The boundary of the Grand Bahia makes a vast footprint on the Rivera Maya – hundreds and hundreds of Acres. Whilst the 27-hole golf course takes up a large portion of this space, dense untouched forests remain within the perimeter of the resort. A large development in currently underway to transform much of this space into new neighborhoods; offering a lifestyle change to lost souls, a second home to rich tourists or perhaps an investment opportunity to the Savvy!

Buying a Holiday Home Abroad to Let

If you are here to read advice on how to go about buying a holiday home in a foreign country to make you rich – I’m afraid you have come to the wrong place. Instead, I am going to give you my two-cents on why buying a holiday home in Mexico is definitely not for me.

Perhaps everyone has a dream of owning a beautiful property abroad where they can stay anytime for free and rent it out while they are not using it. It Sounds wonderful doesn’t it? Other holidaymakers can pay your mortgage off and you can use the place whenever you like for free!

It just so happens that the hotel here is currently offering Condos for sale starting at around $160K, going up to $600K. The homes are nothing short of stunning – set in a tropical paradise in the jungle, just minutes from the sea.

To begin with, I was lured by the idea of owning a little piece of paradise. After a reality check and further research – here are four reasons why I am definitely not going to buy a holiday home in Mexico as an investment property:

1. Under-developed legal / political system. Buying a rental property in Mexico is very different to buying one in the UK or North America. In a country still rife with bribery and more dodgy-dealing than most, legal documents might not hold the same credence as they do back home. It would be a lot of work to find a reputable Mexican lawyer who could read over any contracts / agreements etc.  and that is not to mention what could be lost in translation!
2. Pre-approved developer financing sounds great, but schemes can just as quickly fall flat on their face. The chances are a lot of investments will be for properties that are not yet built – a promise of paradise.
3. The condos are likely already over-valued. Mexico is a poor country and while the condos are in a beautiful and rural setting, things can change. The hotel may decide to chop-down too much of that beautiful forest and all of a sudden the condo loses its appeal (and value)!
4. It is too far away! Mexico is simply too far away from the UK if anything major should go wrong. Whilst I could employ a property management agency to clean the rooms etc. after each visit, bad things can happen. This was highlighted to me even more today when I read the article on This is Money – 10 Strangest things on rental properties.

Buying a Hotel Suite to Let

An alternative to buying a condo to rent privately would be to buy a hotel suite. The Sian Kaan hotel in Mexico is actually a series of investor-owned condos, which are leased to the hotel. Essentially, the hotel provides a management service for you; cleaning rooms, pool, entertainment, drinks, food etc.

The deal is that you pay a minimum of $160,000 for a single suite. The hotel provides you the deeds to the property and the opportunity to make use of the hotel room whenever you like – the catch being that you still have to pay the all-inclusive supplement. The hotel pays you a guaranteed lease fee (which is not dependent on occupancy) at around 7-8% p.a. The hotel also pays the maintenance fees, insurance and takes care of everything else.

Sounds like a good deal right? Perhaps… but there are a couple of caveats that I have with the arrangements:

1. The leases have terms of up to 10 years. If the hotel goes bankrupt or decides to change their terms, you are left with an asset that has lost a lot of appeal and hence value. Furthermore, if the hotel’s quality slips or brand is de-valued, will this investment be as valuable?  I like to have much more control over my investments than this!
2. The asset itself is highly over-valued. You are paying for the opportunity to make money leasing it back to the hotel (and hence its reputation) and not just the building itself.
3. It is very unclear who is responsible for ‘refreshing’ the room. The term maintenance is very loose and I would need far more reassurance that the hotel would ensure it was well kept.

Conclusion

The idea of a rental property in paradise is still very much appealing – in fact it is still very much a dream. Investing in Mexico in general is quite risky – bad weather, political situations, corruption and shear distance from the UK makes me far too uneasy at this stage. A 10 hour+ flight is too long and too expensive to allow regular check-ups.

At this stage in my life, there are far more appealing things to invest in – I am still confident that the stock markets are on the rise and that my investments in emerging markets will reap some long-term benefits. Furthermore, these investments allow me an easy out – I can quickly sell out if my situation changes or I get uncomfortable! They are also far less demanding than dealing with foreign income, taxes and laws.

Real estate investing is definitely something on the horizon – but perhaps a little nearer to home and in a country with better-established laws and regulations. I am sure that plenty of people who invest in hotel suites and condos here in Mexico and in other places make a tidy return – kudos to them.

For me a yield of 10% ish is not worth the required hassle… especially when I have doubled that yield in only 8 months on the FTSE

Do you know anyone who has invested in a foreign rental? Did they regret it? Do they make money?

Check-Ups are Preventative

A check-up is intended as an exercise to avoid something bad happening. In the example of the dentist, regular appointments ensure that bigger problems can be spotted early. Similar to how men go for prostate examinations and woman get cervical cancer tests – A check-up provides an early indication if things are not going to plan.

Do you see where this is going?!

Financial Check-Ups

Having grown up in a world full of check-ups – from tests at school, to drug tests at work – why is it that most people forget one of the most important check-ups of them all? The financial check-up!

5 Reasons to Monitor Your Finances Regularly

• Income < Spending = Trouble – The fundamental reason for monitoring your finances is to ensure that your spending is controlled. We all know how easy it is to have too many meals out, buy too many new clothes for the month or lose track of the lattes. Regularly checking your current account ensures that you know where your money is going. Many banks and building societies make this ridiculously easy for you too by providing apps / portals that automatically categorise your spending into genres. Nothing says you are spending too much money on your mobile phone bill more than a giant red area in a pie chart!
• Tracking Goals – We all have goals in one form or another. For a lot of young people, a financial goal is to save up for a deposit to buy their first house. For others it might be a dream holiday, investing for your children’s future or even your own retirement. How can you keep track of progress without regularly assessing your financial position? One thing is for sure – you won’t magically get their by closing your eyes and hoping for the best! It doesn’t work!
• Things Change Quickly - Just because you signed up for the best gas and electricity prices three years ago, it certainly doesn’t mean that you still have a competitive deal. Insurance companies thrive on customers who automatically pay the renewal price without batting an eyelid or trying to negotiate. Companies are at their weakest point shortly after you have served your contracted period; They will do a lot to keep you (or sign you on for another term), yet most people just keep on paying. I regularly contact Sky to ensure that I am receiving the most competitive TV package and 1st central insurance to ensure that I have a competitive car insurance policy. It takes time, but don’t forget that everything can be monitored – Internet, House Insurances, Mobile Phones etc. Also remember, the opposite can also be true – if you are willing to lock yourself in to an expensive contract then be sure to negotiate; just like I did with our Gym.
• Investments Need Nurturing – Whether you are an experienced professional or passive investor, you can’t just ignore your options. Government policies, world trade movements, competitor behavior, economies etc. all have a substantial impact on investments. Just because you bought options in a bluechip multi-national a year ago, it doesn’t mean that it is forever safe. You need to regularly review all your options. For example, P2P lending investments used to be far more appealing than they are today – I won’t be offering any more loans as competition has driven the rates right down.
• Peace of Mind – One might argue the most important thing of all – being safe in the knowledge that you are ‘OK’ if the sh** hits the fan. Ignorance is not bliss when it comes to finances and I shudder when I read stories of people who throw their bills in the bin because it depresses them to read them. One of the key messages in a holistic book that I have just read is all about health being more than a physical thing – rather a complete connection with your surroundings. Unfortunately your financial situation dictates much of this!

After reading back through this post I feel that it is time for a major financial check-up in my household. I have been responsible with the check-ups, but this time my teeth might need to get some work done…

How often does your household have a financial check-up?!

Since the introduction of credit and debit cards, the need to carry lots of cash has been reducing, and with the latest developments in payment solutions people are starting to wonder whether we might eventually move towards a totally cashless world. Since 2008 contactless payment using credit and debit cards has been available through Barclaycard, and similar technologies have been used for prepaid payment cards such as Oyster cards.

Recently Travel for London (TFL) introduced contactless payment capabilities on most London buses and there has been a big uptake on this option. If the UK’s future looks anything like that of Hong Kong or Tokyo, it is quite possible that contactless payment for public transport could be the tipping point for the UK’s traditional chip and PIN machines to start falling out of favour. One of the main barriers to a greater uptake of contactless is consumer concerns over security, but as contactless payment becomes normalised and people are better educated about how secure the technology is, customer confidence will likely grow.

Meanwhile, the Barclaycard PayTag (a sticky backed RFID chip which can be stuck to your mobile phone) is gaining traction as an even more convenient way to pay without the need to get your wallet out at all. Barclays also recently introduced an app called Pingit which allows customers to transfer money from one bank account to another without the need to exchange bank details. This is another big step towards fast and secure money handling that doesn’t require cash.

So what is next, and how far away are we from a cashless society? A recent study by PayYourWay.org.uk showed that although most people predict there will be cash in their pockets for the foreseeable future, many believe that in the next 10-15 years the innovations in payment solutions could involve such futuristic options as paying by thumb print or contact lens scanners, and mobile phone payment is expected to become one of the main ways to pay for services – something which is supported by the current innovations already being rolled out in this area.

We might not be quite ready for a fully cashless world, but financial institutions are racing to develop the most secure and convenient ways to make payment faster and easier for consumers; so it’s likely that the innovations will keep rolling in over the next few years.

What Do You Think?

A couple of days back I took you on a diving adventure into the Mayan underworld. Together we explored the caverns of Casa and Grand Cenote and the hidden wonders within.

To avoid repeating myself, I am going to assume that you all know what a cenote is and understand that Mexico has no rivers or lakes due to the limestone rock. Instead, a vast network of underground tunnels connect a series of caves; a mixture of fresh and sea water which spans the length of the country.

Cenote Angelita

Before we traveled to Mexico, we had heard stories about Angelita being a ‘very special’ site. Upon Googling the name, a series of scary and mystical images appear – not your typical crystal clear well!

The cenote itself is not your typical converted tourist trap – there are no fancy staircases or easy entry points here. In fact, it is quite the opposite – the entry point involves an approximate 3 meter jump whilst trying your very best not to get eaten by mosquitoes!

Unfortunately I made the mistake of boldly jumping in behind Mrs Scot with flippers, mask and camera in hand and forgetting to put enough pressure on my weight belt clip. Without even realising, my 12lbs of buoyancy control were 60m below. OOPS!

Despite the unfortunate start, equipped with a few rocks in one BCD pocket and a couple of spare weights in the other (I know a few of my friends who are divemasters / dive instructors are probably reading this shaking their heads), we were shortly on our descent into the abyss…

The strange cloud-like layer that you see at the bottom of the above picture is not the bottom, but in fact a hydrogen sulphide layer caused by decaying vegetation. Upon passing through this cloud at around 33m, we were immersed into total darkness with a prevailing smell of rotting eggs. Such a fantastically strange sensation and quite surreal. One minute I was totally aware, the next in a state of complete disorientation! Given the depth, we couldn’t stay down long (Divers need to watch their Nitrogen levels at all times – especially if they are planning another dive that same day) so after a few minutes we started to ascend:

Passing through the Hydrogen Sulphide layer

Looking Up: Notice the round dark outline of the Cenote wall

A cheeky cave pass-through to finish off

Calvera Cenote (The Temple of Doom)

After diving the murky waters of Angelita, Calvera was a return to the crystal clear water of Grand Cenote and Casa Cenote. Although much smaller, the entry method was quite similar to that of Angelita – JUMP!

The underground rock formations can only be described as spectacular. So prominent yet fragile with it!

On first looking at the above picture, it appears slightly blurry towards the bottom. This in fact is a shot taken through a Halocline – an area where salt and fresh water meet. Great Shot! (even if I do say so myself)!

WHY Is Calavera known as the Temple of Doom I hear you ask?!

Is it because of the skeletons?

Or is it because of all the entrances to the underground cave systems that exist where many divers fail to return?

 Or maybe it is because of the bat skeletons that are littered on the cave floor?

Well the real reason is that when you look up from the caverns below, the surface holes strangely resemble a skull….

In my opinion, it is absolutely stunning – What Do You Think?

Today I am going to take you on two dives in Mexico. The Riveria Maya offers a number of special underground caves and caverns to explore which are a pretty unique and a very special experience. Hopefully I can convince you to try it one day…

What is a Cenote?

The word Cenote translates as ‘sacred well’ to the Mayans. A Cenote is a natural sinkhole that is the result of collapsed limestone which reveals the groundwater below. There are a number of theories as to why Mexico and the Yucatan peninsula has such a vast system of underground caves, but my favourite is undoubtedly  that Mexico is in fact the remains of the meteor that hit earth and killed the dinosaurs, which explains the vast network of tunnels and holes!

Historically, the Mayan people used Cenotes as a place to give sacrificial offerings to the Gods and in fact many skeletons and other bones can still be seen in these pits today.

What is Cavern Diving?

The network of cenotes and underground passages are still largely unexplored. To enter cave systems, you must be a ‘cave qualified’ diver. Fortunately, there is an alternative for non-cave divers – Cavern Diving. While this is an intermediate step to full on cave diving for those who want to explore only the boundaries of the caves; don’t be fooled – Cavern diving will offer you an experience like no other. While the rules state that for Cavern Diving you must be able to see natural light and can only be 60 meters from the surface – these rules are often ‘adapted’.

Ready to go Diving?

Whenever you arrange to go diving with a shop / organisation, you will always have a dive leader. For qualified divers, the ‘leader’ of an open water dive could have any from a range of qualifications – the minimum being a Divemaster – while beginners have to be accompanied by an instructor of some sort. Essentially, the Divemaster / Instructor is the person with previous knowledge of the dive site and the area and will lead the dive, or in the case of beginners who will teach you how to dive!

With cavern diving, the prerequisites are slightly different – you must be accompanied by a Cave Instructor at all times.

Casa Cenote and Grand Cenote

We left the boundary of our 5 star luxury hotel at around 7am to use the ‘collectivo’ – the Mexican taxi. There is something intriguing to me about using local transportation when on vacation. I feel it is the only way to truly empathise with the locals and try and imagine what their life is like outside the tourist bubble.

Along with a minbus full of school kids, we sped into Tulum at around 130Km/h, braking sharply to pick up a few stragglers on the way. When one collectivo is close to another, drivers compete to pick up passengers. People = money and speed is clearly key.

After arriving at the Dive Shop, we bundled into a pickup truck and retraced part of the journey we had just taken. I should explain that the Cenotes are privately owned and you have to pay the owner of each to dive. The fee ranges from around $10 to $25 per diver and this is of course in addition to what you pay the dive shop.

Upon arriving at Grand Cenote, we looked out across the crystal clear water – which in this case is very similar to a lake or a loch:

What a great place to start – no murky water or difficult entry points – essentially a shore entry dive! We spent the next 50 minutes or so exploring some small caves and pass-throughs.

In reality, Casa cenote was a refresher dive – the cave instructor was trying to work out how good Mrs Scot and I were and how comfortable we would be in a confined space. I think we did a good enough job, because after arriving at Grand Cenote, my mind was blown.

I would go on to explain in words what happened throughout the next 45 minutes, but I feel the pictures do a much better job…

The fresh water in this cenote is SO CLEAR that the visibility is estimated at around 100m. Anyone who has dived in the sea is probably used to 25m being good!

After entering the cave system, a good torch is essential. The blue light from the cave instructors course is quite similar to that of natural daylight. This comes at a price though – the torch cost over $1000!

Looking back at the exit as it becomes further and further away. I am not an expert at judging distances, but we are quite far in and the adrenaline is kicking in!

The silhouette of the diver is mysterious and rather beautiful!

All around are stalagmites and stalactites formed by ice millions of years ago!

A warning sign marks the boundary for Cavern Divers. Beyond this point divers get lost and many never return…

The natural light invites us back to safety!

On turning round to look back into the abyss, the torch beam barely illuminates anything!

Some pretty impressive pictures huh?! One thing that the pictures don’t capture is the feeling of passing through the Haloclines – the layer where fresh water and sea water mix. For a few seconds, you can’t see anything but a blur – a temporary feeling of blindness. Furthermore, the temperature messes with your head as you go from a cool 23 degrees to a warm 26/27!

One disclaimer on the above photographs would be that at ‘only’ £600 ($1000), my underwater camera setup is very basic. While these pictures appear beautiful, there is much that I could not capture and beauty that remains a secret.

That said, the following 2 days of diving were more beautiful still and the pictures even more impressive!

If you enjoyed this post, please be sure to return soon to read about the cenotes!

Do You want to Dive the Cenotes Yet?

I have been with my current provider for a year and it was a product that was selected on my behalf by my financial advisor. I am well aware that he would have received a nice incentive (commission) for signing me onto this policy, but given that he is a family friends and that I didn’t have the time to arrange the policy for myself, I let it run for the year. The renewal letter came through and unsurprisingly the installments are due to go up.

Time to Search for  a New Policy

I always view renewal letters as a fantastic reminder to search for the best deal. Better than getting an email, I love companies that send-out a physical letter – usually those where your policy is going to renew automatically and they may have a legal obligation to notify you. If you are not convinced that this is something you want to continue paying, you should consider that home insurance is very likely a condition of your mortgage. By not having a policy, you could break the terms of the agreement and could, theoretically, have your house repossessed. In actual fact, not having home insurance is just a bad idea. Essentially this expense is a necessity and definitely not a luxury.

Unfortunately for most people, it is all too easy to let a policy automatically renew and to forget about it for another year. The potential savings on switching provider are definitely not to be passed on.

After only 10 minutes of searching, I managed to find an equivalent insurance policy that was around £10 per month cheaper than my renewal quote. This equates to £120 a year saving, or £200 per year pre-tax saving! When you work this out at £5000 over the life of a 25-year mortgage, this number quickly becomes even more alarming.

Combine Policies for the Best Deal

It makes sense to maximise discounts by combining insurance policies where available – multi-car insurance policies or combining home/contents/car/pet etc. This can save a huge amount and can help you to obtain considerably cheaper renewal quotes and loyalty discounts. If you hold numerous policies with a single insurer, they can build a risk profile in a much faster way than if you just held a single policy. Furthermore, this can also make it far easier to arrange payments and organize renewals so that they all coincide together!

Compare Everything

While some insurance companies offer you a renewal reminder, others may not. Certainly some services/utilities/subscription services don’t have a given contract, so may never remind you and give you a prompt to compare. Consider one renewal letter a prompt to compare other services – TV / Broadband / Energy etc. While home insurance may be one of many monthly costs – the savings soon add up to and combine to offer a pretty fantastic saving! I think it is time to re-evaluate my energy provider! More to come….

Do you combine insurance policies to save cash? How much have you saved by comparing?

Contents insurance

Contents insurance is absolutely essential. Whether you own and operate an office, warehouse, restaurant or any other business you will want to make sure that all of your content and stock is covered against accidents. These could range from fire to theft, but any damage or loss of stock could really affect not only your ability to run your business in the short term but also cause a big dip in profits should you have to spend a lot of money replacing things. With contents insurance this will never be a worry.

Building insurance

Similarly, building insurance will cover your actual building and any damage that might occur to the structure itself. Again, if you run a restaurant, pub or small hotel this is absolutely vital. Repairs to things such as drains, broken windows, walls or ceilings can take a lot of time, money and also disrupt the flow of business. With building insurance you can rest easy knowing that any damage to your place of work will be repaired quickly with minimal disruption to service, and save you a great deal of money in the process.

Commercial van insurance

If you run a business which depends on the daily commercial transporting of goods (such as a builder or a landscape gardener) then van insurance could be a smart move. Over time commercial vehicles may become worn down, damaged and in serious need of repair. With van insurance this will be done quickly at no additional cost. The best part about it is also, like the two above services, the fact that you will receive a free courtesy van while you wait and not have to turn away any potential business. Check out van insurance quotes online to see how much money you could save in the long run.

Personal liability

Personal liability insurance protects you while you’re on the job from any mishaps or accidents that may occur to another person’s property. If you knock down a wall or drainage system by accident and a member of the public seeks compensation against you, you could stand to lose a lot of money. With personal liability insurance you’re covered for anything that might happen.

Things I Did

April started with a nice long weekend for Easter break. I went along to the Ideal Home Show and bought a new gadget to play with -A Hose Attachment. How freaking exciting right? The salesman was pretty good at demonstrating this bad boy and we haven’t got around to buying one since we moved in to our new house. After fitting it, I forgot to turn off the hose at the mains; next morning i heard hissing water coming from outside when I went into the kitchen: Turns out the nozzle is so good at what it does, the pressure of the water burst the hose itself. Nightmare!

Mountain Biking – Mrs Scot and I hit up the new Mountain Bike trails that the Crown Estate have created just south of Windsor. Was a LOT of fun! While it is still too cold to wakeboard, the excitement level on this one comes a close second…

Traveling – Unfortunately two of April’s weekends were wasted due to travel to the US.. not to worry – I managed to ramp up on the below..

Things I Read

I am not a big fan of reading actual books (digital or physical). That said, I surprised myself this month and managed to read a whole book!! This is partly because I had about 40 hours worth of flying time with my travel to Latvia, Russia and the US over the last few weeks. The book that got my attention?

This may be old news for a lot of you, but I am definitely behind the times in the reading community. Life of Pi was incredible.. such a good book and so thought provoking… The ending most definitely annoyed me and I couldn’t get it out of my head for a whole week.

Websites / Articles / Blogs – This is not intended to be a link-up or a popularity contest. My new approach to blogging is one of integrity. If I didn’t mention your blog here, don’t be offended – either I didn’t like what you wrote this month, or I didn’t get the time to read it!

• Cubicle Throwdown – Rika is fast becoming one of my favourite travel bloggers. She has a fiesty attitude and doesn’t take any cr** from anyone. Very entertaining and always enjoy her outlook on life as an expat Dive Instructor in the Carribean – How being an expat has changed me
• Save Spend Splurge – Mochimac is an incredible writer and her posts always engage me. I especially liked her post on how to determine the value of a stock.
• Reach Financial Independence – Another female writer that is incredibly talented. RFI always has an entertaining post or a unique way to make money (think breeding cattle, coconut farms, becoming a real-estate mogul)..
• LifeHacker – The geek in me always enjoys Lifehacker. Post of the month – Food Storage 101 – Where and How Long to keep your favourite foods.
• The Russian Billionaire who plans to become Immortal
• How colleges are funneling aid to the rich
• How the human brain sees a 100mph fast ball – fascinating read!
• The 10 most insane movie ending twists –

What I Watched

I watch far too many TV shows.

Big Bang Theory, NCIS (LA and original), The Mentalist, Castle, Person of Interest, Revenge, Elementary, Two and a Half Men, Hawaii-Five-O, Hannibal, Modern Family, Breaking Bad, Suits, Beauty and the Beast, White Collar, Homeland…

I probably missed a few. I would stress that I don’t watch any adverts/commercials and only watch for about an hour in the evening after work. Sometimes we enjoy a lazy day and will cram in half a season.

This month my favourite (new show) is…

Hannibal

Oh such a graphic and dark story – this show is fast becoming a favourite! Even the adverts are creepy!

What I Cooked

It is BBQ season baby! I can proudly say that I have already managed to fire the (charcoal) BBQ up 5 times this year. Considering it is May and the UK has been cold recently, that is a good effort! Combine this with watching Masterchef I quite fancy myself as a culinary expert these days.

A big thing in our household is cooking a whole chicken on the BBQ. The process takes about 2.5 hours in total (you need to give the charcoal at least 30 minutes to get going) and produces the most delicious meat! Paired with my new Weber Cook Book, I used the leftover from our initial feast to make a Garam Masala Spiced Chicken Spread: a combination of greek yoghurt, mayo, garam masala, lemon juice and feta cheese produces the most delicious accompaniment to Pita bread and salad. I have only tried three recipes out the book so far, all of which have been incredible.

What did you do?

This blog has been a lot of things recently, but personal is definitely not one of them. I wrote a couple of weeks back what can only be described as a list of ‘excuses‘ as to why the number of (personal) personal finance posts have slipped.

Have I been a sell-out to guest writers? Possibly… But then again,  what personal finance blogger in their right mind would turn down cold, hard, cash in favour of making their blog more like a diary? Could you honestly turn away a small fortune?

Why do Bloggers even Blog?

I think I might have an answer:

• Bloggers who make affiliate income – Jeremy over at Modest Money comes to mind with his recent push with credit card affiliates. These bloggers don’t necessarily need to rely on sponsored guest posts to make an income – commissions from referrals takes care of that. Unfortunately, this takes a LONG time to establish and is hard work. Furthermore, Google only needs to penalise you once for your best keywords to lose their value and search referrals can dry up overnight.
• Bloggers who have a product to sell - This could be an eBook like Crystal at Budgeting in the Fun Stuff or an eLearning courses / guides like those Chris Guillbeau writes. If you have a truly solid product and are a well established blogger – then kudos to you – you deserve it!
• Bloggers who write to promote their business / skills – If you are a freelancer it makes sense to write your own blog to showcase your skills and prove that you can engage an audience. If you own a business it makes sense to drive traffic to the website through a blog and increase its exposure on Google. If you are a technical wizz at something, it makes sense to build yourself an online presence. Writing for these bloggers is a value-add to the bigger picture.
• Bloggers who blog simply because they love it – I have concluded that some people blog purely for the fun of it. They enjoy the following and conversation that comes with writing. If you consider somebody like Mochimac at SaveSpendSplurge; her posts are always so full of detail and enjoyable. She must literally take forever to compile these (or has it down to such a fine art because she is so well practiced). What’s more is that Mochimac also has a product – The Budgeting Tool – which is not only very successful, but she donates the proceeds to charity. Truly selfless right?

In the Beginning..

I definitely started out blogging because I enjoyed it. I’m not saying that I no longer enjoy it, rather I find it harder and harder to make the time to write. I am under no illusion that if I continue to post constant guest posts, the ratings of this blog will soon slip and the advertisers will stop approaching me in the first place. I need to find a balance – A means of ensuring that I captivate an audience and people are interested enough to return!

If I had the time I would most definitely be concentrating on developing affiliate income – just look at how much money comparison sites make for being the ‘middle-man’. In the UK, around 10 million people a year use comparison sites – what they probably don’t realise is that they are paying £650 MILLION in commissions. I want a slice of that pie!

In the Future…

Here is where I make a promise to take a new direction with SavvyScot. I have worked waaay to hard over the last 14 months to just let it fall apart. Will I still be accepting guest posts? Hell yes – but they will be much better written (more about that soon). Will I commit to writing regularly about fun and interesting things – Hell yes!

I leave for Mexico tomorrow. 2 Weeks of relaxing, not thinking about work, eating, running (Tough Mudder is only a few weeks away now) and diving. On that, if I die cave diving it has been a pleasure folks…

I’ll leave you with some pictures of the cenotes we will visiting…

But perhaps the most important task is finding the right deal out of the many first-time buyer mortgages available. The market is slightly less competitive these days thanks to the double-dip recession and credit crunch, but there are some great offers to be found. The trick lies in working out which one is right for your circumstances.

To get you started here are the 10 key things you need to know about mortgages before you take that first step on the bottom rung of the property ladder.

1. Mortgage rate options

There are three main rates on mortgages: fixed, tracker and variable.

A fixed-rate will stay the same for the duration of the deal and this can be ideal if you need to keep tight control over your finances each month.

Tracker and variable rates change over time. Trackers are set at a defined point above the Bank of England base rate (currently 0.5%). Variable rates change in line with how much it costs the bank to lend you the money.

 2. Don’t forget the fees

Most mortgages have additional fees and these can be substantial. But those with lower fees often have higher interest rates. It can be a no-win situation so look at all the figures very carefully.

3. Early repayment charges

Early redemption charges (ERC) usually apply. This means that if you want to pay off a big chunk of your mortgage there will be an additional fee to pay. This can be thousands of pounds.

4. Deposits matter

How much you can pay up-front as a deposit on the property can make a big difference to your mortgage options. The most competitive deals are offered to those with cash of 25% of the value to put down as a deposit. Smaller deposits generally mean a higher interest rate. It can be worth saving for an extra year or two in order to get a bigger deposit together.

5. Repayment options

There are two main repayment plans: interest-only and capital.

On an interest-only mortgage your monthly payments only cover the interest, so at the end of the deal you have to find the money to pay off the capital or re-mortgage.

Capital repayment mortgages cost more each month but you have the security of paying off some of the loan value as well as interest.

6. Overpayments

Overpayments are allowed on most mortgage deals but there is usually a cap. The maximum you can pay off each year is often around 10% of the capital. Having this option means that if your finances are in good shape you can start to reduce your mortgage early.

7. Repayment problems

If at any time you struggle to pay your mortgage each month you must speak to your lender. Repossession is only a last resort and banks will work with you to provide help, such as payment holidays or a reduction in monthly payments.

8. Lock-in periods

Mortgages are usually offered as two-, three- or five-year deals. At the end of the term you will have to reassess your situation and find a new mortgage. For the ultimate peace of mind a five-year fixed deal is the best option, but such offers are not always readily available.

Think carefully about how long you want to be tied to your mortgage and what your options are likely to be at the end of it.

9. Consider the extra costs

There are many additional charges and fees that you face when buying a house. Some can be added on to the capital loan of your mortgage. Others you will have to pay upfront. Look at every single charge when you compare mortgage deals.

10. Be prepared

Buying a house can take months, so be prepared for a long wait before you finally get the keys. Do all you can to get your paperwork in order and try not to get too stressed as the process drags on. Keep your cool and remember that it will all be worthwhile in the end.

Anything to add?