Warning: This article contains the smartest tricks that the Houdinis of real-estate investors use in UK to break their digital currency counters.  We are here to provide you only with the basic idea. Execute it at your own risk.

I Want to Grow Old as a Lannister!

We all worry about our future. In fact, we are always striving hard to shape a better and secure future. What better way than to invest in a real-estate property, earn your rents and watch your investments soar?

But how do you do it?

You can invest your cash directly into a property. Considering you are not a Lannister or you have not inherited a large fortune, you won’t have enough of those cash resources to make for the investment.

Your savings?

Ha! The average property price in UK is estimated to be at around £273,000. Your earnings do not equal that of Bill Gates, otherwise you won’t have been reading this. So assuming you get to save £500 monthly (a far stretch in itself), it would take you precisely 46 years to own a property.  Obviously the rate of inflation has not been counted in but you can still imagine the wait.

What’s the other way around?

Buy-to-let Mortgages!

They allow landlords to buy a property with the intention of letting it out or renting it out. You just need to have the deposit money to get the mortgage. Hence many people embark on their journey to real estate investment through buy-to-let mortgages.

And you know what the cool part is?

The application evaluation process is based on your rental income rather than your own existing finances.

Mr.Broker, How Else Does this Help?

Consider this: You somehow arranged the cash and invested in a property worth £273,000. The average charged UK rent amounts to £774 per month. This calculates to a yearly rental income of £9,288. That is an impressive yield of 3.4 percent.

But, it’s time to beat it!

You approached a buy-to-let mortgage provider and agreed a loan at 75 percent to the actual value. You now have to deposit £68,250 to acquire a property of worth £273,000. Add extra charges of let’s say £4000 and this brings us to a sum of £72,250. At a mortgage rate of 2.29%, your annual interest repayments rise to £6,240.

What was your annual rental income? £9,288! Subtracting your interest repayments you are left with £3,048 an year. Calculate the yield on the mortgage and this produces 4.2 percent.

What was your return, when you invested in cash? 3.4 percent.

We finally have the winner!

And with the increase in property valuations, your equity in your new property can rise to figures where you can afford another mortgage.

Not difficult to sit amongst the Lannisters, isn’t it?

Taming the Taxman!

As for suggestions to reduce your taxes which come with buy-to-let mortgages, you can always try some of these:

  1. Offset your stamp duty against the CGT liability when you sell your property.
  2. Income tax can be offset against various claims of allowable expenses. These could be arrangement fees for property loan setups, building insurance, council tax and utility bills if your tenant is not supposed to pay them.
  3. CGTs can be reduced through private residence reliefs and lettings reliefs.

So did you like the idea? Remember, to proceed with caution. For an idea can define or destroy you!

Any person who is unable to pay the debts he owes to his creditors may be a potential candidate for declaring bankruptcy.  Most individuals who have been caught in the debt trap or have lost all their savings may well have become unwitting victims of ‘excessive consumer spending’. Consumer debt typically consists of (ostensibly affordable) car loans, home finance and even monthly credit card payments.

You may need to file for bankruptcy in certain circumstances when your creditors send you more bills that you have the financial capability of paying or after having become insolvent.  This may be for the following reasons

You Cannot Keep Up With Your Ever Increasing Debt

If you find yourself paying  bill after bill and have lost all track of both interest as well as principal amounts and are not able  to pay even minimum amounts every month just to keep your ‘head above water’ so to speak even as the interest payments keep on increasing. Then you are definitely a candidate for declaring bankruptcy.

Even Living Expenses Seem Out Of Reach

Basic expenditures that are part and parcel of everyday living such as food, utilities, housing expenses, schooling for the children, clothing etc must be well within the financial reach of almost every working individual. If that is not happening and  you find that you are actually struggling to meet even the most basic requirements of both you and your family while simultaneously doing your utmost to pay your bills, something is very obviously wrong. If you find that the most basic of expenses have to be met through the usage of ‘high interest rate ‘charging credit cards and now you can’t keep up even with your day to day expenses than you need to think about the fact that bankruptcy may be the only viable option.

Losing Most If Not All Of Your Property

In bankruptcy the unfortunate insolvent ends up losing his property. Typically, a trustee is appointed by the court to handle the required bankruptcy paperwork and oversee the sale of the property of the person who has declared himself bankrupt. The proceeds from the sale of this property are than utilized to pay off either all or as many of the creditors as can be reasonably covered through such a sale.

To lose all of one’s property and watch it being auctioned off in front of one’s own eyes is certainly not a pleasant experience, so make sure that you do this only and only if you have no other viable options.

Explore Other Options As Well

Regardless of how desperate a situation may seem, there are generally other options available. If its debts that are creating a problem, then you may consider hiring the services of a credit management agency that will help you discharge your debt obligations in an orderly manner.  Alternately you may talk to your creditors on your own and try and convince them to give you more time.  Then there are friends and family members you may approach who just might be able to help tide you over till you regain your financial footing.…