Oh my goodness, there are too many different ways to invest. Where do I start…?

Yvonne Emery has a totally unique approach to properrty investment using coaching techniques to make sure you actually succeed in your goals however you choose to approach them.  She has been investing since 1997 and has prospered through many different economic climates and systems of investing.  Now she challenges you to succeed in property investment with a personal approach and simple explanations of the systems available in today’s property world.

If you’re looking for a very personal approach then try one of Yvonne’s small group sessions which gives you group support as well as individual 1-1 time in each session.  Yvonne also provides back up support between sessions.

If you live further away and want to use 1-1 coaching by phone then you will make real progress by setting and achieving goals that are actually attainable in the short term instead of having to hope that you’ll reach your long term goals some time in the future.

Read my free Special Report to find out how to get the confidence to invest the way you want to and buy that next property.

Save time and money in your quest for that investment system that suits your personality and your pocket with Yvonne’s investment mentoring.

Your Dream Home – imagine your future

Everyone has moments when they are relaxing when they allow themselves to imagine their dream situation. That might be cruising in the med, visiting a country that has stirred their interest or living a different life to the one they now have. Whichever it is for you, I’m going to challenge you and ask if it’s going to continue to be a dream or are you going to turn those imaginings into reality?

By taking time to consider what it is we want in life we build up a picture that matches up to the expectations we have. Unfortunately those images are quickly wiped away by our negative thoughts, or those of our family and friends. No-one means to pour cold water on your ideals, but we are very easily manipulated by our desire to do what other people want us to so that we fit in with the crowd.

Ask yourself what your dreams are and have a pad ready to capture all the things you come up with. You will end up with a very detailed picture of the place you want to live both in respect of region or country and the type of property you would like.

This is where it gets interesting… If you truly want that lifestyle and the house you dream of owning in the future, then tell yourself it’s possible and start working towards it.

1. Is your career on the right track? Do you have the potential for promotion within the company you currently work for, or not. If not then how could you go about looking for another job in the same, or even a different industry. We haven’t had very high pay increases year on year for some time, and now even bonus payments are being reduced. The quickest way to increase your income is to find the promotion you want in another organization.
2. Have you got the charisma to find a better paid job? If you are finding that promotion is eluding you and you are telling yourself you are going to have to stick it out because you need the pension and the benefits, then you may need to ask a few questions to find out what you specifically have to do to be considered for the next level. Who are the key stakeholders that you will have to impress in order to be recognized and noticed? What about your delegation and time management skills – do they need working on? If you are being let down in this area by your own knowledge and techniques (or the bosses think you are lacking in this are) then it’s relatively simple to change the way you are working.
3. Are your finances in order? Have you seriously worked through the process of gaining Financial Stability and Security? Look under ‘investment strategy’ on www.YvonneEmeryCoaching.co.uk for further information on the 4 steps of financial progression.
4. When you have taken the necessary steps to put yourself in a financially stable position and you are ready to invest in property then there are a number of ways to invest over a period of time that you choose to get yourself to where you want to be and in possession of that dream home. You can build your portfolio alongside your job, investing any extra income that you are generating. You can also build income from the investments you make either in property, stocks and shares, businesses or internet business.
5. Living in your dream home may be achieved by saving, increasing your income and then retiring, or going to work overseas. However if you have the UK in mind one of the cheapest ways of having the house of your dreams is to build it yourself. I can hear some people gasping in horror, but in actual fact this is easier and cheaper than you imagine. If you buy yourself a copy of Homebuilding and Renovating Magazine you will see that you can buy any style of property you choose directly from a specialist provider and they will actually provide the team to build it too.
6. It’s the land which costs most of the money and plots can be found on plotfinder and various other websites. In fact there is also a National Homebuilding Centre in Swindon which specializes in homebuilds. Propeties can be bought for as little as £60k but if you want something a little more substantial then you can choose your own style.

Anything is possible if you put your mind to it, and if you think it isn’t possible then it is likely that you’re either not at the stage of financial security or you haven’t got all the information which will help you to accomplish your aim.

If you want to find out more about property investing then please contact us for an individual consultation. We don’t sell property, but we do create personalized investment strategies and help you through the process of buying your first or your next investment property.

If you want promotion at work and are looking for quick ways to enhance your skills then check out the Mindset Mentor and ask us about our coaching programs that will help you increase your job potential and gain the charisma you need to get noticed.

Local Housing Allowance Tenants

One of the largest groups of tenants are those who receive Local Housing allowance from the Government because they would be unable to meet rent payments without this assistance.

There is a growing need for this type of rental property and the Local Authorities are coming to private sector Landlords to fulfil the demand for flats because they simply can’t meet the demand with their own properties alone.

The new regulations which give greater control to the tenants by paying them instead of the Landlord makes the tenant responsible for paying their rent each month. Not such an attractive prospect for the Landlord.

What’s the idea behind the change from paying the Landlord to paying the tenant? The Government is trying to encourage individuals to fend for themselves. They are being trained in money management, social skills and tenancy issues. Helping them to become independent leads to long term benefits for the individual and the communities in which they live.

The Government is guaranteeing to continue supporting these tenants and to provide direct Liaison with Private Sector Landlords to ensure that this system works.

When you consider that rents might be delayed because of a time lag in the tenants receiving payment from the Authorities and that they have a history that hangs over them of money issues and a lack of some social skills they won’t automatically seem as attractive as professional tenants. However there is a far greater demand for these 1 and 2 bed flats, which means more tenants available and as we know this is a numbers game.

As a Landlord you may feel reluctant to rent to this sector, however if you take up or continue to rent to this sector then you would be provided with a Liaison officer and training which help Landlords understand the system and how to manage their relationships both with the tenants and their Local Authority.

There are voluntary organisations who act as Management Agency and Letting Services for this rental sector, such as CARE. There is a guaranteed rent band so that the tenant is not fighting for the lowest rent, and they don’t deduct a commission charge. You will also have a choice as to the property you provide relevant to the amount of rent you can charge. The tenant has the opportunity to keep any allowance which exceeds the rental payment or to add to the amount if they want a more expensive flat. From a Landlord’s perspective it might be prudent to have properties to rent that are within the allowance amount so as not to invite the possibility of the tenant not having enough money to pay on time.

The tenants still need to provide references but it is still crucial for the Landlord to get a copy of the agreement and the references from the letting agency. You should also phone the referee and check if there is any further information that they would like to add that they were not prepared to write down.

There are certain Local Authorities who will lease properties directly from Landlords which would give a more secure method of renting to this sector, and this would also bypass the situation of the Local Housing Allowance being paid to the tenant as your agreement would then be with the Local Authority rather than the individual.

Most importantly of all you should be aware of your intentions with your properties. Are you looking for capital growth, do you want cashflow and passive income, or are you just renting out a couple of properties to cover a pensions shortfall? The answers to these questions will help you to decide whether the properties you need to rent that have been purchased (or that you will purchase) in areas suitable for this rental sector will provide you with the outcome you want. They may be cheaper, and the rents may stack up, but in the long term do you have the time to manage them, do you need to have fewer lower mortgage properties that bring in higher cashflow each month or are you stuck behind a desk and need the easy option of renting out properties with less hassle and possibly lower yields? The choice is yours, but before you make any decision as to whether you are in or out on these deals make sure you have worked out your own motivation for renting in this sector.

The motivation of the tenants is also an important factor in making these rentals work for you. The more motivated the tenant to achieve freedom and independence the better their relationship with you and their ability to pay on time. Do some homework and find out how they are motivated. What incentives will work for them?

We are all motivated by two factors. Firstly we like to have a positive to work towards and if we know the result of our hard work or sacrifices then we have a positive goal to work towards. If you are giving a reward for swift payment for example then you will need to make the reward in a timely fashion, otherwise the joy in receiving it is diminished. Secondly we are motivated negatively by realising the consequences of not achieving something. Some tenants will be sufficiently motivated by the threat of eviction that they will pay up on time. For others there may be other negative motivation steered by what will happen if they fail to pay or cause damage to property. If you can make these consequences and rewards clear in your agreement with them, or using a separate document, then your chances of success with them is far higher.

At the end of the day you need to feel some affinity with your tenants, so if you really perceive the worst in any tenant coming from the LHA sector then find another group to rent to. LHA tenants won’t suit you, and you won’t suit them.

If you can perceive the good in them and start positively as you mean to go on, then you will easily override all the issues that are thrown at you and will find this a rewarding sector to have both your houses and tenants working for you.

So how do you decide if renting to this group of tenants is for you or not?

Let’s assume that you’re interested but can foresee some problems:

• The tenant won’t pay you at all
• The tenant won’t pay you on time
• This type of tenant wrecks property
• Evicting bad tenants is difficult
• You don’t want the hassle of having to collect the rents yourself

Then consider the following:

• Treat the tenant with respect and help them to take responsibility for their own rents. This will be new to them, so they may need some incentive such as free pizza vouchers or cinema tickets in return for paying on time.

• Get all the help you can from the LHA as they are providing courses on how best to engage with tenants. They’re paying your mortgage after all.

• Keep the communication channels open – it’s always the same with building any relationship. Help them to feel empowered, not embarrassed.

• Use a 3rd party for rent collection. There are several organisations that will do this for you, or you could use software to flag up who has paid and who hasn’t.

• Act swiftly and be firm. Don’t let two weeks go past and then chase up the non-payment. The tenant will know that it’s not critical to you and won’t feel the need to pay on time.

• Set up your contract with them clearly so that they understand the consequences of non-payment and late-payment.

If you want to find out more about how to overcome issues that arise from an emotional perspective as well as a practical one, then call me on 0845 094 6628 to discuss how coaching can strengthen your negotiating skills and your confidence in dealing with difficult situations. Log onto my website: www.YvonneEmeryCoaching to request my Free Special Report.

Multi Let and HMO Strategy

The cash flow is higher than for a Buy to Let property but is it really worth all the hassle of dealing with several tenants who don’t like each other?

When we hear the words Multi Let and HMO we conjure up for ourselves an image of when we were students, having to slum it in digs that we could only just afford. The idea of having to settle quarrels between tenants who haven’t kept the place tidy or taken someone else’s food from the fridge late at night doesn’t sound like much fun.

But it doesn’t have to be like that in the current climate. It is now possible to cater for a much more mature tenant with more sophisticated tastes and higher income. There are many more professionals who are either working away from home during the week, or who find themselves on their own suddenly who are prepared to pay for a better standard of living in the right property.

So it has to be our duty to supply the right properties for these new clients and the best way to do that is to move your property up the chain towards the standard of a hotel room.

This is how it works:

If you purchase a Buy to Let with a mortgage of around £80k at 6% then you will need to clear £400 each month just to break even. I’ve used 6% so that you know the numbers stack up even if the interest rates go back up again sooner than you planned on.

If you purchase a 6 bed HMO with a mortgage of around £150k at 6% then you will need to clear £750 per month to break even. If you divide that by the 6 tenants then it’s only £125 per month or about £31.25 per week.

Of course you wouldn’t dream of charging as little as £31.25 per week, so you can very quickly scale up your income from the property. Let’s just say that you charge £75 per week or £300 per month then your income would be £1800 which leaves you £1,050 clear.

The more likely scenario is that the rent, outside London would be £90 to £110 per week for an HMO with a shower and kitchen. So, taking the lower figure of £90 per week (monthly figure of £390) for 6 people then your income would be £2,340. This would leave you £1,590 per month (£19,080 per annum).

Rentals on HMO’s in London would be around £250 per week, but the purchase price of the property and therefore the mortgage will also be much higher.

You will also have to consider other costs against that income such as insurance, Gas, Electricity, Water and TV. With a Buy to Let then you would probably cover the insurance but not the other bills. However with an HMO then you would probably cover these other bills in the rental figure.

The more facilities you have the more the tenant is likely to pay. In order to move your rooms up the scale you can consider the following:

1. Even for Buy to Lets with one or two people sharing you can offer a cleaner and gardener, which keeps your property up to scratch and allows you to charge more as well as stand out from the other rental properties on offer.
2. You can add a shower room or en-suite to the room which gives the tenant independence and also adds value to your property. (Be aware that if they become classed as self contained then you may need to have planning permission.
3. If there is room, or you are able to refurbish the property to house as many as possible then by changing some of the interior walls you may be able to turn the rooms into self-contained bedsits. Adding a mini kitchenette really gives the tenant a home from home and brings the rental value to its top performance potential.
4. Stage the room as a hotel room, there is little communal area required in the property so that you can utilize all the space and the individuals can come and go as they please and be as sociable or unsociable with the other tenants as they want.
5. If you really want to up the ante and stage them for a very high spec then you will probably want to add broadband access and plasma screen TV.

One drawback with Multi-Lets and HMO’s is that so far Agents don’t have a great reputation for managing them. This is beginning to change so if you can find a good agent to manage the property then snap them up quickly.

If you are managing the property yourself, then with Multi-Lets and HMO’s it is a good idea to be within sensible driving distance so that you can react quickly to any issues that arise.

If you’re looking for increased cash-flow with a small number of properties then this investment strategy works really well. Make sure your numbers stack up and there are lots of facilities nearby that will support the rental market, such as Hospitals, Universities (Phd students are funded) or Large corporations who ship people in from overseas to support specific projects.

So, is it really worth the hassle? You decide if this needs to be part of your strategy or not.