Manchester Welcomes New Builds Amid Property Boom

As Manchester overtakes London as the UK’s number one spot for property investment, its skyline is changing dramatically by the minute with cranes sprinkled across the horizon. New builds are cropping up in all areas across the city as Manchester blends fresh and innovative developments with refurbishments of historical buildings.

In property, there are three ways to invest your money. The first, is completed property. If you find a development that is already constructed and tenanted, you can invest in free units which are 100% completed. Alternatively, you could put your money into refurbished properties where old buildings are redeveloped into modern living spaces. Manchester is famous for literally building upon its heritage as an industrial centre by transforming old textile mills and derelict warehouses into trendy residential apartment blocks. However, there’s a third type of property investment arriving on the scene which is proving more popular than ever with investors.

Off-plan property refers to an investment in a development before its construction is complete. There are many benefits to off-plan property, including the fact that entirely new buildings are kitted out with the finest furnishings and appliances which attract 21st century residents. Investors are heading to off-plan shores where there are new units up for grabs with access to the best onsite facilities, and Manchester is top of the list for constructing brand-new accommodation.

There’s a massive undersupply of housing across the city where the population is accelerating rapidly into the future. Greater Manchester has a population of around 2.55 million with its urban populace alone set to rise to 535,465 by July 2018 using the average annual growth rate of 0.75%. The need for more accommodation is urgent with young people making a beeline for popular areas such around the city centre. Manchester City Council has collaborated with local developers to confirm a new wave of off-plan residential builds that will reshape the northern giant’s cityscape.

One major residential development near Spinningfields will consist of six interconnecting towers that will house over a thousand residents. The structures will become a landmark for the city, overtaking the famous Beetham Tower in height which is currently the tallest skyscraper in Manchester at 169 metres. Described as resembling islands of the sky standing at 67 storeys high, the towers will be part of a new £1.35 billion neighbourhood in Manchester.

Other exciting additions to the landscape highlight the UK’s powerhouse city as a destination for new build property. In a ground-breaking style of construction, gyms, gardens and work hubs are just some of the facilities onsite in most new off-plan properties and companies like RWinvest are keen to unite investors with properties offering such stand-out amenities.

With so many projects taking centre stage, Manchester is undergoing a property boom. Everywhere investors look, buy to let properties with high rental returns are emerging every month. The fact that Manchester combines such a prominent investment destination with an array of off-plan schemes means that buyers of property are inundated with lucrative opportunities across the city, and it’s now the case that most properties are fully sold out before even making it into phase two of construction.

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Should you Pay your Mortgage Off Early?

navy blue house

If you own a house, chances are you’ve considered making extra principal mortgage payments in an effort to pay your house off faster.  However, there are some pros and cons to paying a mortgage off early. I was always under the impression that when we were in a financial position to prepay pay the mortgage that we would.  Lately I’ve been reconsidering that, especially while we are in a period of transition with our finances.  Here are some of the factors I’ve been considering.

Better Investment Return

Many investment advisers and finance experts recommend that instead of making extra principal payments, the money is going to bring greater returns if invested instead.  A conservative estimate for stock market returns is around 7%, and if your mortgage rate is around 3-4%, you’re probably going to come out way ahead in the long run if you invest.  Of course, there are other factors to investing, but personally I think it would be a good idea to max out retirement account contributions (I like Roth IRAs at Vanguard) before trying to pay off the mortgage early.

Money is Inaccessible

A huge mental block I have is that any extra money you put toward the mortgage is inaccessible unless you refinanced or took out a home equity loan.  For that reason, I wouldn’t recommend that someone who doesn’t have a 3-6 month emergency fund pay extra on their mortgage.  I would get that emergency fund in place first and then go from there.

Home mortgage interest deduction

If you pay interest on your mortgage, you may be able to deduct the interest on your taxes.  Of course there are stipulations, one being if you don’t itemize your taxes it doesn’t help you. The home mortgage interest deduction is only valid for the amount you deduct over and above the standard deductionwhich is available to taxpayers who don’t itemize their returns.

Those are some of the cons for paying off your mortgage early. Here are some of the pros of paying it off early.

Guaranteed Return

If your mortgage rate is 4% and you make extra principal payments, you could look at it that any money you put towards the mortgage is saving you from paying interest, so you are “earning” 4% on that money.  Sometimes I have to think of things this way to have it make sense to me.  I remember when savings accounts were paying 5%! Those were the good old days.

Financial freedom

I think the biggest advantage to paying off the mortgage early is having financial freedom. Imagine not having to make a mortgage payment each month!  How amazing would that be? That would be a huge amount of money each month that could be put towards retirement contributions, kids college savings, travel funds, or whatever you wanted!  I hate debt and the thought of not having a mortgage payment feels like a dream.

Basically I think it all boils down to your personal financial situation. I don’t think there’s any harm in paying off a mortgage early if it is what you want to do.  I know I would sleep better at night knowing I didn’t have a mortgage payment, and that alone is priceless!  I feel like if you’re even thinking about paying off your mortgage early, you’re probably doing pretty well 😉

What’s your opinion on paying off the mortgage early?

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Credits Myths Debunked: Gospel or Porkies

Life is littered with myths, urban legends, fairytales and good old-fashioned gossip; the majority of which are unsubstantiated and have been perpetuated – and indeed, further fabricated – from person to person as the rumour mill gathers momentum. But then as we all know, hearsay makes the world go round, and for the most part is relatively harmless. That is, unless it stands as an obstacle to someone seeking help, especially of the financial kind.

There are individuals out there who perhaps need monetary advice and help when they get into a pickle, who won’t approach those companies who are dedicated to helping their financial cause, because they’re under the impression that certain omnipresent myths surrounding subject matters are gospel, as opposed to porkies. Pies that is, as in lies for the uninitiated. Successful cash loan firms such as Cash1Loans for example, exist to help those who have fallen on hard times pick themselves up, dust themselves down and start out on the road to fiscal recovery. Yet if would-be clients believe the bunkum they hear on the grapevine, who’s to say they ever reach out for assistance.

Thankfully we’ve set about separating the fact from the fiction beneath, by picking apart just a few of the most overheard myths which continue to do the rounds; in this particular instance focusing on personal credit and some familiar rent-a-quote statements you’ve probably been privy to on previous occasions.

My credit score is negatively impacted every time a third party checks my credit, right?

Wrong, give or take. If you’ve heard it once, you’ve heard it a million times before. The greater the frequency of you applying for credit, the bigger the hit your credit score will take as a direct result. Which isn’t exactly true you’ll be pleased to learn. Should you make tentative enquiries about a mortgage or car loan within a relatively short passage of time, then your credit score will remain largely unscathed. And that’s because the credit scoring system readily acknowledges that it might have to shoulder a few checks within an inclusive period, and pre-empting this (providing said enquiries are executed within a specified time frame) they usually tend to count as the single enquiry. Meanwhile checking your own credit score is a financially painless exercise too, as is when an existing creditor instigates a soft inquiry on their customer/you. Which they might trigger to determine their own risk at various junctures during an agreement.

Just as long as they receive their money, if I default on my repayments from time to time, it’s no big deal, is it?

You could look at it that way, but the chances are that if you do you risk losing more than you’ve ever gained. Although there might be times when it’s virtually impossible to meet pre-agreed payment deadlines, you should always try to, no matter what. Although if you can’t it may be worth have a word with the likes of Cash1Loans who’ll give you the SP on alternative, short-term funding means and much more besides. Essentially though this is no myth. If you consistently make late payments then your credit score will be compromised as you go forward as for your part you’re flouting the rules you signed up to in the first place. And no lender (current or future) will take kindly to this and moreover, continue to accept this. So be warned, than on agreeing to a lender’s terms and conditions, it’s your responsibility to adhere to your part of the deal until the end.

I’ve got credit cards coming out of my ears, so my credit score is impregnable, right?

Er, no. As while on paper this sounds like it should ring true, possessing a stash of credit cards does not necessarily equate to a bullet-proof credit rating. As you might be that someone is scraping minimum payments together, balancing one off against the other or simply that they’re clinging onto said cards due to not being in a financial position to actually pay them off here and now. If anything the opposite applies, in as much the more cards, the greater the perceived debt outstanding on them. Ergo the prospect of a more substantial debt could easily prohibit the debtor to acquire any new funding streams or extend the agreement they have in place. Picture it this way, if you’ve saddled with lots of credit cards and then require another loan, few loans company would even entertain the idea because the very first thing they’d do is question your ability to make these new repayments on top of existing debt.

I’ve heard that just so long as I keep paying minimum payments my credit rating will be fine

Then we’d question your sources if we were you then, as continually making minimum payments over a protracted period of time alerts potential new lenders that this may be masking a bigger problem behind the scenes. That being serious cash flow issues. Lenders want to observe histories of any outstanding debts being paid off, the quicker the better, so as to prove they have the ways and means. Always have and always will.

I guess nobody will give me any credit as I suffered with significant debt problems in the past?

Not entirely true. The further back in your personal history this event occurred the better, as after so many years your credit slate is wiped clean so to speak. Which effectively means that you maybe in a position to start over again, carefully rebuilding a credit rating. Unless of course you were declared bankrupt, which might hamper your plans for a lot longer.

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