Investment: Investing in Real Estate

real stateAnyone who wants to protect his savings against inflation loss or other unforeseen developments and can work well for itself, is well advised with a property.

One big advantage of a property as an investment is that these are not subject to the loss of purchasing power by inflation effect. These apartments are a stable and secure form of investment and residential properties have been proven over and over again. They have survived crises and times of inflation. In addition they offer themselves as an ideal investment for retirement. In international Compares the property prices are quite moderate, even if you hear about record amounts per square meter in the cities.

Apart from the quality and the price, location plays an extremely important role. It is the basic condition for a steady performance. In metropolitan areas and their catchment area rents will likely continue to rise further. In addition to the geographic location, access to public transport, green spaces, nurseries and shops are decisive criticisms. So you should make sure that the property or the property is in a stable value and attractive location. Infrastructure can be positive or negative. Offering easy access to public transportation is important on busy roads is strong noise but not rare. Falling construction sites in the category of noise pollution. If there are remaining building sites in the immediate area, more construction projects are to be expected.

 

Homeowners, who use their property as an investment, can repay the loan by the monthly rental income. As soon as the apartment has amortized, is the monthly rent is an additional income for the owner. Anyone who occupies the property has to worry about rent increases instead.

 

In addition to the location, of course, other factors play a role. When buying an existing property you should take a close look at the facilities next to the price of course. Moisture, a fireplace or the isolation are only several examples, to which one should look for in a Home Inspection.

The average rate on mortgage loans was in the last 50 years at 6.2 percent. Everything under that mark is considered auspicious. If the interest rates are so low, you should take the opportunity and the repayment rate as high as possible agree.

 

A sizable funding comes, depending on the family situation, the “living Register” together. Are fiscally interesting here let properties. Interest, maintenance and preservation costs may be tax deductible against rental income here.

 

 

As an interesting business location and as a preferred country for residence and center of life, the demand for real estate was also worn by the user demand.

For sustainability of real estate investments also ensure the healthy economy and stable currency.

The main factors that affect the success or failure of a real estate portfolio are:

 

Strategy:

Investors Class?

Investment strategy?

Investment style?

Core Investment?

Value-added investment?

Opportunistic Investment?

Entry point

State of the market cycle and expectations (property clock)

Holding period

Properties types

Open spectrum / unwanted use types

Utilization of special circumstances

Objects of low quality, which require good management

Vacancy listings

Foreclosure properties

Lifecycle status

Conversion Objects

Rental apartments to condominiums apartments

Office in house use

Hotel in other usage

Typological diversification?

Needs analysis?

Benchmarking?

Performance measurements?

Locations

City or agglomeration?

Preferred documents

A-documents?

B locations?

Geographical diversification?

regionally?

   Commercial specifications

Investment volume per object

Minimum sum?

Maximum sum?

Minimum areas?

Hurdle?

   Equity / debt financing rates:

Equity ratio?

High (system-driven)?

Low?

Debt ratio?

High (leverage driven)?

Low?

Long- and short-term financing

Capital repatriation

Amortization degree and volumes

Interest rate and currency hedges

Private Equity?

Several banks / lenders

   Users Strategy

Tenant target audience / tenant Quality

Occupancy rate

Rent Schedule / SET and ACTUAL comparisons

Lease optimizations

Rental risks

Management Strategy

Self-care or outsourcing (Facility Management)

Self-administration or outsourcing (property management company)

Holding period

Limited (how long?) Or unlimited?

Exit Strategies

Control strategy

Legal Entity

Property

Property taxes / possession time

Exit Strategies

 

Real Estate Due Diligence

Buyers Due Diligence (investor due diligence) is typically used:

as a basis for real estate transaction

the systematic inspection prior to purchase real estate

determining the purchase price

the identification of opportunities and risks

the positioning of the purchase contract system requirements

Practice usual requires due diligence (see real estate acquisition, warranty)

Risks of a contaminated site or from contaminated sites shall be borne by the seller.

assessing whether contract negotiations from the strong or weak position out can be performed.

 

Test facilities are:

Real Estate Market (Market Due Diligence)

Legal (Legal Due Diligence)

Taxes (tax due diligence)

(Construction) engineering (technical due diligence)

Contaminated Sites (Environmental Due Diligence)

Finance (financial due diligence)

The operations of a real estate due diligence can be captured as follows schematically:

Overview: Real Estate Due Diligence

Click the graphic to display them in full size.

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ADVANTAGES AND DISADVANTAGES OF A CREDIT CARD

A credit card is a convenient and secure way to make purchases, to make a budget and manage your financial resources. You can use it to make purchases, manage your daily cash through cash advances and to access various personal accounts through online banking and automated banking machines (ABMs).

Credit concept works on the assumption that as you do not have the money to pay today, there is a confidence that you will pay later. But also with the presumption that you have the money to pay later.

THE ADVANTAGES :

  • Easy payment worldwide, many web shops also accept credit cards. Even in remote areas, you can often use a credit card. The credit card payments are much less accepted.
  • The credit allows you to deal with emergencies when unexpected expenses such as illness, accident, job loss, your self has a breakdown, etc.
  • Purchases with a credit card are often insured against loss and theft – even in web shops. If you do not receive the product, you can cancel the transaction.
  • The payment is deferred until the end of the month without any other charges.
    You often have the option to stagger your payments (you pay interest then).
  • Credit card companies usually offer relatively attractive services and regularly special promotions for cardholders.
  •     You can take advantage of being able to buy items (such holidays, clothes, a new phone, a new computer) and pay later.
  •     The credit allows you to make a purchase even when you do not have the money in your possession. As much as you do not let the interest accumulate.
  •     Whatever the company offering you credit ensures you receive the monthly statement that informs you of changes in your bill.
    For someone who has many debts, a loan may be made to pay all other debts and end up with a single source to repay. Also called a debt consolidation.

BUT CREDIT CARDS ALSO HAVE DISADVANTAGES, NAMELY:

The credit can encourage you to eat above your means and put you in financial difficulty.

  •     Fraud is more frequent than with a credit card. With many credit cards, the risk is almost entirely covered by the issuer. Obviously it is your responsibility to avoid as much as possible risks.
  •     The credits via credit card are relatively expensive. Compared to long-term loans, interest is high. With a credit card you can borrow very flexibly, as with a reserve. You can amortize the costs when you want. And you can spend freely in the ceiling.
  •     Most credit cards come with an annual fee. You can cancel your card each year. If you do not, it is automatically extended.
  •     Withdrawing money with a credit card is relatively expensive, the withdrawal by credit card is almost always better. Moreover, the exchange costs are relatively high (usually 2%) if you pay something in a currency other than the dollar.
  •     Credit can also mean that you find yourself over-indebted by past purchases impossible to manage and pay your present bills.
  •     The credit can cost much more than the original price if you let the interest added.
  •     The credit may encourage you to buy more than you need, so over consumption.
  •     Credit cards offered by stores can mislead you in your consumer choices because you will not go compare prices in other stores.
  •     Use credit also means that you will have less reserve to deal with emergencies (if you do not pay your bills to eliminate your debt).

 

5 Vital Questions You Should Ask Yourself Before Accepting No Interest Deals

Deals with little or no interest are everywhere these days, and are particularly included with purchases in high end stores, like department stores and furniture stores. Sure, the no interest factor is appealing to almost everyone. However, what some people don’t realize is that there may be lots of hidden terms and conditions and potentially nasty hidden charges that can deem these no interest deals less than convenient. Below are the 5 most important questions you should consider thoroughly before accepting any of these deals.

Does my credit score qualify?

It is often the case to obtain no interest deals that you are required to have an almost impeccable credit score. A lot of the time, people do not realize this until the very last minute, when they have already gone through the entire process of signing up for the deal. By this point, they are then required to pay the original interest on whatever they were buying with ‘no interest’ in the first place. This seems awfully unfair, but it does happen. To ensure that it won’t to you, check that your credit score qualifies for the no interest deal in the beginning – this will save plenty of unnecessary stress and hassle.

How long does the no interest actually last?

On many products, the ‘no interest’ period does not actually last forever. It is important to check when you will have to start paying interest on the product, in order to be prepared to pay the extra money. On the other hand, sometimes the ‘no interest’ will last until your first purchase, and other times it may apply only to bank transfers. Whatever the case, it’s vital to check, because there is nothing worse than believing you will pay ‘no interest’ for good when in fact, you will not.

Is there anything I have to do to get no interest?

This is where the sneakiness of many ‘no interest’ deals comes into light. A lot of the time, lenders may require you to spend a certain amount of money within a certain time frame in order to qualify for the ‘no interest’ deal. This is a cunning way in which lenders will trap you into spending more money than you wanted to in the first place, just so you can get this deal. The question to ask is whether it’s worth it or not – usually, it isn’t.

Which purchases will qualify for no interest?

Another common thing that lenders tend to do is offering ‘no interest’ deals on selected purchases only, which does confuse many customers. For example, if you’re visiting a furniture store and come across an advertisement offering ‘no interest on selected sofas’, finding out which sofas do qualify and which ones don’t is key. Otherwise, you may make a purchase believing that you will pay no interest when you will.

What are your no interest limits?

Some lenders only let you pay no interest on balance transfers up to a certain amount, and if you transfer more than that, the offer is void. Asking about this before accepting the deal is important, and could help to save a lot of money in the long term.

Understanding Loans for People with Bad Credit

Many of you may be in dire need of funds and going up to a bank may not be helpful for many reasons. This could mainly be due to lack of a good credit score. Does that mean that it is the end of the road or are there any alternative sources for loans that are not hooked on credit scores and ratings? How do loans for people with bad credit work?

Companies that give out loans for people with bad credit are plentiful and very willing to help. These are often called private lenders, non banking financial services or simply alternate lenders. Banks are known for their impractical methods of time-consuming processes procedures and expecting high credit ratings. People with bad credit are often stranded without much needed funds. Banks also have set schemes and amounts in which they lend. They are not flexible with amounts and interest rates. That is when alternative lending steps in.

Tailor-made schemes that are very flexible in terms of amount and interest are the main USP of lending companies like Australian Lending Centre. Each customer is different and so has different needs. Their personal loans and loans for people with bad credit are tailored to suit your situation. Loans can be arranged for people with bad credit which still have competitive interest rates. Personal loans, mortgage refinancing, debt consolidation and caveat loans are some of the many available products.

Advantages of using an alternate lender to a bank

–          Banks are risk averse: The primary motive of a bank when it comes to handing out loans for people with bad credit is to avoid risk. Banks refuse to lend unless the customer has a solid collateral and a good credit rating. This means that banks reject almost one-fifth of all loan applications that they receive.

–          Options: With an alternative lender, there are many options in private finance and for loans for people with bad credit, so you are not just restricted to just one bank.

–          Expertise: Alternative lenders specialist in lending loans for people with bad credit. They have a strong knowledge of the circumstances that their customers face and therefore work hard to create loan products that suit their clients’ needs.

–          Different ways to get funds: Alternative lending companies work with a range of lenders, meaning they can shop around for you to help you find the best loan possible. For loans for people with bad credit, this means that you are given options, not last resort solutions.

So even if your bank refuses you a much needed loan, there are always lending companies that specialist in making loans for people with bad credit easily available. So do not let bad ratings halt your potential for growth, there are plenty of strong alternative options

How to get a cheap summer holiday with the children

The summer holidays are looming and many parents are looking at the thought of having bored children for 6 weeks with dread. Most families want to take the opportunity of this time together to head off on holiday, but it’s a well-known fact that prices for flights and holiday destinations always rise when the children aren’t at school.

However, there are a few tips which can be used to reduce the price a little. Whilst they won’t give you a rock bottom price, they will certainly shave a few pounds off here and there which all helps with the amount of spending money you have when you arrive.

Look to book a villa rather than a hotel. Traveling with a family usually means paying for multiple rooms and this all adds up. Whilst the idea of a villa may sound luxurious, it’s often cheaper in the height of summer than buying two or three rooms. Obviously there are no services as you’ll be self-catering, but you’ll be all together in one building and quite probably have your own pool with no other guests wanting to share.

Statistically speaking, the last 2 weeks of the summer holidays are the cheapest. ABTA figures show that because families are starting to look to return home as soon as they can in the summer holidays, late August and early September can easily see a price reduction of 25%. This is a great way to save money if you can be flexible with your dates and you might be able to haggle the price down more if you deal directly with the travel agent.

Look to book off the beaten track a little. There are stunning beaches in Bulgaria and Greece and you’ll find that comparable holidays much less expensive than popular locations such as Spain. Check for any political unrest though – whilst the advice currently is that holiday destinations in Egypt are comparatively safe and prices are cheaper than they’ve ever been, you may want to exercise caution with your choice in balancing cost and peace of mind.

Ensure everyone – even any babies who are traveling have an up to date EHIC card. This gives free emergency treatment in Europe and whilst it is never a substitute for buying travel insurance it gives the option if needed.

Book your car hire as much in advance as possible. As your holiday gets closer and the resorts fill up, car hire prices can rise by hundreds of pounds so ensure this is something you don’t wait to organise.

If you’ve already booked your holiday and paid a little more than expected, you could compare payday loans online at Payday-Choice.com. By doing this you can cover the budget shortfall this month and then repay the loan on your next pay day so you’ll know that you can go on holiday knowing your finances are in order and you’ve nothing to worry about.

Four Reasons to Have a Professional do Your Taxes

Ben Franklin once said “In this world nothing can be said to be certain, except death and taxes.”

Everyone has to pay taxes, and a lot of people make the choice to file their own rather than use the services of a professional. In many cases this approach is fine. If you haven’t had any major life changes, if your employer deducts taxes from your paycheck, and you don’t own any real estate, you can probably file your own taxes without any trouble.

However, if any of the above is not true, you could need professional help. Best case scenario, you could end up getting less of a refund than you should. Worst case scenario you could end up with a hefty tax debt, or even get audited.

IF the worst case occurs, you do have options.

If you have a debt, you can set up a payment plan with the IRS to help you pay what you owe;

 

  • If your debt is more than you can handle with a payment plan, or if you get audited, you can, and should, get assistance from someone like the attorneys at Authority Tax Service.

 

However, the goal to avoid any mishaps by getting it right the first time. Below are some reasons why you should consider hiring a professional tax preparer instead of filing your taxes yourself.

 

Changing tax codes and forms.

 

The Congress and the IRS make changes to the tax code constantly. In fact, there have been nearly 5,000 changes to the tax code since the beginning of the millennium. Additionally, if you go out to the IRS forms site, you can see that they revise and post new forms throughout the year – even at the height of tax season. All of these updates can make a huge difference in the outcome of your tax filing. A trained professional keeps abreast of the tax codes, and can give you the up-to-date information you need.

 

Problems with bookkeeping.

 

Doing your taxes well requires you to keep track of your spending throughout the year. This means keeping track of receipts and other financial documents. Not everyone is adept at tracking their finances, and this can make it difficult to file – especially if you have to take a lot of deductions. Improper bookkeeping can also put you at risk of being audited if the IRS notices any discrepancies. A seasoned professional can help you organize your financial documents, make sure that you are taking the right deductions, and reduce your risk of an audit.

 

Employment changes.

 

Changing jobs, getting a substantial raise, working in different countries for parts of the year, and becoming self-employed are just a few employment changes that can alter your tax bracket, and how you file. For example, if you get promoted to sales, you might need to start deducting your transportation costs, and food and travel expenses from your taxes. If your employer sends you to another country for part of the year, you could be liable for taxes in both countries. A professional tax preparer can help you minimize your tax liability when your employment situation changes, and for non-traditional work situations.

 

Family changes.

 

You may know that getting married divorced, or having a child can change your tax bracket and your filing status; but did you know that other family changes can also affect your taxes? The IRS actually has forms and rules for things like taking in your elderly parents, raising your sister’s kids, and even adopting children from foreign countries. If you have had any family changes within the year, you need the services of a tax professional.

 

Conclusion

 

The bottom line is that the using a tax professional can help you navigate confusing terrain and avoid any pitfalls.

 

However, if you do encounter any pitfalls, take heart; The IRS is willing to work with people to help them pay their taxes. There are also several organizations, Authority Tax Services being one, which can help you manage any tax difficulties.

Save Time and Money With an Insurance

In a previous article we discussed ways of getting life insurance when a company decides you are non insurable. Today we are going to discuss fine tuning your finances by finding the best price for all types of insurance.

The fact is that insurance pricing varies greatly from plan to plan, and provider to provider. Sometimes it depends on the type and amount of coverage but, often, even the same coverage can show great variations in price. You could go to each provider’s website and request a quote, but that can be time-consuming. Using an insurance service can help you compare rates between different providers.

What is an Insurance Service?

Unlike an individual agency, insurance services are companies that work with and represent several different insurance companies. Services like Mills Insurance Company do all of the research and comparisons for you, to help you get the best rates on a variety of coverage types.

Not only can they do the research and comparisons, they can also find you the plans with the exact coverage you need, be it home, auto, life, or any other type of insurance.

For example, if you need a health plan with a ten-dollar copay for doctor visits and prescription coverage, the insurance service will search all providers and only show you providers with those exact plans, as well as the pricing information.

Some insurance providers also offer discounts for carrying multiple policies with them, or with their affiliates. For example, a health insurance provider could offer an ACA-compliant plan, and a 10% discount, if you also get renter’s insurance through one of their affiliates, and order both plans through the insurance service.

How they work?

A lot of insurance services have websites where you can get insurance quotes at any time of day, or night, from anywhere you have an internet connection. You can also call the company and get a quote from a licensed agent; some places may even schedule office appointments where you can work with an agent face-to-face.

With most companies, the actual search and quote are free. There is no obligation to buy a plan through the company, but they can often get you better rates than if you were to buy the same plan somewhere else.

If you decide to purchase a plan based on their quote, you can usually sign up for coverage on the spot, unless that particular type of insurance has a waiting period. If there is a waiting period, then you can still sign up, and even pay the first month’s premium, but the coverage won’t start until a specified future date.

Still, if you find a good price, it’s a good idea to go ahead and sign up as soon as possible. Many quotes only last 30 days, and some less than that. If you let the quote expire before you purchase a plan you will need to get a new quote, and you could lose any savings or discounts included in the previous quote.

The bottom line is that you need insurance coverage. Rather than waste your time and energy searching for coverage, let an insurance service do all of the work for you. Not only will it save you time, it can also save you money.

What is the role of a finance broker?

We all want our money to go a little further in the current economic climate, and one of the best ways of doing this is by making sure you are getting the best rates on services. More than ever,  people are now using finance brokers to secure the best deals on home loans, ensuring that they save both money and time, and make the most of brokers’ expertise.

Brokers will work with clients to make sure the client gets the loan that is most suitable for them, based on their needs and finances. While the most common broker is a mortgage broker, brokers can also provide advice on other areas such as car loans, business loans and personal loans. The advice and guidance they provide can be invaluable for making sure that clients get the best and most suitable loans for them.

Brokers are accredited with particular lenders, and so can only offer loans from those specific lenders. Additionally, part of a broker’s remuneration can come from commission, and so it’s worth keeping in mind that the loan you are recommended may not be the right one for you. However, brokers should all adhere to a Code of Conduct, which includes the requirement that brokers act with honesty and integrity, and that they disclose any conflicts of interest.

There are a number of different firms who will broker for you, one of which is Lend Me finance brokers based over in Perth, Australia.  This firm is styled as a firm with a more personal approach, taking account of the improving regulations in the broking industry and building relationships to take into account the needs of the client rather that then interests of the lender.

It’s worth looking around to make sure the broker you choose is someone you can trust, and you feel you can have a good relationship with. Some brokers, including those at Lend Me finance brokers, will be happy to come to you, and you will be able to clarify your needs and circumstances and then decide who will be the best broker for you.

10 common mistakes new businesses make in the first year

Shockingly, up to 20% of new businesses hit the rocks within their first year of operation, and 50% of them do so within the first three. Starting a business is tough, but surviving long enough to build a viable brand can be harder still. It doesn’t help that many people who enter the business world are unprepared for the realities, and unfortunately make errors or judgment, which can be catastrophic to their company’s future. The sad thing is that the most common mistakes are well known, and are often easily avoided.

Disorganized document management

When it’s time to fill in your online tax form, it helps considerably if all your invoices and receipts are stored in one place. A business will accumulate hundreds of important documents during it’s first year alone, so keeping them all organized means less time and stress when something needs to be dug out. Document management software from companies such as  http://www.mclarensoftware.com/ is a reliable, cost-efficient solution.

Weak or Non-Existent Market Research

Just relying on your gut instinct that there is a ready-made market crying out for your product or service isn’t enough – you need solid, verifiable facts when you’re risking your own money or that of your investors. You need to know as much as possible about your customers – who and where they are, how much they spend, what they need and how you can meet that need. Additionally, you must look at the companies already tending that market – what are their strengths and weaknesses compared to your own? How can you be different? There’s a lot more to it than just these questions of course – if you have the money you can employ someone to research for you – if not, invest the time – it’s worth it!

Inadequate Funding

To stand a chance of getting a loan from a bank, or investment from other sources, you need to have a good business plan. It needs to be comprehensive and realistic to be taken seriously. Professional help is available, and there are also good resources online. Remember to develop a Plan B in case your finances go awry.

Hastiness

Entrepreneurs are often “ideas-people”, always thinking about the next big thing. It can be tempting to expand or diversify too quickly, neglecting your core product before it has had proper time to develop. But by stretching your company too thin you risk diluting your brand.

Assuming the competition will just stand still

Any well-run businesses, and you have to assume at least some of your competitors are, will seek to strengthen their own position if profits are threatened. During a business’ first year of operation, things can get very hectic, and it’s easy to take your eye off what the competition is up to, meaning you could be taken by surprise by new tactics. Regular monitoring of their activity is essential so you can stay one step ahead.

Bad employment decisions

If you make the mistake of hiring the wrong person it can be difficult to correct. That doesn’t just mean employing someone who isn’t right for the business – it could mean you hire the right person but on the wrong type of contract, or paying over what you need to. If you need to hire someone, do it carefully as this is one of the most important decisions you can make. Useful tips on hiring staff can be found on various sites including acas.org.uk

Poor relationships with suppliers and creditors

Choosing reliable suppliers is essential – delays in receiving stock or component you need can hit business profits hard. In the other direction, you also need to ensure you receive payment promptly, and are smart about who you offer credit to, so money flows in regularly.

Car Buyers: who will buy my car?

Selling your car can be a time consuming and potentially costly exercise if done badly. Here are some options to consider when selling your motor on.

Part Exchanging

Don’t be fooled by the cultural stereotypes, a car salesman is a savvy shopper and would likely know what they can and can’t get away with when it comes to selling you a car. Part exchanging is probably the easiest way to smooth your finances when selling your car, especially if I’m looking to upgrade your current model however I’m probably going to get the lowest price possible. The person selling you the car will already have an idea what they want to sell my old car on and what margins they can make. I’d only do part ex if I’m desperate.
car-moj-150x150

Putting an ad in Gumtree

Classified ads such as Gumtree is a great way of selling a car however this could be a time consuming, painful downright tedious. Not only would I have to set aside a weekend/ after work to meet a total stranger who would more likely than not kick the tires, go over the car from head to toe as if they actually know what they’re doing and walk away if they’re not interested which is time consuming and quite frankly a waste of my time. I would rather spend time with family and friends then speak to some uninteresting stranger who may or may not buy the car.

Putting an ad in AutoTrader

This is pretty much like Gumtree but it costs a decent amount of money in the first place with not the greatest returns around. Reach is great but you would still have to wait around to see if someone would actually buy the car.

Getting a car buyer

A car buyer is probably the easiest way to have someone buy my car simply because you save time meeting people who may or may not buy your car. Also unlike part exchanging you get cash straight away and ultimately which gives you the advantage of being a cash buyer when you buy your next car.