The Bank of England cut interest rates from 4.75% to 4.5%, marking a significant shift in the UK’s monetary policy. This decision is set to impact individuals, businesses, and investors in different ways. Whether you are a homeowner, a saver, or someone looking to invest, understanding what this change means can help you make informed financial decisions.

What Does the Interest Rate Cut Mean?

Interest rates are set by the Bank of England to control inflation and influence economic activity. A lower interest rate typically makes borrowing cheaper, encouraging businesses and consumers to spend more. Conversely, it reduces returns on savings accounts, meaning savers may earn less on their deposits.

The recent decision to cut rates to 4.5% suggests that the Bank of England is prioritizing economic growth over inflation control. While inflation has been a significant issue over the past few years, there are signs that it is cooling, giving policymakers room to support economic activity by making borrowing more affordable.

How Will This Affect You on a Daily Basis?

1. Mortgages and Loans: If you have a variable or tracker mortgage, you may see a reduction in your monthly repayments. Fixed-rate mortgage holders won’t feel an immediate impact but could benefit when they remortgage. Similarly, personal loans and credit card interest rates may decrease slightly, making borrowing more manageable.
2. Savings and Investments: The downside to a rate cut is that savings accounts will likely offer lower returns. If you rely on interest from savings, this could mean less income. However, it could be a good time to explore alternative investment opportunities, such as stocks or property, which may offer better returns.
3. Everyday Spending: Lower interest rates can boost economic activity, which could mean more job opportunities, higher consumer confidence, and better business growth. However, if inflation picks up again, it could erode purchasing power, making everyday goods and services more expensive over time.

The Impact of the Interest Rate Cut

The reduction in interest rates will have wide-ranging effects across different sectors:

• Housing Market: Cheaper mortgages can make homeownership more accessible, potentially driving up house prices as demand increases.
• Small Businesses: Lower borrowing costs make it easier for businesses to expand, invest, and hire more staff.
• Stock Market: A lower interest rate often boosts stock prices as investors look for higher returns outside traditional savings accounts. This can be good news for those invested in the stock market.
• Inflation: While the rate cut supports economic growth, it also carries the risk of driving inflation higher if demand surges too quickly.

What Are Experts Saying?

Financial analysts have mixed opinions on this move. Some believe it is a necessary step to prevent an economic slowdown, as consumer confidence has been wavering. Others argue that it may be premature, as inflation still remains above the Bank of England’s 2% target.

Prominent economists suggest that while this rate cut offers relief in the short term, it could create long-term challenges. If inflation rises again, the Bank may be forced to reverse its decision and hike rates once more, which could cause instability for borrowers and businesses.

Effect on Local and International Stock Markets

The UK stock market has responded positively to the rate cut, with major indices seeing modest gains. Lower interest rates generally push stock prices higher, as companies benefit from cheaper financing and investors seek higher returns in equities.

Internationally, the reaction has been mixed. US and European markets are watching the UK’s decision closely, as central banks worldwide navigate similar economic challenges. If other countries follow suit and lower rates, we may see a global shift in monetary policy aimed at supporting economic growth.

What’s the Prediction for the Future?

The future of UK interest rates will depend on how inflation and economic growth evolve in the coming months. If inflation remains under control and economic activity picks up, we could see further rate cuts. However, if inflation starts rising again, the Bank of England may pause or even reverse its policy.

For investors, this means keeping an eye on economic data and adjusting their strategies accordingly. Those with savings might need to explore alternative options, such as bonds or dividend-paying stocks, to maintain strong returns.

Is the UK Moving in the Right Direction?

The decision to cut interest rates reflects the Bank of England’s attempt to balance growth and inflation. While it brings benefits such as lower borrowing costs and increased market confidence, it also raises concerns about potential inflationary pressures in the future.

Ultimately, whether this move is beneficial depends on how the economy responds. If businesses expand, employment rates rise, and inflation remains controlled, it could prove to be a well-timed decision. However, if inflation rebounds and household budgets are squeezed, the Bank may have to rethink its approach.

Final Thoughts

The Bank of England cut interest rates from 4.75% to 4.5% to stimulate economic growth, making borrowing more affordable but reducing returns for savers. The impact will be felt in mortgages, business investments, stock markets, and consumer confidence.

As always, staying informed and proactive is key. Whether you’re a saver, investor, or homeowner, now is a good time to reassess your financial strategy and explore opportunities that align with these changes.

The post Bank of England Cut Interest Rates from 4.75% to 4.5% – What It Means for You appeared first on ronkeodewumi.

The festive season is here already and even though this is a joyful and festive time of year, unchecked shopping cravings and poor preparations can lead to reckless spending and a long January. This is why I am sharing tips and hacks for the festive season.

These tips and hacks will ensure that it does not matter how often you hear those jingle bells or Mariah carey’s number; you won’t always be putting your hands in your wallet.

This post aims to help you put things into perspective and make wise money plans during the holidays.

About your last income…

We are still in the first week of December, and you have probably not finished spending your November income. So before you start getting excited and making plans, it is essential to budget it.

Before you start going to the stores, buying Christmas presents and décor, and attending all the Christmas parties, do well to budget the money.

Put money aside for all the essentials that are not on direct debit so you can sort them out while enjoying the festive season. Your November salary will be responsible for all your Christmas expenses, so you need to budget it. So have a budget for your festive enjoyment.

As you budget that November income, don’t forget to include categories for Christmas food, décor, presents, and shopping.

Budgeting helps you know exactly how much you can afford to spend on another sparkly Christmas dress. So, get a pen and paper and write the November salary budget.

Create memories and Experiences

Christmas should not be all about presents, shopping, and buying things. It should be more about experiences. Think about spending time with your loved ones. Watch a movie together and see places together. Dig out the board games and play them with your kids.

I have realized that children would remember the time you spend with them more than the presents you buy. I tested this on my kids by asking what they got for Christmas two years ago, and they could barely remember.

But when I asked them to share their last year’s Christmas experiences, they could remember the best parts.

As you plan your Christmas presents, think about experiences also.

The thing about food…

Whether you are cooking or ordering your Christmas food, think about the actual number of people that you have invited. Resist the urge to go overboard with food. I am guilty of this as well.

I remember having just ten people in the house but would cook food with many side dishes that could serve more than 20 people. I plan and cook as if I am inviting the whole of Europe. Lol.

I usually end up with waste and leftovers that I try to bully everyone into eating. So as you are planning your Christmas meal, prep for only the number of people in your space on Christmas day.

The thing with the sales…

Remember the popular Next sales? The last one I went for was like a crusade. People were falling over each other, grabbing things, and running up and down without even looking. This kind of sale will still happen this year.

Some of us have outgrown the sales to a large extent, and we ignore it. But if you want to shop the sales because you have needs, go for them. While waiting for the sales, make a list of everything you want to get.

Don’t make the mistake of going there without thinking of your needs. Else, you may end up buying rubbish. If you can, visit the stores before the sales to sight the items and note their prices. Doing this will help you confirm that you are getting a good bargain on sales day.

Also, the sales allow you to shop in some stores you usually would not walk into due to their high prices, but now that their product falls into your price range, you can go for them. So overall, ensure you get a good bargain and need the items you buy.

Budget Your December Income

If you are going to shop the sales after Christmas, you need to budget and plan your December income. The about December income is that it bears the burden of two months.

November income would bear the burden of Christmas shopping, while December income bears the burden of the Christmas sales, a little bit of Christmas expenses, and that of January. January has 90 days, remember?

So you need to budget that December income so you know exactly how much you can afford to spend.

Time To Reflect

This festive period is the perfect time to plan 2023. First, spend time reflecting on your goals and how much you achieved.

Also, reflect on your finances, career, business, dreams, health, and relationships. Reflection will help you build the goals for 2023 and help you plan for the following year.

I have now shared six tips and hacks to help you go through the festive season. I hope you have a beautiful Christmas. 

The post Financial Tips and Hacks For The Festive Season appeared first on ronkeodewumi.

On Monday, Nvidia, the world’s leading AI chip manufacturer, experienced a record-breaking stock plunge, losing nearly 17% of its value in a single trading day. This equated to an astonishing $589 billion loss in market capitalization—the largest single-day decline in stock market history. The shockwave of this event rippled across the entire semiconductor industry, pulling down other major chip stocks, including Broadcom, Micron, and AMD. But what exactly triggered this massive sell-off?

The answer lies in a groundbreaking announcement from Chinese AI startup DeepSeek, which has sent tremors through the AI and tech investment landscape.

DeepSeek’s Revolutionary AI Model: A Game Changer?

On January 20, DeepSeek unveiled its latest AI model, which industry insiders and experts immediately recognized as a serious challenger to OpenAI’s cutting-edge models like GPT-4. The announcement set off a frenzy in the AI community, with prominent venture capitalist Marc Andreessen calling DeepSeek’s technology “one of the most amazing and impressive breakthroughs I’ve ever seen.”

The most shocking detail about DeepSeek’s model, however, wasn’t just its capabilities—it was the cost at which it was trained. Reports indicate that DeepSeek was able to train its AI model for just $5.6 million. In contrast, OpenAI’s GPT-4 reportedly required over $100 million in computing resources alone. This dramatic reduction in cost raises serious questions about the future demand for high-end AI chips, which have been Nvidia’s primary cash cow.

The Impact on Nvidia and Other Chip Stocks

The implications of DeepSeek’s innovation are profound. Nvidia’s dominance in the AI hardware space is built on the assumption that training powerful AI models requires enormous computing power and, consequently, high-end GPUs. If startups can now develop cutting-edge AI for a fraction of the cost, it challenges Nvidia’s core business model and long-term growth projections.

The reaction from the stock market was swift and severe:

• Nvidia (NVDA): Down 17%
• Broadcom (AVGO): Down 17%
• Micron (MU): Down 12%
• AMD (AMD): Down 6%

The sell-off underscores investors’ fears that the AI industry might be moving towards a more cost-efficient training paradigm—one that requires fewer expensive Nvidia GPUs.

Analysts Weigh In: A Changing AI Landscape or Overblown Hype?

The tech and investment communities are divided on what this means for Nvidia and the broader AI ecosystem.

Bullish Perspective: Nvidia Will Adapt and Thrive

Some analysts argue that the fears are exaggerated. Srini Pajjuri, an analyst at Raymond James, suggests that while DeepSeek’s model presents an intriguing development, U.S. tech giants like Google, Microsoft, and Meta will likely continue investing in Nvidia’s high-performance GPUs to maintain their competitive edge. These companies run large-scale AI operations that prioritize efficiency, speed, and scalability—factors that Nvidia’s hardware is optimized for.

Additionally, Nvidia has shown resilience and adaptability in the past. The company is already working on next-generation AI chips and custom AI accelerators that could maintain its technological edge.

Bearish Perspective: A Structural Shift in AI Development

On the other hand, Bernstein analyst Stacy Rasgon remains skeptical about Nvidia’s continued dominance. He points out that the $5.6 million figure doesn’t account for the years of R&D that went into developing DeepSeek’s technology. However, if DeepSeek’s methods prove to be scalable and replicable, it could signify a structural shift in AI development—one that makes high-end GPUs less essential.

If AI training becomes significantly cheaper, companies might not need to purchase as many Nvidia chips, leading to slower revenue growth for the company in the long run.

Nvidia’s Response and Geopolitical Implications

Despite the stock market panic, Nvidia has remained calm in its public response. In an official statement, the company praised DeepSeek’s model as “an excellent AI advancement,” signaling that it doesn’t view the development as an immediate threat.

However, Nvidia’s future is also tied to global geopolitical factors. The U.S. government has placed stringent export restrictions on AI chips and semiconductor tools, limiting their availability to Chinese companies, including DeepSeek. If these restrictions remain in place, it could hinder DeepSeek’s growth and its ability to scale its AI model internationally.

At the same time, the U.S. is doubling down on AI investments. Just last week, former President Donald Trump announced the Stargate AI Project, a $100 billion immediate commitment, with an additional $400 billion planned over the next four years, to bolster AI infrastructure in the United States. This investment could provide Nvidia with new opportunities to secure government contracts and maintain its lead in AI chip development.

The Bigger Picture: AI’s Next Chapter

The AI industry is at a turning point. DeepSeek’s announcement has demonstrated that AI innovation isn’t limited to Silicon Valley and that cost-efficient training methods could reshape the future of AI development.

However, many questions remain unanswered:

• Will DeepSeek’s AI model prove to be a true game-changer, or is the hype overstated?
• How will Nvidia and other chipmakers adapt to the changing AI landscape?
• What role will government policies and regulations play in shaping the future of AI investments and hardware development?

For now, the market remains in a state of flux. Investors and analysts will be closely watching Nvidia’s next moves, as well as any further breakthroughs from DeepSeek and other emerging AI players.

Final Thoughts: Should Investors Panic?

Despite the historic stock drop, I’m personally holding onto my Nvidia shares and won’t be panic selling. Market fluctuations, especially in high-growth sectors like AI, are inevitable. Nvidia still has a strong foothold in the AI industry, and while challenges lie ahead, the company has a history of navigating disruptive shifts in technology.

For long-term investors, it’s crucial to differentiate between short-term volatility and fundamental business changes. Nvidia’s leadership in AI chips is not disappearing overnight, but the coming months will be crucial in determining how the AI arms race evolves.

The battle for AI dominance has just begun. Buckle up—it’s going to be an exciting ride.

What are your thoughts on Nvidia’s stock drop? Do you think DeepSeek’s breakthrough is the beginning of a major shift in AI development? Let’s discuss on instagram

The post Nvidia Stock Drop: What Happened and What It Means for the Future of AI appeared first on ronkeodewumi.

For many black people, once we start working, we feel obliged to provide for extended family members, especially our parents. Doing this is a big thing in the black community.

Giving extended families and friends financial support and how this affects your finances is what I call the black tax.

Our parents made us believe we needed to give back. We grew up seeing them support their community and people with low economic status.

There is a black tax in the US regarding how black people are affected in their careers and business by being black. But that is not what I am writing about today.

The black tax, in this context, is the sacrifices we make when we extend financial support to extended family members. We do this because we supposedly have the financial ability to do so. 

When we start working as young black professionals, the demands come in from parents, uncles, cousins, aunties, and extended family. From contributing to a deceased family member’s funeral to paying a sick person’s hospital bills.

Someone may need help with schooling, while another has children they cannot care for. We have seen our parents do it. We know how good it is to help those in need. So, when these family bills come in, we believe we have to meet them.

How does the Black tax Impact Our Finances?

The moment we start giving and giving until barely anything is left, it starts to impact us. Sometimes, the more you give, the more you get asked to provide.

Now the giving impacts your ability to save, invest, and build a future for yourself and your children. It begins to affect the quality of life you live.

So how do you help yourself? How do you continue to pay the black tax without impacting your finances and family? How do you avoid the black tax altogether?

Saying NO…

The first question you need to answer is, “do you want to say NO entirely to everything or just a few things?”

Suppose you plan to communicate an absolute NO; it is your prerogative. But it would be best if you remembered why you are saying no.

For example, if it is because you want to build savings, investments, and a future, you need to be clear on that.

There would be a backlash. You need to be able to look at your reasons for saying no and stand by it. Your flat-out no could be temporary, like, “no, I need to sort myself out for now.”

It might help to communicate your reasons to your parents and others who would understand, so they can back off without being offended. 

Sometimes, you may not want to share your reasons because it would not achieve anything. However, at that point, holding steadfastly to your reasons would help you pull through.

It is also OK to say no to a few things beyond your ability. However, you need to know the reasons also. Let them know that you want to save, pay off your debt, improve your quality of life, and all other reasons you may have.

Expect a lot of manipulation because these people may make you feel like you are not being emphatic and do not care. But being able to fall back on your reasons would support your mental health.

So how do you save and live the Bulletproof Life in the face of the black tax?

Budgeting Your Money is Key

If you know that there are things that you need to do for your extended family, build them into your monthly budget. Not as a priority but as something you do after you have settled your bills and saved for emergencies.

Have a Monthly Allocation For Black Tax

An excellent way to tackle the black tax is to have a monthly allocation for it; this works a lot. But, unfortunately, there’s little you can do beyond that allocation—plan for the black tax. 

Sometimes, there are emergencies like someone falling ill suddenly, and they need your support; you can dip into your black tax fund and give towards that. Doing this controls how much you give because you can only give what is in the black tax pot.

When you get your money monthly, build your black tax into your budget. Do not prioritize it above your savings, emergency funds, or bills. 

Toughen up in your mind about saying no. Saying no to your loved ones can be some of the hardest NOs’ to say.

For example, when you hear people you love complaining about how bad their situation is and how they have not eaten for days, it is hard to say no.

Understand When It is Essential and When It is Not

Sometimes people come to you with requests that do not sound urgent or important. For instance, when they ask you to contribute to a lavish wedding or burial, you need to ask yourself if it is something you need to prioritize or not. 

You can dip into your black tax fund, but you need to do it with care, mainly because you are being asked to contribute to an extra instead of a life-and-death need. This contribution should not impact your ability to pay your bills or give your children the desired life.

Avoid Bragging and Stunting

If you live a quality of life that people feel is essentially high, they will likely come to you for more help because they think you can afford it. I am not saying you should not buy nice things for yourself or live a good quality, but it will be good if you don’t brag and show off. 

You cannot brag and wonder why people are coming to you for help. When you stunt on the gram and try to show that you are living large and well, it is expected that people will continue to ask you for money.

Once you start doing this, you are more likely to get more requests for help from people who think you can help them.

The post BLACK TAX AS AN EXPENSE appeared first on ronkeodewumi.

The cost of living in the UK and my home country, Nigeria, has soared in the past few months. So, this is not the right time to splurge money on luxury purchases you do not need.

I understand we’ve all been there at one time or the other. You love the flamboyant lifestyle. You want people to know you are wearing expensive designer outfits. You may also think they would be more durable because of their cost.

So, not minding the cost and how it would impact your finances, you look for those designer products and tell yourself, “I have to have it, whatever it costs.” And then, a week or month later, it strikes. You’re broke. What was I thinking?

Here are 10 items you do not need to go after luxury brands to buy. You can buy them as high-quality products instead.

1. The basic white tee

You do not need to buy your white tees from designer brands because a basic white tee is as basic as it gets. You can get them from M&S, Amazon, or Primark. When it comes to basic white tees, the fitting is what matters.

Irrespective of how much you spend buying them, they will often get sweat stains in a few months. So, you do not need to get your basic white tees from luxury brands; it will only cost you a lot of money. 

2. Costume jewelry 

Costume jewelry is not real gold, and buying designer brands like Gucci bracelets and Channel earrings will cost a lot. Besides, some of them don’t even look as expensive as how much you spend on them. 

I am a fan of getting value for your money, so these things are a no-no. That same money you spend buying designer costume jewelry would get you real gold which has retail value and can keep forever. 

You can resell real gold and make more money. Instead of wasting money on costume jewelry in a luxury store, go for real gold and precious metals. Stop wasting money on branded costume jewelry.

3. Kids clothes

It amazes me every time I see kids kitted up in designer outfits. If you can afford it, that is fine, but if you are saving and stressing about buying designer wear for your kids, stop it. It is unnecessary. They outgrow their clothes so fast. They wear them for a few months, and before you know it, they cannot wear them again. 

You may put the clothes aside and buy new ones sooner than you can imagine. Buying designer brands for your kids is not usually worth it. Designer shoes are way more realistic than clothes. 

You can shop at high-street shops like Zara, M&S, and H&M for them. You don’t have to rush off to designer stores whenever you need cloth for your kid.

When we first had my daughter, I could never buy Primark things for her. It was a no-no for me. Even on the high street, I avoided a lot of stores because I insisted on quality. 

Until she turned 3 and started outgrowing them so fast; sometimes, we only got to wear the clothes about twice, and then she could not wear them again. Then, I started going high-street, which saved me a lot of money.

4. Belts 

You don’t need designer belts. A good leather belt will last you years. You can find leather belts in many stores, and they don’t even cost that much. Besides, I find logo belts so tacky.

You can get durable leather belts in different colors and designs without breaking the bank. Reduce shopping belts that are branded and expensive. 

5. Luggage

You don’t need branded Gucci luggage when you are traveling. When you buy branded luggage, you may indirectly be inviting people to break and steal from them. In addition, some airport staff would not treat your luggage like the precious item you think it is. 

They throw them around and may even think you have expensive stuff inside. If you want good quality luggage, go for the brands that focus on producing luggage products. 

6. Skincare

This point applies more to ladies. You don’t need designer skincare before you take care of your skin. However, the fact that it is a luxury does not mean it is better. Instead, go for medical-grade skin care. If you want to take care of your skin, consult a dermatologist to recommend products.

Dermatologically recommended products always perform better. Some are on the high street and easily accessible stores and booths. Medical-grade moisturizers do not cost the earth. 

Check out your spa place’s brands or those displayed in your skin clinic. Usually, they are medically graded. Don’t just pick up a product because it is a designer brand and is in vogue. There may be better products for your skin.

7. Fashion sneakers

I love fashion sneakers a lot; they are my go-to for many outfits. However, do you need fashion sneakers that are from designer brands? I’ll say no.

You can look good in fashion sneakers from classic brands like Adidas, Vance, and the rest for a fraction of the money you would have spent buying luxury sneakers.

8. Luxury phone cases

Phone cases are made for specific phones. So if you change your phone, your former pouch is rendered useless. Why spend £500 on a luxury brand case when you can easily buy a less expensive good phone case?

Your criteria for buying your phone case should be its ability to protect your phone during a fall.

9. Scarves

I need help understanding this desire to be a walking billboard for a brand by wearing branded scarves. Silk is silk. A scarf is a scarf. You can easily get a silk scarf from John Lois or other small boutique brands without breaking the bank. 

Get a few and tie them to your bag, neck, or hair. Use them fashionably without spending outrageous amounts of money on them. Get different sizes and colors of scarves. They do not need to be designers before looking lovely.

10. Flip flops

I once saw flip-flops for about £200 and wondered if they could make me fly. Lol. You don’t need designer flip-flops. Instead, buy regular durable ones for the summer.

It doesn’t matter how expensive your flip-flops are; you cannot wear them to dinner. As a matter of fact, some restaurants would not let you in if you were wearing flip-flops. So take them off your shopping list. You don’t need to buy them as luxury items.

The post 10 Luxury Purchases You Do Not Need appeared first on ronkeodewumi.

Taking that first step on the property ladder is an exciting moment, but it can be a confusing process for first-time buyers. Keep reading to find out the step-by-step process you need before you buy your first home, along with essential tips for first-time buyers in the UK to help you navigate the journey smoothly.

#Step 1: Check Your Mortgage Suitability

The first thing you need to do when buying your first home in the UK is to visit a broker. The broker will type in your details, name, and income and tell you how much of a mortgage you can get. A broker tells you this based on your income, age, and other factors.

Doing this helps you know how much house you can buy in the neighborhood you like.
If you are planning to save a deposit of £30000, the house you will buy should be worth £200000. Your broker can tell if you qualify to get such a mortgage.

Checking your mortgage suitability with your broker is also an opportunity to discover other things impacting your mortgage suitability.

A good broker will tell you if there are things on your file dragging down how much the lender can borrow you to get a mortgage.

#Step 2: Save Up Your Deposit

Once you have checked your mortgage suitability and determined how much you are likely to get, you can start saving up for that deposit and the extras. There is a video on my YouTube channel where I shared tips on how you can save up for a mortgage; you can watch it here.

#Step 3: Get A Mortgage in Principle

Saving up for your deposit and the extras can take a while, but if you have them ready, congratulations!
Once your deposit and extras are ready, contact the broker that checked your suitability so they can check your mortgage in principle. You can also get it online by filling in your principle.

The purpose of this mortgage in principle is to show the agent selling the house that you can get a mortgage in the UK.

Once you get the mortgage in principle, print it out or save it on your system; so that you can present it when you go house-hunting. It smoothens the house hunting process because some agents will ask for it.

#Step 4: Start House Hunting

Once you get your mortgage in principle, the next step is to start house hunting. Look for houses, and go check them out. One way to house hunt is to visit a house agent and ask about the homes they have for sale.

A more effective method is to search online using websites like RightMove and Zoopla. These websites list houses for sale.

As you browse the websites, it is always good to use filters to filter out houses that do not have the criteria you need.

If you want a garden, a 3-bedroom, parking, or a shed house, you can use the filter to select them and remove those you do not want to see. After that, call up the agent to see the houses.

The beauty of house hunting is that you may think you know what you want until you see other options. You might start out thinking of an old house, but change your mind once you’ve visited a few old ones. House hunting helps you determine what you want and to find your dream house.

#Step 5: Make an Offer

Once you have found your dream house, make an offer. When you go house-hunting and find the one you like, be careful not to be effusive in praise for the property.

Do not go talking about how beautiful, perfect and great it is. It may impact your negotiating ability. Manage your emotions.

Listen very well to what the house owners say, ask questions. If you do not ask, you will not find out. Open doors, sit in rooms and look around.

Asking questions will help you find out if they are desperate to sell the house. It will help you know if they are sitting on the fence and not so keen about selling it; this can help your negotiating ability.

It is alright to make an offer slightly lower than what the seller initially says. If the house is being sold for £200000, you can offer to pay £180000 or £190000. They might be able to meet you halfway.

Speak out if you find out that there is work to be done in the house like the boiler needs to be changed or the bathroom needs to be fixed. It may help you to drive down the price a bit lower by letting the seller know you have a lot of repairs to do.

#Step 6: Get a Deal From Your Mortgage Broker

Once your offer is accepted, go back to your mortgage broker to look for a good deal for you. Bearing in mind your mortgage suitability and the mortgage in principle, they can find you a good deal.

The broker will find a deal that allows you to have a convenient monthly payment with good interest. A good deal means you can pay your mortgage over some years that is convenient for you, depending on your age.

There are two kinds of mortgage deals your broker can get for you;
I. Interest-only mortgage: This kind of mortgage allows you to pay just the interest on the loan from the lender. In this case, your monthly payment will be low. An interest-only mortgage will not allow you to pay off the mortgage, only the interest.

II. Principle and interest mortgage: A principle and interest mortgage mean you are not just paying the interest but also paying off a part of the loan.

Your monthly payment will be a little bit higher. The benefit of this is that it allows you to chip away at the loan from the lender. I advise that you go for this mortgage because it allows you to pay off your mortgage.

#Step 7: Hire a Solicitor for Conveyancing

The job of a solicitor is to carry out all the legalities. He handles all the payments you need to make and the legal steps to carry out. The price to carry out conveyancing ranges between £1000 and £2000.

#Step 8: Hire a Surveyor

A surveyor will go into the house and find out if there are things you need to watch out for. They tell you about any electrical issues, leaks, and work you need to do.

If your surveyor says there are a lot of repairs to be done, you can return to the seller to renegotiate your offer.

However, if he comes back with little day-to-day changes, you do not need to renegotiate; factor them in for the future.
Your mortgage lender will also send their surveyor to ensure the house is what you say it is. They will value the house as a lender.

Your surveyor will tell you what they think the house will be worth based on their survey. If your surveyor quotes a figure way higher than the offer, you can also renegotiate the price with the seller

#Step 9: Sit Back and Wait For Them To Do Their Job

At this stage, sit back and allow your team to do their job; they will keep you updated about the fees you need to pay while your lawyer makes the payments for you.

#Step 10: Exchange of Contract

Once your lawyer has made a filing with the council and is happy with the state of the house, he will instruct you to do an exchange of contract. At this point, once you sign, you cannot go back. Going back will attract charges. You may have to pay a hefty fee if you decide not to buy the house anymore.

#Step 11: Inform Your Current Landlord

Contact your landlord to inform them you are moving out soon, especially if your house has a notice period that is quite big.

#Step 12: Get a home insurance

Home insurance is important once contracts have been signed and exchanged. If anything happens to the house at this point, you will be responsible for it.

#Step 13: Completion

The time between the exchange of contract and completion should be short. Tell your seller and lawyer at the beginning of the process that you want a short exchange period.

Six months or one-year duration is too long. A lot can happen in that space, and you will be liable for anything that happens at that time. Invite your lawyer to speed up the process so you can complete it quickly.

Final note..

Once you complete, the house is all yours; you will get the keys and can move in any time you want. If the seller remains there a day or two after completion, it has to be with your permission.

Once you know the completion date, you can book movers to help you move.

I hope you find this post useful on your journey to being a homeowner.

Ronke Odewumi

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Whether you’re relocating for studies or work, there’s no getting around the necessary relocation expenses involved. So what are the financial costs to expect when you move abroad?

How can you prepare financially for a new life in your new country? Keep reading to find out six financial costs to expect when you move abroad.

1. Relocation Cost

It would be best if you first considered the cost of moving yourself, your family, and your belongings to a new country. The cost of relocating is the first cost you must consider before getting to your new country and earning money.

Your relocation cost will come majorly from the money you already have, your savings, and the money you put aside. 

Relocation costs are usually high because you must apply for visas, ship your luggage if you’re coming with family, and pay for your flight ticket. It also includes the cost of health checks. 

Some countries like Canada and the UK require you to carry out health checks like tuberculosis checks and Covid tests before relocating. 

You will need to pay wherever you are because your insurance will likely not cover these things. 

If you are moving to a country that requires a work visa or a work permit, you would have to factor in visa cost. However, you may be lucky to find a new employer that would cover those visa costs. If you are moving with your family, you should prepare for the cost of their visas. 

Some countries will require you to have a certain amount in your account to show that you will not be a burden to the government or system when you arrive in your new home. 

You will pay the visa fees to the embassy or authorities of the new country. 

Cost of Living

 You need to research if you are moving to a more expensive country than the one you are in now and how much it will cost you to get accommodation in the new country. 

Cost of living includes utility bills and whether your employer would pay you monthly, quarterly, or annually.

When you arrive in your new country, where will you live and how much will that cost you? It would help if you also found out what it would cost to rent a one, two, or three-bedroom apartment in different neighborhoods. You can get a flat share if you are a student or alone. 

 For many people moving from Africa to places like the UK, US, or Canada, you will experience a higher cost of living. In addition, the currency exchange may not be favorable because the currency is higher in your new country.

3. Tax

You need to be aware of the taxes in your new country before moving in. For example, you may be moving from a country where you pay just one central tax as an employee or a business owner. 

If your new country is a place like the UK, which is a land of taxes because they have income taxes, cooperation tax, VAT, MOT, and many others, you need to prepare yourself.

And even though these taxes have values, they have their usage because you benefit from one or two things. For instance, you benefit from the council tax by getting your bins carried off and your neighborhood cleaned.

Most taxes are value-adding but do not change the fact that you would pay from your income. Therefore, you must understand the tax system of your new country.

Otherwise, you would create a budget without considering tax. When you eventually pay your tax, you will have less money than you initially thought. 

Find out what tax is, how much you would have after tax, and how frequently you need to pay different taxes.

You cannot escape tax payment because you will owe the government, and not paying some taxes in the UK can send you to jail. So budget them into your income and plan accordingly.

4. Transport

The cost of transportation is a big one in the UK. For example, if you get a job and must commute, you must get from your home to your office daily.

Transport can quickly begin a big chunk of your expense in a country like the UK because you would have to get on trains, buy train tickets, and all that.

Suppose you’re moving to a country where taking a train is not a thing; you will also consider the need to buy a car, fuel it, and get insurance. 

If you are coming in with a partner and your kids, you have to factor in the possibility that they have to go to school daily. So you would drop the kids off at school, bring them back, shop for groceries, and go to work.

5. Visa renewal

 For many people, you need to renew your visa beyond the first visa that gets you into the new country. Visa renewal is a cost you need to bear in mind because it can quickly become overwhelming if you do not plan for it. 

For instance, if a family of four needs to renew their visa, they will spend more. So even if your visa renewal is not due in another three years, plan for it because time flies quickly.

The questions to ask yourself are: what kind of visa renewal do I need to d? When do I need to do it, how much will it cost me, and what are the requirements? How can I meet up, so I do not have to return to my old country? 

6. Black tax

You will likely experience the black tax if you are black or African. The black tax is the cost of supporting and helping your relatives back home. This cost applies if you’re moving from Africa to any western country and have left people at home.  

You will bear in mind that you need to support your aged parents and other relatives back home. I once talked about black tax in a video on my YouTube channel; you can watch it here.

As you relocate to your new country, I wish you all the best and hope you settle in nicely.

If you have already moved to your new country, I shared in a recent post the financial steps and actions you must take to manage your finances as a new immigrant. 

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Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate. They offer a way for individual investors to gain exposure to real estate markets without the need to buy property directly. In 2025, the UK REIT market is shaping up as an attractive option, with diverse opportunities in logistics, retail, residential, and more. Before we share Best REITs to invest for in 2025, lets do a recap on what REITs are and how to invest in them.

How REITs Work

REITs pool money from investors to purchase properties or finance developments. They are legally required to distribute at least 90% of their income as dividends, making them an excellent choice for income-focused investors. Many REITs specialize in specific sectors, such as logistics, retail, or healthcare, allowing investors to align their choices with market trends or personal preferences.

Performance and Trends: 2024 vs. 2025

In 2024, REITs faced challenges due to high interest rates and inflation. However, 2025 offers a more favorable outlook as economic conditions stabilize:

• Dividend Yields: REITs like Residential Secure Income and Custodian REIT offer yields above 6%, higher than the FTSE 250 average of ~3%.
• Sector Strengths: Logistics REITs (e.g., Segro, Tritax Big Box) continue to thrive thanks to e-commerce growth, while healthcare REITs like Assura benefit from non-cyclical demand.

Should You Invest in REITs?

REITs provide exposure to the property market without the need for direct ownership, offering liquidity, diversification, and high dividend payouts. They’re particularly attractive for investors seeking stable income streams. However, as with all investments, risks like interest rate fluctuations and market downturns must be considered.

Here are the top 15 REITs and why they stand out.

1. British Land Company (LSE: BLND)

• Focus: Office and retail spaces.
• Why It’s Great: British Land is a stalwart in the REIT sector. It experienced challenges during 2023 due to rising interest rates, but its low share prices in 2024 and strong history suggest it’s positioned for recovery as inflation eases.

2. Segro (LSE: SGRO)

• Focus: Industrial and logistics properties.
• Why It’s Great: Benefiting from the e-commerce boom, Segro has seen demand for warehouses grow steadily. With a dividend yield of around 4%, it remains a reliable income generator.

3. Land Securities Group (LSE: LAND)

• Focus: London-based retail and workspace assets.
• Why It’s Great: The company’s pivot to high-growth areas like mixed-use urban properties and divestment from struggling office spaces make it a solid bet for the future.

4. Urban Logistics (LSE: SHED)

• Focus: Urban warehouses for e-commerce fulfillment.
• Why It’s Great: Strong rental growth (up to 20% in 2023) and high occupancy rates highlight its potential for income and capital appreciation in the booming e-commerce sector.

5. Tritax Big Box (LSE: BBOX)

• Focus: Large logistics warehouses.
• Why It’s Great: With a 5.1% dividend yield, Tritax continues to benefit from the growth in online retail, making it a popular choice for income-focused investors.

6. Custodian REIT (LSE: CREI)

• Focus: Diversified commercial properties.
• Why It’s Great: Custodian REIT’s diversification and strong management have helped it weather market volatility, offering a stable 6.3% dividend yield.

7. Residential Secure Income (LSE: RESI)

• Focus: Affordable housing and retirement rentals.
• Why It’s Great: RESI’s focus on inflation-resistant housing assets and an 8.3% dividend yield make it attractive for income investors.

8. Assura (LSE: AGR)

• Focus: Healthcare properties.
• Why It’s Great: Stable demand for healthcare facilities ensures long-term rental income. Its resilience makes it a defensive play during economic uncertainty.

9. LXI REIT (LSE: LXI)

• Focus: Long-term leases across sectors.
• Why It’s Great: LXI’s inflation-linked leases and a diversified tenant base provide steady returns even during volatile periods.

10. Big Yellow Group (LSE: BYG)

• Focus: Self-storage facilities.
• Why It’s Great: The growing self-storage market and strong demand provide solid revenue growth potential for this REIT.

11. Primary Health Properties (LSE: PHP)

• Focus: Primary care medical facilities.
• Why It’s Great: With healthcare being an essential service, PHP offers steady income with low volatility.

12. Unite Group (LSE: UTG)

• Focus: Student accommodation.
• Why It’s Great: Rising demand for higher education drives long-term growth potential, making Unite an appealing REIT for younger demographic investments.

13. Workspace Group (LSE: WKP)

• Focus: Flexible office spaces.
• Why It’s Great: The shift towards hybrid working is boosting demand for Workspace’s flexible solutions.

14. Supermarket Income REIT (LSE: SUPR)

• Focus: Grocery retail properties.
• Why It’s Great: The essential nature of groceries and inflation-linked rental contracts provide a stable revenue base.

15. Stenprop (LSE: STP)

• Focus: Small industrial properties.
• Why It’s Great: Targeting smaller industrial units, Stenprop benefits from growing demand among SMEs and offers a high yield.

Final Thoughts

The UK REIT market in 2025 provides exciting opportunities across diverse sectors. Whether you’re seeking income, growth, or stability, these 15 REITs offer compelling prospects. Always consider your financial goals and consult with a financial advisor before investing.

For more detailed advice, explore the REITs mentioned above on platforms like Hargreaves Lansdown or Interactive Investor. Happy investing!

The content on ronkeodewumi.com is for informational purposes only and reflects our opinions. It’s not financial advice. Always consult a professional before making investment decisions.

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Imagine owning a piece of a shopping mall, an apartment building, or even a skyscraper without having to buy the whole property yourself. That’s what REITs (Real Estate Investment Trusts) allow you to do. In this post we will share with you the types of REITs, who can buy them and the best REITs to buy from our research.

A REIT is a company that owns, operates, or finances income-generating real estate. By law, REITs must return at least 90% of their taxable income to shareholders in the form of dividends, making them an attractive option for income-seeking investors.

Investing in REITs can be an easy way to add real estate to your portfolio without the headaches of being a landlord.

Types of REITs

There are three main types of REITs, each focusing on different aspects of real estate:

1. Equity REITs
   • These REITs own and manage income-generating properties like apartments, offices, malls, and warehouses.
   • They make money primarily through rental income.
2. Mortgage REITs (mREITs)
   • Instead of owning properties, mortgage REITs invest in mortgages or mortgage-backed securities.
   • Their income comes from interest on these loans, making them more sensitive to interest rates.
3. Hybrid REITs
   • These combine equity and mortgage REITs, giving exposure to both property ownership and mortgage investment.

Who Can Buy a REIT?

Good news: almost anyone can buy REITs!

REITs are traded on stock exchanges, just like regular stocks, which means:

• If you have a brokerage account, you can buy REITs.
• They’re suitable for beginners and experienced investors alike.

Additionally, some REITs are private or non-traded, meaning they’re not available on public exchanges. These are typically reserved for institutional investors or high-net-worth individuals.

What’s Happening With REITs in the Market? (from 2022)

The last couple of years have been a rollercoaster for REITs due to the following reasons:

1. Impact of Rising Interest Rates
   • REITs often borrow money to finance their properties, and higher interest rates increase borrowing costs.
   • Rising rates also make bonds more appealing compared to dividend-paying investments like REITs.
2. Post-Pandemic Recovery
   • Sectors like retail and office REITs faced challenges during the pandemic, but residential and industrial REITs (e.g., warehouses for e-commerce) have shown resilience.
3. Shift in Demand
   • Data center and infrastructure REITs (e.g., cell tower REITs) are gaining popularity as the world becomes more digital.

Despite challenges, REITs remain a reliable choice for income-focused investors, especially through REIT ETFs.

Best REIT ETFs to Consider in 2024

Here are some of the best REIT ETFs for building wealth and earning passive income:

1. Vanguard Real Estate ETF (VNQ)
   • Tracks the performance of the MSCI US Investable Market Real Estate 25/50 Index.
   • Includes residential, industrial, office, and retail REITs.
   • Low expense ratio and broad exposure to the US real estate market.
2. Schwab US REIT ETF (SCHH)
   • Provides exposure to US equity REITs while excluding mortgage REITs.
   • Known for its low costs and solid performance over time.
3. iShares US Real Estate ETF (IYR)
   • Offers exposure to a diversified mix of REITs and real estate management companies.
   • Covers both small and large-cap real estate businesses.
4. Global X SuperDividend REIT ETF (SRET)
   • Focuses on high-dividend REITs globally, making it an income-focused choice.
   • Higher risk due to its emphasis on yield.
5. Real Estate Select Sector SPDR Fund (XLRE)
   • Tracks the real estate sector of the S&P 500 index.
   • Includes some of the largest and most stable REITs.

Why Invest in REIT ETFs?

1. Diversification
   • Real estate often behaves differently from stocks and bonds, adding variety to your portfolio.
2. Steady Income
   • REITs are known for paying consistent dividends, making them a good choice for passive income.
3. Low Entry Cost
   • You don’t need to save millions to invest in property—REIT ETFs make real estate investing accessible.

Key Points Before You Invest

• Understand Your Goals: Are you looking for income, growth, or both?
• Check the Expense Ratio: Low-cost funds like VNQ are generally more appealing.
• Watch Interest Rates: REITs can be sensitive to rate changes.

Explore More

If you’re ready to dive into real estate investing or want to learn more about smart financial strategies, check out our Investment Page for detailed guides and tips. Don’t forget to visit our Homepage to explore a range of resources tailored to help you build wealth and secure your financial future.

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On your journey to financial freedom, you’ll encounter unfamiliar financial jargon. While a quick dictionary search might help, it often lacks the depth needed to truly understand these concepts. Once you grasp these terms, investing becomes less intimidating and more empowering. Here’s a breakdown of essential investment terms to strengthen your financial literacy:

1. Interest Rate

The interest rate is either the cost of borrowing money or the reward for depositing it.

• For Borrowers: The interest rate is what you pay to your lender, determined by the loan amount, loan term, and compounding frequency.
• For Savers: It’s the return your bank or institution pays you for holding your money.

2. Credit Rating

Your credit rating reflects your financial reliability as a borrower. It tells lenders whether you’re likely to repay debts on time. A good credit rating increases your chances of securing favorable loan terms.

3. Overdraft

An overdraft allows you to spend beyond your account balance, essentially borrowing money from the bank. While convenient, overdrafts can be costly due to high fees, especially if you go over the free limit.

4. Bear Market

A bear market occurs when investment values drop by 20% or more, often driven by economic downturns or investor pessimism. This can be an opportunity to “buy the dip” and invest at lower prices.

5. Bull Market

In contrast, a bull market represents a strong economy, with investment values rising by 20% or more. It’s a time of investor confidence and a great opportunity to hold or sell investments.

6. Compound Interest

Compound interest allows your investment to grow exponentially as you earn interest on both the principal and previous interest. This can work against you in debt, where unpaid balances accumulate additional charges.

7. Opportunity Cost

Opportunity cost refers to what you give up when choosing one option over another. For example, spending money on luxury items instead of investing represents the potential gains you’ve sacrificed.

8. Mortgage

A mortgage is a long-term loan for purchasing property. You’ll repay it in monthly installments over 10–30 years. The property itself serves as collateral.

9. Collateral

Collateral is an asset pledged as security for a loan. For example, in a mortgage, the property you purchase acts as collateral. If you default, the lender can seize it.

10. Investment Portfolio

An investment portfolio is the collection of all your investments, akin to a basket of diverse assets such as stocks, bonds, and real estate.

11. Loan-to-Value (LTV)

LTV is the ratio of a loan to the value of the asset being purchased. For example, if you borrow 90% of a property’s price, your LTV is 90%.

12. Capital Gains

Capital gains are the profits earned from selling an asset like property or stocks at a higher price than you paid. These profits may be subject to taxes, with allowances to reduce your taxable gains.

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