Two Deadlines End 30 June - How Will They Affect You?

Two Deadlines End 30 June - How Will They Affect You?

·        Stamp Duty holiday ends, long live tax on property buyers!

·        Wednesday 30 June is the deadline for most European Union (EU) citizens to apply to live permanently in the UK as settled residents.

The Stamp Duty exemption for homebuyers paying tax on properties which cost £250,000 or less is coming to an end, much to my solicitor’s relief! He will need a real holiday!

Wales temporarily raised its threshold for land transaction tax (LTT) during the pandemic from £180,000 to £250,000, in line with other UK governments.

The exemption, originally to March 2021, was extended to 30 June.

Some homebuyers have saved thousands by completing sales within the deadline, but others are set to miss out for various reasons including legal or mortgage delays.

From 1 July, stamp duty will be charged above £250,000 at the following rates:

·        £0-£250,000 = 0%

·        £250,001-£925,000 = 5%

·        £925,001-£1,500,000 = 10%

·        £1,500,000+ = 12%

On 1 October 2021, rates are due to return to normal. That means the point you to start paying stamp duty will revert to £125,001:

·        £0-£125,000 = 0%

·        £125,001-£250,000 = 2%

·        £250,001-£925,000 = 5%

·        £925,000-£1,500,000 = 10%

·        £1,500,000+ = 12%

You can use the government's Stamp Duty Land Tax (SDLT) calculator to find out how much you would pay.

Will there be a slump in the market?

In truth, nobody really knows when the property, or stock market, will peak, but we do know that bull runs usually last 10-12 years and we have already passed that deadline. Governments around the world printing trillions of dollars have prevented a slump and recession, so far. An estate agent friend of mine, who has just had her best quarter ever, said she is concerned that people who wanted to buy this year have done so already.

EU Settlement Scheme Deadline

The take-up of the European Union Settlement Scheme (EUSS) has been huge - but there are serious concerns that thousands of people have still not sought to register. Anyone who is not registered loses their legal right to live in the UK.

What is the EU Settlement Scheme?

The EUSS was launched in March 2019 to register EU citizens as settled residents in the UK.

This is a follow-on from Brexit, which ended freedom of movement and the right of people from the EU to come to the UK - and for UK citizens to go the other way.

More details - https://how2cometotheuk.blogspot.com/2021/06/eu-settlement-deadline-30-june-2021-how.html

By the end of May 2021, 5.6 million people had applied for the scheme - far more than expected (it was estimated in March 2019 that there were 3.7m EU nationals in the UK).

How will this affect UK residents?

The BBC reports that a shortage of skilled trade workers has developed as European Union migrants leave the UK and demand for home improvements rises, according to the founder of Homeserve.

Chief executive Richard Harpin said the shortages were "pretty bad" across the country, not just in construction but in other trades too. He wants the government to put more trades on its jobs shortage list.

The hospitality sector is also experiencing staff shortages, so you might have to wait a little longer for your latte.

In the long run, importing cheap labour does not help the economy and we should be investing in more training to upskill the resident workforce, especially if they are unemployed and drawing benefits.

The laws of supply and demand dictate that when there is a shortage, prices rise. We will all be paying more for trades people, and the price of materials has also shot up.

It has become almost impossible to find handymen, plumbers, builders, electricians and other workers since the lockdown when thousands of EU workers handed back the keys to their landlords and flew home. With so many people moving, everyone is busy, which is exactly what the government wanted to achieve with the stimulus.

Would you like to get into property, but have no money or don’t know how? Book a free consulation with me now.

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Superstar Investor Mohnish Pabrai on Buffett & Munger, Value Investing and Pabrai Funds

Great advice from a superstar investor who, like Buffeett and Munger, recommends low cost index funds like Vanguard for the average individual investor. 

#monishpabrai #warrenbuffett #investing 

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Fraud Alert! Warning Investment Scams Increasing, How To Protect Yourself

Action Fraud figures show that victims of investment fraud lost at least £657m in 2020, as scammers preyed on financial vulnerability caused by the coronavirus pandemic.   

There are different types of investment fraud, the most common involve shares, bonds, cryptocurrency and commodities such as wine, fine art and diamonds. Fraudsters contact you unexpectedly, promise generous returns and may say that the opportunity is time limited. They downplay the risks to your money. They call you repeatedly and keep you on the phone a long time in order to build your trust, stop you speaking to other people or having time to think about the offer.

The second stage of these frauds is known as a Recovery Fraud where victim details are passed onto other fraudsters who try to take yet more money.  They say that they have been appointed to help and ask for a refundable upfront fee. They often use the details of cloned companies ie genuine companies whose details have been hijacked, in order to reassure investors.  Reports of ‘clone firm’ investment scams increased by 29% in April 2020 compared to March, when the UK went into its first lockdown.

How to avoid investment scams

Reject cold calls. If you’re called about an investment opportunity, the safest thing to do is just hang up.

Check an investment opportunity using the Financial Conduct Authority (FCA) Warning List online tool.

Check that the investment company is on the FCA Financial Services Register.

Don’t feel pressurised or rushed into making a decision. Always seek advice before investing, ideally from an Independent Financial Adviser who is authorised by the FCA.

If you’re not sure whether a scheme or investment offer is a scam, contact the Citizens Advice consumer helpline on 0808 250 5050 for advice. Report a fraud to Action Fraud on 0300 123 2040.

A increase in cyber-fraud across the world means that we all need to learn how to spot and avoid different types of fraud and cybercrime.  

An emerging tactic used by fraudsters is the ‘spoofing’ (cloning) of telephone numbers. A decade ago, anyone receiving a suspicious call could look up the number that was calling them to check its legitimacy. No longer is this sufficient advice.

Fraudsters can now clone numbers used by legitimate organisations, your local bank, HMRC, or even local police station, to make it look like that organisation’s genuine number is calling you.  The fraudster claims to be from that organisation and tries to convince you to do what they say.  This means you cannot rely on your Caller ID display to tell you who is calling you.

Protect yourself:

Beware unexpected phone callers, whoever they claim to be. If in doubt, never divulge personal details over the phone to someone who has called you. The more you say to a fraudster the more information they have. Don’t be afraid to hang up. Contact friends or family for advice.

Don’t trust your caller ID display to verify a call, contact the genuine organisation using a number that you have independently researched. Before doing so, ensure the call has ended and the line has cleared, wait five mins (Some scammers can simulate the sounds of lines clearing to dupe you into dialling while the line is still live), or make the call via a separate phone line where possible.

Institutions such as HMRC, police and banks will never call you to tell you that you/your money is under investigation; nor would they ever ask you to transfer or hand over money/assets for such a purpose.

Report all scams online to www.actionfraud.police.uk or call 0300 123 2040 giving as much information as possible.

Financial education and literacy is not taught in schools, which is why most people are in the dark when it comes to personal finance and are forced to rely on financial advisers.

If you enjoyed this and found it helpful, please like and share with your friends and follow me on social media to give more people free value. 

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Immigration Matters: Broke immigrant to millionaire!

Immigration Matters: Broke immigrant to millionaire!: During the last 20 years, I’ve met thousands of successful people have who migrated to the UK, but the person sticks out in my mind is someo...

What Are NFTs And Why Should You Be bothered About Non-Fungible Tokens?

What Are NFTs And Why Should You Be bothered About Non-Fungible Tokens?

 

In March 2021 Artnet News reported the sale of a piece of NFT digital art by Beeple’s which sold for $69 million at Christie’s auction. The artist, whose real name is Mike Winkelmann, jumped to number three on the list of most expensive living artists at auction.

 

An NFT, or Non-Fungible Token, is a type of digital asset, like a representation of piece of physical art or music, that you can own and trade, typically for between $40 and $200. A fungible asset in economic terms contains units that can be readily interchanged - like money. A non-fungible asset is a unique one-of-a-kind asset, like a work of art.

 

NFTs are bought and sold online, often with cryptocurrency, and they are encoded with the same underlying blockchain software technology as many cryptos.

 

So why would anyone want to own a digital asset, effectively a photograph of a piece of art, when they could take a photograph themselves?

 

Firstly, this new creative enterprise goes far beyond owning a photo of a painting. And let’s face it, millions of people buy prints, which are copies of original art, to hang on their wall.

 

Entrepreneur and influencer Gary Vaynerchuk said NFTs and the blockchain technology around them as something that will influence everything we do on the Internet.

 

Gary compares blockchain technology to the early stages of the internet when people thought that it was just a search engine or an online encyclopaedia.

 

I remember about 15 years ago reading an interview with Lord Sugar, who made his fortune manufacturing Amstrad computers, describing ordering something online as a waste of time and commenting that it would be quicker to go to the shop and buy it!

 

In the future, Gary predicts people will carry around digital wallet containing digital assets, ID and personal records and currency.

 

One wonders how many people will be left behind by the pace of change. Governments are concerned about the number older and poorer people unable to access essential services because they are not online or do not own a smart phone.

 

With the growing demise of the traditional High Street travel agent, it will soon be difficult to book a fight unless you have internet access.

 

Banks are trying to phase out cash and Sweden is one of the first countries to move towards a cashless society. Central Bank Digital Currencies (CBDCs) are already being planned in major countries and the EU.

 

The increase in speed of new developments in technology means we have to continue to study and keep ourselves up-to-date. This doesn’t mean going back to school or university, although I would recommend formal or vocational study if you want to change careers, and you could just involve 30-60 minutes a day reading online, listening to podcasts or researching videos on YouTube.

 

I read a statistic many years ago that only 10% of people do any further study after leaving school or university. Is it a coincidence that those who do study tend to be in the top 10% income bracket? Brian Tracy said that reading for 30 to 60 minutes a day will make you an expert in your field within six months and could get you to degree level within 2 to 3 years.

 

If you enjoyed this and found it helpful, please like and share with your friends and follow me on social media to give more people free value. 

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Breaking Property News! Renting A Home Is Cheaper Than Buying For First ...

Renting A Home Is Cheaper Than Buying For First Time In 6 Years

With low interest rates and high rents, it has long been assumed that it is cheaper to buy than rent. But the tide has turned thanks to soaring house prices and lower rental demand, especially in the city centres.

According to leading estate agents, Hamptons, it has become cheaper to rent a property than buy a home for the first time in more than six years.

The estate agency research reveals that prior to the pandemic in March 2020, people buying with a 10% deposit would have been £102 a month better off than renters.

Last month, figures showed that the average private sector tenant was paying £71 a month less in rent.

This applies across the UK apart from four areas where it is still cheaper to buy than rent: the North East, North West, Yorkshire and Humber, and Scotland.

In May last year, rental demand dropped as younger adults and European workers returned to live with their families during the pandemic and work and leisure restrictions made city living less attractive.

Back in early 2020, it was cheaper to buy than rent in every region in the UK.

London's sees the biggest shift since the start of the coronavirus pandemic.

Hamptons reports a 7.1% rise in average rents over the past 12 months, but also a strong house price growth coupled with increases in higher loan-to-value (LTV) mortgage rates have added to the cost of buying and owning a home.

This means a typical first-time buyer will find it cheaper to rent than buy on a monthly basis, with a monthly average of £1,054 spent on rent compared with £1,125 on mortgage repayments - the first time since December 2014 that renting has been cheaper than buying a home.

Plummeting rents there mean a buyer putting down a 10% deposit on a property in the capital will have gone from being £123 a month better off buying in March 2020, to spending £251 a month less on rent in May 2021, the report said.

There are many other financial and practical factors which potential first-time buyers will consider when deciding to rent rather than buy, or vice versa, which are not captured in this research.

In the long term, it is nearly always better to buy than rent. Rents will rise over time, whereas mortgages are paid off with ever devaluing paper money.

Buyers do pay for repairs and maintenance, but will benefit from long term growth and future equity in their property.

One major reason private renters want to buy is the long term security of tenure. Fear of buy-to-let landlord eviction, for instance when they want to sell the property, is obviously stressful for tenants.

Where and by how much is it cheaper to rent, than buy?

·        Greater London - £251 cheaper

·        South East - £54 cheaper

·        South West - £108 cheaper

·        East - £117 cheaper

·        East Midlands - £98 cheaper

·        West Midlands, £35 cheaper

·        Yorkshire and the Humber - £5 more expensive

·        North West - £4 more expensive

·        North East - £72 more expensive

·        Wales - £11 cheaper

·        Scotland - £130 more expensive

Source: BBC, Hamptons

Property Investing Secrets - Discover the ultimate beginners' guide to property in 2021 With my friend and property expert Kevin McDonnell.

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This free, live online training will provide you with knowledge, tactics, and strategies for identifying great deals, knowing which of the easy strategies to use, and getting the cash profits out fast - both now and every year!

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How To Build A Secure Future And Avoid A Bleak Retirement Without Workin...

The baby boomer and millennial generations are facing an uncertain future with job insecurity and drastically reduced state and private employer pension benefits.

How can you avoid ending up living your retirement days in poverty?

There are a number of steps you can take, but it starts with your mindset and habits.

Change your spending and saving habits.

How? Changing a long-held habit is easier said than done, right?

Not something you can easily do by yourself.

The answer is to get help and guidance instead of trying to do it all alone.

Take a course or programme, get a mentor or a coach.

What’s the most effective, proven way to lose weight?

Join a weight watchers’ class or group. Why, this will give you education, support and accountability.

What’s the most effective, proven way to quit smoking, drinking or drugs?

Enter into a programme, class or group.

Millions of people ‘try’ to lose weight, quite drinking or gambling on their own, but most fail and go back to the same old habit.

That’s why organisations like Alcoholics Anonymous and Gamblers Anonymous have been going for so long because they have helped millions of people change a habit through a combination of coaching and mentoring and learning.

Want to get fit or a six pack? Get a personal trainer.

Want to improve your golf swing? Get a coach, like all the best players do.

Do you want to improve your financial situation?

Do you want to stop making the same mistakes that got you to where you are today?

Do you want to be financially free and retire early?

Get a Money Mastery Coach.

A Money Mastery coach can help guide you through the financial maze and show you a clear path to financial freedom without the pain of trial and error.

These 3 Money Secrets Will Make You Wealthy Without Working Any Harder

Are You Fed Up Struggling Financially?

Firstly, I just want to thank you for taking the time to join me today. Money problems are one of the biggest causes of stress and relationships breakdowns. I can remember my parents having some almighty rows over money!

I’m Charles Kelly and for 25 years I worked as a Financial Adviser helping thousands of people solve their money problems. I was successful, but it wasn’t until I discovered the secrets to mastering money that my clients started achieving amazing results.

I’m also the author of three books including, “Yes, Money Can Buy You Happiness” and “Borrow and Grow Rich”.

I’m going to uncover 3 money secrets and a simple system for truly mastering money to help you start building real wealth and ultimately live the life you truly deserve.

Secret 1: Your Money Mindset has got you where you are today – not the economy, the government or your parents.

It’s far more about what’s in your head than in your pocket.

Most people have been programmed to think that “money is scarce” and hard to come by, that you have to “work hard for money” or you “need money to make money” – Not true!

Some of us are programmed from an early age by our parents. My dad would say things like “we can’t afford it”, “money doesn’t grow on trees” and “do you think I’m made of Money?”!

This language creates a ‘scarcity mentality’ which can stay with us for the rest of our lives unless we take action to change our mindset, our language and habits.

In my early life, I constantly struggled with money. I was making a good salary, but no matter how much I earned, I never seemed to have enough!  

I would fall behind on my bills and have creditors chasing me. Being broke is no way to live, which is why I wrote Yes, Money Can Buy You Happiness.

Then I discovered a mindset shift that turned my finances around. Once I learned this, I started accumulating money and have never been broke since. 

So, it’s not how much you earn, but how you manage it that counts.

Making a lot of money alone will not make you rich!

I’m sure we all know people who have made and lost fortunes, as I discuss in my book.

Secret 2: You can’t improve what you cannot measure. 

The next step is to take stock of where you are right now. Most people have no idea of how much they spend.

Think of yourself as a business, even if you are an employee.

Make a list of all your current commitments, income and regular and variable outgoings. Then list your assets and liabilities – your balance sheet – to calculate your ‘net worth’. You can do this on a spreadsheet or on a notepad. Then, repeat this every month and start balancing the figures monthly like any solvent business should do.

Secret 3: Focus on building your net worth.

The rich buy assets, which appreciate in value, and build their net worth over the long term.

The poor spend their money on liabilities, which go down in value, and rarely if ever build assets and net worth.

I haven’t got time in this short presentation to cover everything - which I go though in my book and SMART MONEY MANAGER courses in more detail.

But I hope these simple mindset shifts and steps alone will open your mind and set you on the road to prosperity.

If you enjoyed this and found it helpful, please like and share with your friends and follow me on social media to give more people free value. 

I’m offering free discovery coaching calls to three people this week. Message me if you’re interested or email charles@charleskelly.net

UK Property Boom Continues As House Prices Soar By 10.9% And Sales Forecast To Rise To The Highest Level Since The 2007 Market Peak

Wow! During the worst recession on record, British house prices jumped by an annual 10.9%, the most in almost seven years, and they look set to rise further as people search new homes after the pandemic, one of the country’s largest mortgage lender the Nationwide said.

Almost 70% homeowners considering a move said they would still go ahead even without the unlikely extension of a tax incentive by Chancellor Rishi Sunak, Nationwide said, according to a survey it conducted in late April.

The latest figures demonstrate the scale of the surge in house prices which hit a new record high at an average of £242,832, according to Nationwide, which whilst not the official Land Registry data is widely respected by the industry.

Nationwide added that house prices were 1.8% higher than in April.

Nationwide said there was scope for annual house price growth to accelerate further in the coming months, given how weak the housing market was in early stages of the pandemic.

However, if unemployment rises sharply later in 2021 - when Sunak's jobs protection programme is due to expire - there was scope for activity to slow, perhaps sharply, it said.

Official data from the Office for National Statistics has shown that house prices in March jumped by just over 10%, the largest annual rise by that measure in nearly 14 years – prior to the 2007 peak and later property and stock market crash.

Not all areas are booming and parts of London are seeing sharp price reductions on flats.

Coastal hotspots - in Devon, Cornwall and Dorset - have seen house prices rise by as much as 48% in a year as people ‘escape to the country’!

One million Britons fear losing homes when eviction ban ends - as up to 400,000 tenants have already been served notice or told to expect it due to unpaid rent over pandemic, The Daily Mail reports.

The tenant eviction ban expired on 1 June, which could see thousands of people with rent arrears evicted by bailiffs.

·        Ban lifted meaning bailiff-enforced evictions can take place from now

·        Government introduced ban to support renters through the pandemic 

·        Charity says that 400,000 renters have already been served with eviction notice

·        A further 450,000 households are in rent arrears according to research

The Joseph Rowntree Foundation said 400,000 have already been served with an eviction notice or told they may be evicted and a further 450,000 households are in arrears with rent, JRF said. 

In practice, possession claims leading to eventual eviction could take 6-12 months to go get through the county court system, which is already overloaded with all manner of legal cases.

Over 60% of buy-to-let landlords own just one property and many of whom are paying mortgages with little or no chance of recovering thousands of pounds of rent arrears built up during the lockdown.

Other news

The UK is likely to further restrict overseas travel taking Portugal OFF the ‘green list’

Apple wants staff back in the office by September.

If you enjoyed this and found it helpful, please like and share with your friends and follow me on social media to give more people free value. 

I’m offering free strategy coaching calls to three people this week. If you’re interested, email charles@charleskelly.net