238 episodes

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.

Money Tips Podcast Charles Kelly

    • Business
    • 5.0 • 3 Ratings

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.

    Landlords, Act Now Or Face A £30,000 Fine

    Landlords, Act Now Or Face A £30,000 Fine

    Most property investors and landlords are proactive when it comes to ensuring the safety of their tenants and properties, which is also in their own interest. 

    Under the latest Regulations, landlords must have the electrical installations in their properties inspected and tested by a person who is qualified and competent at least every 5 years. Landlords also have to provide a copy of the electrical safety report (EICR) to their tenants, and to their local authority if requested.

    The Regulations came into force on 1 June 2020 and apply from 1 April 2021 in England in cases where a private tenant has a right to occupy a property as their only or main residence and pays rent. This includes assured shorthold tenancies and licences to occupy. 

    Landlords who fail to comply could face fines of up to £30,000 or even criminal charges in the case of negligence.

    This does not cover PAT testing, which is still required. In most cases, it is cheaper to throw away perfectly good electrical appliances (most of which ends up in landfill) than calling in PAT testers and waste a day filling in forms.

    The changes to rules and regulations on gas, electrical work, building and a whole raft of red tape every few years are a bonanza for the sectors and create plenty of non-productive jobs. But the costs are ultimately passed on to landlords, tenants and taxpayers. Thousands of civil servants and various people in sector bodies and quangos are employed to constantly change rules and create more red tape to self-perpetuate their own jobs! 

    The same fate awaits perfectly good cars, which have the “wrong engine” this year! The will eventually be taxed out of existence ad end up on the scrapheap of throwaway society.

    For full details and government guidance see

    https://www.gov.uk/government/publications/electrical-safety-standards-in-the-private-rented-sector-guidance-for-landlords-tenants-and-local-authorities/guide-for-landlords-electrical-safety-standards-in-the-private-rented-sector

    Other News
    Plummeting central London rents hits landlords.
    Renters move into the city to take advantage of falling rents.
    Landlords face more arrears as unemployment soars.
    500,000 renters likely to be pushed into arrears.
    Pandemic disproportionately hits younger lower paid workers.
    Self-employed grant recipients shunned by mortgage lenders.
    Peer-to-peer websites to be closed by FCA following a series of collapsed firms
    Beware of dodgy insulation which could render your home worthless
    Pension scammers target 8 million people

    Free Wealth Coaching Session for 3 people – limited offer

    Boris has an unsatisfied CCJ at 10 Downing Street!

    I was a financial adviser for 25 years, but became frustrated with the focus on only being regulated to offer products for the financial services industry. For instance, I could advise a client to invest in a Prudential Property Bond, but could not advise them to invest in a buy-to-let property themselves. I am no longer registered as an industry financial adviser, which means I cannot give specific advice on how to invest your money, but I can offer a wealth of guidance and tips on managing your money more effectively and building wealth over time. I am also the author of the book, , Yes, money can buy happiness, in which I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

    With this in mind, I’m giving away 3 free coaching calls sessions to anyone who is prepared to take the time and effort to learn and master money. Check the link in the next 48 hours on my Charles Kelly Marketing Facebook page https://www.facebook.com/CharlesKellyMarketer

    See also:

    95% Mortgages are back in the UK

    Property buyers overpaying to beat the Stamp Duty Holiday

    GET YOUR BUSINESS ONLINE TODAY, FREE! 

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    Mortgage lending up to record levels as property buyers scramble to beat June Stamp Duty deadline

    Mortgage lending up to record levels as property buyers scramble to beat June Stamp Duty deadline

    Mortgage lending reached £11 billion in March – the highest since records began in 1993 - as a result of the mad rush to beat the stamp duty holiday, which ends in June.

     

    The Bank of England reported that there were 80,000 mortgage approvals in March, up from 73,000 from the previous year, buy slightly down on February’s figure.

     

    Although the property market has boomed in the last few months, there are signs that some areas are slowing down. I’m seeing a lot of London prices fall sharply, as Estate Agent send me emails every day offering price reductions of up to £50,000 or around 10% of the asking price.

     

    We have almost reached the point where it would be extremely difficult to buy and complete with a mortgage purchase before the end of June if you have not started the legal process already.

     

    Another word for mortgage is ‘debt’. We have seen debt spiralling all over the world as government’s borrow or print trillions of dollars to prevent the economy from going into recession.

     

    Whilst people in work are paying down credit card debt, there are signs that thousands of people are getting deeper debt, according to UK debt advice charity Step Change.

     

    Sometimes this can be as a result of a catastrophic change, like a job loss or divorce. In other cases, it’s purely down to mismanagement of money.

     

    Debts can creep up on you like a disease and before you know it’s too late and you are in too deep.

     

    If this happens to you, take professional advice and do not bury your head in the sand hoping it will all go away. It won’t! In the UK, you can talk to charities such as citizens advice and Step Change

     

    Once you talk to recognise charity, interest and penalty charges on your debts, as well as legal action, can be frozen for 60 days. This gives you breathing space and a chance to put together an informal debt repayment plan.

     

    I was clearing out some of my old files for shredding yesterday from my financial advisor business. I came across several clients who reminded me of the importance of saving and investing.

     

    One particular client first sought my advice 20 years ago when she had been through a lot of financial problems. To cut a long story short, we put a plan together and I arranged a mortgage for her to buy a second property by re-mortgaging her residential home.

     

    At the time, houses were cheap and you could buy a three-bedroom property just outside London for around £80,000.

     

    She had absolutely no money and I remember listing her non-property assets on my fact-find form as “£200” in the bank, and that was it. However, she some equity in her property, a mortgage and some consumer debt.

     

    She used that equity to fund a deposit for a second property and a couple of years later did the same thing again. 

     

    She continued repeating this process over the following 20 years.

     

    As I said, she started with £200 in the bank. In fact, she had several other personal debts so was actually in the red.

     

    When she unfortunately passed away last year in her late 50’s her estate was worth around £1 million.

     

    Not bad for someone who started with £200 in the bank.

     

    Almost all of her wealth was due to her buying properties and holding them. Don’t forget that she was holding his properties during the 2008 financial crash, but they bounced back.

     

    She never bothered very much with Pensions or the stock market because she said she did not understand them and prefer to invest in something she did understand like property.

     

    3 Key Takeaways

     
    She did start taking money seriously and stopped using expensive consumer credit to buy consumer products which went down in value. Instead, she borrowed cheaply to buy assets which went up in value and put money in her pocket.

     
    She built her wealth using other people’s money. Could she have saved £1 mi

    Growing ‘Buy-Now-Pay-Later’ Crisis Charity Warns

    Growing ‘Buy-Now-Pay-Later’ Crisis Charity Warns

    A group of charities has sounded warning bells over the growing use of buy-now-pay-later to buy goods.

    Citizens Advice, a network of legal, money and consumer groups, said many users were getting into debt and struggling to pay for food and bills.

    Buy-now-pay-later (BNPL) is increasingly popular among young people buying online, and at some High Street outlets.

    Citizens Advice said many consumers regretted using it and is calling for tougher regulation.

    It found that an alarming 45% of 18-to-34 year olds have used the payment option in the last year.

    The repayment option is advertised at online checkouts as an easy way of splitting or delaying payments on items such as clothing or electronics, with incentives such as it being "interest-free".

    In my experience, “Interest free” is a "slippery slope into debt".

    More worrying is that CA discovered that almost two-in-five (5.7 million) who have used BNPL in the last year didn't think it was "proper borrowing" and six million didn't fully understand what they were signing up for.

    It found a quarter of consumers regretted paying using these platforms, with consumers frequently saying they cannot afford repayments or are spending more than they expected.

    Citizens Advice said firms must overhaul their checkout processes and improve affordability checks.

    Both the Financial Ombudsman Service and Financial Conduct Authority had a greater role to play in the protection of consumers and regulation of the industry, it said.

    Alistair Cromwell, acting chief executive of Citizens Advice, said: "Buy Now Pay Later borrowing can be like quicksand - easy to unwittingly slip into and much more difficult to get out of.

    "It shouldn't be possible for people to sign up for credit without realising, and the fact this is happening so often signals that a drastic overhaul is needed.

    "This industry more than trebled in 2020, and while these products work for many shoppers, the regulator has rightly recognised the potential for harm. It must ensure robust consumer protection keeps pace with changes in how we shop," Mr Cromwell said.

    Several big - and smaller - names now operate in the fast-growing BNPL market, including Klarna, Clearpay, and Laybuy. PayPal launched a BNPL service last year.

    The charity warned that four-in-10 of those who've used BNPL in the last 12 months are struggling to repay. Source: BBC and Citizens Advice.

    If you are struggling with debt repayments in the UK, you can talk to the charity Citizens Advice.

    Other Money News

    City of London Plans To Convert Thousands Of Office Into Residential Units As Workers Staty At Home

    Over 50’s Hardest Hit By Unemployment

    The Office for National Statistics (ONS) has found older workers are amongst the hardest hit by unemployment over the last year.

    The decline in the employment rate for the over-50s has double the rate for those aged between 25 and 49.

    The Resolution Foundation added that after losing work, older workers take the longest to return.

    The effects of last year’s recession have not fully hit most people. The job furlough scheme, rent and mortgage payment holidays, tenant eviction ban, Stamp Duty Holiday and other government financial stimulus packages have cushioned people from the full blow of the economic downturn. 

    Similar packages are running in the US and many are coming to an end or about to expire.

    Whilst the government needs people to go out and spend to boost the economy, this is not the time to spend £600 of money you don’t have to buy clothes you cannot afford on credit! 

    There is good debt and bad debt. 

    An example of good debt is borrowing to buy assets, such as a business or property which put money in your pocket.

    An example of bad debt is the lady mentioned above or someone buying an expensive car they cannot really afford on credit. 

    Another example of bad or even crazy debt is

    Buyers paying more for overvalued property than they are saving on stamp duty

    Buyers paying more for overvalued property than they are saving on stamp duty

    Home buyers rushing to beat the June Stamp Duty Holiday deadline could be paying far more for an overvalued property than they are saving on the tax?

    Inflated property prices keep hitting all-time highs, despite higher unemployment and the worst recession in 300 years, and buyers are paying over the odds, according to a BBC report.

    In one example, a house which sold for £325,000 during the first lockdown is now on the market for £400,000! Three couples are trying to buy it before June despite the fact that they have no need to panic. 

    I have recently seen dilapidated properties auction sell for £200,000 over reserve, despite needing a minimum of £100,000, and the total outlay being far more than the average price in the area.

    Mortgages are proving to be a challenge with surveyors booked up for weeks and lenders becoming choosy about who they lend to. Some sellers would rather take a lower offer from a cash buyer than risk losing a sale due to mortgage issues further down the road.

    Stock markets and cryptocurrencies have also hit new highs with buyers jumping on the bull market bandwagon for fear of missing out – FOMO. In my experience, bubbles like these have usually burst leading to market crashes and downturns. 

    The Dow Jones index has doubled in 5 years and the Nasdaq has almost tripled!

    Overseas buyers from places like Hong Kong are helping to push sales of super-prime London property. In 2020, over 200 properties valued at an average of $18 million were sold in London, more than any other city. Upmarket estate agent Savills reported that they have sold almost 100 £5 million London properties.

    The Central London property market is unique and a world apart from the rest of the UK, as well as most of the capital. Billionaires can afford to park up to £50 million into a property and leave it empty for years. 

    The price of an average property in the London area is just over £500,000 and half that for the rest of the country. There are also parts of the UK where you can pick up a house for £30,000! 

    In fact, since the lockdown started there is a growing trend to move out of the city centres into the countryside creating so-called “Zoom Towns”, where people work from home and hope the wifi is strong enough.

    In the UK, GDP rose last month by just under half a percent and EU trade has recovered after a shaky post-Brexit start this year.

    How To Start A Money Making Business From Home Without Capital Or Risk

    Did you read the story of the man in East London who is making a fortune after starting a home-based business last year when he was laid off from his job during the lockdown? 

    What was the business?

    Assembling flat pack Ikea furniture! Yes, that’s it. No premises, no rent or overheads – pure profit!

    During the lockdown, there was a boom in home improvements and like me most people hate assembling furniture. He jumped in, provided a service that people wanted and is making a pile of money putting together flat pack furniture for thousands of customers.

    With pubs and restaurants closed for the lockdown in the UK and Ireland it's a reminder of how vulnerable physical businesses, like pubs, restaurants and shops are to economic downturns or market changes.

    At the same time, internet business owners are getting richer. Never in history has more goods been bought on the internet. 

    Even before the pandemic, the high street was already under pressure from online shopping, which has exploded in the last few years. 

    High rents, taxes and competition from the likes of Amazon and Shopify have driven large retailers, like Debenhams, out of business and forced John Lewis to start closing 70% of its 50 plus stores in the UK.

    How does this help you get started online?

    The internet has given small home-based businesses an opportunity to compete with the big companies which have dominated the market

    Property News - 95% Mortgages Available NOW Government Announces

    Property News - 95% Mortgages Available NOW Government Announces

    The UK government has announced the launch of a new 95% mortgage scheme.
    95% mortgage guarantee launches today, available on high streets across the country
    Scheme part of a range of ownership options to help make home ownership a reality
    New figures show demand for home ownership has soared during lockdown, with nearly 80% of private renters now saving for a deposit

    A new government-backed mortgage guarantee scheme, announced in the March Budget, to help people with 5% deposits get on to the housing ladder will be available to lenders from today 19 April 2021, a spokesperson confirmed.

    The scheme will help BOTH first time buyers AND current homeowners obtain a mortgage with a 5% deposit to buy a house of up to £600,000 – offering a route to home ownership to those with low deposits.

    For more details see https://homebasedbusinessideasuk.blogspot.com/2021/04/property-news-95-mortgages-available-now.html

    The government is essentially giving lenders the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks. In the past, insurance companies provided this guarantee for a premium.

    The scheme is now available from major high street lenders across the country today, including Lloyds, Santander, Barclays, HSBC and NatWest and Virgin Money following next month.

    In 2019, the government made a pledge to build 300,000 new and attractive homes a year with an investment of over £12 billion in affordable housing over the next 5 years – the largest investment in a decade.

    Since 2010, more than 687,000 households have been helped into home ownership through government schemes, but when asked, 69% of private renters and 63% of those living at home who had looked into a mortgage said they cannot find many mortgages with a low deposit. 

    The guarantee scheme is one of a range of flexible home ownership options available including: 
    Help to Buy
    Shared Ownership 
    First Homes Scheme. 

    Figures show that the number of mortgage approvals for house purchases in January 2021 was 99,000 – a 40% increase on January 2020.

    The government has helped over 685,000 households to purchase a home since 2010 through government backed schemes including Help to Buy and Right to Buy.

    Taxpayers will bail out banks if loans default and they lose money 

    The higher the loan-to-value, the higher the risk for lenders, as borrowers have less skin in the game and can walk away in the event of a property crash or negative equity.

    The mortgage guarantee scheme provides lenders with the option to purchase a guarantee on the top-slice of the mortgage, which means the government will compensate the mortgage lender for a portion of any net losses incurred in the event of repossession. In other words, the guarantee applies down to 80% of the purchase value of the guaranteed property.

    The guarantee will be valid for up to 7 years after the mortgage has started and evidence shows that loans are unlikely to default after this time.

    However, the scheme is intended as a temporary measure and will be open for new mortgage applications from April 2021 to December 2022.

    Lenders can still pursue you for losses after you have been repossessed if they do not get their money back on a ‘forced sale’ – usually at auction. 

    The government said the current scarcity of high loan-to-value lending is a response to the pandemic rather than a symptom of a longer-term structural change in the mortgage market.

    The government will review the scheme towards the planned end date to determine whether extending the period of eligibility for new mortgages would continue to deliver benefits for prospective buyers.

    The stamp duty holiday comes to an end in June, prompting fears of a slowdown in the property market. The new guarantee scheme could push prices to new record highs making it more difficult for first-ti

    • 14 min
    Will Mortgage Repayment Holiday End Lead To Mass Home Repossessions?

    Will Mortgage Repayment Holiday End Lead To Mass Home Repossessions?

    The Financial Conduct Authority, has announced that mortgage lenders can enforce repossessions of homes from borrowers unable to make repayments. 

    As many as 100,000 were on mortgage repayment holidays during the Covid lockdowns, but this came to an end this month. Even more borrowers have not been able to make repayments on loans and credit cards.

    The term “repayment holiday” implies that borrowers are being let off, but arrears are added to the loan resulting in higher payments for borrowers already struggling. 

    Lenders must follow guidance on when to repossess and only use court action as a last resort.

    The courts already have a backlog of all types of cases and bailiffs cannot be instructed by the courts until the end of May at the earliest in England and end of June in Wales, which means landlords may will not be able to gain possession of a property for several months.

    Those unable to make repayments can no longer apply for a deferral on mortgage, loan or credit card repayments, however. lenders can consider individual cases of hardship based on their specific financial circumstances.

    Will this lead to mass repossessions?

    Probably not mass repossessions, but definitely an increase and more motivated and distressed sellers.

    Unlike previous recessions, interest rates are at an all-time low – but watch out for those big step-up in payments after an initial fixed rate or discount, as well as HUGE FEES being added to the loan and increasing your debt.

    In better news for home buyers, lenders can now accept applications for a new Help to Buy scheme in England. This is a less generous version than the previous scheme and is restricted to first-time buyers.

    The Chancellor’s new 95% ‘mortgage guarantee scheme’ announced in the budget is due to be rolled out next year.

    With stamp duty holiday ending in August and more people coming off the job retention scheme, the long property boom could be coming to an end. The question is whether or not governments can print their way out of the recession, with massive Trillion Dollar financial stimulus packages to prop up weak western economies, and avoid a looming worldwide depression. 

    Is it Possible To Start A Money Making Business From Home Without Capital Or Risk?

    With pubs and restaurants closed for months during the lockdown in the UK and Ireland, it's a reminder of how vulnerable physical businesses, like pubs, restaurants and shops are to economic downturns or market changes.

    At the same time, internet business owners are getting richer. Never in history has more goods been bought on the internet. 

    Even before the pandemic, the high street was already under pressure from online shopping, which has exploded in the last few years. 

    High rents, taxes and competition from the likes of Amazon and Shopify have driven large retailers, like Debenhams, out of business and forced John Lewis to start closing 70% of its 50 plus stores in the UK.

    How does this help you get started online?

    The internet has given small home-based businesses an opportunity to compete with the big companies which have dominated the market. They took the best sites in the high street and malls, and often drove small retailers to the wall with massive advertising and undercutting. Fortunately, this has now changed and that’s how you can benefit from the online bonanza.

    You can now set up a risk-free online business or store - from home in your spare time - and sell to a potential market of 5 billion people browsing the internet every day looking for solutions to their problems. 

    You no longer need to rent a shop or premises and pay high taxes and bills before you make a penny. And you don’t have to quit your job until your business income exceeds your salary. 

    Here are 3 simple steps.

    Step 1 

    Sell solutions to people’s problems

    Research your idea or product online

    • 25 min

Customer Reviews

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Eric Heize ,

Real Practical and Contstructive Advise

Charles has a way of conveying infromation in such a laid-back manner with a clear choice of words to appetise everyone's need of this much-needed info.
His podcasts has given me food for thought and truly have impacted in my professional life and career once implemented.

I can't recommend Charles enough.

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