Richard Butler Creagh News

2018 was a great year for Henley Finance. We have financed just over 50 projects with a total loan portfolio of just under £12. It has been a busy year with a lot of challenges and learning curves which resulted in many successes.  We have had a lot of new interest in the investment in our projects. We have proven ourselves to be an extremely reliable source of income for our investors and a safe one too. We have not lost any capital on any project as our experience and relationship with the borrowers enables to keep a close look at the targets of the project and if those are met.

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In general finance companies, including Henley Finance, invest their client’s capital into securities or lend them. Generally, the higher the risk the higher the reward but also more likelihood of losing capital. Often the stock market is tempting for investors as the returns there are quite significant but also the loses. The property market in the UK has been relatively stable, in the Brexit circumstances. However, the banks have been reluctant in lending money onto high loan to value, which has opened an even bigger niche for bridging finance. The attitude of banks towards lending is rather skeptical. The banks reluctant to finance developments on the value of the project and are keener to look at the value of the property before the project. Big finance companies are less efficient in helping borrowers to finish the project and going through. Henley Finance is known for its individual approach to borrowers and devoting enough time to each project to ensure it completes.

At Henley Finance a highly motivated and experienced team ensures that the processes are being moved smoothly. This enabled to achieve a 30% profit margin on existing loans and over 26% on the entire portfolio with well-balanced security to minimize the risk. Those kinds of returns are unheard of in the banking industry. Last year Bank of America managed to achieve a 3% earning on their portfolio which is ten times lower than the earnings of Henley Finance.

Richard Butler Creagh said “A small team which works efficiently can do more than a large team” this is promotingly because of repetition of tasks cross-checking and general lead times which result in inefficiency. While Henley Finance is looking to expand the aim is to maintain the efficient size to enable high yield for our investors. We have already entered increased our investment portfolio by 10%. With our team, we are confident that the company can handle multiple times the current portfolio and maintaining the current standard of profit and engagement with clients.

To get in touch with Richard, visit the Richard Butler Creagh website. You can also connect with Richard Butler Creagh on his facebook page here. Watch this video to find out more about Henley Finance.

 

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Richard Butler Creagh: UK House Price Index

First of all, the location and attractiveness of the location. In the first place, we usually focus on the place of work. Most of the migration, whether external or internal, is mainly caused by the search for better employment. Well-paid jobs are usually found in capitals and larger cities. However, the closer to the centre, the more expensive properties. This is at the forefront of any property investor especially when the local government is planning any travel links to good sources of employment.

Potential buyers also value the proximity of offices, cultural and entertainment facilities, educational facilities and aesthetic values ​​of a given place. For entrepreneurs, the most important places are easily visible, prestigious and with good transport accessibility. The prices of real estate for service purposes in city centres are high, and their owners can, in principle, freely shape the price.

The inflow of people is also a very important element influencing the prices of real estate. As we know, the United Kingdom as a multicultural society has one of the highest values ​​of migration around the world – even despite the upcoming Brexit. Thus, real estate in these places is increasing, which foreigners are particularly interested in. Regardless of whether their goal is to rent or buy.

Where is the most expensive, where is the cheapest?

From the beginning of 2013, up to today, the average price increased by over £65,000. Undoubtedly London is the most expensive place to buy and rent. The average price of real estate located in the capital is £500,000. Over the last 5 years, this value has risen by as much as 56%. In addition to London, it is also particularly expensive in the east and south-east. The major cities in these regions are particularly expensive in St Albans, Cambridge, and Watford (East of England) and in Brighton and Hove and Reading (South East).

Why should a flat cost so much?

The reasons for this are quite obvious. A huge interest of potential buyers, but also an increasingly limited number of offers. It is nothing but high demand and small supply, which means that prices in these places have been growing rapidly for a long time and there is no indication that they will stop.

The most expensive real estate in the UK are found in Greater London (Greater London) he Kensington and Chelsea commune is the absolute record holder. For an estate there, you should pay an average of £1.2 million. £800,000 this is also the average for City of Westminster, Camden, City of London and Hammersmith and Fulham. An apartment in London also means work in London and hence higher earnings.

Check back for more.

Richard Butler Creagh is highly familiar with the financial and property market and can help tailor an investment approach designed to benefit from this opportunity. To ensure that your next purchase is the best investment available, contact Richard Butler Creagh on his official website here. You can learn more about the different types of house price information available by following Richard Butler Creagh‘s facebook page here. Read more about Richard Butler Creagh work and career here.

You can also Richard Butler Creagh video here:

Real Estate VS Stocks – Which is a Better Investment?

Richard Butler Creagh on Properties vs. Stocks

Welcome to the Richard Butler Creagh blog. Today we’ll talk real estate VS stocks. But before investing in real estate or stocks, you need to know that there is no perfect investment; they both have their advantages and disadvantages. Thus, your preferences and capability to keep up with risks should affect your decision. Read on to find out more.

Based on history, we can conclude that in the long-term investing in the stock market brings at least three times higher rates of return than the real estate market. The added value that such an investment can bring to the portfolio is a weak correlation with the stock market. It is, therefore, a good proposition for large investors, for whom security is just as important as the rate of return. In such cases, adding real estate to the portfolio will significantly smooth out the capital curve. In the long term, however, it will be at the expense of the final rate of return.

Pros and cons of investing in the stock market. The biggest advantage of investing in the stock market is a higher average rate of return on investment. Unfortunately, as usually happens, it is also burdened with higher risk In the case of index investment one should not forget about the simplicity and the fact that we can start our investments from small amounts. The biggest advantage of the stock market is, however, that it includes depreciation in its valuations.

Pros and cons of investing in real estate. In the case of investing in real estate, actually, the only plus is the lower volatility of prices, although it is less liquid because it is more difficult to withdraw from investment, especially physical investment. The downside to investing in real estate is certainly the lower rate of return than on the stock exchange. With such volumes, it is practically senseless to even invest small amounts in real estate market funds, because the management fee will pay us all profits. Therefore, the only alternative is the independent purchase of the real estate, where the downside is the large initial value of the investment.

And here is the argument that we can take an apartment for a loan and rent it, and the tenant will repay part or all of the loan. Of course, for some investments, this kind of strategy may work, just like the stock market can go to buy LPP on debut and stick for many years. On the scale of the entire financial market, such inefficiency on the real estate market may, however, last only for a certain period of time. Long-term assumptions should not be counted on. In the long-term, this effect will be neutralized by growing interest rates or falling rental prices.

The biggest downside of investing in real estate is the fact that depreciation and maintenance costs are not included in the prices. Over the years, the property requires investment in the form of repairs and repairs. In the case of an exchange of this kind, the problem does not exist.

Real estate or stock exchange? Objectively looking at this moment, the capital market seems to be the most attractive place to invest its financial surpluses. Low-interest rates combined with the dividend policy of the growing number of companies means that in the long term it is the only direction that should ensure returns on capital. The only downside is actually the relatively large variability of valuations. In the long term, however, it compensates for a higher rate of return on investment. So when I combine investing in real estate and the stock market, I personally choose the latter solution.

So, real estate vs. stocks – which would you prefer?

Richard Butler Creagh is the founder of Henley Finance. Find out more about getting the right finance for you on the Henley Finance website.

Watch this video to find out more about Richard Butler Creagh and property investment.

 

The Most Painless Approach to Securing a Bridging Loan

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Bridging loans are fast becoming mainstream these days. What used to be considered a niche loan is gaining more popularity in recent years thanks to the fact that more people have come to realise all the many benefits that it can bring about especially if they are involved in property investments.

Bridging loans are considered to be short-term solutions for financing problems. It is possible to take this loan to finance a property purchase especially if the goal is to get proper financial cover for the period prior to a mortgage that is meant to get paid off for the long term.  Some people might get scared at the idea of having to take out a loan that needs to be paid within a period of twelve months only, especially one that is meant to pay for a property purchase. However, this should not scare people off especially since this means is that you are only taking a loan that would normally not be available if you are going to take advantage of it through traditional lending channels.

Consumers are especially interested in this type of loan due to how it allows them to secure a new house even before they can complete the sale of their old property. It is also quite common to use this type of loan today in order to win a bidding war. There are property owners that take advantage of property auctions as it allows them to secure a property fast and often, at a very competitive rate too. However, properties bought from an auction need to get the entire purchase completed within a short period of time. Since it is usually impossible for buyers to have pockets enough to pay for the costs, they take advantage of a loan.

Still, getting financing through traditional means would require a long time. Property auctions require the amount to be paid within 28 days only. This is where people turn to bridging finance to get the funds that they need. Bridging loans are a lot faster to process and the requirements tend to be less challenging when compared to what traditional lenders require.

When applying be aware that the industry has essentially skyrocketed over the years, thanks to the increase in the instances of auction house buys. This means that due diligence is needed in order for you to find the right lender. Not every single one of them is going to be the same so it is up to you to find one that is credible, reliable, and trustworthy at the same time.

The best and fastest way for a bridging loan to get approved is to make sure that you have some sort of security to use as a leverage for the loan. Your credit history can also factor in on whether your loan is going to be approved fast or not. A good credit history would mean faster approval. So, keeping a good financial record can truly benefit you in the process. Do compare your choices before you make a choice.

Watch the video below to learn more.

Learn more about how you can get your bridging loan application approved faster by reading about Richard Butler Creagh online. You can also checkout Richard Butler Creagh Visual CV here.

How to Buy a House at Property Auctions

Tips on bagging a Property at an Auction

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While it is true that purchasing a property at an auction does come with some inherent risks, when done right, it is also a great way to secure a good bargain. If you are prepared to take on the risks involved, you will find that buying at a property auction can offer you some very incredible savings.

For those that are doing this for the first time, the prospect may be a bit intimidating to you. To help guide you on your first attempt at buying a property at an auction, below are some tips for you.

Find an auction

You need to locate auction houses that offer properties where you are interested in buying a property from. Many of the London auctions tend to offer properties that are located in London as well as in the Home Counties. For auction houses outside of London though, expect that they are likely to focus on local properties.

After finding an auction house, secure an auction catalogue by being part of their mailing list. These catalogues will be available a few weeks before an auction so this should give you enough time to find out about the pricing as well as the sale conditions.

Check the fine print

This is something that you should never skip on when joining an auction. Read through the document and make sure to send a copy to your solicitor. Be aware too that flats and houses that are sold in auctions tend to require some renovation and modernisation. Being aware of the extent of the repairs needed is helpful and a survey is often a good way to do so.

Ensure fair value

Find out more details on the local property market before you will sign up for the auction. This will help you get an idea of the actual worth of the property. This will also help you set a maximum bid. Be aware that it is a common mistake that people make during auctions to get carried away and bid more than maximum. So, always make sure to set a specified limit and stick to it.

 Bring the right stuff

Find out what kind of ID you will be asked to show. Know about the methods of payment that are being accepted as well. For a successful bidder, an exchange of contract is to be expected a deposit fee amounting to 10% of the property’s purchase price is expected to be made too, along with the auction house fee. Purchasing from an auction often requires four weeks to complete. Be aware that if you do not get it completed by the set date, the seller could sue you and you will likely lose the deposit too.

Watch Richard Butler Creagh video below.

Auctions need not be that intimidating when you know what to do. Before taking part in one, learn more about how you can get the best property deals at auctions by checking out Richard Butler Creagh website here. You can also connect with Richard Butler Creagh on Soundcloud here.

 

Golden Rules to Keep in Mind when Buying Property at Auctions

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It is becoming an increasingly popular practice for estate agents these days to partner with an auction house when selling properties. A large volume of properties is now being auctioned off with the goal of getting more members of the public to get access to them, instead of just offering them to private investors only.

If you are considering the possibility of buying a property through this method, there are things that you will need to learn first. Doing this for the very first time can be a little challenging. But when you know what are the things that you can expect from an auction process and what are the things that you should not do when you attend one, you can effectively avoid making expensive mistakes and other common pitfalls.

Research first before the biding day

You will want to know exactly how the bidding process works before you will start making one. Refer to the auction catalog to get a good idea of the flow of the process. You will feel more at ease during the actual auction when you already know what to expect. Also, make sure to visit the property that you are interested in to assess ahead of time if it is really going to be worth buying or not. It helps to take someone along when you do the visit to get another opinion and a different perspective on the property.

Learn some auction house jargon

It is easy to get overwhelmed with the bidding process when you do not understand auction speak. There is jargon specific to auction houses that you will want to familiarise yourself with to understand better what is going on. From reserve price to guide price to sale price, make sure you know exactly what each of these terms means.

Get your finances arranged ahead of time

You will be expected to pay 10% of the purchase price along with fees the moment that your bid has been finalized. In addition, you will be given a 14 to 28 day period of completion. It helps if you will be able to secure an approval in principle when it comes to financing your purchase before you will push through with the bidding.

Fees can easily add up

You will realize that the fees involved in a bidding process can easily add up. You will be charged an auctioneer or a buyer’s fee. There will be legal fees, as well as new finance fees, lender exit fees, survey fees, broker fees, and many others. It is important to do due diligence beforehand so you know exactly what you are getting into.

Dry runs are a lifesaver

It helps to know ahead of time how things are going to happen. Visit other auctions in other auction houses to observe how the bidding process unfolds. Observe at least two auctions to get a better feel for how things work.

If you want to learn more about buying properties at an auction, visit Richard Butler Creagh website. For more advice on bridging finance and property auctions, check out Richard Butler Creagh here and follow Richard Butler Creagh on Vimeo.

 

Extra Costs of Buying Investments

Richard Butler-Creagh founded Henley Finance which provides short-term bridging finance to property development sector. Find out more about the extra cost of buying investments below:

There are a lot of worries today on how expensive properties are. The truth is it is even more expensive than most buyers and investors think because of the number of costs associated when buying an investment property that many of us fail to take into consideration. Let’s take a look at the most common costs related with buying your next investment property.

Stamp duty

Stamp duty is one of the most expensive costs associated when buying an investment property. The cost of stamp duty differs depending on the state and value of your property. It can easily add 5% to the cost of your property. This is money you have to prepare since the banks won’t lend you this.

Legal fees

It is imperative to have a solicitor on your side to help you when you want to buy a property. Solicitors can charge anywhere from £600 to £1000 for your property purchase. A solicitor will help you with the signing of contracts, making sure the settlement processes will run smoothly, ensure all activities and processes are conducted legally and save you from anything that could affect you in the future by doing all the necessary due diligence.

Building and pest inspection

When you are planning to buy a stand-alone property rather than an apartment, it is crucial to organize a building and pest inspection. Older properties usually have a number of hidden issues that you may not have noticed on your initial inspection. So, don’t be too surprised if they turn up on the report. The expenses of a building and pest inspection may differ, but these are a good form of insurance. Remember if buying at an auction, this needs to be done well before the auction day because auction sales are unconditional.

Accountant

A suitable accountant will pay for themselves many times over by understanding the investor’s personal situations and help them arrange your investments properly and as well as making sure you will take the advantage of the myriad of legal tax loopholes available to investors.

Property manager

It is vital to engage with an expert property manager to look after your assets. While property management costs differ from agency to agency, this is not an area to try and cut back on costs. There is a huge difference between professional property managers and your rents being collected by the local estate agency.

Visit Richard Butler-Creagh website here, Connect with Richard Butler-Creagh through Linkedin here and watch Richard Butler-Creagh video here.