Money

Guide for Various Type of Loans Against Property

Guide for Various Type of Loans Against Property

A loan against property is exactly what the name implies a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value. However, loan against property is where you collect the money from the bank by mortgaging your property. Your property acts as a security deposit for the money that is rendered by the bank. And until the repayment of the loan money, the borrower’s original loan documents of the property will be under the banks’ custody. In case if the people fail to pay the monthly installments, banks will move legal procedure to own the loan property.

The loan will be approved by banks only up to 40% -60% of the property value, some banks might even approval loan up to 70% of the property value. Just like any personal loan, there is no restriction on using the proceeds of a loan against property.

How to choose between the two?

  • Processing time: Whenever we opt for this type of a loan, which is obtained by mortgaging the borrower’s property then the lender needs to verify the documents before disbursing the loan. In addition to this, you will be asked to submit documents supporting your income to judge your loan repayment capacity.
  • Interest rates: Being a secured loan, the interest rates of commercial mortgage lender options is usually lower than that of other loans. This can be anywhere between 11% and 16%. In comparison, interest rates of any personal loan can be as high as 24%. The main factor determining the interest rates in personal loans is the borrower’s credit score.
  • Tenure of the loan: The loan tenure can be as high as 15 years whereas the upper limit of personal loan is usually around 5 years. The more tenure of repayment of the loan brings down the EMI payouts, thereby increasing its affordability of the big-ticket loans. However, the flip side is that the longer tenure would also result in higher interest payout.
  • Loan amount: In the case of personal loans, your loan amount will primarily depend on your monthly income and your ability to service the loan. However, whenever you opt for a loan that is against your property, the loan amount will depend on both the market value of your property and your income. Generally, the loan amount in this type of loan ranges between 40–70% of the market value of the property and the maximum loan amount can go up to several crores. In the case of personal loans, the upper limit is usually around Rs.15–20 lakhs.
  • Although taking a loan against your property is a better option than a personal loan in terms of interest rate, loan tenure and loan amount, it falls short in terms of processing time. Therefore, for people requiring funds at short notice, a personal loan will be the only option. Also, the biggest risk associated with this type of loan is that the lender can confiscate your property in the event of your default in paying your dues. Therefore, make sure to self-evaluate your repayment capacity before opting for a loan against property. There are different commercial mortgage lender options which you can opt for.

Tips for Saving Money while Renting

Tips for Saving Money while Renting

Renting is a great option for people who cannot afford to buy a house or who wish to spend their income in other ways. Although it is a money-saving process in itself, you can actually minimize the spending and add to your savings account while renting. All you need to do is to make and follow a plan for reducing costs, starting with the very first stages of research and up to actually living in your rental apartment.

Here are 4 of the most important steps to take to save money while renting:

  • Spending time on research

It is of utmost importance to take your time and be critical in your research process. Learn to balance your wants and needs and prioritize what is a necessity over what would be nice to have. One of the most important aspects of choosing an apartment is location. You should try to avoid renting close to city centers or near business areas, but you shouldn’t sacrifice a lot of time on commute either. Find a spot that is close to public transportation or offers you a direct route to your job or school. Calculate the distance and how long it would take you to travel from place to place and decide how much you are willing to sacrifice on that.

You can also consider renting with other people. If you find a nice apartment that has more than one bedroom, you can partner up with someone and split the rent. If none of your acquaintances want to join you, there are plenty of reliable apps you can use to find a roommate. It’s easier now than ever to find housemates.

  • Choosing the apartment type

The sheer number of options you’ll find might be overwhelming, but you can easily sort through them. Apart from price range and location, seriously consider what type of apartment is best for you. If you don’t have furniture and you are thinking of buying some, maybe consider renting a furnished apartment for the time being. It could suit you if you plan on traveling to distant places or moving again for other reasons. It definitely varies from one situation to another, but there are pros and cons to both furnished and unfurnished apartments.

Be careful with apartments that have utilities included in the price, because that might backfire. You can control your energy consumption and intentionally reduce costs, which will turn out to be more profitable for you than being tied to a fixed amount.

  • Signing the lease

When you’ve found your new home and the time comes to sign the lease, read the contract very carefully. Ask questions wherever things are unclear and make sure both you and the landlord understand your obligations. Before signing the lease, when you’re checking out the apartment, be attentive to flaws that you can bring up in the discussion and ask for a lower rent. Negotiating rent is a must.

A good idea is to rent long term, because the longer you rent the lower the monthly cost will be. Ideally, one year will reduce the rent while not tying you down and be too much of a commitment. Showcase yourself as a reliable person, even offer to fix things if necessary, and use this to convince the landlord to cut down on your bill.

  • Living in the apartment

After you’ve moved in, remember to keep the same mindset. Adapt your lifestyle in order to save money. Be aware of how much energy and water you consume and reduce that. It’s as easy as turning off the water while brushing your teeth or unplugging the microwave before you leave the apartment. These are minor things you can do and turn them into habits which add up and cut a significant amount off your monthly bill.

If you rent in a busy city like Seattle, you might fall prey to eating out or ordering food on a daily basis. A hectic lifestyle of running from one place to another could make you feel like you have no time, but if you decide to cook for yourself at least once every two days, you’ll not only eat and feel better, but also save a lot of money in the process.

General Rule of Thumb: Follow the 50/30/20 Rule

The 50/30/20 rule is the golden ratio of budgeting. It stands for 50% of your budget spent on needs, 30% on wants, and 20% on savings. Try to adjust your spending habits and fit your monthly costs in half of your salary. Divide the other half of it and try to put aside 20%. The rest of 30% goes to your wants for the month, or towards covering unexpected expenses. It may seem hard to implement, but if you have this rule in mind from the very start, it will be easier to decide and to keep an eye on your budget and discretionary income.

About the author: Mihaela is a passionate reader and writer, with an affinity for language and linguistics, as well as the latest technological developments. She discovered her passion for real estate at RENTCafé, and you can read more of her articles on their blog.


Own a Car? Here are 4 Great Ways to Make Extra Money

Own a Car? Here are 4 Great Ways to Make Extra Money

For most people, their car is a means that takes them to and from a workplace, so they can make money, pay bills, and hopefully have enough saved over for a nice trip to somewhere fun and exciting (don’t forget the travel insurance!).

However, did you know that you can also use your car to make money — and all without quitting your regular job. Here are four great ideas:

  • Deliver Food for Local Restaurants

There are dozens of food delivery companies you can connect with, including Just Eat, Uber Eats, Skip the Dishes, Deliveroo, Postmates, Takeaway.com, Delivery Hero, Grubhub, Doordash, Foodpanda, Swiggy, Zomato — and the list goes on. Each program has its own rules and rates, so it’s worth spending some time to research each option to see what works best for you. Also keep in mind that you may need to upgrade your car insurance.

  • Wrap Your Car

Another fun and profitable way to boost your income — without having to sell anything — is by wrapping your car. There are many car wrap options to choose from, including partial wraps. All you need to do is commit to driving your car in a certain area for a minimum distance (or duration). Plus, you’ll need to make sure that you’re a safe driver and obey the rules of the road — otherwise, instead of enhancing a company’s brand, you’ll damage it! To get started, you can do Google search for marketing and advertising agencies that recruit drivers like you to serve their clients. And don’t worry about damaging your car’s original paint finish, either. A high quality car wrap will actually protect your car from scratches, dents, and UV damage from the sun. How’s that for a nice bonus?

  • Become a Part-Time Courier

Businesses in your area — especially if you live in a larger city — have a big problem: they cannot afford to use conventional couriers to get their packages and documents sent to customers and clients. That’s where you come in! Simply by transporting small packages and envelopes, you’ll make businesses happy and, of course, you’ll boost your income. To get started, check out companies like Yodel, Hermes and Amazon Flex. 

  • Share Your Commute

With the cost of fuel and other vehicle maintenance constantly rising, sharing your commute to and from work is a great way to offset your expenses. Plus, you’ll meet someone who might turn out to be a good friend, and you’ll be helping the environment, too. To get started, check out platforms like Liftshare and BlaBlaCar.

The Bottom Line

Driving is something you do anyway, and your car is basically a sunk expense: you need to pay leasing or finance costs whether you drive it or not, and it’s constantly depreciating (even when you sleep!). The good news, however, is that the four options above can help you make money with your car. What’s more, you’ll probably enjoy it much more than you imagine. Good luck and happy earning!


5 Things Every Entrepreneur Should Know About Cash Flow

5 Things Every Entrepreneur Should Know About Cash Flow

There are certain business fundamentals that have remained unchanged for centuries. One such principle is cash flow. Businesses of all sizes and types experience a certain amount of cash flowing in and out of company coffers. How that cash is managed is one of the most critical aspects in determining whether a company succeeds or fails.

Any entrepreneur looking to start a new business absolutely must understand the principle of cash flow. He or she must have a handle on cash flow management even before the idea of financing is ever entertained. Why? Because business lenders are concerned about cash flow. All of the business loans UK lenders offer will be somehow tied to cash flow. The same is true for equity investing, crowd funding, and so forth.

Here are five things every entrepreneur should know about cash flow:

1. The Difference Between Cash and Real Cash

The term ‘cash’ has two meanings in the business world. In general, cash refers to company assets and liabilities that are, for all intents and purposes, liquid. Assets would include money in the bank as well as outstanding invoices representing cash that will eventually be paid. Liabilities include outstanding invoices the company has yet to pay.

The term ‘real cash’ applies to the bills and coins coming in and going out. A restaurant is an example of an all-cash business that deals in real cash. They accept currency, debit cards, and credit cards all representing cash payments. In turn, they pay their suppliers and workers in cash represented by cheques and electronic bank transfers.

The difference between these two terms is important when managing cash flow. Cash flow management relies almost exclusively on real cash for the simple reason that outstanding invoices don’t really have any value when you need money to pay a bill.

2. The Difference Between Cash and Profit

Next is the difference between cash and profit. Cash is a tangible asset you can hold in your hand. It is an asset that can be accounted for on a bank statement. Profit is not an asset. Profit is a measure of accounting. Why does this matter in terms of cash flow? Because it’s entirely possible to turn a profit and still not have any cash.

Accounting principles may demonstrate that a company is turning a profit. But that profit is only based on total revenues versus total expenses. It doesn’t account for outstanding receivables. A company might be turning a profit on paper but still be short on cash due to excessive receivables.

3. Cash Flow is Indicative of Strength

Next, cash flow is indicative of a company’s strength. This is so because cash represents that company’s ability to sustain operations. Remember that cash is ultimately the only thing that pays bills. So if cash is constantly limited, a company is in a more precarious position.

You might be interested to know that buyers give quite a bit of weight to cash flow when considering whether or not to acquire a new business. Smart buyers know that consistently limited cash flow is a sign of internal weakness.

4. Cash Flow Affects Borrowing

The fourth thing entrepreneurs should know about cash flow is that it affects borrowing. You previously read about how business loans are often tied to cash flow. They have to be. A lender takes a certain amount of risk by loaning money to a business. If the business consistently deals with insufficient cash flow, a lender has to question that company’s ability to pay back what is borrowed.

In the end, the fact that cash flow is indicative of company strength means that it also affects a company’s ability to borrow. And because borrowing is a normal part of doing business in the modern era, it’s critical that companies manage their cash flow with borrowing in mind.

5. Budget Priorities Are Affected by It

Finally, entrepreneurs need to understand that budget priorities are affected by cash flow. The best way to illustrate this is to talk about payroll. Where a vendor is likely to allow up to 30 days to pay an invoice, workers don’t extend that same courtesy. They don’t allow employers to operate on credit.

The need to pay workers on time demands there be enough cash in company accounts to make payroll on time. That means other items in the budget might either have to wait or be addressed through credit. An entrepreneur cannot spend all his/her cash and then expect workers to wait to get paid.

As you can see, cash flow is a fundamental business concept on which sustained success rests. If you are going to start a business of your own, make sure you have a handle on cash flow first.


The Modern Way to Find a Mortgage

The Modern Way to Find a Mortgage

More people are turning to the internet to find the right mortgage deal. Will you be one of them?

Mortgage

You can do just about anything on the internet now. Whether it’s booking a holiday, checking to see who’s ringing your doorbell, or sharing the twentieth selfie of the week, no one can deny that we’re living in a digital age. Naturally, the mortgage industry has had to adapt, with a large number of online mortgage brokers having popped up over the past couple of decades.

According to a recent survey by Which, around one in three homeowners secured their mortgage through a broker, with 8% of those using an online service. While that might sound like a small number, the popularity of online mortgage brokers is currently on the rise thanks to more people preferring to get things done from home and the increasing amount of time the population is spending online.

What are they?

A mortgage broker is essentially the middle man between you and the lender. They’re there to find you the right mortgage deal for your situation and can often offer advice on similar areas like insurance and protection

An online mortgage broker is basically what it says on the tin. It will compare and contrast different mortgage deals on the market, but the process is almost always completely automated. Unlike a traditional broker, there’s no shop front, no face-to-face discussions, and no “handshake” deal as such. The name should be a dead giveaway, with an online mortgage broker negating the need for a real person. While this can put some people off, it can be an excellent solution for those who’d prefer to find the right mortgage without having to leave the comfort of their own home.

Why do people use them?

While many might want to meet an actual person when getting mortgage advice, there are a number of reasons why people prefer to check deals online:

•    24-hour service: Unlike people, the internet doesn’t sleep. For people who work nights or are busy during the day, it can be hard trying to fit in an appointment with a broker, especially if they‘re only open during traditional business hours.  Since websites are available 24/7/365, an online service is great for people looking to check mortgage rates on the go or at less sociable times of the day.

•    Cost: While this varies from service to service, the same Which? Survey revealed that many people who used an online broker did so because they thought it would save them money. In most cases, you won’t need to pay to see your results, but many do also offer services to take the application further in which case you may need to pay a fee.

•    Time-Saving: If you have a fast connection, then an online service usually can show you several deals quite quickly. Many prefer not having to schedule an appointment or travel to a physical office. The website should also allow you to see your mortgage options quicker than a manual search.

•    Scope: Like a regular broker, the main draw of an online mortgage broker is the sheer scale of deals you can see. Banks and building societies aren’t going to show or advertise mortgage deals better than their own and often have limited products. The notion of being able to see sometimes hundreds of potential mortgage deals at the click of a few buttons is enticing to many.

•    No paperwork: If there’s one thing absolutely no one on the planet enjoys, it’s filling out paperwork. With an online mortgage broker, physical paper is replaced with online forms. Great for some as any mistakes can be corrected with the press of a backspace key and no tipp-ex.

•    People: This one’s fairly simple… plenty of us don’t like talking to strangers. The internet has become an excellent tool for those who either get nervous around people or who can be easily pressured by salesman or brokers into taking deals they might not be sure about.

How do they work?

Like any service, the specifics of how they work will vary from company to company, but most online mortgage brokers do generally operate similarly.

No matter the website/service you use, you will need to enter at least a few basic details like your income, age, whether you’re a first-time buyer etc. so it can work out the deals you could be applicable for. While it might not give you the most specific details, it can give you a good idea of the types of deals available to you. Many don’t take it further than this, using an online tool as a starting point and then applying on their own.

Many online mortgage brokers will have the option to take your application further, meaning you’ll have to scan the relevant documents to verify your identity.

While they can be useful generally, if you are looking to apply for a mortgage and have a more complicated situation, an online mortgage broker might not be able to find you the best deal.

When it comes to finding the right mortgage, ultimately, it’s up to you which route you take to securing one. If you’d prefer not to leave your house and like the flexibility of an internet service, then there’s never any harm in having a look at an online mortgage broker. However, everyone’s situation is different, so never limit your options, especially when it comes to a substantial financial decision like this. There are many kinds of mortgage advisers out there, so make sure to take the time to find the right one for you.


How to instill good money management in your children

How to instill good money management in your children

manage your finances

The type of adult that your children will grow up to become is largely determined by their experiences as a child. This holds true in most areas, and is particularly true when it comes to money. Children who learn money management skills when they are young will often grow up to be responsible adults when it comes to matters of finances. Below are some of the ways that you can teach your child about responsible stewardship of their finances.

Allowance 

When you give your child an allowance, it should not come without strings attached. Your child’s allowance should be earned by doing chores around the home. There are two different ways to provide your child with an allowance. The first is the most obvious one and that is giving your child money in exchange for their performing a set amount of household work. The second, and more innovative way, is to pay your child on a per chore basis. This will enable them to directly tie their effort to a specific amount of money.

Savings 

It goes without saying that you should start encouraging your child to save early. You should start a bank account for your child where they can save birthday and holiday gifts. In addition, they should save progressively as well. While the concept of a piggy bank seems well-worn, it still works to teach your child the value of money. If you have spare change, you can give it to your child to put in the bank. Clear piggy banks are helpful because it allows your child to see the money as it accumulates.

Discuss Opportunity Costs 

It is vital for children to know that money is not infinite. Not only should children be aware of what things cost, but they should also be aware of other things that cost roughly the same amount of money. For example, if your children want to go to a movie, they should be aware of other things that can be bought with that money. This should be done occasionally but not every single time that you purchase something because it may give them anxiety. However, it should be done often enough so your child can understand that it is necessary to make conscious choices about what to do with money.

Prioritize 

Instinctually, for children, wants automatically becomes needs, and vice versa. In a child’s way of thinking, every desire becomes an automatic necessity. As adults know, there are luxuries and necessities in life. The necessities come first, followed by the luxuries. Your child should be taught what they need to have versus what they want to have.

Be Careful About Splurging 

While you do not necessarily have to be a tightwad at all times, you should not set a bad example in front of your children. You should be careful about making impulse purchases around children because it may send the wrong message. Instead, you should talk them through your decision process when making a purchase so they understand the calculus.

Author Bio: Paige Jirsa- I work with Top10.Today, a shopping comparison site, where we strive to help consumers find the best quality and priced products.


How to Prepare for a Freelancing Career in 2019

freelancer

You’ve probably noticed that the world of work is changing. These days, you don’t necessarily need to work a nine-to-five job to get a good income. Sometimes, you work according to your own schedule, and still, make enough money to pay all your bills.

Thanks to the internet, the gig economy and freelancing have become more popular than ever. As long as you have a stable internet connection and a talent that you can sell online, you can become either a full-time or part-time freelancer. Of course, just as with any career, it pays to have a strategy for success. If you’re thinking about joining the freelancer community in 2019, here are some tips to get you started.

1. Start Before You Give Up Your Day Job

While the idea of working two jobs might seem exhausting at first, it’s often a good idea to work on your freelancing opportunities before you give up your day job. By working as a freelancer part-time, you’ll be able to see if you really have what it takes to thrive in this environment. Freelancing is nothing like working in a regular job, and you’ll need a lot of commitment to make it work.

Additionally, if you freelance and work a traditional job at the same time, you can make sure that you have some income available when you’re in the process of gathering clients and customers. It can take time to find a regular roster of paying clients, so make sure that you’re not going to struggle with finances during that initial period.

2. Have a Plan

To be a successful freelancer, you need to have a skill that other people want to use. Some people freelance as virtual assistants, answering emails and scheduling appointments for business leaders. Other people decide to put their skills in graphic design and blogging to the test. Find out what you’re good at, and start building your talents.

There are plenty of online courses that you can take in your spare time to find out more about the profession that you’re going to be getting into. For instance, consider taking a writing course if you want to be a copywriter, and learn as much as you can about things like SEO and search engine algorithms.

3. Know How Much You Need to Spend

Unfortunately, preparing for a life as a freelancer isn’t just about predicting how much money you’re going to make offering your services. Though it’s important to know what kind of price you’re going to charge for your services, you also need to know how much you’re going to spend. Typically, the very least that you need to work as a freelancer is a good internet connection and a great computer.

If you need to buy any equipment, like a desk, a PC, a chair, printer and anything else you might need to serve your clients, it might be worth checking out your options for third party finance. You can get business loans that are tailored to freelancers, or you can look into personal loan options. Remember to compare your options to ensure you’re getting the lowest interest rate.

4. Build a Buffer

If you’re truly committed to making it as a freelancer, then you’re going to need to start planning long before you start putting your career into motion. Even if you continue to work at your job for a while when you’re freelancing, it pays to have a buffer in place in case things go wrong. The more you can save up before you’re relying exclusively on your freelance gigs for money, the better off you’ll be.

Remember, when you’re working as a freelancer, you’ll also need to save a portion of your income aside for the rainy days when you lose clients, or you’re struggling to find enough work to thrive. Freelancing does have its ups and downs.

5. Have a Plan B

Finally, it’s important to be positive when you start freelancing and remind yourself that everyone has their rough patches. However, if you lose work that you can’t win back, or you end up struggling to pay your bills for months at a time, then you might need to consider moving to plan B. For instance, is it possible to request your old job back if your freelancing strategy doesn’t work out? This would mean that you have to avoid burning any bridges when you leave your old career.

Additionally, think carefully in advance about when you should start applying for new jobs if your freelance strategy isn’t working. Don’t wait until you’re already struggling to get by.


House Flipping – Another Way to Make Money

Image source Pixabay

We’re always looking for ways to bring in more cash. Whether you need to pay off a few more bills or to increase your retirement fund, the more money you can bring in, typically the better off you will be. Besides your monthly income, do you have other ways you bring in cash?

Many individuals, business partners, and even couples will test their skills of flipping a house. When done correctly, you could walk away with a hefty lump sum of money. However, done poorly and you’re looking at a considerable loss.

Does that mean you shouldn’t try it? Not necessarily. Although house flipping is not for everyone, it could be the other source of income you were looking for to pay off your last credit card. If this is something you’ve thought of doing, here are a few tips to make your first house flip successful.

Are You Ready?

First of all, you want to understand that flipping a house is not a simple task. It tends to require a lot of skill in renovations, or a decent amount of money up front to hire someone to do the upgrades. If you are uncertain if you’ll be able to complete the flip on your own, or can’t afford to hire contractors to help, you may want to take another look at if house flipping is for you.

Find the Right Partner

If you’re looking to partner with someone to flip a house, don’t choose just anyone. You’ll be working closely with this person most likely seven days a week for as long as it takes to complete the renovations. Will you be able to stay civil with each other, or do you expect your relationship to fizzle out?

Do Some Reading First

So, you’ve decided you’re ready to flip a house and have found the right partner, is it time to dive in? Before you do that, consider reading up on house flipping from those who are successful in the business. They’ll be able to give you the ins and outs for you to make your first flip a successful, and profitable one.

Find a Property Fit For Your Level

If this is your first house flip, do you want to dive into one that will require basically a rebuild? Alternatively, would it be better to find a house already in decent shape that only needs a few upgrades? Biting off more than you can chew at the start could set you up for a disastrous flip and ultimately cost you more money in the end.

Finding the right property also should include the location of your potential flip. You want to find a balance of property value with how much you’re spending. A beautiful house in a rundown end of town may not sell for as much money as you want. Purchasing a home in a high valued neighborhood could sell high, but it may cost you way more than budgeted to fix and meet the neighborhood standards.



Fix Quickly, Sell Quickly

Part of the art of flipping a house is to fix it up as quickly as possible (while maintaining quality), and then turning around and selling it right away. You could put in a ton of work to make the house look beautiful, but it won’t make you much money if you don’t sell it right away. The longer you hold on to the house, the more money it costs you.
When the time comes to sell the house,every small detail matters. From how you stage the home to even the smell of it, every detail can influence someone’s decision to make an offer. So, by setting it up in a way that allows potential clients to picture their family in the home, the better chances you have of closing a deal.

About the writer: Jeremy Biberdorf is the owner & founder of the popular investing blog modestmoney.com. Check out his site for latest investing news and tips


How to Become Filthy Rich

 

Saving money is about a number of other things than just negotiating at the top of your voice. You must check out your attitude towards saving money. You may certainly be one of those people who doesn’t fit into the category of filthy rich. Apart from money, personal finance has something to do with your traits. Frugal ways have already been adopted by a number of millionaires, few of who’re celebrities. Understanding the ways in which your financial situation gets affected by your personal traits is your key to accumulating wealth.

Check Out a Few Important Traits:

Discipline

You must prove to be a disciplined investor if you really wish to save money for meeting your end objectives. Personal finance has to be studied in details if you really wish to turn rich in the long run. Actually, it’s all about executing the life plans in a disciplined manner.

Patience

When it comes to saving money, you must have more patience. Exercising a bit of patience holds you from landing into debt and helps you save more. You’ll achieve the cornerstone of great finances once you have the much-needed patience of identifying a great deal.

Risk-Taking Ability

You’ll need to take certain risks if you really wish to acquire wealth. However, you shouldn’t take uncalculated risks. You must consider all the options that you may fall back on and take risks after doing your homework.
The risk element is there to be dealt with by those that participate in the stock market. But if you invest your savings in a wise manner, you’re bound to catch up with great returns in the long run. If you’re among those that fear the overall risk, you may end up saving money in accounts that are bound to be affected by inflation.

Creativity

All of our expectations aren’t matched by our income and our economy. Our financial plans are often disrupted by certain unexpected developments. You must prepare yourself to deal with fresh circumstances. A lot of creativity is needed to ensure financial stability instead of procuring things in haste.

Result-Oriented Action

It’s truly important for you to set a goal and work towards it. It’s truly difficult for you to reach your destination when you aren’t aware of where you’re heading to. For those of you that have financial goals, you may achieve an immense personal finance boost. It will even help you stay motivated and achieve all the goals that you’ve set on your own. It won’t be possible for you to reach your financial destinations very easily if you lack goals and lack a vivid roadmap.



Combining Smart work with hard work

A lot of hard work gets in stake when you’re attempting to steer clear of debt and generate wealth. Some of you may simply start believing that by acquiring a lottery, you might get rid of some financial problems. However, the right path to accumulating wealth is through working hard and acquiring advanced skill sets.

Your knowledge is likely to get reflected in your growth and success. You may not possess some of the traits that the others do, but you must adapt to changes. Once you nurture a few inherent qualities, you’ll soon find out ways to identify your areas of opportunity and acquire all necessary skills that aren’t present in you. Most of the skill sets that you acquire will assist you in managing your finances more efficiently and also acquire more wealth.


The rise in Bridging Finance to help get your Offspring on the First Rung of the UK Property Ladder

Image via Pixabay

In years gone by it used to be a lot easier for young parents to get finance to obtain a mortgage for their very first venture buying a family home. So long as they had a good credit rating and a good relationship with the bank manager, they stood a good chance with a decent deposit on their side. Their family would normally help with additional things like buying furniture, solicitor fees, paying or helping to pay stamp duty or towards a small deposit and alike if needed.

These days, however, first-time buyers and young families are under much higher pressure to obtain all of these traditional requirements in order to purchase the first family home. Currently, with the economic downturn and together with today’s housing market increase. it has been much harder so there is now a tendency for getting help from the “bank of mum and dad” so to speak.

In general, today’s young people trying to get on the property ladder need (for the most part) funding in the region of some £20,000 to £30,000 to purchase their first‘ basic’ property. This is a substantial amount for most people today and many are not able to afford this from the off so they are needing the help of family members where this is possible. Parents, in general, are the ones to give them a “leg up” if they can to help their children purchase their first property.

Some first-time buyers are increasingly looking to family support in the form of bridging loans (here is a great calculator) to both purchase and in most cases help renovate houses in order to climb up this expensive slippery pole. A lot of these first-time homes are in need of renovation which makes it even harder as the banks deem the property “unsuitable security” so if the family can help with this there is more of a chance of getting over the hurdles. If this can be organised, some of the money can be put into play with a bridging loan secured against their own property to increase the value of the purchase it suitable security for mortgage purposes. Once completed the property is remortgaged using the funds raised repaid to the family member who lent them the money, who in turn repays their bridging loan.



In these situations, family members are helping to make this possible for their children to get onto the property ladder and set up a stable home for their grandchildren in the future in the bargain. In some cases, there is potential for “mom and dad” to have some return on their investment to boot but there is, of course an element of risk, and before entering into something like this all parties need to research all aspects and be prepared to do some work and perhaps even roll up their sleeves to chip in on the renovation itself. All in all this option is coming into play more and more these days and is generally a good solution to the issues in this field today.

 


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