Scot Iabankper

When I was first asked this question, my initial response was ‘of course they should be regulated’. This was partly driven by the fact that I find far too many people investing in buy to let property without doing the level of due diligence on a property that they would if they were buying a home.

I also think that people often believe property is more likely to deliver an investment return than a pension or other financial investment. Personally, I love property and feel very comfortable in being sure it will give me a return, but I also take advantage of financial investment products, specifically investing in a pension due to the tax breaks I receive.

Unfortunately some people are happy to buy a property to let out by handing over a cheque and full control of their investment monies to someone else to source and buy on their behalf. As a result, investors seem happy to have properties bought for them they haven’t seen, haven’t done any independent analysis on and just think they can trust people because ‘they liked them’.

Anyone that invested with Passive Investments recently and were badly burnt when they went bust, are probably wishing someone – for example a mortgage advisor or lender – would have made them carry out independent third party due diligence. And the ‘property investment’ system SHOULD have facilities to protect an investor, currently it doesn’t and this needs to change. If you want to invest in property and not do any of the work, including your own extensive due diligence, you do so at the risk of losing every penny you pay to a company and neither the FSA or the OFT seem able or willing to help you, so you are very much on your own!

Think I’m exaggerating? Then just pick up the phone to Paul Shamplina and his team at Landlord Action. They work on a daily basis with landlords that have handed money over to buy to let property sourcing or ‘armchair investment’ companies, and they spend their time trying to get money back that landlords have lost.

So the question is, would regulating buy to let mortgages help this situation? And to answer this I researched a number of repossessed properties to identify if there are lots of buy to let landlords being repossessed because they were lent money when they perhaps shouldn’t have been?

Buy to Let Mortgage Repossessions
Currently statistics from the Council of Mortgage Lenders (CML) show that repossessions aren’t actually that high and are typically less than the homeowner market, which is expected to have around 48,000 repossessions in 2009 versus 1,600 new buy to let repossessions and 2,200 properties in possession in Quarter 3 of 2009.

In 2008 there were 1,157,000 buy to let mortgages of which 26,700 (2.31%) were over three months in arrears and of these, 7,900 had a ‘receiver of rent’ acting on behalf of the lender. Only 2,300 properties were actually repossessed. This represents less than half a percent of all buy to let mortgages ending up in repossession.

In 2009 things did get worse, and in Quarter 1, of 1,164,300 mortgages, 35,600 (3%) were in arrears for three months or more and of these 9,200 had a ‘receiver of rent’, while repossessions jumped up to their all time high of 2,500 in Quarter 2 of 2009. However, Quarter 3 revealed that over 12,500 properties were having their rent transferred to the lender rather than to the buy to let landlord, and this figure has risen from a low of 400 in Quarter 3 of 2006 which is a rise suggesting that there is a growing problem, albeit still only accounting for 1% of all mortgages.

According to Michael Coogan, Chief Exec of CML, the majority of these repossessions were made because the owners lost their job – not because of any bad advice or lack of due diligence on behalf of the lender or mortgage advisor.

So, therefore based on repossessions, the cost versus the benefit of introducing buy to let regulation is unlikely to prevent future repossessions.

There is one thing though that these numbers ignore and that is how many buy to let landlords will be able to cope with the mortgage payments when the interest rates return to ‘normal’ and investors have to manage mortgage rates of 5%-7%, particularly when the average rental return for property according to the Findaproperty Rental Index is only 4-5%.
However, it’s not just the number of repossessions that should decide whether buy to let mortgages should be regulated, so our next articles look at the pros and cons of regulating mortgages from my view, the lender’s, legal and wealth management perspective.

Gold prices are on the up, but that’s nothing new. Since 1982 gold has increased in value by a staggering 220+%, and most of that increase has been in the last 10 years. The price per ounce on the 7th of May 1999 was £172.84 but for the same amount of gold ten years later in 2009 you would have expected that same ounce to sell for around £606.43. That’s a phenomenal increase in value by anyone’s standards.

If you have thought about investing in gold, then you’re not the only one. With its rising prices it’s clear to see why. Investing in precious metals like silver and gold bullion is one of the smartest investments that you as an investor could make, and it is the number one choice for many investors looking to play it safe. If the value of traditional investments causes you concern as their values can fluctuate from day to day then play it safe with an investment that, based on the current trends, will only continue to make you money.

Gold, as it stands represents security. It retains its buying power and has intrinsic value with absolutely no counter party risk. Meaning that whatever happens to the financial system, gold will do nothing but hold its value throughout the world.

The price of gold has always been and will more than likely continue to be greatly affected by the assumed perception of the global economy. When onlookers are worried about the prices of currencies or the risks that might pose a threat to growth investments, they will more often than not turn to gold as the standard “safe money” investment. Paper money on the other hand doesn’t have the same confidence associated with it.

Let us not forget that unlike paper money, gold cannot be printed in a mint, if stocks are low no more can be made. Once all the gold in our world has been mined, that’s it. No more. Stocks of gold are becoming increasingly limited everyday, and as the quantity amounts available continue to fall, the prices continue to rise. The cost of extraction alone contributes greatly to the rising costs, it was estimated that in 2005 it would cost (on average) $400 to extract just one ounce of gold.

High demand pushes up prices of any goods, and gold is no exception. Because of the special properties it holds It is used in the medical industry, for science, even home appliances. I bet many people have at least one component cable for a TV set and peripherals that has gold plated connectors. Silver too is used heavily in the electronics industry. For example; nearly all electrical switches, mainly those found on printed circuit boards (PCB’s) use silver-based solder. Just think about all the electrical items in your home that could have solder connections containing some silver, your iPod, your mobile phone the computer you are reading this on right now. Nearly half of the worlds yearly silver output is used by the huge electronics industry. Silver coins or silver bullion bars would add an added touch of diversification to your precious metal portfolio. It is always said that where there is gold, silver isn’t far behind. Both metals share a lot of the same properties and both are metals that are continuing to rise in value.

World central banks keep stock piles of gold as a store of value which performs as a guarantee to redeem promises made to pay depositors, paper money holders, trading peers or simply to secure a currency. For example, Britain once had 700 tons of gold reserves (395 tonnes of which were sold between 1999 and 2002 with the proceeds invested in foreign currencies, one of which was the euro). The United States of America currently has the highest amount of gold with over 8,100 tonnes stock piled.

Gold, surprisingly, is also used to make gold coins. Said coins are issued and created in specific weights. Gold coins are popular with people who are looking to buy and keep hold of small volumes of gold for investment purposes. The initial cost of these coins will not break the bank. Gold coins are also given as commemorative purposes which gives the best of both worlds there as they have a high collectable value as well as a value for the gold itself.

If you are looking for that long term investment then it is advised that you consider spending some time looking into the current prices of gold and how it has increased in value over the last decade. Gold charts will show you this information and tell you exactly why it is a good idea to buy gold as soon as possible. Just remember that gold is often considered the most lucrative long-term investment.

Now a days in the Indian Stock and Commodity Market lots and lots of Fraud Advisories are giving their calls and for their selfish ends they are just wasting the money of their clients in two ways. First they are charging a handsome amount as their fees and then they are providing such calls which are dumping the money of their clients in the well. Is it ethical to play with the money of your clients? It’s a famous quote for the private sector companies that “Client is God”. But some companies for their selfish motives are providing the customers with their Fraud services and believe me such organization which are not built up on ethical foundations don’t go anywhere but always remain at the start point whereas their competitors run ways ahead of them.

CapitalVia Global Research Limited is the leading investment advisory of India which have been built up on ethical foundations and have taken the oath of providing the Best Quality services to their client which always brings them profit. A happy client is the most satisfying results for a company and CapitalVia have many of them. They don’t speak for themselves but their services speak for them. They provide the best Stock tips and Commodity tips for the Indian Stock Market and nobody in the same domain of services is ahead of them.

The CapitalVia family is blessed with the best Technical Analysts who have more than 5 years of experience and are superb at the analysis of Indian Stock and the Commodity Market. In this volatile Market it’s not easy to give an accuracy of more than 90% in the advisory services but they are doing it. Also, all the calls which they provide give the best profit in the market to the clients. So not only is the accuracy is best but also the profit margin the each and every call of CapitalVia give is far more than the other advisories. No wonder the number of clients of CapitalVia is increasing day by day.

The clients get best calls, best support and best profits and that’s what they want. The support team is always eager to help out their clients and to solve their queries whatever time is it. The new services which they always launch from time to time are some of the best in the market which help the clients to take the online help. What a client has to do is just login to their website and get in touch with the support team of CapitalVia for their instant help. What else can a trader ask from an Investment Advisory?

Just a few months back they launched a service named KYS (Know Your Stock) for which a trader have to only add cvlevels to their Google Talk and take FREE services of CapitalVia KYS where he can come to know all the trading levels of a particular stock or commodity. And the best about this service is that it’s totally FREE. Also before becoming the client of CapitalVia you can avail a FREE trial of 2 days to get satisfied with their services.

So what are you waiting for? Login to www.capitalvia.com and start making huge profits by taking the Best Stock Tips and Commodity Tips for your Trading.

This week, I’m going to focus on a simple strategy that uses the PEG Ratio for determining a company’s undervaluation or overvaluation. Let’s first start with a definition. A PEG ratio is simply the: P/E Ratio divided by the Growth Rate.

A value of 1 or less is considered good (at par or undervalued), while a value of greater than 1, in general, is not as good (overvalued). Once again, the PEG Ratio is simply the P/E Ratio divided by the Growth Rate. Many believe this ratio tells a more complete story than just the P/E.

A company with a P/E Ratio of 25 and a Growth Rate of 20 would have a PEG Ratio of 1.25 (25 / 20 = 1.25). While a company with a P/E Ratio of 40 and a Growth Rate of 50 would have a PEG Ratio of 0.8.

Traditionally, investors would look at the stock with the lower P/E Ratio and deem it a bargain (undervalued). But looking at it closer, you can see it doesn’t have the growth rate to justify its P/E.

The stock with the P/E of 40, though, is actually the better bargain since its PEG Ratio is lower (0.8), implying it’s undervalued with more potential value. (Undervalued in relation to its projected growth rate.) . In other words, the lower the PEG, the better the value because the investor would be paying less for each unit of earnings growth.

So for this week’s screen, we’re going to use the PEG ratio to find value.

Buying a Plano home can be long, often frightening and complicated and it is important to be prepared for the process. Knowledge gives you power when it is time to negotiate a home price and a mortgage. For the first time home buyer, there are many factors to consider before you write an offer to buy. The more information you have before you start looking for a home the better off you will be.

Look Beyond the List Price

When securing a mortgage for your first home, it is important to look at the true cost of the mortgage, not just the interest rate. Study all of the paperwork, including the fine print, carefully, especially if the interest rate is below other advertised mortgage rates. Upon closer inspection you may find out that the great interest rate you were quoted is guaranteed for only a short period of time or that it contains a pre-payment penalty. Your mortgage may be the most important contract you will ever sign, and it is essential that you understand the terms and conditions before you sign on the dotted line. In most cases it’s a good idea to hire a real estate attorney to review the mortgage documents for you. Many communities provide a first time homebuyer program designed to help renters become homeowners. These organizations may be able to provide the legal guidance you need at a price you can afford.

Every Plano Real Estate Transaction is Unique

Every homebuyer will have a different set of circumstances, and it is important to relay that information to the mortgage company upfront. Some homeowners may plan to move in for a short term like a year or two, and in this case they may be able to benefit from a variable rate mortgage. Other home buyers will plan to remain in their home for decades. These home buyers may benefit from a fixed rate mortgage and that is that has predictable and stable monthly payment.

It is very important for the first time home buyer to factor in all the cost of their mortgage when determining how much they can afford to pay for their first Plano home. Things like closing costs and the high price of mortgage insurance can drive up costs and take away from the funds that would otherwise go towards the home towards home improvements, furnishings and other home essentials. In many cases sellers may be willing to pay some of the closing costs for the buyer and some mortgage companies will be able to negotiate those closing costs lower. The key to an advantageous real estate transaction is to ask those questions well before closing, and be prepared to search for a better deal if necessary.

Anytime a first time buyers enters a Plano real estate transaction they should retain the services of an experienced Plano Realtor. Their Realtor can be on the lookout for any hidden cost and fees fees. These nuisance fees can add up to hundreds, even thousands, of dollars on closing day. Be sure to study your paperwork to find any such fees. If you are unsure about the legitimacy of any charges, ask your Realtor or the closing agent for a thorough explanation. Again, an experienced Realtor can provide valuable insight into which fees are reasonable and which are junk fees. Your Realtor can use the comprehensive Plano MLS system to find sellers who may be willing to cover some of the first time buyers closing cost. Of course any defects in the home should be pointed out to the seller well before the closing date. The costs of necessary repair should be negotiated prior to ratifying the purchase contract. A home is a major investment and it is important to make sure that everything is as agreed to before going to closing and moving in.

In the financial market, it is share market news that finds place in television, newspaper, on ticker tapes, the Internet, and more mediums. The latest share prices displayed in charts as well as the stock table, encapsulating the market’s performance for the day, may seem tough for the beginner to understand. The numbers may seem like mere numbers for him and he may be ignorant of the value attached to the same. The past data displayed for comparative analysis may not seem significant for him at all. Investing with little or no knowledge about the most active shares may prove disastrous for the investor. If he is fortunate enough, he may gain otherwise losses incurred may take a toll on his life, especially if it is a big investment. And such blunders do happen. Well, the share market is not a gamble; it requires careful speculation on the part of the investor to reap profits.

As an investor, when you view the latest share prices, it is vital to know the performance of the particular shares over time. Once you know the performance for a set time period, you can analyze the trends. For example, look at the lowest price of the share as well as the highest price over a certain time period. Also, take into account the level of income or profits that you desire. And watching news for updating yourself with the current market conditions can add to your abilities to speculate well. If you are searching for detailed market news, visit an online financial news portal. You can also visit online brokerage platforms that carry latest data on active shares, share prices, and any stock information you wish to view. Knowledge has no peripheries. The more you learn and gain, you feel there is yet lot more to explore and learn. The intensity of the knowledge gained as well as expertise over time matters.

The Internet has transformed the very concept of trading. You can have access to the latest share market news, get company information, view the most active shares, collect significant data, and lots more with a click of a button. Cautiousness and patience pays one in the long run in the share market. No doubt losses are inevitable but with a cautious approach, you can minimize risks involved. Enough research and strategizing are the buzzwords that are the pillars for the wise investor.