Disqus - Latest Comments for John_Corey

Re: Property Joint Ventures: Getting Set Up

John Corey — Tue, 06 Mar 2018 12:58:14 -0000

To quote the article above, "...pool together our resources to accelerate our property careers."

What is being pooled? The skills and expertise? Or is this a collective investment scheme of some sort to pool cash for investing?

Independent of the cash element, what is the management structure of the LLP or Ltd company? Is everyone expected to vote on the decisions or is there some sort of designated managing partner / CEO for the group?

Re: Class Booking:Booking Page - Setmore Knowledge Base

John Corey — Mon, 28 Mar 2016 10:55:48 -0000

Sounds like a great option. Just need to make it live for my site and then I will be rolling.

Re: Class Booking - Setmore Knowledge Base

John Corey — Mon, 28 Mar 2016 10:44:30 -0000

Is it really?

I think I have set up a class correctly. I created the first session for this coming Friday. When I go to my specific booking page, all I see is the call back service I offer and nothing that shows the class. Pilot error? Or does something special need to be done during the beta?

Re: Call-to-Action Button for Facebook page

John Corey — Wed, 23 Mar 2016 15:53:58 -0000

As is common, Facebook has changed slightly the navigation. No issues with the instructions if you think about the intent and then pick.

Re: Free Facebook Marketing Resources for SMSS15 Attendees

John Corey — Tue, 06 Oct 2015 15:44:56 -0000

Lots covered during the presentation. Thanks. I have a few pages of notes with specific slides flagged up to get back to. Homework. Got to love it. Also a shout out from London, walking distance from Tower Bridge. I lived on the west coast of the USA before moving this way. We might have passed in the air.

Re: Property investors beware – the people want house prices to fall

John Corey — Mon, 07 Sep 2015 10:17:34 -0000

Potentially. Or not.

The BoE stress test for lenders used a 35% fall in house prices, a rise in unemployment and a spike to interest rates. All the lenders but one, the Co-op, passed. In other words, the loan books are not as exposed to the correction as one thinks. Such a correction would be painful. Just not so much so to the lenders. More to the individual borrowers who can not afford to continue to make the payments. For everyone who has no need to sell, they can ride it out as they have done in past house price corrections.

Re: Budget 2015 Buy to Let Mortgage Interest Tax Consequences - @comfortlettings - Comfort Letting Agents LLP

John Corey — Wed, 02 Sep 2015 19:23:57 -0000

Love the detail and the graphics. I will need a bit more time to study this. One point jumps out and something that I expected to see. It is not really a tax on investors with a high income as much as a tax on investors who like to maximize the debt they use. The tax change might nudge people to use less debt and more equity for their portfolio. Not a bad thing in a rising interest rate environment.

Re: Three good reasons to get out of buy-to-let now

John Corey — Thu, 30 Jul 2015 04:31:48 -0000

The only thing sure about the future is MSW will continue to claim that investing in housing is a bad idea. Go back 5 or so years and you will find a consistent argument against residential housing. She is a believer. Facts, history and other details should be ignored. Happy for her to continue to write on the topic. Just not something I recommend any read if they want a good understanding of the market fundamentals.

Re: Business Meetings 411: Making General Sessions More Interactive

John Corey — Mon, 15 Jun 2015 10:19:40 -0000

This could be very useful for a more hands-on session. We occasionally run sessions where the audience bring problems to solve or they decide what needs to be discussed. Thanks for the ideas. I just need to work on the room layout and how that will impact the total seating possible in a session

Re: Business Meetings 411 : 4 Proven Formats for Short Presentations

John Corey — Mon, 15 Jun 2015 10:16:46 -0000

Some helpful tips. Thanks Anne. I run a regular meeting and bring in guest speakers. I will be using and sharing the tips.

Re: 1996: the birth of buy-to-let Britain – in numbers

John Corey — Mon, 27 Oct 2014 07:01:35 -0000

You are assuming there is data to back up the 'idea' that builders hang onto land. Is there any evidence that actually confirms this? Generally, builders have holding costs associated with land so a strong disincentive to hold onto anything can could be sold. Look at the way land prices fell and developers dumped land during the last crisis.

Re: Landlord learning forum the latest to pitch for crowdfunding

John Corey — Fri, 17 Oct 2014 06:50:38 -0000

Happy to answer questions if people want to know more.

Re: What Do You Measure Your Productivity By?

John Corey — Mon, 22 Sep 2014 12:56:24 -0000

Funny conversations have been taking place among friends who now have Fitbits. We are measuring out steps so we now focus on walking more.

I wonder what will happens when the group of us all have Apple Watches hooked up to the Health kit. I know that I feel better about long training rides on the bicycle when I have some sense of what is going on. Feeling tired on a climb and then noticing that the heart rate is high so feeling tired is 'expected' rather than a bad sign

Re: Scrap buy-to-let tax breaks? It's too late

John Corey — Wed, 23 Jul 2014 08:35:31 -0000

Dan,

Gross income minus expenses equals profits. Tax is paid on profits. More or less the same for all businesses. Likely even the same for freelance journalists and other sole traders in that they get to deduct expenses from what they earn.

Stopping the deduction for interest paid would not be legal if the change targeted only one business type or sector. Stopping all businesses from borrowing so they can expand is very un-British. Ask various MPs who want banks to lend to SME so the economy can grow. In other words, thinking that BTL is obtain an unfair advantage only works if you have a confused understanding of how business in the UK works.

Re: I Invested In a Rental Property!- The Buy

John Corey — Thu, 12 Sep 2013 12:58:12 -0000

You made a mistake and it is now starting to bite.

When buying a property with an existing tenant, you need a legal agreement with the tenant that things are as stated. The seller needs to hand over any deposit they are holding for the tenant and that number better match what the tenant has stated. The agreement also eliminates any side agreements or other promises made in years past.

Without an agreement you really do not know the terms of the tenancy. You also do not know what amount you might already be holding for the tenant as the landlord. You are stepping into the prior landlord's shoes so things they agreed could be binding on you.

Re: Canon EF 24-70mm f2.8L 2 USM Lens Review @Canonusa

John Corey — Wed, 03 Jul 2013 10:12:24 -0000

More of a Nikon guy. I do pay attention to what Canon is offering as the two companies tend to chase each other.

Re: Is it cheaper to buy rather than rent?

John Corey — Thu, 27 Jun 2013 09:33:16 -0000

There is no clear answer. Back when Labour was in government, a study they organized showed it cost 35% more to be an owner. Mostly from the maintenance and other operating costs.

As the main post above shows, there are significant up front transaction costs to buying. With renting there are transactions costs. They tend to be lower and definitely more spread out compared to buying,

Maybe what should be pointed out is buy is a bit of a forced savings plan. More so when the borrower is using a repayment loan. Every month they are forced to pay down the debt and otherwise build up equity. Assuming the property is in an area with stable or growing employment, the home should hold its value. It might look like the value is rising. I claim that is mostly when you use a currency that is declining in value each year (target inflation rate means the currency is designed to be worth less over time).

The biggest risk as a buyer is the risk that you need or want to move before you can sell the property. Close behind that risk is the fact that most borrowers have little control over the interest rate. Historic rates in the UK are in the range of 6% to 10%. At rates like that the cost of ownership might change faster than the borrower can earn more so their 'investment' (or home) is at risk. Renting is more aligned with wages if there is a good supply.

Re: Property Show 2013

John Corey — Thu, 27 Jun 2013 09:17:55 -0000

Cool. Let me know what you think or if there is anything I can help with. If there are other things you would like to see, let me know.

Re: Property Meetings

John Corey — Tue, 25 Jun 2013 10:52:45 -0000

The meetings take place monthly. Visit the link above the video to get more information.

Do note that the format allows everyone to introduce themself. Normally I ask people to state their name, their background outside of property and what their current interest in for property investing. It makes it a lot easier to find others in the room who have compatible interests when you know who is there.

Re: Are Joint Ventures (JV)s being banned by the FCA?

John Corey — Sat, 22 Jun 2013 13:48:04 -0000

Ed,

The new regulations address this. If the prospective partner self-certifies, the person suggesting the investment has to take sets to verify the accuracy of the self-certification. In addition, a certified individual who is a member of either group still needs to be assessed as to the match between the investment and their needs. A low risk person who has no real knowledge of how the investment works would not be a good fit if the degree of risk was material.

At some level, the above is broadly similar to what an IFA must do before recommending an investment to a potential client. I am not saying you need to be an IFA yourself. Just that the duty of care sounds similar. The records maintained by the person operating the investment needs to document what was done to meet the requirements.

As to the consumer credit license? I do not know much about a consumer credit license. As that license deals with debt and the FCA's PS 13/3 included equity investments, I would think there is a difference. Maybe the difference is more about type rather than intent.

Overall I suggest people read the PS 13/3 document closely and then seek professional advice if needed. The purpose of this blog entry and subsequent comments is to raise awareness rather than to give definitive regulatory advice.

Re: Property Show 2013

John Corey — Thu, 13 Jun 2013 07:31:48 -0000

The PDF document above is from the Property Investors Show, Spring 2013.

The autumn show is coming up in a few months so block out some time in your calendar if you think you could make it. Even if you are not able to be there on the day, there likely will be a presentation or two which I will be sharing. The dates on the event organizer's website indicate 11-12 Oct 2013.

Tip: If you want to make a visit productive, spend some time online prior so you can book a number of meeting with others who will be attending. Based on past years, groups of people agree to meet up on the show floor, in the common area outside the show and in the pub next to the venue.

Re: Workshop & Seminar coming soon!

John Corey — Thu, 13 Jun 2013 07:15:24 -0000

Jessica,

What specific topics or specific questions might you have? You and others can learn from examples. As you spoke up we might as well use your questions. Call it a reward for engaging in the conversation.

Re: Diana Laufenberg: How to learn? From mistakes

John Corey — Thu, 13 Jun 2013 07:14:12 -0000

Do watch the video. It is not that long. She is not selling anything so just open your mind to the message.

My take away is the world of education is changing from being place centric where you go to learn things and more of an opportunity to interact and learn with others. Centers of education are obsolete. Place matters less than who is in the conversation and how much you get to stretch yourself.

Re: Facts & Things Unsaid

John Corey — Thu, 06 Jun 2013 08:11:29 -0000

Well said Ross. To extend your point a bit, finding an advisor or professional who is competent for the task is a bit tricky when dealing with something that is out of the mainstream. In the case of Harlequin, a number of investors worked with an IFA. The FSA had to remind the IFAs that their duty was to the customer investing the funds and that the IFA needed to check the suitability of the investment. How well the average IFA can asses an offshore development company comes into question.

They say, a fool and their money are soon parted. Live foolishly and you will cease to need investment advice as there will be nothing left to invest.

Re: Is It True That Savers Are the Banks’ Creditors?

John Corey — Sat, 06 Apr 2013 09:11:58 -0000

Depositors are creditors in the UK. They are lending the bank their money. Behind the bank's agreement to return the funds is a government guarantee up to a specific limit and the limit is per banking license. RBS and NatWest are two banks who are owned by the same entity but they have two banking licenses. Other banks have multiple brands and only one license so the limit is spread across all accounts held in any of the brands in this later case.

Holding pieces of paper that are called bank notes is also an act of faith or trust. Wars and other things have made a nation's currency worthless. If we point fingers at Cyprus and Greece we also have to remember that the UK received a bail out from the IMF in 1976. Unless someone else knows better, I think the UK was the first European government post WWII to receive an IMF bailout. In other words, it can happen here.