Should I Invest in Art?

There are lots of different things that we could potentially invest our money in and art is just one of them. If it is something that you are considering investing in, then there are quite a few things that you need to think about first. It is well worth taking time to think first as rushing in to a decision like this, could be something that you will regret.

Picking a Piece

To start with you have to decide on which piece of art you are going to pick. This can be pretty difficult. If you buy something form a new artist, there is a chance that they may get really famous and their early pieces could become valuable but that is a risk. However, there is an equal risk of buying a painting of a popular artist, which is likely to be more expensive and still may go down in value rather than going up. It is not an easy decision to make and even after a lot of research. It can be very difficult to predict what might happen with regards to trends in the market.

Storage Costs

Once you have a painting you will need to store it. You will need to think about where it will go and how it will be protected. You may want to hang it in your home and if this is the case then you may need to fit a burglar alarm to the home so that it is protected form burglars and this will cost money as you will need to have it serviced each year. If you plan on putting it in storage, you will need to find somewhere that has the right temperatures and humidity so that the painting stays in good condition. You will also want to check their protection from thieves and for fire as well.

Insurance

You will also have to pay to insure the paintings. This will be either a monthly or yearly cost that you will have to pay out. Insurance tends to be high as well because insurance companies will not only cover you for the value of the paintings but also for the cost of finding replacements for them should they be lost. This means that the insurance value tends to be 3x the auction value.

So, if you are considering investing in art you will need to think about it hard. Not only will you be taking a risk when you are choosing a picture to invest in, you will also need to think about storing it and insuring it. There will be these ongoing costs that you will have to find the money to pay for. You will also need to think about the costs that you will have when you sell the art. If you auction it, the auctioneer will take a cut and you may have to pay capital gains tax if the value does go up a lot.

Many people advise those that are looking to invest in art to buy things that they like themselves. This means that they can hang it I their home and enjoy it and they will be able to get value from it that way. Then if they find that they cannot make money from it, either because it has not gone up in value or it has gone down in value, they will still feel that the purchase was worthwhile, because they have been able to get a lot of pleasure from it themselves. It is so hard to predict what people might like or dislike even a few years into the future and tastes change and people go off things and then might like is again in the future and so it can be very tricky indeed.

Is it Good to Invest in Property?

There are many different places to invest money but there are a lot of people that will use their money to invest in property. This is something which has started relatively recently due to the stock market not performing quite as well and because of a trust in banks, pensions and other types of investments. There are pros and cons to investing in property though and it is good to have an understanding of these before going ahead with it.

Return

With a property there are two ways to make money from it. Most properties will increase in value over the years just due to the fact that house prices tend to rise with inflation. Although, this may not always happen, it does generally. If you are unlikely enough to pick a house in area that becomes undesirable, a style of house that falls out of trend or one that is in disrepair, then you could find that the value will go down. However, most houses will go up in value and this means that you are likely to be able to make some money when you sell.

You may also be able to rent out the property. You could get in a regular tenant to get monthly rental or let it as a holiday home and you have more seasonal guests but the rent that you can charge tends to be higher. This will provide you with an income stream as well so it means that you will have money to cover the costs of home ownership but you will have to pay out to keep it maintained inside.

Costs

There are always costs of owning a home, whether you live in it, leave it empty or rent it out. These include maintaining it inside and out, insurance, council tax and if you rent it out, you will also have to have safety checks done on it and pay for it to be decorated. You may also have letting agent fees if you do go through an agent. It may also be the case that you will have to pay for it to be modernized or updated every so often as well. The amount of maintenance will probably depend on the age of the house. An older property may need more work doing to it.

Buying & Selling

When you buy a property there will be costs, such as stamp duty and solicitors fees. You may also have to do some decorating or perhaps even more expensive work to update it. Then if you are renting it out, you will need inspections and safety checks to be done and pay for insurance, before you can pay a letting agency to find you a tenant.

When you sell a house, you will have to pay an estate agent and solicitor. You will also have to pay capital gains tax on the money that you have made on the increase in the value of the home, if it is more than the threshold for the tax.

So, as you can see, you will need to think about the costs and the potential returns on a property in order to decide whether you will be able to manage financially with a property. It can be hard work as well, as you will have to deal with tenants and any emergencies that they have and if the property is empty for a while, you will have no rent coming in. So it can be quite a gamble and it can be well worth talking to people with experience of being landlords to find out a lot more before you go ahead with this sort of investment.

What Does a Lender Look for in a Credit Score?

If you are trying to secure a loan, then you may be wondering about your credit score and whether the lender will find it to be acceptable. This is something that it is worth thinking about because most lenders will be looking for certain things on your credit report. Although it is not possible to know exactly what they will be looking for, as they are all a bit different in what they offer, it is still possible to think about the sorts of things that might impress or not impress them.

Making Regular Payments

Many lenders will want to check that you make regular payments and they will use this as a guide to whether you will be a good person to lend to. They will often require you to make regular repayments on their loan and this means that they will want to see evidence that this is something that they think that you will be capable of. If you have already got a loan and you make all the repayments on time then they will see this on your credit report and they will be impressed by that. They will also look at other regular payments that you might make – things like utility bills and if they can see that those are being made on time, they will be happy with that too. If you do not have any loans, then make sure that you have your name on utility bills or things like this so that there is definitely a record that you are making payments.

Being in Control of Money

A lender will also want to see evidence that you are in control of your money. They will be looking hard to see evidence that you are managing well. This will include things like making sure that you are not applying for too many loans and particularly that you are not being turned down when you apply for loans. If you apply a lot, they may think that you are constantly running out of money and therefore not managing to control your situation very well.

Ability to Repay

They will also be thinking about your ability to repay the loan. They will look to see what loans you have already and think about whether that might make it hard for you to also find the money to pay your repayments to them. They will also look at your income and think about whether they feel that will give you enough money to be able to comfortably pay them the money that they need.

It is worth bearing in mind though, that there are some lenders that will not take your credit score into account. Short term lenders will lend to most people regardless of how well they are managing financially. They will, however, want to see proof that you can repay the loan by only lending you a small amount of money. If you repay that on time, they will then be prepared to lend you more money as you have built up trust with them. As these lenders are taking on a risk, by lending to those that have not had a good past record with money, they will charge more money than some other lenders. So, it is worth bearing this in mind. Whenever you take out a loan, it is always worth thinking about whether you feel that it offers good value for money though. So, find out how much it will cost you and you will then be able to decide whether you think that it is worth paying that much money just for getting out a loan or whether you feel that it is better to not get it out and to not spend the money after all. Obviously, this will very much depend on what you are spending the money on.

Should I use a Bank I do not Know?

It can sometimes be difficult to know whether it is a wise idea to use a bank that you do not know. There are things that you ocudl be concerned about, but there might also be advantages and it is a good idea to consider both so that you can think about whether it will be a good option for you or not.

Concerns with Using an Unknown Bank

If you have not heard of a bank then you may wonder whether they have had much experience. You might think that perhaps they are new, which is why you have not heard of them and that might mean that they will not know much about what they are doing and that perhaps therefore you will not be able to trust them. It is worth checking this out though as you might find that they are actually a lot older than you think and that you may just not have heard of them because they do not advertise or do not have a branch near to you.

You may worry that perhaps, because they are not a well-known bank that it might mean that they will not be very good. This is an interesting idea, but people often seem to think that if a bank is well-known, it will have a reputation to uphold and it will therefore have to provide a good service and good value for money. This is actually not the case. This is because a well-known bank already has lots of customers and can probably afford to lose a few. Therefore, they will tend to not worry quite so much about making sure that they have competitive prices and good customer service. They also tend to advertise and have lots of high street branches which cost money and that cost has to be passed on to the customer which is likely to make them more expensive.

If no one talks about that bank it does not mean that they have not used them and do not bank with them. So, ask people about them and see whether they have heard of them and whether they have used them. They might be able to give you some useful feedback. You might also be able to find out information about them online, perhaps on review sites or personal finance forums etc, but be careful that you are using trusted sources and information that is unlikely to be biased.

Advantages of Using an Unknown Bank

It is always worth comparing all banks when you are looking for a new product. This is because you will find that there are big differences in the amount of interest as well as charges, customer service and things like this. This means that there could be some banks that offer products that are really good and suit your needs really well, but if you have not heard of them, then you may reject them. So, using a different bank could be useful.

Also, you may find that a less well-known bank will rely on good customer service to help them. They will need to do everything they can to keep the customers that they get and therefore they will be more likely to provide a good service and they may also have good interest rates and low costs as well. It is certainly worth checking them out as it could be a real benefit to you if you do. It will take some times and research but if you end up with products that will offer you much better value for money then it will be really worth the effort that you have put in.

Can a Payday Loan be Used by Anyone?

It is often thought that certain types of loan are for certain types of people. This is because there are some loans which do have very specific purposes. There are also some loan that people do not know a lot about and this might mean that assumption are made about them which perhaps are not correct. This can often be the case with a payday loan as people often feel they are for specific types of people.

Those with a Poor Credit Record

It is often thought that payday loans are only for those with a poor credit record. This is because it is well known that payday lender will allow those that do have a poor credit record to be able to still be able to borrow money from them even if they have been turned down by other lenders. However, a payday lender will not insist that those borrowing money from them have a poor credit record. They will not look into it and so it will be possible for most people to borrow from them if they wish to.

This Who Need Money in an Emergency

It is also often thought that payday loans with no credit check are just for emergencies. It is true that they can often be set up very quickly and it can be possible to get money within a few hours. There are even some payday lenders that are open outside of normal banking hours which can be handy too. However, it is again not specified that you have to need money for an emergency to be able to borrow from them. The lenders will not ask what you need the money for and it will be up to you to decide.

Those Who Want to Repay Quickly

A payday loan will have to be repaid when you next get paid, which will mean that it will only last a few week or days normally. Therefor those people that want a loan that will be repaid quickly, will find that a payday loan can suit them well. However, there are now instalment loans available which are payday loans which will be paid off in a few instalments. This means that they last longer and it will be easier for the borrower to be able to manage the repayments.

Those Who Only Want Small Amounts

It is often thought that a payday loan will not allow you to have much money. It is true that first time borrowers might be limited to only a few hundred pounds, but this will depend on the lender. They will lend different amounts anyway although some will want first time borrowers to have a smaller amount so that they can see if they will repay it on time before they lend them more. However, some will lend more and it can often be possible to borrow up to £1,000 with them. This is not as much as some lender but it will still be quite a large amount compared to what some people think they will be able to get.

Therefore, you can see that these three main ideas about who payday loans are for are not completely right. It means that it is something which could be worth looking into in more detail. It is well worth checking for yourself, if you are interested in certain type of loan, to make sure that you are sure about its main features and how it works as well as who it is for. Then you will be able to judge whether it is the right loan for you and you can be sure that you will get good value for money.