Tag Archives: Investment

office workers reviewing graphs

Equity Investment Opportunities UK: The Lowdown

office workers reviewing graphsWhat are the options for equity investment in the UK? Two government-backed venture capital schemes are the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS). Both of them enable investors to buy equity in small and medium-sized companies and social enterprises.

Introduction agents, such as Amyma in London, list these schemes as investment opportunities UK that can offer high yields, albeit with a high risk also, due to the companies being small and, in some cases, untested.

What is the Enterprise Investment Scheme?

The EIS enables companies with less than £15 million in assets to raise up to £5 million a year in investment, capped at £12 million over the course of the company’s lifetime. This includes amounts raised through other venture capital schemes, not just the EIS. Investment also has to come early on in the company’s journey – within seven years of their first commercial sale. The rules are different for knowledge-based companies.

The bonus for investors is that they get tax relief on their investment. There are various rules to follow to qualify for the tax relief and they must be adhered to for three years following the investment.

Companies who can use this scheme must meet the following criteria:

  • Be UK-based
  • Not trading on a recognised stock exchange
  • Not in control of another company
  • Not controlled by another company
  • Not have gross assets of more than £15 million
  • Have fewer than 250 employees
  • Carry out a qualifying trade –see the full list on the HMRC website.

Investment opportunities UK: Seed Enterprise Investment Scheme

This is similar to the EIS, in that it offers tax relief to investors and is for UK-based companies within the qualifying trades. Funders receive 50% tax relief on their investment.

This is designed to give new and very small companies a kick start.

Other criteria are:

  • Investors can buy up to £100,000 of equity a year, which can be in more than one company and must not represent more than a 30% stake in any one company;
  • Companies can only raise £150,000 through the SEIS;

The company must have less than 25 employees and be less than two years old, with assets of less than £200,000.

House under renovation

What to Keep in Mind when Buying an Old House

House under renovationOld houses and other real estate properties have their own distinct charm. However, they also bring with them a couple of issues that buyers need to look out for. Like in any other investment, it pays to do your research if you’re planning to buy a nifty yet affordable piece of history.

Investment value

An old wreck may gain you more profit than a property in an excellent condition. Though it may take longer and you’ll have to shell out money to hire a professional and renovate it, you’ll be adding more value to it as compared to something in a reasonable condition.


Insulation is one of the basic things that are often taken for granted, especially when buying an old property. Insulation in old houses is different from new house insulation, so you have to inspect its current state. Finding out whether the property uses external insulation or dry lining will help you decide on what course of action to take. Remember that a carefully executed insulation helps reduce utility bills, provides comfort during extreme weather conditions, and makes the house lasts longer.

Electrical works

Rewiring can be expensive. That’s why most old houses still have their outdated wiring systems, which could be hazardous. Such electrical systems can’t keep up with modern usage, so make sure that it can sustain your needs if your lifestyle uses a variety of electronics. Look out for knob and tube wiring, as they cannot meet today’s electrical demands.

Foundations and structural conditions

Even the most solidly built house can’t weather time and can form cracks or unevenness. Everything on the house sits on the foundation, so you have to keep an eye out for any cracked, leaning, sunken or damaged parts.


Corroded pipes not only results in weak water flow but also leaks, which are the main reason for the presence of mould. Mould remediation can be expensive, so check for any leaks or update your pipes if necessary.

Purchasing an older property can be a great investment especially for first-time buyers, just make sure that you do your due diligence before signing a contract with your realtor.

The Significance of Mortgage Rates in Determining Monthly Payments

House loan financingYou already know you can use a mortgage loan to borrow against, purchase or refinance any home, but, there is more to that. It is with first mortgages that you can buy a house or refinance a loan, with second mortgages allowing you to take out loans using the available equity, to add to a first mortgage.

You can also take advantage of the times when mortgage rates here in Ogden are at an optimum low to enjoy an equally lower monthly payment that you would have had you locked in the loan when mortgage rates were high.

Even a 0.25% dip can mean a whole lot of difference

Yes, you read that right. However, besides you identifying any dip from current average rate charts, it will need you to involve a credible credit union to know whether what you term as a low rate is what has been the case in the market. It is only until when you have confirmed that can you lock in that loan.

Should you notice that the mortgage rates are rising, it is advisable that you wait unless your projections for the project for which you are taking the mortgage show that unless you make the step now, the investment will not be cost-efficient.

The Other Jig of the Puzzle

Irrespective of when you take a mortgage loan, it is important you note that closing costs and loan processing fees remain a constant factor that you must take into account. These include, among others, escrow & title fees, lending, appraisal and credit fees, and insurance and taxes.

Whether you are planning to buy a (or borrow against your) Ogden home or to refinance a loan, you can benefit from understanding how the current mortgage rates can affect your monthly payment.

However, besides doing your research on that, engage a qualified financial service provider in discussing your options and determining a time that will be the most cost-efficient to take the mortgage.

Get the Most Out of Your Cash By Investing in a Pre-Owned Vehicle

Classic cars in a rowAs you start shopping around for a car, you’ll have to make several decisions. You have to choose a specific make, model, and year, as well as the color and the features that would go into it. While these are definitely huge, the biggest decision remains whether to invest in a brand new car or a used one.

There are many pros to buying a factory-fresh vehicle, but there are also quite a number of benefits to choosing a pre-owned one. Before you discount the thought of looking at and shopping around for used cars, SRQ Auto LLC suggests that you consider the following benefits:

More than just a lower price

Not many people are aware of this, but automobiles depreciate so quickly – and massively – that its value can dip to as low as half of what you paid for it in just its first year of use. And this value loss actually starts from the time you drive it away from the dealership.

The good news is that you can use this depreciation to your advantage. This is one of the biggest factors that drive people to buy used vehicles.

Getting more out of your hard-earned money

Say you have prepared $20,000 for your new car shopping expedition. With this amount of money, you can bring home a brand new automobile, but only of the base model. When you choose to go pre-owned, you can keep a quarter, even half of this amount as your savings, or use it to upgrade many aspects of your car, from the tires to the gadgets and the interiors.

There are many other benefits to going for a used vehicle, but these alone should already seal the deal for you. Besides, you’d also want to do the environment a favor, and pre-owned cars are the more eco-friendly choice.

Investing in the Future: An Eye Towards the End

Burial plots in LondonWhen discussing matters about real estate investment, residential and commercial properties always come to mind. There is, however, one type of real estate that many people often neglect — a final resting place.

Unless a real Elixir of Life or Fountain of Youth comes true, all life comes to an end. Property development often focuses on the living. As the world population grows, the demand for both residential and commercial properties increases. At the same time, the land where the dead can rest grows increasingly scarce.

A Hidden Investment

Funeral costs in the U.K. have increased and can go well past £4,000. The same holds true for burial plots. Burial plots for sale one to two decades ago cost roughly £30. These days, the same lots can sell for more than 1000% of the original cost. The numbers vary greatly, but Harley Investments Ltd and other experts say that most people would find them quite attractive.

A Better Investment?

If the practicality of investing in death appeals to you, there are investment companies you can talk to. They focus on decentralising burial locations from London and other areas with spaces to spare. As with any property investment, location is key. Naturally, plots that are in areas where space is fast becoming scarce will be more costly. If you are purchasing a plot (or more) as a matter of investment, you may be better off finding ones in cemeteries in development. In either case, purchasing the plot, whether for yourself or for investment, it is always better to purchase early and watch it appreciate in value.

What is the Catch?

As with any investment, there are risks involved. Cremation is far less costly than a burial, and more people are going towards the former. As a result, there is no guarantee that new cemeteries will attract more investors. There is still hope if the cemetery is near a community with a large population of Muslims or other groups requiring burial.

In the end, intensive research is necessary to ensure that your investment does not likewise end up dead. Make that investment before it goes even more costly the next few years.

Investment Strategy

Choosing an Investment Strategy: Rental Yields vs. Capital Growth

Investment StrategyProperty investment is more than about choosing a place that you feel is right. You will need to tailor a strategy that it right within your budget, and works for your needs and expectations of the investment. It is important to select an investment strategy before you even start searching for a property.

An investment property can offer regular rental yields and capital growth. The rent return comes from weekly or monthly payments your tenant agrees to pay over the course lease. Capital growth, on the other hand, is the profit made on the property because of its increase in the market value.

Focusing on Rental Income

Sentinel Property Group notes that focus on rental yields can be beneficial if you want to have an additional source of income. You may find properties that are positively geared, in which the rent payment covers all the expenses of the property with additional income for you.

Focusing on Capital Growth

The right type of property in an ideal location can deliver rewarding rates of capital gain over time. If you want to focus on capital growth, it is important that you keep or hold on to it, until you see a significant increase in the property’s value.  While this not a problem because of the tax relief that goes along with negative gearing, it is important to calculate if this applies to you.

Examining the Cons

Both strategies have their disadvantages that you need to be prepared for. On rental income, higher cash flow will mean that you need to pay higher tax on the income. For capital growth, the mortgage repayments may be higher than rental income, and your cash flow needs to manage this outgoing.

When choosing your investment strategy, think of what you can afford to spend and the potential costs of owning an investment property. These include the mortgage repayments, strata fees, management fees, repairs and vacancy periods. Make sure you do as much research before buying an investment property, and that you seek advice from industry experts.