How To Make The Most Of Your Cash When Offered An Investment Idea

Do you realise the best investment ideas can usually be the simplest? One of the secrets though is knowing where to go for the lowest risk but with the best return.

Forget the current downturn for a moment as property prices do increase nicely over the years. You can still make a decent low risk investment out of property.

When looking for a good property investment remember the age old adage, LOCATION, LOCATION, LOCATION. Some things never change and certainly location is the number one factor to consider.

In the UK house prices double about every ten years. In view of this property investments can still be quite lucrative. Property investments are a great example of the simplest ideas being great investment ideas.

A quick example of a property investment, keeping figures simple. Invest in a house for 150k and keep it for ten years. It should be now worth circa 300k.

On that example you should regularly shop around for the best deals on mortgage repayments as we could be talking about a lot of cash. It’s always a great idea to have some cash at hand in case another great investment idea comes along.

**A bit off topic but you can discover how to shave years off your own mortgage with our mortgage overpayment calculator**

Back to what we were on about before.

Searching for a good mortgage can be time consuming but worth it in the long run if your investment idea is to be profitable. Getting and maintaining the best deal on your property investment ideas is key to maximising the return.

So many new investors are caught out by the peaks and troughs of the property market. They buy in the peak then panic and hope to sell in the trough. This can be route one to the poor house doing it like this.

Going back to the phrase, simple is usually best, you need a system to work from to maximise any chance of great returns. If property is to be your medium then the formula has to be, wait for a trough, establish an affordable good location, obtain a good mortgage, get a good management team in to secure regular premium rentals.

As the wheel is a classic example, simple ideas usually tend to be the best. Don’t confuse yourself when searching for a good investment idea. Simplest is best. You can click this link for one of the best investment ideas.

Discover What The Top Investors Do To Get The Best Investment Ideas

A lot of people probably don’t realise that the best investment ideas are usually the simplest. One of the secrets though is knowing where to go for the lowest risk but with the best return.

Try and disregard the current property downturn as historically house prices do increase quite dramatically over the years. So turn a simple property related investment into an investment idea for you.

Location, location, location! It’s as relevant now as it’s always been. Some things never change and certainly location is the number one factor to consider.

In the UK house prices double about every ten years. In view of this property investments can still be quite lucrative. Property is a prime example of a simple idea being arguably the best investment idea.

Let me spell out a quick example. We’ll keep figures nice and round for ease of calculations. Invest in a house for 150k and keep it for ten years. It should be now worth circa 300k.

If (in the above example) buying on a mortgage you should shop around for the best deals as even a little saving on your mortgage rate could mean a big cash saving. It’s always a great idea to have some cash at hand in case another great investment idea comes along.

**If you want to learn how to reduce your mortgage by years you can use our mortgage overpayment calculator and be shocked at the result**

OK, back to the article now.

Try to get the best mortgage rate you can. Shop around and change if you have to as it could make a huge difference later on. Getting and maintaining the best deal on your property investment ideas is key to maximising the return.

People new to property investment often get their fingers burned by the ups and downs of the property market. They get in late and buy at a peak. Then panic and try to sell in a trough. This is a guaranteed way to lose money and confidence.

If simple is best then you need a simple formula to turn an investment idea into cold hard cash. If you are looking at property, here’s a simple formula…Get in on a trough, get the best location you can, get the best mortgage rate you can, get the best management team you can to manage rentals.

For centuries it has been proven that the best ideas are the simplest with the wheel being a prime example. Don’t confuse yourself when searching for a good investment idea. Simplest is best. Click this link for some good investment ideas

Save Sackfulls Of Cash With A Mortgage Overpayment Calculator

We are going to investigate what a fixed rate mortgage can do for you.
We’ll then take a look at an overpayment calculator for your mortgage.
From definite security with the fixed rate mortgage to potential cash saved with the overpayment calculator.

A fixed rate mortgage is one of the various types available.
You get a fixed interest period for several years.
The interest rate you pay is locked; therefore your monthly payments are also locked.

What, if any, are the up sides to fixed rate mortgages?
Your payment is fixed because your particular interest rate is fixed.
You can estimate your outgoings easier knowing your monthly payment is fixed.

It doesn’t matter how much interest rates rise, your payments are fixed.
In our recent history there have been some frightening short term interest rate rises.
You may struggle to meet your payments if you have a variable mortgage and rates rise suddenly.

There is a situation when maybe you should think twice about a fixed rate mortgage.
If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon.
Any situation which sees you changing mortgage can invoke a horrid redemption penalty on you.

A redemption penalty is a charge that almost always comes with a fixed rate deal.
These charges can be pretty steep, and come at a time when you don’t need the extra stress.
Think hard before you take a fixed rate mortgage as these charges can really disrupt your plans.

During the term of your mortgage it’s worth considering paying a bit extra each month if your budget will stretch.
You may not realise but you can pay any amount over the minimum monthly payment.
It’s not often, if at all, that a lender will tell you it’s possible to pay more than your normal minimum monthly payment.

If you do pay extra each month, are there any benefits to this?
Topping up your monthly minimum payment means you can knock a few years of the length of your mortgage.
You also save a lot of money in the process, sometimes a staggering amount.

How do you use a mortgage overpayment calculator?
Enter all the figures that relate to your mortgage.
You then enter any extra amount you can afford to pay. Or enter various value for fun.

The calculator tells you how many years you will knock off.
You get to see how much money you could possibly save.
Putting bigger figures in the overpayment box will show bigger savings and even more time saved.

Some of the savings can be staggering.
If you borrowed a hundred thousand at five percent over twenty five years.
Just by paying an extra 50 every month could see you knock over 3 years off and save over 12 grand.

Nice savings on a 50 extra payment. But what happens if you pay an extra 100 though?
Paying 100 extra every month using the same example mortgage.
You can save 20 thousand in cash. You can also shorten your mortgage by more than 6 years.

An extra advantage is you won’t have any payments to make during the last few years of the mortgage.
By paying a little extra now, you could easily be mortgage free well before you ever expected.
You will never hear this from your lender though; it’s simply not in their interests to tell you to pay off early.

In our example where we saved six years off the length with a hundred a month overpayment.
We could save a further 40 thousand by not having to pay your lender every month.
This saving is yours as you will never need to give it to your lender as you originally planned.

There you have a few benefits of going for a fixed rate mortgage.
Not only do you get set monthly payments, you get to sleep easy at night because of it.
We also looked at potential savings by paying extra each month. Every little helps.