Happy New Year, folks! I hope you all had a great transition.
So, it’s a New Year and people are beginning their journeys to fulfil their resolutions. Great!
I never really set New Year resolutions because they don’t make any practical sense to me. If I need to change something in my life, I’ll change it there and then. I’m too impatient to wait until a new year starts, and more importantly, I don’t need something significant like a new year to encourage me to make a change in my life. But hey, that’s just me.
Even though I don’t have a New Year’s Resolution per’se, I still have a relatively small and realistic list of landlording duties I’d like to tackle in 2010.
I have a feeling interest rates may start to creep up at some point during the later end of this year. Before that happens, there’s one particular mortgage policy I’d like to renew, because while it’s an OKAY deal right now, as soon as the base rate increases, it will be a nose-bleeder. It’s a bit of an Achilles heel policy, to be honest.
As it stands, I’m paying a rate of 5.29% (or something along those lines), and I suspect that when the base rate rises it may rise steadily for a few months, by potentially 3-5% in total. Since the policy is variable, i’ll feel every last jump.
So, I definitely need to arrange a new fixed rate deal, in case “shit happens” (which it generally does).
I’d just like to clarify that I’m only speculating here- I’m not giving financial advice to anyone, nor am I advising anyone to remortgage, and I’m not saying interest rates will change!!
I need to get a good accountant that isn’t extortionate, and can organise my finances, especially in the “tax efficiency” department. At the minute I handle it all myself. I’m shit with numbers and I don’t know of any clever loopholes to save myself any doe. So yeah, I’m going to hunt down a local accountant this year.
3] Overgrown hedge
I’ve noticed that a hedge has wildly overgrown outside one of my properties. It’s my tenant’s responsibility to maintain the hedge, and I’ve been meaning to tell him, but for some reason I’ve just let it slide for months. But enough is enough, at some point this year I’ll be telling the guy to chop that baby up. It’s looking hideous, and irritates me everytime my sweet eyes have to look at it. Additionally, if he suddenly decides to vacate the property, I’ll have to do the manual labour to handle the situation. Manual labour..urgh…GROSS!
4] Reduce mortgage debt
As always, I’d like to reduce my mortgage debt. At the moment all my mortgages are repayment, so I’m naturally reducing debt each month. However, I’d like to pay off a small chunk at the end of the year for one particular mortgage (the one I referred to in my “remortgage” point). I’m not talking large amounts here, literally just 2k.
That probably sounds like a small amount, but shaving off 2k from a mortgage makes a massive difference in regards to the amount of interest I’ll pay over a 20yr period.
5] Expand portfolio by 1 property
Yes, I want to buy one small 1 or 2 bedroom house this year. I wouldn’t be too irritated if this goal doesn’t surface, because I’d only be interested if I find an exceptional deal. I’ll be looking for something local, extremely cheap, and ready-to-let. When I say “extremely cheap”, I mean something along the lines of “daylight robbery”. I’m not aggressively looking to expand my portfolio, merely window shopping. But if an absolute bargain came along, I wouldn’t say no. I guess that’s the ideal buying mentality, because I have no incentive to rush, but I have the means to purchase.
All very small and simple tasks, right? Right.
So, do any of you Landlords have any resolutions for 2010, or tasks you’d like to get done E.g. buy another X amount of properties, be a better landlord?