Holiday Letting Advice

There is an increasing trend now amongst home owners and especially those people fortunate enough to actually have two homes in popular tourist areas to let out their homes to families to take their summer vacations in. There are even a number of dedicated websites that will offer to manage your property and even do all of the advertising and management of the property for you. If this is something you are considering then obviously the first thing you need to do is to select a good lettings management company to ensure everything is ran smoothly and gives you the least headaches for you or your family. There are obviously advantages and disadvantages to letting out your house to holidaymakers so here are some things you might want to consider.

The first and most obvious one is that you are going to gain a second income from the rental value of your property. Depending on things like the number of bedrooms that you have, the location of the property and whether or not there are some good local amenities or tourist attractions in the area, then this is going to increase the amount of money you are going to be able to command.

Also, if you are in the lucky position where you may not owe any money on the house to the mortgage company, or you may have inherited a property from a relative, the money that you get from the rental is all going to be clear profit. If the property has been bought with a mortgage on something like a buy to let scheme then you will have to consider not only the repayments, but also the fact that it is a holiday letting then it may not be being used during certain months of the year. For example, let’s say you have properties to rent in Newquay, Southwest England then they may only be let out during the warmer summer months. On the other hand, a property in Scotland for example is a location that people will visit in both the summer and winter months as the country can be appealing to walkers and climbers in both of these seasons.

It’s a fantastic way to earn money on your property but there are a couple of things to consider as well. Firstly you are putting your trust in total strangers which can be un-nerving. Secondly, there are tax issues that will need to be addressed and finally, by using a letting agent, they will charge you a small commission.

5 Things to Think About Before Investing in FX

If you are looking for somewhere to invest your cash and you have been thinking about foreign currency as a viable option then this is a great choice. Currency moves all the time and if you are able to tap into what impacts the market anyhow you can best use that information to beat the system then you could make some sizable profits. Now before you get too excited and want to throw all of your money at the potential downfall of the Japanese Yen, there are some things which you will need to take into consideration.

Transaction Costs

Unlike when you by stocks and shares where you need to pay a commission on the sale and cover the spread on it, with FOREX  you will only need to pay 1 transaction cost. For example, if you want to buy shares in Apple at $20 per share (hypothetically speaking of course) you may be quoted $20.20 for the offer, yet when you sell, you will be quoted $20 which is the bid, this means that you have a $0.20 spread on your share dealings. FOREX doesn’t have this spread feature unless you are trading on the ECN, which is highly unlikely. This means that you will have more money to play with and you will need to factor this in.

No Ownership

When you buy share sin a company, you become an owner of a small slice of the company whereas when you buy currency, you don’t own anything. The currencies that you buy and sell are not owned by you because you are betting on the spot market which doesn’t actually take deliveries of currency. Your transactions will be nothing more than digits of the screen of your broker.


Leverage on FOREX markets can cause you great wins and sizable losses and you need to fly understand how this instrument works. You may be offered 1:50 from your broker meaning you could turn your investment over by 50 times its value, this is not uncommon in FOREX. The problem with this however is that if you maximize your leverage and buy the full amount available, it only takes a small drop to completely wipe out your investment.

Carry Trading

You need to do your research when it comes to carry trading which is when you receive a higher interest rate on your long bets than the shorts. The basics of the carry trade is that you are borrowing a low-yielding currency in order to help you to fund buying higher-yielding assets from elsewhere in the FOREX spectrum. This is all well and good unless the interest on the long option appreciates to a higher rate of interest than the short, do your research and make sure you know exactly how carry-trading works.

As long as you put in the work when it comes to researching FOREX you should be just fine but don’t go into this with your eyes closed, or you could lose big.