Despair Of Ever Investing In Property?

This post was written before the demise of Passive Investments.  Read The Latest Money Gym Statement Here>>>>

Every so often a wealth creation concept or different way of doing things comes along, that just blows my mind.

A few years ago, when I came across the way my mates Greg & Andy invest in property, my head nearly exploded with excitement, and I couldn’t wait to share their ideas with my readers.

However, Greg & Andy’s way of doing things does depend on three things

1.  A good credit rating
2.  A pot of cash to use over and over again for deposits / refurb
3.  Ability to get a mortgage (lots of “buy to let” mortgages still ask for proof of earnings)

Now this is great for a large majority of our Money Gym members and hundreds of them have availed themselves of Greg & Andy’s services, via Passive Investments or learned how to do it themselves, via Andy’s book.

BUT………..

I knew there was about 30% of our subscribers who couldn’t “do property” the Passive way, or even buy their own home, due to

1.  No pot of cash
2.  No credit rating
3.  No proof of earnings

Now, I know that there are several other ways to make money from property, without having to buy any yourself, but sadly people just seem to give up at that point, and don’t go on learning about what makes a good property deal, if they haven’t got even one of the above three things in place.

So you can imagine how delighted I was when I met David Lee, via Tamkin Riaz, at the last World Internet Summit.  I really think that the heavens were conspiring that night, because I had met David several times before, but never really fully grasped what he did.

On this occasion, I ended up sitting next to him, his wife and son, in the pub, and out of politeness really, asked him again to tell me what he does…..an hour or so later, I still didn’t really get it, but dimly grasped enough to realise that it was a totally different way of making money from property, and to tell Judith we should invite David to speak for The Money Gym.

In January David did a VERY powerful presentation – and he would be the first to admit he’s quite new to public speaking – and his concept and content blew us away.

Can you imagine being able to make money from property without needing a deposit, a mortgage or a good credit rating?  Where you are not competing with all the “below market value” boys, and where you are not only making big chunks of cash, but helping two sets of people?

Let me repeat that……where you are making what we in the Money Gym call “life changing sums of money” while helping two sets of people.

A geniune win/win/win situation.  It takes a bit of a mind-shift, a bit of a leap of faith, and access to some minor cojones to get started, but if you are open-minded and determined…….

I tell you now, this is dynamite stuff.  Judith and I both love it!

Several Money Gym clients signed up on the spot and we have all been working our way through the materials – the detailed “how to” workbook, the many hours of audio with real people, case studies, and student stories.  I have rarely seen a better put together home study course and the backup support from David is superb.

David is doing a presentation soon, and there will be a very special guest there – Rick Otton.

Rick is the guy who learned how to utilise this way of making money from property, firstly in the USA, then Australia, and he mentored David to make it work here.

I have no idea where Maidenhead is, but, if you have despaired of every becoming a property investor, but you want to be, I suggest you get your map out and make your way there pronto!

http://tinyurl.com/574rzb

Don’t delay, places are limited and David’s last events in Ealing and Manchester sold out very quickly.

Take action now and I personally promise you, you will be amazed!

http://tinyurl.com/574rzb

Wealth Coach Diaries: Nicola’s Week

Are you panicking about the property market?  Or just about the economy generally?  I was watching the news last night and right next to the headline about the awful building conditions of schools in China, a major contributory factor in the disaster out there, I spotted one that said “Banks pull the plug on buy-to-let landlords”.

So I went looking for it this morning.  Found it on Google of course at at The Times Online.  Here is just a snippet of this “good-times” article…By Lauren Thompson and Grainne Gilmore. 
 
“The era of the amateur landlord has all but ended, with banks effectively refusing to lend to new entrants to the buy-to-let market. Thousands of existing landlords also face huge increases in the cost of remortgaging, experts said yesterday. The warning came as HBOS, Britain’s biggest group of lenders, imposed the third increase in the cost of residential mortgages in as many weeks. Cheltenham & Gloucester, the fourth-biggest lender, also increased some of its rates for the second time in three weeks. First-time landlords, including parents eager to buy a house for their student children, will now find it almost impossible to enter the housing market. Lenders have stopped offering buy-to-let loans or severely tightened their lending criteria for prospective landlords and many of the existing one million buy-to-let mortgage holders approaching the end of their terms.

The development comes as senior figures in the housing industry predict up to two years of declining house prices. The problems in the buy-to-let market are compounded by fears that the target of many would-be landlords – apartment blocks in cities such as Birmingham, Manchester and Cardiff – are facing a rapid decline in their value.

Katie Tucker, of the broker John Charcol, said: “After another week of turmoil in mortgage markets, novice landlords now face huge difficulties securing a loan, and thousands of existing landlords coming to the end of fixed-rate deals will find it very hard and very expensive to switch mortgage providers if they have not built up at least 75 per cent equity in their buy-to-let property.” This week Abbey withdrew virtually its entire range of buy-to-let mortgages, leaving only an expensive fixed-rate deal of 6.99 per cent for direct customers…..”

READ MORE HERE >>> (if you can bear it!)

Notice they are talking about amateur landlords (none of our Money Gym-ers can be called that), about how new build are going to be worst hit (we always steer our cleints well away from over-priced new builds) and I have to ask what on earth any self respecting landlord would be doing getting their buy-to-let from a high street building society – really, I have no idea…………

However, the “Related links” section included “Housing gloom: the silver lining” and if you need cheering up you can read that one here where David Budworth says

“A falling property market does have some benefits! The storm clouds looming over the housing market grow darker every day. But for some aspiring homeowners there could be a silver lining, with bargains emerging as asking prices tumble and sellers become ever more desperate to get properties off their hands. It takes courage to buy at a time when some commentators are predicting that house prices could fall a further 15 per cent. Even Britain’s biggest lenders and surveyors, which have an interest in talking up the market, now admit that they expect property prices to fall. Asking prices for properties new to the market were down by an average of 0.1 per cent over the past month, according to Rightmove.co.uk, the property website. In some regions the slide has been even more severe: in the North West prices fell by 1.4 per cent and in London by 0.9 per cent. And it could become much worse. David Miles, chief economist at Morgan Stanley, the investment bank, says that up to 1.2 million people – one in ten homeowners – could be pushed into negative equity, where their mortgages are greater than the value of their property.

As the gloom spreads, though, bargains are beginning to emerge. Michael Holt, of Charterhouse Standard Holdings, has been buying residential property on behalf of private investors for more than a decade and says: “We are spotting some great bargains. Even if the market continues to struggle in the near term, buy and hold for five or ten years and you will almost certainly make a healthy profit.”

Now, if you study all that carefully you will see that, again, there is hardly any fact, but plenty of opinion.  On the one hand “some commentators are predicting a further 15% fall, whereas in some regions the “severe slide” has been 1.4% in one month……even multiplying that by 12 months, I can’t get it to make 15%. 

The average fall has been 0.1% which on a property of £200k means a drop of….ooooohhhh…..£200 on value.

Read more..

Wait To Buy Property? Or Buy Property & Wait?

Nicola says: I received an interesting email this week from one of our Money Gym members and I was intrigued enough to pass it onto our resident property gurus to get their feedback.  I would welcome comments on the blog on this one too, from you experienced property investors out there….just click the “comments” link at the bottom of this posting.

“Dear Nicola, I was talking recently to a dear friend who has until recently largely ignored property investing although she has always made money in her own home buy buying cheap, doing up beautifully, selling on and doing the process again.

I have a dilemma, in that, because she is my oldest friend and has seen me through many ups and downs, financially and otherwise, she largely discounts anything I say about money, budgeting, equity release, debt etc., which is both annoying and hilarious!  So, since I joined the Money Gym, I have tried not to get involved in talking about it all with her.

However, she has a new man in her life, who is quite keen on property property investing and so they are obsessed with property now, and they talk about all the time.  They are currently holding cash, tracking specific properties on spreadsheets, and waiting to invest on the South Coast.

I am thrilled about it all obviously because it will sort out their futures totally!

However, Y keeps talking about the market having dropped 15% in our area, (I agree that prices have slipped back a bit as people are panicking –but 15% ????!!!) and the so-called property crash coming which he feels very strongly will make prices slip another 10-15% in the next six to twelve months.

This will make a total devaluation in our local market of over 30% according to him – £54,000 off a flat originally valued at £180,000 – and I can’t believe that is right because I know from my Money Gym learnings that prices only went down by 3% overall in the UK, even in the worst crash we all remember, in the late 80’s / early 90’s.

Obviously I know that this means some areas rose, some fell but the average over the whole country was 3%.

Y & C keep saying, they don’t want to buy something for £150k which was on the market for £180k three months ago, if it’s going to slip back to £130k in the next few months.  They keep quoting examples like this although they haven’t talked to any vendors that I can tell -  just agents.

By the time they buy a property, a year or two will have gone by, and all my Money Gym training says that this is a mistake – as Andy Shaw says “You don’t wait to buy property, you buy property and wait”  but they are having none of that!!

My thoughts are that the property they are quoting at £180k was overvalued three months ago, and if it’s now being offered for £150k it’s probably a very motivated seller too, and it’s pretty unlikely to go much lower.I also feel that it’s not an indication that all properties at £180k are now selling for £150k and are then likely to go down to £130k.

However, I can’t seem to find the arguments for why they should just get on and BUY ONE!   I tried telling them that, “consistently in this country property rises by 10% per annum, more than 10% in the South East” and “every year you wait to buy a property of £150k you are losing £15k in appreciation by waiting a year….”

It’s been bothering me that I can’t counter their arguments for waiting, even though I feel instinctively there is something awry with this argument, and I wondered what all your thoughts are on the whole topic?”

Inside Track Seminars Kerput!

In the wake of the news that the Inside Track Seminar company (not apparently the property arm) has gone into recievership (something Andy Shaw predicted would happen months ago) and the news that mortgages are getting harder and harder to find unless you have a GREAT track record.  However, with 30,000 new rental homes being needed every year for the next 10 years, the market is growing and this is a short term blip according to pundits. 

Tighten your belts, for the next 12 months, watch Andy and Greg’s free videos and EDUCATE yourself about what makes a great buy to let.

Here’s some excellent tips from the superb This Is Money website:

1. Do the figures stack up?

The traditional criteria with buy-to-let was to save a deposit of at least 15% and ensure that rental income would cover monthly mortgage repayments by 125%. As it got harder to meet these restrictions, many lenders eased them. This has shifted buy-to-let from a business based on steady rental income, to one where potential landlords gambling on house prices rising to deliver capital growth.

But the restrictions existed for a reason – to make sure landlords could cover gaps between tenancies, income exceeded bills and give room for rate rises.

Read more..

Buy To Let Booms!

The Lettings market has seen annual growth rising to 2.5 million tenants in the last 10 years, and government statistics point to the need for a further 30,000 units PER YEAR for rental, for the next decade reports wwwPropertyToday.co.uk .

That means there are three hundred thousand – 300,000 – new rental properties needed in the UK in the next decade.

Could your property portfolio contribute to this rental housing crisis?  What should you buy?  How can you get started?  What pitfalls should you avoid?

It’s all here in this amazing series of three short videos about getting started in property investing.

In these videos Andy & Greg cover everything you see on this screen (just click to read) and much much more, like how property is essentially free (even your own where there is NO tenant paying for it) 

http://viralurl.com/moneygym/passivedvd

Get Property For Free

Did you get chance to check out the video “interrogation” video of the 2 UK Multi-millionaires – my mates Greg and Andy – who I mentioned in my previous email?

http://viralurl.com/moneygym/passivedvdmg

I have seen them present their business many times, and I was amazed when, watching this again (coz I love some of the stories and jokes!) I realised something completely NEW because it was described in a different way again.

Sometimes we need to hear something many times in a different way, before we get it, or before it moves from the place where we say “Oh! I know that….” to the place where we can say “Oh my gosh, I really GET that now!”

For me, this time, it was – in Section 2 or 3, I can’t remember which one now, where Andy was talking about how property is essentially free, and I thought great, he’s going to explain how, if you put some money into a property then you are able to pull it out again, then that makes it free.

O no!  He went on to say something I have heard him say before BUT IN A TOTALLY DIFFERENT WAY and I really got it this time.

It’s about how, if you buy a house for say £200,000, and you have an 85% mortgage of say 6% (interest only), and you are paying £10,200, or £850 a month, and you live in it (so there is no tenant paying your mortgage), then your property is still totally free.

The interviewer, Rob says, but how CAN it be?

And Andy replies “how long have you had your house Rob?” and Rob says 15 years.

Andy asked (and I’m remembering the figures here so may have them slightly off but not much – watch for yourself!!)

What did you buy it for (£46,000)

And what is is worth now? (£170,000 or thereabouts)

And what have you paid in mortgage?  Rob says £300 a month.

So Andy says…..

Read more..

Genius Property Investing

A great example of the stirling support Silver and Gold members of the Money Gym Club enjoy was shown on a recent exchange between members of our private Money Gym google group.

One of our Money Gym (Gold) members was pondering whether to sell her existing house or let it out, having found her dream cottage in the country.  She realised that selling and buying more 1 bedroom flats would be financially better in the long run, but the effortlessness of letting her existing house, and buying the new one with money pulled out of the existing one, which would then be paid by the new tenant, was very appealing.

She laid it out thusly to the group:

Hi everyone

I have a situation on which I would most welcome any comments, advice or insights. I have decided to move house and have found a property. I have to decide whether to sell my house or alternatively keep it, obtain a buy-to-let mortgage and rent it out. I currently have a mortgage with a draw down facility. This mortgage is portable so I could move this to the new property (unless they were unhappy about me keeping existing property with BTL re-mortgage???)

The advantages and disadvantages I see are:

Read more..

Property Crash? Andy Shaw comments…

PASSIVE INVESTMENT UPDATE:

This post is an old one obviously but it gets a lot of traffic from the search engines.  The news that Passive Investments have gone into liquidation is shocking for everyone.  Read The Latest Money Gym Statement Here>>>>

The Post Previously Read:

I knew Andy Shaw wouldn’t be able to resist on the dreadful headlines about the property market for long, and I was not disappointed.  If you can’t believe a man who, with his partner Greg, has built up a property portfolio worth over £30 million, then who can you believe eh?  Andy says….

“I was doing some research the other day for our business Passive, and I was asked to find some research from a recognised professional that backed up my argument about the fact that the country is not over geared despite what the media says.

Well here’s quite a good one that I thought you’d like too -
http://www.guardian.co.uk/business/2008/jan/12/housingmarket.houseprices

Martin Ellis is the chief economist of Halifax and he is stating that the property market is now worth £4 trillion, which is three times the UK’s annual output. And it shows household debt at what is commonly thought to be a staggering £1.3 trillion.

Now I have been trying to say that for years but never got round to looking for the figures to back up what I was saying. So, really basically, if you look at the country as just a person, it is worth £4 trillion, and has £1.3 Trillion of debt

So our mortgage and household debt, cars, loans, credit cards, the lot, gears us as a whole to 33% of our equity.

Can you tell me what loan to value the banks consider virtually zero risk lending?

Well different banks view it in different ways. Allied Irish view 70% as virtually zero risk, while Nationwide view 65% as virtually zero risk. Some banks go down to as low as 50% before they view it as virtually zero risk. But we as a population are at 33%, which is well below the risk criteria of even the most conservative of banks.

What does this say to you about the way the media and the government view the extraordinary high levels of consumer debt? It says to me: scaremongering. ……

Read more at Andy’s site >>>>

Discover How Two Men Turned £10k On A Credit Card Into £37 million Plus, In The UK, In Just A Few Years….
	Our mate, Andy Shaw. Property Genius & Thoroughly Good Bloke!
CLICK HERE NOW - DON’T MISS OUT !!

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