Looking To Invest? Spread The Risk To Maximise Your Return

This is a collaborative post.

If you have a lovely little nest egg sitting patiently accruing interest in your savings account, that may be enough to satisfy your need for your money to work for you. However, if that shockingly low interest rate is sending you spiralling into depression, you need to do something about it. There’s no safer place for your money than in a savings account. But, is it the best place to witness your nest egg growing? Every day people are choosing to withdraw some of their hard earned cash to find different investment avenues. These are inevitably more risky, but they are also more lucrative leading to a bumper nest egg and a more comfortable future.

When you look into investment options, you may decide a route down property lane, forex street or stocks parade. However, you don’t have to put all of your eggs into one financial basket. It’s more prudent to spread the risk to mitigate any investment failures that may arise, and to ensure that at least one of your investment options is fruitful. If you are keen to take a dabble in more exciting but riskier financial entities, read on to ensure that you maximise your profits.

Mark Finn
Property

The world of bricks and mortar has been described as safe as houses when it comes to making money. Hundreds of people every week are choosing to make a foray into the property world as a side hustle while keeping their full time job. They may have been seduced by the daytime TV shows that make it seem easy to buy a house at auction, renovate it and sell it for a profit. Or they might enjoy the idea of gutting a derelict home, remodelling it and selling it on for a lucrative profit. Or they could be one of those amateur investors who likes to think of themselves as a property mogul in the making.

If you are motivated to invest some of your hard earned cash into property, it’s vital that you do your research. It doesn’t matter whether you are flipping a profit to make a quick buck or whether you are holding onto your asset and letting it out, you must try and purchase at the optimum price. Too steep, and you could find yourself in negative equity. Ensure that you future proof any purchase by buying a pad in a well to do area. Sure, you could opt for that up and coming area, but it may have been up and coming for the past decade. Head online and check out the property market history for the area you are looking to buy. With any luck, the houses will have been increasing in value every year for the past five. If this is the case, then buy.

Check out crime statistics, commuter links, and schooling options. If these come up smelling of roses, you will appeal to young families, professionals and retired couples alike. It’s vital that you purchase in a sound location with decent future prospects. This way, you are mitigating the risk to your investment.

If you like to think of yourself as a potential landlord, consider letting out your dwellings. You might like to purchase a flat or two in prime commuter belt country to appeal to young professionals. Or you might prefer to secure a couple of suburban three beds to appeal to the young family market. It doesn’t matter what property you choose, you must consider your responsibilities as a landlord. You need to be on hand to sort out leaky pipes, a broken oven or a faulty alarm. If your full time job already requires you to work all hours God sends, it might be wise to look into securing the expertise of a property management services company who can maintain your property for you. You won’t have to worry about being woken at two in the morning with a panicked tenant on the end of the line worrying about a flooding issue; you have outsourced this worry to somebody else.

When it comes to renovating a pad to sell, make sure you don’t get too personal with your fixtures and fittings. Remember this is a business. You might adore the bright red kitchen cabinetry and the magenta pink bathroom suite, but the chances are that your buyers will wince. Instead, opt for a more neutral palette. Yes, this might be boring and make every creative muscle in your body spasm when recoiling in horror, but at least your potential buyers will be able to put their own stamp on the place. Set yourself a budget and stick to it. Don’t overspend on frivolous things that aren’t needed. No one buys a house for the hot tub out the back. Set yourself a contingency and list every job that needs doing. By doing this, you can work out your optimum profit and sales price to ensure a lucrative return on your investment which will give you enough readies to pump into another investment option.

Chris Liverani
Forex

If you fancy a dabble in the trading sphere but don’t know where to start, consider taking a look at the Forex trading market. Plenty of amateur investors take a punt on this exciting way to make money. You will have to speculate to accumulate, and this option is risky and not for the faint hearted, but the rewards can be astronomical.

Begin by opening a dummy account on one of the many Forex trading platforms. This is completely free and you will be using pretend money while you are in a practice mode. Here, you can attempt to learn the art of buying Yen against the Dollar, and selling the Pound against the Renminbi. Monitoring the markets and working out how and when to sell to maximise the currency you have is tricky. There are algorithms to learn, history to study and financial forecasts to ponder. However, if you have enough time on your hands, you do your research and you enjoy getting stuck in to learn a new skill, you can make a small fortune.

After you have spent a month or two with your dummy account, and you are starting to make dummy profits, it might be time to have a real go. This time you will be using your hard earned cash so start small and build up your profits. Try and quit while you’re ahead and reinvest the fruits of your labour elsewhere. If you are struggling with a dummy account, and you are finding yourself in the red, don’t even attempt to take the plunge for real. Your skills may be better suited elsewhere.

Bitcoin

Many people will be aghast that this is even suggested as an investment option, especially with the downturn of the cryptocurrency market. However, buying when the virtual currency is low can have its rewards. Investing in this highly volatile and unregulated realm shouldn’t take up your whole investment portfolio. You may want to purchase only a tiny portion of one bitcoin and see how your investment plays out over the long term. This can be done. Tread cautiously, and only ever invest what you can afford to lose.

Kym Ellis
Wine

While most people consider wine as a delightful tipple to partake in at the weekends after a particularly stressful week at work, it can also make a sound addition to your investment portfolio. You might be keen to study the most sought after vintages and buy a case of Rioja in the same way as you would a painting by a highly regarded artist. Keep hold of it for a decade or more, keep it stored in a cellar, and keep an eye on the market. Wines tend to get better with age, more scarce and more expensive.

Get The Professionals In

If you are struggling to work out how to spread your money across investments, it might be time to get an investment manager or financial advisor on board. These professionals make a living out of investing other people’s money wisely. While they will take a small percentage of any profits that you make, this will keep them motivated to ensure that your money pays you back handsomely.

You can discuss with your advisor the sorts of risks that you are willing to take. As such, they will come up with a strategy, with usually a mixture of low, medium and high risk investments. You could find yourself investing in a small startup in silicon valley, a crowdfunding initiative or in the shares of a FTSE100 company. Trust your advisor but keep an eye on your investments. It is your money, so ultimately you are responsible for its fate.

Investing across a spectrum of options is the safest way to ensure that you mitigate risk and maximise your return. Keep some of your cash in your savings account, but select other avenues down which to invest your money. Do your research, use this guide to inspire your investment options and prepare for your financial future.

Ways To Build Up Your Credit Score

I don’t know you but I find credit scores bizarre things. I understand why they drop when you have a high amount of debt and aren’t paying it off but I also find it crazy that if you manage to pay it all off, it also drops for a little while. My credit score is currently not too great so I was thinking about ways to build it up.

Make sure your name is on the electoral roll

If you want to get credit in the future, your name needs to be on it.

Pay Off Your Debt

If you cut down your debt, then your credit score will increase- but as I mentioned before, don’t pay off all in one go as this will cause it to drop down too. Pay it off steadily and as debt goes down, your score goes up. Make extra money wherever you can to wipe out your debt as quickly and as steadily as you can.

Rebuilding your credit itself may be worth trying.

You could choose to use a credit rebuilding card or perhaps a loan for those with bad credit such as CashLady – but only take these out if you can keep to the repayments. These will often be higher interest than those available to people with better credit but they are great for helping you build up your score if you are making regular repayments and not missing any payments. You can pay way over the minimum repayment if you like – as long as you are paying it off regularly, it will help boost your score.

Artem Bali

Check for errors

If you have errors on your credit report, you will want to get them removed. Checking on a regular basis means you will spot them quicker.

Pay on time

My final point to building up your credit score is to make sure you are paying bills on time. I know it can be hard to juggle everything, especially when finances are super tight, but if you are determined to get your score up, then you need to make sure those bills are getting paid on time. Selling old stuff, getting a second job, taking on overtime – do what you can to keep up with everything and you should reap the rewards when it comes to your credit score.

These are a few ways you can build your credit score – do you have any suggestions?

Collaborative Post

How To Make Big Money With Property

Perhaps you have been saving for years, and you’re now ready to put your hard earned money to good use, or maybe you’ve struck lucky and found yourself with some extra cash – either way, property is undoubtedly something to consider investing your money into. While it may not be the most straightforward way to grow your capital, it indeed allows for great profit potential. Here are some tips on how to make big money with property.

Begin with your home

Do you really use all of your home? Maybe you are an older person living in a house that once accommodated your family, but now they have grown up and flown the nest. If you have spare bedrooms, you could very well turn your home into flats. You could split the house up, keeping a flat for yourself, while renting the others out. This is a sure way to release some equity, as well as a great way to begin a property development portfolio, supervising the development in the comfort of your own home.

Seek young professional tenants

A great way to ensure profit is through tactical accommodation. A great example of this could be developing a flat for shared accommodation, targeting young, professional people. The best way to achieve this is through developing to a high quality while keeping the rent lower. This transforms the property from a single occupant paying one rent, to several occupants paying a fair rent each, drastically increasing your capital.

Purchase flats instead of houses

In the majority of cases, flats generate a better return than houses when buying-to-let. Not everybody agrees with this, and some hold their opinion on houses coming out on top. Despite this, there are some pretty good advantages but buying a flat that should not be overlooked. Some of these advantages include the purchase price being lower – meaning that you can buy more to increase your portfolio, the maintenance of the building is shared, and you can get significant discounts through bulk buying. All of these equate to better returns.

Partnering with professionals

It is imperative to partner with professional people who will aid you in your developments, taking on the bits that you aren’t qualified for, such as the logistics of the build, finances, and legislation. They must excel in their field in order to be an asset to you and your portfolio. Trustworthy and reliable partners are essential for a good profit and reducing the stress of development!

Diversify your portfolio

It’s very wise to cover yourself financially, in case the situation arises where you come across unexpected financial difficulty. This could be through a gamble on another property not playing in your favor. Providing that you have another development (or developments) that act as a fail-safe – shared student accommodation for example – you should be able to ride out the temporary strain, knowing that you have security through that property.

Jesse Roberts
Be wise with your tax

Ensuring that you are paying the correct amount of tax is essential when considering capital increase. While paying too much is a grievous error, it is not worse than having a massive surprise bill to contend with. There are plenty of ways to be savvier about your tax, understanding them and putting them into practice is a strong way to save money.

Be patient

Rome wasn’t built in a day, and neither will your portfolio be. Property investment takes time, effort, money and energy, and often the rewards will only seem prevalent after a period of time. Remember to weigh up advantages and disadvantages of investment beforehand, take into account that investing in property is long-term.                                                                          

Add value where possible

Simple steps like modernising and updating property can increase the value of your development, as well as making it more appealing to those looking to rent or buy from you. Other ways of increasing value to property includes having an extension done, to increase the size of the downstairs space, and loft conversions, adding another large bedroom to the property. Another way to increase value is through the addition of a second toilet.

Look for gardens

It is well known that properties with a garden return more than those without. Although having an outdoor space means a little more maintenance, people love fresh air and will pay to have this. Fresh air doesn’t just come in the shape and size of a garden though; it could be as simple as allowing for a small balcony for a first floor flat.

Consider rail links

This is an effortless way to make some money on property. Consider the current rail links in the proposed area, as this increases the value of property due to the trusty commuters. You can also get ahead of the game and beat others to it, by researching plans for future rail links in different areas and choosing to invest in these places instead. This way you could jump in before the property price booms and be smug (and better off) in your decision of looking ahead.

Know your location

When looking for property to invest in, it is sometimes better to keep to what you know – especially when it comes to the area. Although you may be tempted by what appears to be a steal of a property with lots of potential, but is miles away, consider that fact that you know nothing about the town or what it has to offer. There could be a valid reason why it is such a bargain! Instead, stick to where you are familiar. This way, not only are you close by if needed by a tenant, but you will also already have the important information regarding the surroundings of the property, which is required in order to make an informed and smart investment choice.

Whether you’re looking to make some money on your own home, ready to invest in other properties to grow your capital, or seeking to improve your current buy-to-let properties to increase your profit; property often equals big money.

Collaboration