Making Money Is Child’s Play

If you have children, you’ll know how difficult it is to encourage them to do chores for pocket money. You may also wish to teach them a few basic business and entrepreneurial skills but you’re not sure how having them clean their room is going to achieve that. I recently read about a shrewd father from the USA who had a unique idea to solve these problems. He gave his son a vending machine. After installing the machine in a local workshop, he told his son two things:

  1. That this would be the last time he was receiving pocket money.
  2. That if he wanted an allowance next week, he would have to spend this weeks on some stock.

Now cast your mind back to your own little darlings, sullenly scooping clothes off their bedroom floor, dragging their feet as they go. Is there something you could learn from this? You wouldn’t necessarily need to purchase a vending machine but any project which enables them to learn the basics of business whilst hopefully earning some extra cash would do the trick. It’s certainly something to think about.

New BTL Lender

Cambridge & Counties Bank now offers loans to residential property investors across the country who can ‘demonstrate knowledge and experience in this market’. Let’s quote, ‘The new Cambridge & Counties Residential Investment Loan will have rates starting from 4.50 per cent (plus Bank of England Base Rate) and will be a secured long-term lending product of up to 25 years (minimum three-year term). The bank will lend up to 70 per cent of the lower of either the market value or purchase price of the property. The loan is available for property investment via purchase and/or refinance.’

‘Repayment of interest will be monthly, with capital repayments of equal monthly amounts via direct debit throughout the life of the loan, except where interest-only facilities are allowed. Interest-only loans will be available for periods of up to ten years and are capped at an LTV of 70 per cent.’ Again, start your due diligence at a site such as Moneyfacts.co.uk before talking to a broker.

 

Robert De Nero’s Waiting

I was driving to work the other day, when I heard an interesting story on local radio. There was a rumour that Robert De Nero and Julia Roberts were making a film in the area and were holed up at a pub just outside Chesterfield. BBC Radio Sheffield sent a reporter to the pub where he found a fleet of trailers and Winebago’s in the car park. There was a security man outside who denied that De Nero and Roberts were there. By this time other news and media representatives had turned up as the story spread.

When I arrived at work, the mystery was still unsolved, but on my way home I got to hear the full story. A barmaid at the pub spilled the beans. The trailers were there because Sky were filming some low key/low budget production in the area. The pub landlord had seized on this and started the rumour about De Nero and Roberts. Aside from having a fun day, he got an enormous amount of publicity for his pub – and no harm done.

It’s always worth thinking about how you might generate publicity for your business or enterprise. As I said in the recent story about the Kensington Holiday Inn, both on and offline media are desperate for interesting stories to fill their space and air time. As the Chesterfield pub landlord proved, there doesn’t necessarily have to be anything interesting actually happening for you to get free publicity.

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“If we all worked on the assumption that what is accepted as true were really true, there would be little hope of advance.”

Orville Wright

Start Up Loans

The Department For Business has just announced the first wave of start-up loans for young people. The scheme is available to people aged between 18 and 24 wanting to launch their own business. It provides loans of up to £2,500 as well as business mentoring and support, It is hoped the scheme will help launch 30,000 new businesses.

Turkey – Getting Hotter?

According to Colordarcy, the property agents, ‘Arab investors will become bigger players in Turkey’s property market.’ With Turkey having opened up the property market to these investors, they call it correctly. Investors from the UAE, Saudi Arabia, Kuwait and Yemen  are going to drive prices upwards.

Loxley McKenzie, managing director of Colordarcy takes up the commentary, ‘In my experience, European investors are not the main target for Turkish developers at the moment, it is the growing influx of investors they are welcoming from the Gulf. People have been calling Istanbul the new London for most of the past 12 months and it is likely that many Middle Eastern investors will find Istanbul a more attractive proposition. Turkey is much closer to home and so is the culture.’ We have a report coming soon.

Currencies Reminder

We always stress the importance of monitoring currency exchange rates and looking at spot rates and forward contracts etc depending on which way the currencies are moving. An example of this importance comes today from David Kerns at foreign exchange specialists Moneycorp.

‘Buying a $150,000 property in May of this year would have cost British buyers £98,230, when £1 bought $1.527. By last month, the price in pounds for the same $150,000 property had fallen to just £92,024 – or a mammoth saving of £6,206 – when the exchange rate was $1.63. Even at the current rate, British buyers save £2,100.’