Landlord, Welcome to the first ‘Landlord Insider Secrets - REVEALED’ strategy. Without a doubt, the number one issue facing landlords at the moment is maintaining a positive cash flow! How could it not be when it is ever-present in the news? Mortgage products have been pulled by the hundreds day-by-day and nearly all competitive rates have gone. The credit crunch has had two massive impacts on landlords: 1) It has stopped many landlords in their tracks from doing property investment deals as they can no longer get the finance. 2) It has knocked the cash flow for many landlords for ‘SIX’. What were once cash flow positive portfolios have now become negative. This is why I feel that cash flow has now become the number one issue for landlords. There is nothing more important, now, than ensuring that your cash flow stays positive. So, what steps can you take to maintain positive cash flow? Well here are seven tips! ONE: Don’t fall onto the dreaded variable rate! The first thing I would suggest is if you have fixed-rate mortgages (or any other kind of tie-ins), make sure that you are aware of their expiry dates; suddenly going from a fixed, competitive rate, say for example 4-5%, on to something closer to 8% could really stretch your finances! Setting up a reminder system to notify you of when your fixed rates expire will help to avoid unnecessarily high repayments. Start speaking with mortgage brokers and financial advisers about three months before your rate expires to guarantee that you are securing the best deal. During a recent event, I was able to speak to a mortgage broker who was also attending, and when I enquired as to how business was going with so many mortgages being withdrawn, his response was “Absolutely fantastic
Posted on: Wed, 28 Aug 2013 22:36:05 +0000
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