What is blockchain?

Blockchain technology is used to store and send information about transactions concluded on the Internet. Those are arranged in the form of consecutive blocks of data. One block contains information about a specified number of transactions, after its saturation with information, another block of data is created, followed by the next block, creating a kind of chain. In the chain, on average, a new block appears every 10 minutes, in which information about various transactions, eg trade, stocks, shares, stocks, sales, purchase of electricity, purchase or sale of currencies, including cryptocurrencies, ie currencies, may be sent.

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The essence of blockchain is to maintain a joint and collective accounting book of transactions, in a digital form, scattered across the entire network, in the same copies. This technology is based on a peer-to-peer network without central computers, management, and transaction verification systems. Every computer in the network can participate in the transfer and authentication of transactions. In the case of blockchains, they will be blocks within the transaction book. The book is open to everyone, but it is fully protected against unauthorized access by complex cryptographic tools. The user can view only their transactions. Thanks to this record, transactions are public, but available only within the access rights for a given user and their entire history, from the very beginning of the existence of the blockchain to this day, you can review and verify.

Currently, blockchain can be used to handle various transactions (trade, currency, stocks, shares, electricity market), but work is underway to use the blockchain, as an accounting book in banking, document authentication system, digital signature in state administration and notarization. All these transactions may take place outside the system functioning for centuries – without the participation of public trust institutions, directly between the parties to the transaction. You can store any type of transaction in blockchain block data blocks. One of the applications are cryptocurrencies, e.g. Bitcoin. While the future of Bitcoin itself is under question, blockchain, as a technology and transaction platform, has found recognition in many industries, including financial, energy or trade.

Essentially cryptocurrencies market has given birth to blockchain and while the markets itself undergoes a slight slowdown, the technology is now used in many banks not only other verification tool but also as a tool to investigate and predict market behavior. A new market has formed where banks offer security services based on the Blockchain technology four example BNP Paribas.

Richard Butler Creagh is the founder of Henley Finance. Find out more about getting the right finance for you on the Henley Finance website here. Follow the Richard Butler Creagh Twitter page for the latest news on bridging finance here. Learn more about the work of Richard Butler Creagh 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.

 

Buying the Right Investment Property

Richard Butler Creagh is a financial consultant who founded Henley Finance since 2013 which provides short-term bridging finance to the property development sector. Here is Richard Butler Creagh’s advice on your next property investment.

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You’ve made a windfall and you’re looking to buy an investment property you can turn into a steady source of cash flow in the form of rental income. If you’re ready to become a property owner-cum-landlord, here are three things to remember before you buy your first rental home.

Stick with a budget. Whether you’re looking to invest your personal funds or taking out a property loan, have a budget and stick with it. Success in real estate investment takes time and patience, so don’t rush into a buying spree. Instead, learn more about the trade and make informed decisions.

Research rentals in the neighborhood. You may have decided upon a location simply because someone recommended it or a real estate agent is pushing you to buy there. Tread with caution—your entire business plan could go for a toss if you fall for inflated rental figures. Do your own research, find out the going rentals in the area, and factor in the associated costs of acquiring a property, advertising it to potential tenants, maintaining it until a good tenant comes along, and government taxes and agent fees, if any.

Buy through a reputed local real estate company contact a seasoned and well-established.  house buying company and let them know you’re looking to invest in a home or commercial property that will fetch you good rent and will also see considerable appreciation in the coming years. By partnering with a local real estate business, you’ll benefit from their resources and expertise in scouting your preferred location for a good deal.

Know more about becoming a good investor from Richard Butler Creagh here. Know more about Richard Butler Creagh through his Twitter page here and read Richard Butler Creagh news here.

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A Look into bridging finance

Richard Butler Creagh is a financial consultant who founded Henley Finance in 2013. Here’s an overview of bridging finance on how you can use it.

Bridging Finance is the answer when you want to purchase your new home before you have sold your existing home. It is a viable solution if you aren’t yet in a position to sell your current home, prior to buying your next.

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How does it work?

Bridging loans can be secured through the equity you have in your existing home, the new home you want to purchase, or both. It is important to check the level of equity you have, to see if it is an option for you. Typically this will give you 6 to 12 months to sell your old home. During the bridging period, you usually make interest-only payments on your existing home and your new home, in addition to costs for the new purchase. Once you have sold your existing property, your payments will switch to principle and interest on the remaining debt left. Be aware that there can be repercussions of not selling within the set bridging period.

Capitalization

Alternatively, Bridging Finance can be provided through a new loan where no repayments are required for a set period of time. Although the new loan doesn’t require repayments during the bridging period, interest will be calculated and added on top of the loan. Whilst this interest is capitalizing, you will continue making the existing principle & interest payments on your current loan for you to be sold property.

When your current home has sold, and that loan has been paid off and closed, your broker can then renegotiate your new home’s loan terms on your behalf. It helps to get a good understanding of the options available to you so you know that you will be able to meet your financial obligations out of taking advantage of a bridge loan. Learn more about how you can get the most out of bridge financing by reading about Richard Butler Creagh online. Know more about Richard Butler Creagh through his Soundcloud page and read Richard Butler-Creagh news here.

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Uk House Prices Make Surprise 5.9% Rise In February

House prices rose by 5.9% in February – confounded many commentators, as it appears to contradict the widely held view that the UK’s property market remains in the grip of a slowdown.

Despite an escalation in Brexit confusion, property prices rose 3% percent last January, the latest Halifax index showed.

The Halifax said the 5.9% increase seen in February was thought to be the biggest it had ever recorded. It lifted the average property price to £236,800 – up from £223,629 at the end of January. That translates into a £470-a-day increase in value.

The big monthly rise lifted the annual rate of price growth to 2.8%, which the Halifax said was “fairly subdued” compared with 2015-16 when it was more than 8%. But with other surveys and official data mostly showing housing market, Halifax cautioned against reading too much into the strength of a single month’s figures.

Richard Butler-Creagh is the founder of Henley Finance. Learn more about how you can get the most out of a bridge financing by reading about Richard Butler Creagh online here. Read the recent news article about Richard Butler Creagh to their website. Show your support online by following Richard Butler Creagh on Twitter here. Watch this video about Henly Finance and what they can offer you:

How long does it take to get a Bridging Loan?

Bridging loans can be arranged within a matter of hours with funds released within 72 hours although usually this takes a bit longer and can take a couple of weeks. While a bridging loan may be arranged much quicker than could be achieved through a traditional bank, most bridging finance companies still apply sensible and relatively conservative lending criteria. Usually, such lenders are smaller nimble operations and specialise in doing all of the usual checks that a bank will do but without the encumbrance of bank bureaucracy.

Every bridging loan that’s arranged has an exit strategy agreed with the lender – the means by which you’re going to repay it. You might be planning to sell the property after renovations are complete, arrange a long-term mortgage on it or sell another property to pay off the loan.

Interest rates are quoted per month. After the first month minimum, interest is calculated daily. For example, you take out a £100,000 bridging loan on 1st August at 0.75% monthly. If you repay it on 6th October you pay one month’s interest (£750) plus 6 days’ interest (£148) = £898 in interest. (Plus the loan set-up fees.)

Fees include the usual search fees and land registration fees, the lender’s valuation fee (which you need to pay) and both your legal fees and the lender’s (which you may be able to minimize by using the lender’s solicitor to do your own legal work as well). Then there’s the lender’s arrangement or facility fee of around 2% and your broker’s fee (which will be least of all the professional fees).

This is a very useful form of finance for the property.

If you’re looking for short term finance and are a property owner, a bridging loan could help. Contact Richard Butler Creagh to discover your options here. Connect with Richard Butler Creagh on Crunchbase and join our network. Follow Richard Butler Creagh on our official Twitter page for more advice on bridging loans.

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The Ultimate Guide to Bridging Loans

A bridging loan is a type of short-term finance that typically lasts for 12 months or less. It provides fast and flexible funding for all kinds of purposes and is used by individuals, investors, businesses and property developers

What are bridging loans used for? Bridging finance was traditionally used to ‘bridge’ gaps in property chains, but today it is more widely used. Homebuyers, property developers, landlords, investors, and self-build enthusiasts all use it to complete projects, including initial purchases.

How is a bridging loan different from a regular loan? For example, you can take a bridging loan out in multiple stages so that you only pay interest on the money that has been released to you, and if you prefer not to make monthly interest payments, there is also the option to retain your interest (and not just your fees) from.

A building, Refurbishment and Extension Projects. Bridging finance can also be used to fund building, refurbishment and extension projects.  For example on your property development, you can turn an existing commercial building into flats with the assistance of permitted development rights. For self-builds, you can create your ideal home or even a grand design. Lastly with extensions, with planning permission available you could create that perfect living space.

Financing Projects. Investors, businesses and entrepreneurs also take advantage of bridging loans to invest in projects overseas, purchase assets, increase business cash flow and make tax payments, such as income, capital gains, corporation, VAT and PAYE.

Richard Butler Creagh is the founder of bridging finance company Henley Finance, dedicated to helping property developer with fast loans. To find out more visit the Richard Butler Creagh website here. Learn more about the work of Richard Butler Creagh on the Sports Timing Solutions. Join Richard Butler Creagh professional network by on Linkedin page 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.

 

Top Facts about London’s Property Market

gI_66742_hf logoAt Henley Finance we bring you the latest news from the world of bridging finance and specialist property lending. Leading property agent “Portico” has recently launched out a fun quiz to find out what Londoners actually know about the capital’s property market.
“How many days, on average, does it take for a London property to go under offer?” is the question from the quiz that has the most incorrect answers. 67% of the quiz takers has thought the average time it takes for a property in London to go under offer was 32 days or fewer. But based on actual fact, because of subdued market conditions, the correct answer was almost double to what the people know, it is 60 days and only 27% of the quiz takers answered correctly. Despite of the fact that the Bank of England has recently voted to keep interest rates unchanged, there were a lot of uncertainties surrounding the rate. Only 25% of the respondents were not able to correctly recall the UK’s present base rate of .25%
The respondents were also asked “How many active London rentals are currently on Airbnb?”. An enormous amount of 66% of quiz takers were not aware of the number of Londoners using the short-term let site, instead choosing for much lower figures.
The findings were indeed surprising. The quiz showed that Londoners know their house prices, it has 80% able to identify which property among the four choices was currently on the market for £300,000 or less. Londoners are also clearly clued up on buying properties. 52% were able to answer how much “Stamp Duty” would be due on a £500,000 additional property and only 77% was aware of the minimum deposit needed for a London Help to Buy equity loans.
London is one of the best cities in the world to work, whether it is in the financial institutions or a trendy design company. London office space has some of the most expensive in the world at 250 dollars per square foot. This is twice as expensive as the 5th most expensive place which is Shanghai at 136 dollars per square foot.
Specialist lenders have witnessed the total value of their lending increase to £17bn per year in 2016 – more than a three-fold increase from the low base of £5bn recorded in 2009.
Specialist lenders are now in a position of strength following the market’s turbulent past and are effectively catering for the growing number of ‘non-standard’ borrowers in the UK who fall outside mainstream lenders’ criteria.
If you are interested on London’s property market, visit the official page of Henley Finance and Richard Butler Creagh here. Know more about Richard Butler Creagh and read more industry updates on his Twitter page. Watch this video to find out more:

Ways to Avoid Being Surprised by Taxes

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Richard Butler-Creagh is the founder of Henley Finance which is a short- term bridging finance company. Here is Henley Finance advice about getting your taxes right:

Being an entrepreneur and establishing your own business provides tremendous freedom that you just can’t get working for someone else. When tax time arrives, entrepreneurs must take a totally different approach to taxes than the average worker. For example, when you work for someone else, your employer takes care of withholding taxes from your checks. But when you’re self-employed, that tax requirement falls only on your shoulders.

Know and calculate your self-employment tax obligations.

As mentioned above, you have to pay self-employment tax if you work for yourself. Part of this tax goes to Social Security and part to government medical insurances. This is in addition to individual income tax. If this is the first year that you’re in business for yourself, you’ll need to estimate how much money you expect to earn by December 31st. Otherwise, you can use online worksheet programs to help you figure out your tax obligation based on your prior year’s tax return.

 Seek advice from your accountant

Once per quarter, see to it that you sit down with your accountant, and review several items. First, check to make sure you are setting aside the right percentage of funds in your accounts.

Also take a look at the changes in your business since your last meeting with your accountant. Looks at trends, and discuss the company’s status. Finally, know of any changes in tax laws that might affect the way you are currently operating. This meeting doesn’t take a lot of time, but make sure you are doing the right things and heading in the right direction. This gives you time to make course corrections before you stray too far.

 Know Your Tax Laws

Your accountant is your best, most consistent source of information about important changes to the tax code. But you can’t get lazy and expect a third party to do everything for you. If you’re an active partner in making sure you’re up to date on the tax laws that affect you, you can be better positioned to take advantage of opportunities to reduce your liability and ensure you’re not caught short when it’s time to write the government a check.

Know Your Tax Deductions

This is another area where it pays to use an accounting service, so talk with certified tax accountants as necessary. While you certainly want to pay all the taxes you owe, there’s no sense in paying more than you’re legally obligated to. Consult with your accountant to make sure you’re positioned to take advantage of the tax breaks you’re entitled to. Just make sure you’re claiming all of your available deductions; many entrepreneurs don’t. While none of us particularly enjoys paying taxes, it’s far less painful when you have the funds to cover your obligation. Careful planning and regular checkups can help ensure you’re never surprised to see your taxes again.

.Learn more about Richard Butler-Creagh here, Visit Richard Butler-Creagh CrunchBase page here, connect with Richard Butler-Creagh on his Linkedin page here and visit Richard Butler- Creagh website here.