According to the Department for Business, Energy and Industrial Strategy (BEIS), there are now roughly a million homes in the UK with solar panels.
Mine is one of them. We had ours fitted in April 2011, just in time to benefit from the highest Feed-In Tariff (FIT) before the rate was slashed by over half.
I hadn’t really given the panels a lot of thought since then. I submitted meter readings every three months, and a few days later a handy, tax-free payment appeared in the bank account.
In March 2019, though, I had a couple of builders doing repairs to the woodwork around the eaves. This was an awkward job that involved having scaffolding put up. Anyway, one of the builders (a guy I have known for several years and trust) asked if I would like the panels cleaned while they were up there. “They’re filthy,” were his exact words.
He quoted me £60, which seemed a good price, and clearly it made sense to have the work done while they were there and the scaffolding was up. They gave the panels a thorough clean, using large sponges and buckets of warm water with washing-up liquid.
I was intrigued to see how much difference this would make to the amount of electricity the panels generated, so I downloaded a free program called Sunny Explorer that works with my solar PV system. It communicates with the inverter (the device that turns the electricity generated by the panels into usable power) via Bluetooth to show how much electricity your panels are producing. And, thankfully, it shows historical data going right back to when the panels were first installed.
Monitoring Solar Panel Performance
I found the data from Sunny Explorer genuinely eye-opening. First, take a look at this chart showing the total amount of electricity generated by my system year on year since the panels were installed.
As you can see (bearing in mind the panels weren’t installed till April 2011), for the first five years the total power output was pretty consistent. Then in 2016 and 2017 it dropped quite substantially, and again by a smaller amount in 2018, even though that summer was one of the hottest, driest on record. Obviously, if I was being scientific I would compare the total number of sunny days in each of those years, but I think it’s safe to assume that from 2016 onwards the build-up of dirt on the panels began reducing their efficiency.
Now take a look at the monthly chart for March 2019. Can you guess what date the panels were cleaned?
Full marks if you said 27th March. The power generation was quite low that day as the panels weren’t cleaned until the afternoon, and obviously they had to be switched off while the cleaning was going on (the builders actually forgot to switch the system back on before they left, but I’ll forgive them that). Notice how much more power the panels generated in the last four days of the month, though.
2021 Update
Two years on, here is a chart showing how much electricity my panels have been producing year on year. Remember, they were cleaned in March 2019.
As you can see, in 2019 and 2020 my panels were back generating at the same level they had been prior to 2016. And neither of these years featured exceptional amounts of sunshine. Obviously as it’s only mid-April now the total figure for 2021 is lower, but from comparing the month-by-month figures from previous years it is clear that they are still working well.
If I hadn’t had the panels cleaned it’s likely that their electricity production would have continued at the 2018 level (and probably lower). As it was, in 2019 and 2020 they generated an extra 1,700 kwh compared to the 2018 level, worth about £850 to me in financial terms. So that £60 I paid to have them cleaned was a very good investment!
Overall, I think the lesson from this is that it’s well worth monitoring the performance of your panels, and having them cleaned if you notice it is declining. When our panels were installed we were told that they were ‘self cleaning’ due to the amount of rain we get in the UK, but that clearly wasn’t sufficient in my case anyway!
More Top Tips
I used the free Sunny Explorer software to monitor my system. This works with inverters made by SMA Solar Technology. If you have a different make of inverter it may not work for you, but there should be some other way to check your system’s performance. Ask your installer if in doubt.
If you have trees nearby (as I do) there will probably be more birds around, and over time their droppings are likely to build up on your panels and reduce their efficiency. While dust generally washes off with a good rain shower, bird droppings may not.
Before cleaning or inspecting solar PV panels, it is essential to switch them off via the main isolating switch (in my home it’s a bright red switch next to the solar power meter). Failing to do so could result in a severe electric shock.
If you cannot safely access your panels to clean them, hire a professional to do it. Don’t get up on the roof yourself unless you have the necessary training, expertise and equipment.
A good solution for cleaning solar panels that can avoid the need for going up on the roof is a water-fed pole with a soft brush, combined with a squeegee. Avoid using abrasive tools or products in case you scratch the glass.
Avoid cleaning your panels when the weather is hot, as spraying cold water on very hot panels could cause smearing or even damage them. Instead try to clean the panels in the morning or evening or on cooler days.
Based on my experience, it may not be necessary or cost-effective to clean your panels every year, but every three to five years could be a good strategy. In any event, monitoring the output of your panels will help you decide.
Good luck, and I hope your solar panels are soon working at peak efficiency again!
If you have any comments or questions about this post, as always, please feel free to post them below.
This is an update of my original 2019 post.
If you enjoyed this post, please link to it on your own blog or social media:
Spring is here at last, and for once there is plenty of good news in the air.
The vaccine roll-out is going well, cases are way down, and across the UK Covid restrictions are being relaxed. I had my first swim for four months yesterday in the outdoor pool at David Lloyd Lichfield, and tomorrow will be having my first haircut in almost six!
To celebrate all of this, I thought it was high time for another giveaway. I have therefore got together with some of my fellow UK bloggers to offer a bundle of top-quality health and beauty products worth almost £400 for the lucky winner. You can see the full list below ↓↓↓
This giveaway has been arranged and co-ordinated by my blogging colleague Emma at www.MakeMoneyWithoutAJob.com. Do take a look at her site, where (among other things) you can sign up for a free, daily £10 prize draw. There are also articles on money-making topics from How to Make £1,000 Every Month to Online Jobs for Teens, Free Money Offers to How to Make Money Watching Netflix. Literally something for everybody!
The Bloggers Taking Part
Please show your support for all the bloggers taking part in this giveaway by visiting their blogs. They are:
One lucky winner will receive a health and beauty bundle worth almost £400.
Included in this bundle is:
La Roche-Posay Effaclar Duo+ Blemish treatment 40ml
Marc Jacobs Perfect 50ml
Glo32 Teeth Whitening System
CYO Makeup Bag Top Up Bundle
Olay Regenerist Luminous Anti-Ageing Brightening And Protecting Face Cream SPF20 50ml
Footner exfoliating socks
Liz Earle Cleanse and Polish 50ml
Champney’s Calm Reed Riffuser
Champney’s Slumber Body Butter 300ml
Maybelline Sky High Mascara x 2 (Black; Waterproof)
EcoTools – Daily Essentials Total Face Brush set
L’Oreal Paris Men Expert Get Better With Age Anti-Ageing Duo Giftset for him
Too Faced Hangover Wash Away the Day Cleanser 125ml
La Roche-Posay Anthelios Ultra-Light Invisible Fluid Sun Cream SPF50 50ml
Champney’s Weekend Treat Gift Set
Terms and Conditions
1. There is one top prize of a health and beauty bundle.
2. There are no runner-up prizes.
3. Open to UK residents aged 18 and over, excluding all bloggers involved with running the giveaway.
4. Closing date for entries is midnight on 30 April 2021.
5. The same Rafflecopter widget appears on all the blogs involved, but you only need to enter on one blog.
6. Entrants must log in to the Rafflecopter widget, and complete one or more of the tasks – each completed task earns one entry in the prize draw.
7. Tweeting about the giveaway via the Rafflecopter widget will earn five bonus entries into the prize draw.
8. One winner will be chosen at random.
9. The winner will be informed by email within 7 days of the closing date and will need to respond within 28 days with their delivery address, or a replacement winner will be chosen.
10. The winners’ names will be published in the Rafflecopter widget (unless the winner objects to this).
11. The prizes will be dispatched within 14 days of the winner confirming their address.
12. The promoter is www.MakeMoneyWithoutAJob.com
13. By participating in this prize draw, entrants confirm they have read, understood and agree to be bound by these terms and conditions.
The Giveaway
Complete any or all of the Rafflecopter entry widgets below to enter.
One final small point is that if a winning entry comes from following someone on social media, the organizer (Emma) will check before awarding the prize that the winner is still following the account in question. If they aren’t, they will be disqualified and a new winner drawn. So, please, don’t follow and immediately unfollow, as your entry won’t then count.
Good luck, and here’s hoping we can all look forward to even better times soon 🙂
If you enjoyed this post, please link to it on your own blog or social media:
Today I thought I would share something a bit different with you – a sideline opportunity you may not have considered before.
There is a huge demand for people to appear in TV shows. In recent years “reality television” featuring ordinary people in a range of scenarios, from dating to surviving in inhospitable places, has become extremely popular.
Talent shows are also massive. If you can sing, dance, tell jokes, do magic tricks, perform acrobatics, or have some other talent people might like to watch, there is almost certainly a show you can apply for.
Other shows offer the opportunity for successful – and talented – contestants to become celebrities in the field concerned. For example, many of the winners and runners-up in cookery shows such as Masterchef and The Great British Bake Off have gone on to obtain publishing contracts, and in some cases started their own restaurants. One example is the 2005 Masterchef winner Thomasina Miers, who now runs a chain of Mexican restaurants called Wahaca and has also presented several TV cooking series.
Another very popular option is quiz or game shows – from Pointless to Bargain Hunt. A steady stream of contestants is needed for these shows, which is many cases are broadcast daily. And the best news is that these shows are open to people of all ages and backgrounds, and you don’t need any special skill or talent to take part.
Although the coronavirus pandemic (and government response to it) put a temporary brake on some shows, many found ways to get round restrictions, e.g. by redesigning their sets to allow for social distancing. And right now, with restrictions being eased across the UK as virus cases plummet, large numbers of shows are looking for contestants again 🙂
Some shows offer the possibility of winning life-changing sums (Who Wants to be a Millionaire is the classic example). In other cases the rewards are more modest – but even the chance of winning two or three thousand pounds on a show such as The Chase is not to be sniffed at. And under UK law, cash and prizes won on TV shows are entirely tax-free.
Even aside from the chance of fame or fortune, being in a TV show can be an exciting and eye-opening experience. You will see what goes on behind the scenes at your favourite shows, and watch them with fresh appreciation in future. And, of course, you will have an experience to remember and tell friends about for years to come.
Researching and Applying
You can find out what shows are currently recruiting by contacting the production companies directly. See who makes a show that you would like to appear on and look them up online.
There are also websites that publish contestant calls. BeOnScreen is a good place to start. Here is one opportunity that was being advertised there at the time of writing:
Iain Stirling’s CelebAbility is BACK for another series and is looking for fun and outgoing teams of 3 to take part!
This physical, comedy game show sees teams of 3 go up against a squad of celebrities in a series of hilarious games with the chance to win some fab prizes including a cash prize.
Groups can include; friends, family, colleagues or people you share the same hobby with.
If you and your team are aged 18 and over, fun and outgoing who love to play games and get involved in fun challenges, then we want to hear from you!
Depending on when you read this, the opportunity above may have gone, but others will certainly have taken its place. Note that many shows are recorded in or around London, so if you live near the capital you will have a certain advantage. In the interests of diversity, however, many also film in other parts of the UK, so definitely don’t be put off if you live elsewhere.
As well as calls for contestants, BeOnScreen also advertises free tickets for TV shows, and occasionally calls for extras. If all or any of these things interest you, it’s well worth signing up on the website to receive email updates when new opportunities are posted.
There’s much to be said for applying for new shows such as those listed on BeOnScreen, as the competition for places isn’t as intense as established shows. But there are plenty of the latter that need a steady supply of contestants too, of course.
One top tip is to go for daytime shows, which typically have smaller audiences than prime-time shows, again resulting in less competition from other would-be contestants. But do ensure that the prizes are worth your while before sending in an application.
Before applying to be on any show, I recommend finding out as much as you can about it. If a particular physical or problem-solving skill is required, try to practise this as much as possible. And if it requires specialist knowledge, bury your head in some relevant books, and then get a friend or partner to test your knowledge.
It’s also a good idea to practise your public-speaking skills, especially if this is something that doesn’t come naturally to you. If possible, get a friend to assume the role of the show’s host and ask you some likely questions. This will help prepare you for the show itself, and will also assist you with the auditioning process (see below).
Auditioning for a Show
To be accepted as a contestant, you will normally need to go through some sort of audition. Big TV talent shows such as Britain’s Got Talent and X Factor typically hold open auditions in major cities across the country.
To get on a quiz or reality show you will probably have to perform an initial test/audition as well, though it will be lower key. These auditions are generally held by specialist companies who recruit contestants for the shows. They will assess such things as your personality and appearance, your general knowledge, and how well you communicate. They may also check your ability to cope in stressful circumstances.
One time I was auditioning for a quiz show, I was completing a pen-and-paper test in the company of half a dozen other applicants. Suddenly an alarm went off. We all looked at one another, unsure what was going on. The representative then returned to the room and assured us there was nothing to worry about. She revealed later that this was simply a standard test they used to ensure that potential contestants didn’t crumble under pressure!
As mentioned above, if you’re auditioning for a quiz show you may be given a series of questions to answer, either verbally or in writing, to test your general knowledge. If you find them all easy, it may nevertheless be a good strategy to deliberately get one or two wrong. As our American friends say, nobody likes a smartass! And the companies like to recruit contestants with all levels of knowledge and skill, so the watching audience can relate to them as ‘ordinary people’.
One other top tip for aspiring quiz show contestants is to try to stand out from everyone else. The researchers are looking for people who will come across on TV as outgoing and interesting, rather than dull and anonymous.
This needs to be judged carefully, of course. You don’t want to make yourself appear too weird, or the researchers may fear you will be a loose cannon. If (like me) you’re naturally somewhat introverted, though, it will help a lot if you can make an effort to present yourself as a bit more outgoing. If you can manage ‘bubbly’, so much the better!
A distinctive hairstyle or item of clothing may give you an extra edge as well.
At another audition, one of my fellow applicants was wearing a clerical dog collar. It turned out he was a university chaplain. You could tell immediately that the researchers loved him, and I saw him subsequently on the TV show in question and many others. He even turned up with a team of other university chaplains on a quiz show called Busman’s Holiday!
On the Day
If you’re selected for a show, try to arrive in good time at the studio and introduce yourself to the researchers. They are likely to ask a few questions about your family, job, hobbies, and so on. This is to give the host or hostess something to talk about.
Once the show starts, try not to be distracted by the cameras and audience. As far as possible, relax and concentrate on the task in hand. Do your best to succeed, but remember that not everyone can win every time. Smile and be courteous to the host and (especially) the other contestants. This will ensure the audience like you and get behind you, which can help a lot when you’re under pressure.
Good luck, and I hope big prizes are soon coming your way!
Have you been on a TV show yourself and won anything (or not)? I’d love to hear about your experiences! Please post your comments below as usual.
This is a fully updated version of my original article on this subject published in January 2017.
Save
Save
Save
If you enjoyed this post, please link to it on your own blog or social media:
Today I’m looking at P2P property investment platform Assetz Exchange (launched in January 2019)..
As I have noted before on Pounds and Sense, I am something of an enthusiast for property investment (and specifically property crowdfunding). Among other things, I like the fact that you can make money from both rental income and capital growth. And investing in property can be a good way of spreading the risk when you have equity-based investments.
Of course, investing in property directly is costly and carries all the risk inherent in putting all your eggs in one basket. A major attraction of P2P property crowdfunding investment is that you can get started with much less money and build a diversified portfolio to help mitigate the risks.
In addition, if you invest this way you don’t have to deal with the day-to-day hassles of being a landlord, from finding tenants to repairing broken boilers. This is taken care of by the platform itself and/or their management company. You just have to sit back and – all being well – wait for the rental income and (hopefully) capital gains to materialize.
That said, there have been a few reversals in the P2P property sector over the last few months (see this recent post, for example). So I am now more concerned than ever to ensure that any investments I make in this category control risk as effectively as possible.
What Is Assetz Exchange?
As mentioned above, Assetz Exchange is a licensed P2P property investment platform. It is owned by well-known P2P lending platform Assetz Capital, but run quite separately from them. If you already have an account with Assetz Capital, you will have to register separately with Assetz Exchange.
Assetz Exchange aims to offer net yields to investors of between 5.2 and 7.2% per year. These are generally paid by institutional tenants through multi-year leases. All properties are unleveraged, providing additional security (and stability) for investors.
Assetz Exchange has some similarities with Property Partner, but they differ in some important ways. For one thing, many of the properties are rented out to charities (e.g. NACRO) or housing associations. These organizations generally sign longer contracts than private individuals. They don’t have voids (periods when the property is untenanted and producing no income). Neither are there any maintenance costs, as the organizations take responsibility for this themselves. And finally, these organizations are directly funded by the government, giving them a secure income stream.
Another area of specialism is show homes. Working with a national housebuilder, Avant Homes, Assetz Exchange purchases fully furnished show homes from multiple sites around the country. These are then leased back to the developer for fixed periods of up to five years to be used to help sell other plots. This eliminates potential void periods and avoids any maintenance costs. At the end of the leases, investors will be able to vote on whether to lease the houses to tenants or sell them to home-buyers on the open market.
Assetz Exchange also offers investors the chance to get involved with a new generation of modular eco-homes. This is already a popular approach to house-building in Europe and the United States. Assetz Exchange fund the acquisition and conversion of land into serviced plots, allowing buyers to then order a house to be built on that plot to their own specification. These modular-built eco-homes are sustainable and low energy. They are also typically quick to complete and have a lower impact on the environment.
Assetz Exchange do also buy and let some standard properties as well, offering investors the chance to further diversify their portfolios.
Signing Up
Before you can invest through Assetz Exchange, you will of course have to sign up on the platform. This is pretty straightforward. You just visit the Assetz Exchange website, read the information there, and click on Register in the top-right-hand corner.
You will then be required to enter your contact details and confirm which of four categories of investor you fall into. The options are as follows:
High Net Worth Investor – This includes individuals who have an annual income of £100,000 or more or net assets of £250,000 or more.
Self-certified Sophisticated Investor – This includes individuals who have made more than one peer-to-peer investment in the last two years or who meet certain other criteria relating to investment experience. This is the category I selected myself.
Investment Professional – Including corporate investors and SIPP or SSAS professional service providers.
Everyday Investor – This category is for investors who don’t fit into any of the categories above. They can still invest via Assetz Exchange but must pledge not to invest more than 10 per cent of their portfolio in P2P loans.
You will also be required to answer some multiple-choice questions to confirm that you understand the nature of investments that can be made on the platform. I found some of these questions quite challenging, and was pleased to get them all right first time. I would therefore recommend reading the information on the Assetz Exchange website (including the Help pages) carefully before proceeding to register. If you do make any mistakes, however, feedback is provided, and you can take the test again until you achieve a 100% correct score.
Once you have done all this, you will be able to fund your account. This must be done by bank transfer, as Assetz Exchange do not allow debit card payments. You will then be able to browse the range of currently available property investments:
Investing
Once you are registered on the platform and signed in, click on Exchange in the menu at the top of the screen and all current projects will be displayed. Here are a couple that are showing at the time of writing…
Clicking on any of these will open a page devoted to the investment concerned. Here you can read all about it, view reports and site plans, and so on. One very important area is the Order Book (see example below).
All buying and selling on the platform is conducted via an exchange (otherwise known as the Order Book) which works similarly to the secondary market on Property Partner.
So if you want to buy shares in a particular project, you can do so by accepting the best price currently available on the exchange. In the example above, there are £4,895 of shares available at zero discount (i.e. the original offer price).
If you want to get your shares at a lower price than this, you can make a bid. In the example, an investor has put in a bid for £75 at a 1.04% discount and another investor (or maybe the same one) has put in a bid for £154 at a 2.08% discount.
Conversely, if you wish to sell some or all of your shares at any time, you can accept the best bid (or bids) on the Order Book currently, or place an offer and wait to see if this is matched.
It does take a little bit of getting your head around at first, but it’s actually a simple and straightforward process. One thing to note is that if there is nothing showing on the right-hand-side of the Order Book (under Offers) you won’t be able to buy shares in that project there and then – though you can of course place a bid if you wish and see if a seller wants to match it.
In any event, if you want to buy, just click on the green Buy button (either on the Exchange page or the details page) and complete the short online form. You will need to indicate how much you want to invest, whether this should be from your General or IFISA account (see below), and whether the amount should include the FCC or not (see What Are The Charges? below).
You will also need to indicate whether you want to buy at the current best price (selected by default) or you want to try for a better price (in which case your bid will be added to the left-hand column in the Order Book).
The IFISA Option
As mentioned above, if you wish you can invest with Assetz Exchange via an IFISA (Innovative Finance ISA). As discussed in this recent post, this type of ISA for P2P investing gives you the same tax advantages as a cash or stocks and shares ISA. You don’t have to pay any tax on the money you make, whether this takes the form of dividends, income or capital gains.
Everyone has a generous annual ISA allowance of £20,000 in the current 2020/21 tax year (and next year as well). This can be divided any way you like among the three types of ISA. So if you open an Assetz Exchange IFISA, you can still have cash and stocks and shares ISAs with other providers as well, so long as you don’t invest more than £20,000 in total. You can also only invest money in one of each type of ISA in any one financial year.
Choosing the IFISA option on Assetz Exchange is very easy. You can do it when first registering on the site or later. The only extra thing you have to do is enter your National Insurance number.
If you have maxed out your ISA allowance – or have already invested in another IFISA in the current tax year – you can still invest via your default ‘Regular’ account. You can invest any amount this way, but of course any profits you make will potentially be taxable.
What Are The Fees?
Assetz Exchange do not charge any monthly fees to investors (this is in contrast to Property Partner, who made the unpopular decision to impose an Assets Under Management charge and monthly fee, greatly impacting small investors on the platform especially). The company does have to make money somehow, of course, and they do this from three sources:
Arrangement fee
When a property is first purchased, Assetz Exchange charge an arrangement fee which is included in the Fixed Costs & Contingency (FCC). When parts of the property are sold on the Exchange, this fee is added to the purchase price of the buyer (see above) and so is recovered by the seller. The size of this fee is included in the loan conditions.
Monitoring fee
Assetz Exchange charge a percentage of the gross rent received for the property. The percentage is stated in the loan conditions of the property.
Property disposal fee
A fee of 2% of the gross sales proceeds is charged if investors vote to sell and the property is physically sold.
What Are The Safeguards?
Like most other property crowdfunding platforms, all investments in any project on Assetz Exchange are held in a Special Purpose Vehicle (SPV) for the project concerned. This gives investors in the project some protection if the main company were to go into administration.
A contingency balance is held within each SPV which acts in a similar manner to a provision fund, covering unexpected short-term cash-flow disruptions. It is topped up from receipts and no distributions are made to investors if it falls below a certain level.
SPVs also benefit from indemnity insurance which covers non-payments from tenants. This in theory also covers disruption to cash-flow, but it does not cover voids (periods where the property does not have a paying tenant). For reasons mentioned above, voids should not be an issue with most of the properties listed on the platform.
In common with most other P2P investment platforms, Assetz Exchange does not fall within the remit of the Financial Services Compensation Scheme (FSCS), which covers customers with UK financial services firms up to £85,000 if the institution in question were to go bust.
3. Low minimum investment (as little as 80p per project!) – this makes building a diversified portfolio straightforward.
4. Assetz Exchange take care of all the work involved in buying and managing properties. You just choose which ones to invest in.
5. Option to access money any time by selling on the secondary market (though this does depend on another investor being willing to buy your shares at a price you find acceptable).
6. Relatively low-risk investment options (though of course there are no guarantees)
7. Customer support (in my experience anyway) is fast, friendly and helpful.
8. Charges are reasonable. There is no charge for selling investments.
9. Potential to make money through both capital appreciation and rental income.
10. Rental income is paid into your account every month. You can either withdraw or reinvest it.
11. No monthly fees and only transaction-based charges to pay.
12. Opportunity to invest in socially beneficial developments such as sheltered housing
13. Tax-free IFISA option to which any investment on the platform can be added
14. Investors can vote for their favoured exit option (e.g. selling up) when the time comes
Cons
1. Can’t invest using a debit card
2. No auto-invest option currently available
3. Not as many opportunities as some P2P platforms (although the number is increasing steadily)
Closing Thoughts
I was impressed enough with Assetz Exchange to invest a small amount (£100) of my own money initially and will report back on PAS about how my portfolio fares. Here is how it’s looking at the time of writing, roughly a month after I opened my account. As you can see, my initial investment has grown by £3.87 from a combination of income received and capital growth. For a month that’s not bad at all – if it carries on growing at that rate I’ll be delighted! – but of course it is much too soon to draw any firm conclusions from this.
I particularly like the fact that with the low minimum investment on Assetz Exchange, even if you’re starting very cautiously (as I am) it’s easy to build a diversified portfolio. I like the relative simplicity of investing on the website and the fact that you can exit an investment any time via the exchange (though that does depend on willing buyers being available at a price that is acceptable to you). It is also good that there are no charges associated with selling on the exchange.
You can, of course, withdraw uninvested funds from your Assetz Exchange account at any time.
Obviously there are risks in any form of investing and it is important to do your own ‘due diligence’ before proceeding. You should also bear in mind that this type of investment is not covered by the Financial Services Compensation Scheme, which covers savers with UK banks and other financial institutions up to £85,000. On the other hand, the potential returns are significantly better than the fractions of a percent typically on offer from savings institutions right now, while the risks appear to be at the lower end of the spectrum, with many of the properties on long-term leases with corporate/institutional tenants.
To be very clear, nobody should put all their spare cash into Assetz Exchange (or any other investment platform for that matter) but in my opinion there is definitely a case for including AE within a diversified portfolio.
As mentioned above, I shall be reporting back on how my Assetz Exchange investments perform on PAS in future. In the mean time, if you have any comments or questions about this post, or Assetz Exchange more generally, please do leave them below as usual.
Disclaimer: I am not a registered financial adviser and nothing in this post should be construed as personal financial advice. You should always perform your own ‘due diligence’ before making any investment and speak to a qualified professional adviser if in any doubt how best to proceed. All investments carry a risk of loss.
Please note also that this review uses my affiliate links. If you click through and make an investment or perform some other qualifying transaction, I may receive a commission for introducing you. This will not affect any charges you pay or the product/service you receive.
If you enjoyed this post, please link to it on your own blog or social media:
FI Money (as I’ll call it for short from now on) is a self-published paperback of 222 pages (it’s also available as a Kindle ebook). It is organized into 28 main chapters plus additional material. I won’t list all the chapters here, but here are the first ten to give you a flavour of the content (and style).
Force yourself to smile
YouTube obsession
Your relationship with money
Overthinker
Understanding our ‘Chimp’ emotions
Goals written down
Crystal clear goals
Stress less
Mental training
How NOT to invest
FI Money is a personal account of one man’s journey towards financial independence (the FI referred to in the title). It is a self-development book, but as Peter says in the Introduction it isn’t the usual success story typically associated with such books. He says, ‘I am a work in progress, similar to a building under construction.’
The chapters are generally quite short. They are well written and broken up with bullet-points, headings, To Do lists, and so on. Peter focuses on different aspects of his quest for financial independence, with a particular emphasis on buy-to-let. As this is not something I have ever got into myself (apart from some investments on property crowdfunding platforms) I was particularly intrigued by this. Peter talks about his experiences with refreshing honesty and is not afraid to disclose some of the mistakes he has made along the way. If you’re thinking of investing in buy-to-let yourself, there are some valuable lessons to be learned here.
The book covers many other subjects as well, including property renovation, tax, investing, keeping records, and more. I particularly enjoyed Chapter 10 ‘How NOT to Invest’ which focuses on some of Peter’s less successful investments. These include Premium Bonds (like me he’s not a fan), Bitcoin and other cryptocurrencies, and a particularly ill-advised buy-to-let project early in his career. There are some salutary lessons to be learned from all this (and a few laughs to be had as well!).
In addition to the practical advice, FI Money has a particular emphasis on the psychological aspects of achieving financial independence – the money mindset, as Peter calls it. He is a firm believer in building your financial knowledge, but also adopting the right emotional and practical disciplines and carefully planning and managing your journey towards FI. There is a lot of food for thought in the book from someone who really has been on this particular journey himself (or at least is well on the way there).
As mentioned earlier, Peter also runs a personal finance blog called Duffmoney. This is well worth a read as well, and will give you a flavour of Peter’s style and his attitude towards investing and money matters generally.
As always, if you have any comments or questions about this review, please do post them below.
Disclosure: In common with many posts on Pounds and Sense, this review includes affiliate links. If you click through and make a purchase, I may receive a fee for introducing you. This will not affect in any way the price you pay or the product or service you receive.
If you enjoyed this post, please link to it on your own blog or social media:
The world is an expensive place, so it’s no wonder many people are obsessed with getting freebies.
However, when entering the freebie-hunting world it is important that you adhere to certain rules in order to make the most of it. This article will set out some top tips for novice freebie-hunters – and you may learn a thing or two as a seasoned freebie-hunter as well.
If It Sounds Too Good To Be True, It Probably Is
The excitement of (potentially) getting a freebie from a favourite brand can easily cloud your judgement.
According to Karen Newman at Mega Free Stuff, the majority of transactions have both an upside and a downside; however, when a transaction is free the downside is temporarily forgotten. ‘Free’ provides people with a strong emotional charge, where the individual perceives the item on offer to be more valuable than it actually is. This basically means that the person will set aside common sense if they are being offered a freebie.
Some companies are willing to give freebies, but fans of a brand are often willing to sell their soul (or at least provide all sorts of valuable personal information) in exchange for a minute sample. This is detrimental, and it is essential that you know how big the sample is and what exactly you will be getting. Be sure the freebie is genuine and always read the terms and conditions before applying for any offers.
If You Do Not Ask, You Will Not Receive
It is always worthwhile writing letters or sending emails to companies asking if they have any samples available for you to try. This may seem obnoxious and pointless to some, but those who complete this task have often received large boxes of free items or discount vouchers from the companies as a means of gaining feedback on their products. Furthermore, if you do not like a product, be honest about this. In many cases companies are happy to offer replacement freebies (plus an extra item) if their products do not meet with the user’s approval.
Do Not Expect Too Much
A full-sized freebie is a rare occurrence, with the majority of free products being delivered in small envelopes or tiny sachets. Of course, the primary goal is not to obtain a full-sized freebie but a free sample to see if you enjoy the product for a future purchase.
Furthermore, do not expect to receive all free items applied for. Even if you have claimed a free sample noted as available online, it is unlikely that you will get a 100% return. In fact, the most you can expect is approximately 70%. Do not give up hope and keep applying, and soon you will be enjoying masses of freebies. Once again, though, be sure to check that any freebie is worthwhile, and always read the terms and conditions regarding the size and number of samples.
Do Not Feel Guilty
While some individuals may feel a degree of guilt about asking for freebies, this is completely unnecessary. The company sending a freebie is not losing millions of pounds on the free products; in fact, they are benefiting from the free item. Think about it – for every sample sent out, there is the potential of a new customer. If you receive a free sample and like it, there is every chance you will make a future purchase of that product and might even become a regular customer.
Set Up a Second Email Address
One important – but often neglected – tip is to set up a second email address. To avoid receiving spam mail to your primary address, use this second address to claim freebies and enter competitions.
We have found an amazing competition here, where you can have the chance to win one of 20 Lindt chocolate Easter Eggs (see picture below). This competition ends on 1st April 2021.
Disclosure: This is a sponsored post for which I am receiving a fee.
If you enjoyed this post, please link to it on your own blog or social media:
In brief, Property Partner is a property crowdfunding platform. For the most part they specialize in ‘traditional’ property crowdfunding rather than loan or development finance.
Properties are bought and managed by Property Partner on investors’ behalf. Investors then receive a share of the rental income as dividends, and a share of any profits (plus return of their capital) when the property is sold.
Property Partner launched in January 2015. That date is significant, because after a property has been on the platform for five years, all investors get the chance to exit at a fair market price (determined by an independent surveyor). Due to the pandemic the five-year anniversary process was temporarily put on hold, but it is now proceeding again, albeit with delays as they work through the backlog.
How it operates is that in the run-up to the fifth anniversary of a property, all investors have the opportunity to say if they want to exit their investment at the valuation price or stay on for another five-year term (less than this if they subsequently exit via the resale market, of course).
All investors who have opted to leave will then have their shares pooled and put up for sale on Property Partner at the price stated. New investors are then able to buy these shares.
So long as all shares are sold, the original investors get their money (including any net profits) and the property continues under Property Partner’s management. If all shares don’t sell, however, Property Partner offer the property for sale on the open market. Investors then have to wait until the property is sold before getting their money back. As anyone who has been involved with buying or selling property will know, this is likely to take several months (quite possibly longer in the current circumstances).
The Opportunity
As Property Partner themselves have been pointing out, a number of properties that are coming up to their fifth anniversary are currently trading on the resale market at well below their latest valuation. Here is just one example:
This property in Tower Hill, London (not one I own shares in myself) is due to go through the fifth-anniversary process in April 2021 (or possibly a bit later due to the backlog). At the time of writing shares are available on the secondary market at a price of 91p, which is 28.28% below the latest valuation of £126.88. In theory, then, you could buy shares now and in the next few months sell up for a substantial short-term gain.
Of course, in practice it’s not as simple as that. Here are some reasons:
Nobody knows yet what the final five-year valuation will be. If it is lower than the current valuation (which is perfectly possible in the current economic climate) the net profit will be reduced, perhaps substantially.
There is no guarantee that the shares of all investors who wish to exit will actually sell on the platform. If they don’t, as mentioned, you could have a long wait before the property is sold on the open market. In addition, if this happens there is no guarantee that the property will sell at the valuation price. If it goes for less than this, your returns will be reduced accordingly.
There are platform fees to take into account. In particular, there is a 1% fee for buying on the secondary market and a further 0.5% stamp duty reserve tax charge. Thankfully there are no exit fees, though.
And finally, the number of shares available for any property on the secondary market is limited. Obviously the number you can buy depends on how many shares other investors want to sell at the price in question.
On the plus side, for the length of time you hold the shares you may receive monthly dividends at a rate between 1.5% and 6% per year (though dividend payments on some properties are currently suspended due to Covid). This will offset the fees mentioned above; but if you only intend to hold the shares for a few months it probably won’t cover them completely. Bear in mind that an Assets Under Management (AUM) fee is now deducted from dividends as well.
As an investor with Property Partner since almost the beginning (the cover image shows a property in Torquay I own shares in – I plan to retire there one day 😀 ), I am awaiting the five-year exit for my investments with considerable interest.
My personal circumstances have changed since I started investing with the platform, so I intend to take the opportunity to offload at least some of ‘my’ properties. Indeed, I have already voted to sell my shares in the first property I ever invested in with Property Partner (20 Phillimore Close) and am waiting to see how this pans out. I will update this post in due course once I know.
Nonetheless, I am still considering investing short term on the resale market to take advantage of the opportunity the five-year anniversary presents. In particular, I have already topped up my investments in some of the properties I already hold but am planning to dispose of.
I will, though, be cautious until I have a better idea how the first few five-year anniversaries have passed, so I can see if all shares put up by investors sell on Property Partner, or if they have to sell the properties concerned on the open market. As mentioned earlier, the latter route will clearly take longer and there is no guarantee what price would be achieved.
Would I recommend someone who is currently an investor in Property Partner to look into this? Yes, certainly. Whatever your current circumstances, you need to be aware of what is going on with any properties you hold with Property Partner. And if you wish to sell, you should definitely consider taking advantage of the five-year exit mechanic. Equally, if you have money available to invest, you could check out the opportunities buying now on the resale market – though do bear in my mind my cautionary comments above.
If you haven’t joined Property Partner, and you like the idea of investing some of your portfolio in property, the platform is certainly worth a look. As older properties come back on the market for new investors, there will be no shortage of opportunities in the months ahead. And my understanding is that, as the original costs of acquisition have been amortised, there will be less costs to cover from investors, thus boosting the potential returns from the properties in question.
In addition, as these properties have a five-year history already, you will be able to check how they have been performing in terms of dividends generated and capital appreciation. This is no guarantee of how well or badly they will do in the future, of course.
Take a look at my Property Partner review for much more information about the platform and how it works. Also, if you do decide to invest in Property Partner, there is a welcome bonus offer. For convenience I have copied details below from my review.
Welcome Offer
As an existing Property Partner investor, I can offer a special bonus for anyone joining via my link. If you click through this special invitation link, sign up and invest a minimum of £2,000 within 60 days, you will receive an extra bonus as follows (and so will I):
Not only that, once you are an investor with Property Partner, you will be able to offer the same bonus to your friends and relatives and earn commission yourself. There is no limit to the number of people you can introduce through this scheme.
If you have any comments or questions about this post, as always, please do leave them below.
Note: This is a fully updated version of a post published in 2019.
Disclosure: this post includes referral links. If you click through and make an investment, I may receive a commission for introducing you. This has no effect on the terms or benefits you will receive. Please note also that I am not a professional financial adviser. You should do your own ‘due diligence’ before making any investment, and seek professional advice from a qualified financial adviser if in any doubt how best to proceed. Be aware that all investments carry a risk of loss.
If you enjoyed this post, please link to it on your own blog or social media:
Today I’m discussing a subject that will be relevant to any of you who have blogs yourself or are thinking of starting one.
I’ve been blogging for almost twenty years now. I started off blogging about freelance writing and moved on to personal finance with Pounds and Sense. I make money from my blog by various means, but the most important (and lucrative) is through collaborations with businesses and agencies on sponsored posts, sponsored links, and so on.
Companies are always on the lookout for ‘influencers’ who can help get their message across to their target audience. They have budgets for this purpose, but before sending any money your way they will almost certainly want to see your blog’s media kit (also known as a press kit). If you don’t have one – or it’s not up to scratch – you can expect to lose out on many paying opportunities.
So What Goes Into a Media Kit?
As a blogger, your media kit is an advertisement for you and your blog and the services you can offer. It will typically consist of one or two pages you can send (or hand out) to anyone enquiring about potential advertising opportunities or collaborations
A good media kit will ensure you create a strong and professional first impression. Everybody’s media kit is different, but here are some things you should consider including in yours…
Biography
In this section you provide a brief account of yourself, including such things as your age, location, occupational background, hobbies and interests, family, and so on. Companies want to know whom they will be working with, to reassure themselves that you and your blog will be a good fit for their target audience. Let your personality shine through, therefore, quirks and all! You should also include a good-quality portrait-style photo of yourself (see the example in the header image).
Blog Description
In this section you talk about your blog itself – the subjects you cover, your target readership, and any other information that may interest potential advertisers. You may also wish to include your blog’s logo.
Stats
Advertisers want to know the size and nature of the audience you can deliver for them. So it’s important to share some key stats, including such things as total unique views, social media following, email newsletter subscribers, and so forth. Clearly you will want to pick the most impressive-looking stats – so if you don’t have many Instagram followers (for example) just leave that out. But don’t exaggerate either. Clients can and will check your stats, and if they don’t appear to correspond with the figures you have quoted, they are unlikely to want to proceed further
Collaboration Options
Here you list ways brands can collaborate or advertise with you. Some possibilities include:
Sponsored Posts
Sponsored Links
Product Reviews
Contests and Giveaways
Banner Ads
Social Media Campaigns
You can also include prices for these services in your media kit if you like. Personally I don’t do this, as I like to leave room to negotiate over price.
Testimonials
If you have worked for business clients before, I would strongly recommend including any testimonials you may have received. And don’t be afraid to ask for testimonials after a successful collaboration. This type of social proof provides invaluable reassurance for would-be clients that you can deliver on your promises and achieve good results for them.
Contact Information
The most important one of all! Don’t forget to include your contact details so that potential clients can get back to you. You will probably want to include your email address, phone numbers (home and mobile), postal address, and so on.
Media Kit Design
As a blogger you aren’t necessarily expected to have an all-singing, all dancing, media kit, but the smarter and more professional it looks, the better. Your kit should work both electronically (e.g. as an email attachment) and when printed out in colour.
Fortunately you don’t need to be a design guru to produce a great-looking media kit. There are lots of free and inexpensive templates available, which you can edit and personalize to your heart’s content. A great place to look for such templates is the Design Bundles website – just put “Media Kits” in the search box on that website.
Win a Design Bundle!
Here’s a great opportunity to win a media kit template and any other design resources you would like too 🙂
My friends at Design Bundles are running a giveaway to win a prize worth £100. This comprises a £50 credit for Design Bundles to use on Media Kit templates and any other products you’d like from them, along with a four-month premium subscription to Canva. As you probably know, Canva is a brilliant design website you can use to create a media kit and other amazing graphics for your blog as well. You can enter via the Rafflecopter widget below.
Anyone world-wide can enter. All fields are optional, so you can choose which ones you’d like to complete. But obviously, the more you do, the better your chances of winning.
The contest is open now and will close at midnight on Tuesday 26th January 2021. The winner will be contacted by the end of that week to arrange their prize.
Good luck in the giveaway, and with creating an attractive and compelling media kit!
As always, if you have any comments or questions about this post, please do leave them below.
Disclosure: This is a sponsored post for which I am receiving a fee.
If you enjoyed this post, please link to it on your own blog or social media:
In the past buy-to-let seemed a relatively easy way to make money.
So long as you had the capital – or were able to borrow it – you could buy a house, put tenants in it, and collect a steady income from rental payments, along with potentially a lump-sum profit if you sold up at a higher price later on.
In recent years, though, tax and regulatory changes have made buy to let less appealing – to a point where many wonder if there is still money to be made this way. So in my post today I want to address this question.
Let’s start, though, by looking at the upside…
The Attractions of Buy to Let
As stated above, property investors get a double benefit. They enjoy rental income from tenants for as long as they own the property, and also have the potential to make a substantial lump sum profit when the time comes to sell.
A further attraction of buy to let is that your tenants effectively pay off your mortgage for you. So if, for example, you are buying a £400,000 property, you might ‘only’ need to find a deposit of £100,000. As long as your tenants’ rental payments cover your mortgage repayments (with a bit to spare), after 25 years or so the mortgage will be paid off. You will then fully own a second property, having originally paid only a quarter of the full property price. And that doesn’t even allow for the prospect of capital growth. If your property eventually sells for £600,000, you’ll have made an additional £200,000 capital gain.
Of course, you don’t have to borrow to fund your buy-to-let. If you already have the capital you need, investing in a buy-to-let property will provide you with a steady income while the capital value of your property (hopefully) appreciates over time.
Buy to let can also be a good way of diversifying your investment portfolio. Rental income is relatively stable, especially if you have a number of properties and tenants. And property values aren’t directly related to the state of the stock market. So while property doesn’t provide a method for hedging your stock market investments directly, it can certainly help spread the risk.
Of course, property prices took a knock in the 2008 credit crunch and subsequent recession, and more recently were affected by the pandemic (though prices generally are on an upward trajectory again now). In the longer term, though, prices have been on a strongly upward trend since the 1970s. On average, house prices have grown faster in the UK than they have in any other European country.
There’s every indication that prices will go on rising in the coming years as well. The UK currently has a serious shortage of housing, caused by various factors. To start with, the UK population is growing rapidly. This inevitably means demand for housing will go on rising, thereby driving up the price of property. According to the Office of National Statistics there will be an annual shortfall of housing in the UK of over 100,000 properties each year for the next decade. This could mean a shortfall of one million properties by 2025 if current trends continue.
Various factors have combined to boost rental demand, including immigration, more people living alone, people moving around the country for work reasons, and rising house prices stopping first-time buyers getting onto the housing ladder. The latter is obviously challenging for young people, but it’s great news for landlords whose buy-to-let properties are being let extremely quickly, while their rental income keeps increasing. All of the above means that residential property can represent a profitable and attractive investment option.
What Are The Drawbacks?
One obvious drawback for anyone wanting to invest directly in property is that it’s expensive! And if you can only afford a single property, you are taking the risk of putting all your eggs in one basket. To mention just a few things…
There may be periods when you don’t have tenants (voids, to use estate agent jargon). At these times your property will be costing you money rather than making it for you.
Bad tenants are all too real and can be a nightmare for landlords. If they don’t pay their rent, it will take time and money to evict them. And that’s not to mention the costly damage to your property a malicious – or just careless – tenant can cause.
There will be maintenance and repair bills to pay. If something expensive goes wrong – the roof or the central heating boiler, say – the cost of the necessary work may wipe out several months of profits for you.
In general, being a landlord – at least, a responsible one – is a hands-on role. While you can outsource some aspects of managing your property to an agency (for a fee) you will still have to keep a watchful eye on your property and tenants to ensure that your investment is protected.
A further drawback is that property isn’t a liquid asset. Yes, putting your money in bricks and mortar gives you a degree of security – but if you need to access your capital urgently this may be difficult or impossible. Even if you’re able to find a buyer quickly, if the timing is bad you could end up selling at the bottom of the market and making only a small net profit or even a loss.
And there’s more bad news for buy-to-let investors. As I said earlier, legal changes over the last couple of years have made the whole buy-to-let process more costly and burdensome. For one thing, from April 2016 anyone buying a residential buy-to-let property (or second home) has had to pay an extra 3% in Stamp Duty. In some quarters this has been dubbed the Landlord Tax.
Another major legal change has affected landlords who use mortgage loans to purchase buy-to-let properties. Before April 2017 landlords were allowed to deduct all of the interest they paid on buy-to-let mortgages from their taxable income. In effect, that meant they paid tax on their net profit from rentals rather than their turnover. The government decided to change the rules, however, arguing they gave buy-to-let landlords an unfair advantage over ordinary homeowners. So from April 2017 landlords were only allowed to claim relief on 75% of their mortgage interest. From April 2018 that dropped to 50%, and it kept falling by 25% a year until it reached 0% in 2020. It was then replaced by a less attractive tax credit equivalent to 20% of mortgage interest (which was particularly disadvantageous to higher rate taxpayers). All of this has meant that borrowing money to fund a buy-to-let has undoubtedly become less attractive (and profitable) than it used to be..
Other changes affecting landlords have come in too. For example, from April 2018 all new tenancies and renewals have had to be rated ‘E’ or better on their Energy Performance Certificates, with fines of up to £5,000 for landlords who don’t comply. Most recently built homes should qualify for this rating, but landlords of older, less energy-efficient properties may have to spend large sums bringing them up to scratch. And, of course, this all adds to the administrative burden for landlords, even if it is ultimately helping to save the planet!
One effect of all this has been that some smaller landlords have decided that buy-to-let is no longer worth the effort for them, and they are selling up and moving out of the sector.
So Is There Still Money to be Made?
My answer to this is a qualified yes.
There is definitely still money in buy to let, but it is no longer the ‘one-way bet’ it might once have appeared. You should therefore research opportunities carefully and adopt a highly professional and businesslike approach to the whole process.
A key consideration here is ‘yield’. This is the net amount (rental minus costs) you can expect to make from a buy-to-let property per year, as a percentage of the purchase price. Yield can be compared with the interest rate paid on a savings account. By this means you can assess how profitable a buy-to-let opportunity is and whether it makes sense as an investment vehicle. Clearly, if the yield is less than you could get by leaving your money in the bank, there is not much point in investing this way.
The website Totally Money recently analysed data from nearly half a million properties across England, Scotland and Wales, to calculate the buy-to-let yield for each postcode. The results were eye-opening to say the least. They found that buy-to-lets in the top 25 postcode areas were still delivering excellent returns. At the top was Liverpool, where landlords can enjoy 10% yields. Falkirk (9.51%) and Glasgow (8.71%), both in Scotland, came second and third respectively. Even postcodes at the lower end of the top 25, such as Lancaster and Aberdeen, were returning respectable yields of over 7%. All of these are clearly far better rates of return than you could get from a savings account, and you will have an asset that is hopefully increasing in value as well (see below).
Location is therefore a key consideration for any potential buy-to-let investment and must be researched thoroughly. In addition, the best area for your investment will depend on whether you intend to put your money into flats for professionals, student accommodation, family homes, etc. At the risk of stating the obvious, there needs to be solid demand in the area from would-be tenants for the type of rental property you intend to buy.
Of course, while it’s very important, yield/income potential isn’t the only consideration for property investors. In the longer term you will likely be hoping for capital growth as well – so ideally you should be looking to invest in properties in up-and-coming areas rather than those in long-term decline.
Getting Started
Having weighed up the pros and cons, if you do decide that buy-to-let is right for you, here are some top tips to get you started…
Speak to a professional independent financial adviser to discuss your plans. They will help you decide how much to invest and the level of return you should realistically be aiming for.
You should also speak to a mortgage broker to find out what deals are available and ideally get approval in principle for a mortgage. This means you will be well placed to make an offer as soon as you find a suitable property.
If there is a particular area you are considering, visit several times to get a feel for the place. That applies especially if it’s a location you’re not already familiar with. Check out the housing stock, public transport, car parking, shopping and schools, hospitals, and so on. Try to speak to other landlords in the area and local letting agents to get an idea of the size and nature of the rental market and the sorts of rentals that may be achievable. Always remember that the bottom line for any buy-to-let investor is return on capital or yield.
Once you find a potential property (with or without existing tenants) research it carefully as well. Obviously before buying you will need to do all the usual searches and a structural survey. As with all property sales, you can expect this process to take several months to complete.
Arrange insurance for your buy-to-let. Along with the usual buildings insurance, you should almost certainly have landlord insurance to protect you from financial losses associated with renting out a property. This will typically cover such things as fixtures and fittings, public and landlord’s liability, subsidence, replacement of windows, locks and keys, and so forth. It will also normally cover malicious damage caused by tenants, along with rent arrears and legal expenses (though the last two may not necessarily be included as standard). You can compare landlord insurance here.
To find tenants you can either go through an agency or do this yourself. Obviously going through an agency will add to your costs but can save you a lot of hassle, especially if you haven’t the time (or inclination) to be too hands-on.
Even if you pick your own tenants – and perhaps already know them personally – draw up a legally-binding contract. That means everyone knows where they stand from the start and can help to avoid potential unpleasantness later on.
Review your buy-to-let mortgage arrangements regularly and be prepared to switch to a better deal when your current one expires.
Ensure that your rental income is declared in a tax-efficient way and set against any allowable expenses. A good accountant will be able to help with this.
Your accountant will also be able to advise you about the pros and cons of running your buy-to-let through a limited company. This comes with additional costs (and paperwork) but for landlords of multiple properties in particular the tax benefits can be significant – not least because you can claim all the interest paid on your buy-to-let mortgage/s against income rather than just 20%.
And finally, once your first buy-to-let is up and running successfully, consider adding more. Multiple properties will give you a bigger income and will also reduce the risk inherent in putting all your eggs in one basket (as discussed earlier).
In Conclusion
If you’re considering buy to let, I hope this article will have helped you make up your mind. There is undoubtedly still money to be made this way, but you do need to choose your location and property carefully, and approach the whole process in a professional and businesslike way. That applies from the initial planning stage right through to the day-to-day – and year-by-year – management of your property.
As ever, if you have any comments or questions about this post, please do leave them below. I would also be very interested to hear from any readers who have invested in buy-to-let themselves, along with any tips (or warnings!) they would like to share.
Disclosure: this is a sponsored post.
If you enjoyed this post, please link to it on your own blog or social media:
Today I’m highlighting a fun and free way you may be able to boost your income in 2021. And all you have to do is check the website in question once a day to see if your postcode is a winner!
Main Draw Each day one postcode is picked at random for this draw, which has the biggest prizes. The main daily prize – which I was lucky enough to win – can be over £1,000. When I had my own win, the prize was £1,200, though as one other person in my postcode area also claimed, the prize was split between us. So I got £600 plus a small bonus (explained below) – not a life-changing amount, but certainly a day-changing one 😀
Video Draw – To see the winning postcode in this draw, you first have to watch a short video. Though to be honest I find that you just have to watch the ad that plays first and the winning postcode is then displayed – you don’t have to watch the whole of the video unless you want to. This draw pays a minimum of £50, with the prize rolling over to the next day if not claimed. I have seen up to £400 on offer in this draw.
Survey Draw – To see if you have won this draw, you first have to complete a very short survey (generally just one question). As with the Video Draw there is a minimum prize of £50 and it rolls over to the next day if unclaimed. When I checked today there was a £300 prize, so it must have rolled over for a few days previously.
Stackpot – The Stackpot lists a variable number of postcodes with £10 prizes for those claiming them. When I checked this morning there were 14 prizes up for grabs and one that had already been claimed (it is first come, first served with the Stackpot).
Bonus Draw – With the Bonus Draw there is a daily £5 prize, £10 prize and £20 prize. To be eligible you need to have built up a Bonus (see below) equal in value to the prize in question by visiting the site regularly. So to qualify for the £20 Bonus Draw, you need to have accumulated a Bonus worth at least £20 yourself.
All lottery prizes are tax-free, of course, in accordance with UK gambling laws.
One is £5 Flash Draws. These appear at random on advertising spaces around the PMP website. They look like the sample image below. They appear to individual visitors at random. I have never seen one myself, but obviously it’s worth keeping an eye out for them. If you spot one, you just have to click to claim (it doesn’t matter about your postcode). The £5 prize is paid by PayPal as usual.
As for the Bonus, this is a sum of money that is added to your prize any time you win (with the exception of the £5 Flash prizes). It accrues over time as you visit the site. It increases by 1p for every new Main Draw, Survey Draw or Video Draw that you check. That may not sound much, but if you return to the site every day it soon adds up. My Bonus is up to £41.90 now!
If you wish, you can boost your Bonus even more by referring friends and neighbours and taking up some of the offers that appear on the site.
It’s important to note that you can’t withdraw your Bonus until you win a prize. But even £10 in the Stackpot or £5 in the Bonus Draw will qualify. So if I were to win a £10 Stackpot or Bonus Draw prize today, I would actually receive £10 plus £41.90 = £51.90. Another good feature is that your Bonus is added to your winnings every time you win a prize – it doesn’t reset to zero after a win.
I am not normally a great one for lotteries, but I make an exception for Pick My Postcode. As I said above, it’s free to enter, there are loads of prizes on offer, and the longer you go on playing, the bigger those prizes can become. And obviously, having previously won over £600 on the Main Draw myself, I know that it’s genuine and would love to win again!
Finally, if you still need further reassurances about the site, check out the reviews on the independent Trust Pilot website (average 4.8/5 stars, with 94% of people rating it ‘Excellent’).
As always, if you have any comments or questions about Pick My Postcode, please do leave them below.
Disclosure: This post includes my referral link. If you click through and sign up for free, I will receive a small commission for introducing you. This will not affect your potential earnings in any way.
If you enjoyed this post, please link to it on your own blog or social media:
