtu.be/SeOA_zMqaIY

Get cheaper property and higher yields up north

Obtain up to 14% yield on UK buy-to-let property.

 

Auction Property Bargains From Open House South Herts

  • 2 Bed House - £36,000
  • 4 Bed Buy-to-Let Rented House £59,000

More deals at: https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #propertybargains #auctionproperty #money #buytolet #rentalproperty #buytolet #investing #property #houseprices #nodepositmortgage #100%mortgage





See omnystudio.com/listener for privacy information.

Inflation climbs to 9.4%, the ninth monthly rise in a row as Tesla dumps Bitcoin

Listen to Inflation climbs to 9.4%, the ninth monthly rise in a row as Tesla dumps Bitcoin

Inflation hits 9.4% and will peak at 11% in the autumn say the Bank of England, which has hinted at an imminent 0.5% interest rate rise. 

The ECB have just increased interest rates by 0.5% to zero for the first time in over a decade. Rates have been negative since 2014.

Public sector workers are threatening strikes, with unions complaining that a 5% pay rise will not keep pace with rising costs. 

Overall, figures show that pay is falling behind the cost of living making the average person poorer. 

Mortgages rates have gone up by around 300%. 

Whilst most people are on fixed rates, those rates will eventually expire.  

The problem for borrowers at the lower income scale is that they may not qualify for certain rates due to affordability tests.   

Watch video on YouTube - https://youtu.be/aRpFGTJqlUE

Who will be the next UK PM?

I wish I could give a less gloomy outlook on the economy but it is not looking too rosy at the moment.

One possible bright light on the horizon is the change of leadership and government in the UK following the forced resignation of Boris Johnson.

The final two candidates for the prime minister job are former Chancellor Rishi Sunak and Foreign Secretary Liz Truss.  

Liz Truss is currently ahead in the polls and id she becomes the new prime minister she will cut taxes, increase spending and take measures to encourage economic growth.  

Whilst this will mean deferring the UK’s £2 trillion debt reduction, it will provide a much needed boost to the economy and create more tax revenue.

I believe the UK is due for a shift in economic policy and that Liz Truss is the right person to lead the country.  

Tesla dumps Bitcoin

Tesla has now sold off most of its holdings of the cryptocurrency.

The firm has dumped 75% of its Bitcoin, which was worth about $2bn (£1.7bn) at the end of 2021.

It is backing away as the value of the cryptocurrency has plunged, falling by more than 50% this year.

Tesla said it bought traditional currency with the $936m (£782m) from its Bitcoin sales.

Tesla boss Elon Musk has been among the most high profile champions of cryptocurrency, with his pronouncements on social media often driving significant trading activity.

Tesla's $1.5bn investment in Bitcoin, revealed in February 2021, prompted a surge of demand in the currency. The price of the notoriously volatile cryptocurrency soared last year to almost $70,000 in November before crashing.

One Bitcoin trades for less than $25,000.

Musk previously said he would not sell any crypto, but now needs cash. Tesla shares have plunged almost 40% this year.

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Call with me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

#free #economy #wealth #money #property #cryptocurrency #tesla #elonmusk #bitcoin #inflation #interestrates #liztruss #borisjohnson #rishisunak #makemoney #bankofengland #ecbinterestrates #freewealthcoachingcall #coaching #mortgagerates



See omnystudio.com/listener for privacy information.

UK economy grew by 0.5% in May Surprising Economists

Listen to UK economy grew by 0.5% in May Surprising Economists

UK economy rebounded in my growing by 5% going to ONS figures. 

 

Most areas of the economy expanded including construction, travel and manufacturing. 

 

But business leaders are still concerned about the rising cost of raw materials, as well as fuel and gas. Inflation is set to hit 11% and is soaring around the world.  

 

US inflation has hit 9.1% prompting fears of another interest rate rise by the Fed this summer. 

 

The Conservative Party is voting to elect a new leader following the resignation of Boris Johnson.

 

Most of the candidates promise to increase spending and cut tax. However, the bookies favourite for the next PM, former Chancellor Rishi Sunak, has urged more caution in order to pay off the deficit and reduce inflation. Rishi Sunak increased corporation tax, which is the tax on business profits.

 

Tax cuts needed to keep us from falling into recession, stimulate growth and long-term prosperity.

 

The new government and Chancellor must slash corporation tax to 15% to encourage more inward investment into the UK.  

 

Most leaders want to cut bureaucracy and the size of government, but this seldom happens. There are now more civil servants in the world in 2016 and the state is still growing.  

 

Half the working population in the UK is directly or indirectly employed by the government, which means they are funded by taxpayers and companies paying corporation tax.   

 

More signs of cracks in China’s economy?

 

The BBC reports that authorities in China's Henan province will start releasing money to customers who have had their funds frozen by several rural banks.

The announcement came just a day after a rare protest in Henan's capital, Zhengzhou, turned violent.

The four banks that were the focus of the protests are believed to have frozen a total of 39bn yuan ($5.8bn; £4.9bn) of deposits.

One of China’s many debtor nations, Sri Lanka, is broke and has falling into chaos as the government falls and people queue for fuel and gas tanks.  

 

I recently heard an Interview with Chris Blackwell of Island records, regarded as one of most influential record executives of all time.

 

Chris helped launched the careers of the likes of Bob Marley, Roxy Music, Free and U2. 

 

When asked how he knew that reggae and ska music would become so big Chris replied that he wasn’t thinking along those lines at all. All he was trying to do was make a good record and help people build a career in music. 

 

Interesting how he wanted to give, not get, and is now worth $300 million! 

 

Mick Jagger and the Rolling Stones are not only a great band, they also know how to run their business empire making the extremely wealthy.

 

  • Ronnie Wood – US$200 million.
  • Charlie Watts – US$250 million.
  • Keith Richards – US$500 million.
  • Mick Jagger – US$500 million.

The Rolling Stones did a concert tour to celebrate and increase the group's fortune, which is estimated by FOXBusiness at $1.45 billion.

Rolling Stones are celebrating 60 years in the business and have been one of most successful end enduring rock bands of all time

 

For the first decade of the band Mick Jagger said he left the business side of things to managers, which was a mistake. They ended up in financial trouble having not paid the correct amount of tax. 

 

The band made a decision to move out of the UK, which at the time had a tax rate up to 98%, to avoid going broke. Lack of attention to tax is a common cause of music and film stars going bankrupt, as I cover in my book Yes, Money Can Buy You Happiness.

 

Mick then took over the business side of running the group and has never looked back. 

 

Mick is a very astute businessman and likes to keep control of every aspect of the banned from putting the show together to making sure they minimise their tax bill.   

 

I once had a ticket to a concert of theirs which was cancelled because it would’ve meant them paying too much UK tax.

 

It is also known that Mick’s house in Richmond was held in an offshore company.

 

Earn more than you spend and invest to grow your own ‘u’conomy’. Saving alone will not save you from a bleak retirement.

 

Obtain up to 14% yield on UK buy-to-let property.

 

Auction Property Bargains From Open House South Herts

2 Bed House - £36,000

4 Bed Buy-to-Let Rented House £59,000

https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #china #money #borisjohnson #rentalproperty #buytolet #investing #property #houseprices #mickjagger #rollingstones #chrisblackwell #rishisunak #srilanka #bobmarley #U2 



See omnystudio.com/listener for privacy information.

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Welcome to Money Tips by Charles Kelly, author of Yes, Money Can Buy You Happiness. Charles spent over 25 years in financial services working for banks, insurance companies and as a qualified Independent Financial Adviser running his practice, before setting up his speaking, consultancy and property business. Money Tips will help you save, make and accumulate more money whether you are a business owner, entrepreneur, employee or still searching for your vocation. For more tips and information visit Mondeytipsdaily.com. The Information given in this podcast is for your entertainment and should not be construed as financial advice. As always, take independent financial advice before making any investment decisions.

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