Tag Archives: Money

4 Loan Terms for the Lone Millennial

Loan on the monitor of a macbookNow that you are a grownup, here are the kinds of loans you might want to note. First off, let us understand what a loan means. It means you ask someone to lend you money so that you can buy something you originally could not, like a house.

After you buy a house, the lender expects you to repay the money you borrowed.

HARP Loan

HARP stands for Home Affordable Refinance Program. It is basically for homeowners who need a stable and more affordable loan. Studies also show that HARP loans have helped people who owe more than their home is now worth.

If you are an aspiring homeowner, let a home loan company grant HARP to you.

VA Loan

This kind of loan is meant to be used by those in active duty Military Service, veterans, and eligible surviving spouses. You can say it is a thank you to these people for their service to the country. Like your usual home loan, you can use the VA loan to buy, build, and maintain a house.

FHA Loan

An FHA home is like the HARP Loan since they designed it for everyone. The difference is that it has backing from the Federal Housing Administration (hence the FHA initials) and that it actually does not loan money.

What FHA loans do is provide lenders insurance against a borrower in case the latter does not pay the money they borrowed.

Reverse Mortgages

This is useful for senior citizens because they can get money without selling their homes. Reverse mortgages are all about assessing the value of a home. If you have a well-maintained house in a great location, you will probably get to borrow a considerable amount of money.

While these loans are different in design and target users, they all share one thing in common: to help people secure a home. This is helpful for young professionals who want to settle down and find a new place they can come home to.

Considerations When Choosing a Real Estate Agent

Man smiling while holding on to his laptop and bookThere are many things that you can successfully do on your own. But selling your property without the help of another party is not among them. Real estate agents have specific skills and information that you may lack, and, if you want to increase your chances of selling your property fast and at your asking price (or even beyond), you should look for the input of these professionals.

There are more than a handful of these real estate agents in Auckland, New Zealand, but there are particular factors you should consider to determine which agency will meet all your property selling needs satisfactorily. Here are three of the essential ones:

Price Negotiation

Home sellers may be emotional in the selling and negotiation process. That, however, is never the case when working with a real estate agent; they negotiate impartially and use their negotiation skills to your benefit. They could bargain much better than you when it comes to the asking price of the property.

Customer Reputation

Seek to know what past customers say about the services they received. You will also want to confirm whether they received the full payment of the agreed amount. Trustworthiness is an element you should not ignore.

Industry Experience

Lastly, check how long the real estate agency has been in the industry, and whether they have a reputation that will help you sell or buy property. Only then can you tell that they can project future property market prices quite precisely.

For many homeowners, how fast they sell their property in Auckland will depend on the real estate agent they choose to represent them. Experience, skills, and expertise count, but it’s only trustworthiness and reliability that will help you complete the process.

What Are the Costs Covered by Construction Loans?

Piggy bank and paper house and coins stack for mortgage loans conceptA construction loan is a short-term loan given to a borrower to foot the costs of building a home. Most construction loans have very strict rules for eligibility. Lenders typically require a qualified contractor. They are part of the construction team and detailed building specifications.

A majority of creditors ask for 20–25% in down payment for a construction loan in Utah, according to American Loans. This protects the creditor from loan defaulting. In most construction projects, the capital budget is normally divided into various cost components. These costs vary depending on specific projects. Here are the most common elements.

Hard Costs

These are the costs of equipment, labor, and materials needed for construction. Hard costs sometimes also include communication costs, decoration, and fixtures. A borrower’s equity often funds any hard costs not covered under a loan contract.

Site Costs

These include the cost of buying land, legal fees, taxes, brokerage commissions and insurance costs. Some construction loan lenders assume that borrowers have already paid the cost of land purchase before the loan closing. They will, however, reimburse your funds depending on the loan agreement. Land improvements such as sewers, utilities, and water are also part of these costs.

Soft Costs

These include engineering and architectural fees, taxes, permits, construction site security and various ongoing fees. The debtor incurs these costs in addition to the construction’s hard cost. The borrower pays some of these costs before the loan approval. Local councils should approve house plans, for instance, before a lender can give you a loan.

Loan closing costs also form part of your construction budget. These include appraisal fees, underwriting fees, title fees and administration costs. Construction loans do not work like conventional ones where money is advanced at closing. You first submit a draw request and other supporting documents to your creditor. They then issue reimbursement payments for completed constructions.

Why and How You Should Save For Your Retirement

ing with a river as a backgroundEveryone grows old, and at some point, will reach retirement age and will have to quit their jobs. The good news is that they can continue working if they want to. The bad news is that if they did not take care of their retirement money, they really have to work after retiring.

There are many resources online about mutual funds and other trust products, including those from ambankqc.com. However, if you really want to keep a tight rein on your retirement fund, you can do the following:

Know how money is managed

There are other things you want to know about investing your money besides the charges. Specifically, you should know if your investment choice has a low return or not. You should also try to learn how much you are paying the investment company to manage your funds. This should be reasonable, like 3%. Anything above 3% for managing your money can be a cause for alarm.

There are always risks

Any investment comes with risks. You should understand that sometimes, the trust fund takes a hit and the growth slows down. This is normal and sometimes, it takes a slowdown in order for your funds to earn more money.

Nevertheless, if you want a higher return on your investment, you should be prepared for a wild ride on high-risk investments. Lower returns are the result of a conservative investment approach. You have to decide how safe you want your investments to take.

Make sure you retire with enough money

Depending on the inflation rate and the help of the onsite calculator, you can calculate how much you need in the bank before you start withdrawing money for your expenses. Typically, you would need 4% return on the principal. Once you have calculated the amount you need to invest, you have to calculate how much money you can withdraw annually. Planning involves a lot of calculations, and this may require help from a bank adviser.

You should start planning for your retirement while you’re still young. Setting aside a portion of your earnings for the future is always a wise move.

5 Money Matters to Consider When Buying a Franchise

Man stacking coins in increments as a concept of investment growingIf you are planning to invest in your own franchise, one of the vital steps you need to take is a thorough due diligence exam to make sure that you’re on the right path prior to signing an agreement. You’re probably confused and inundated with millions of questions, but the following are vital money matters you need answers to before taking the leap.

1. The Initial Investment

In general, initial franchise fees differ from several thousand dollars to a couple of million dollars. You will need to get a clear understanding of fees and how much you’ll need to get the franchise off the ground and earning.

2. The Liquid Capital

Apart from the startup costs, you’ll need sufficient operating capital for a couple of months until you break even. Knowing this magic number will help you prepare financially and determine when you’ll start reaping profits.

3. The Franchise Company’s Financial Capability

Knowing how financially strong the franchise company is could lend you an idea of how successful your franchise could be. Consider asking how they experienced consistent growth and their plans expansion plans if any. You will likewise want to find out if where they get the significant portion of their income, whether from selling franchises or royalties, or perhaps because they assign a sufficient amount of funding to their operations.

4. Your Potential Profit

While the franchisor can’t possibly forecast how successful your franchise will be, they must have an accurate idea of how much their franchisees make. Make certain to ask beyond the gross sales since this doesn’t operate expenses such as rent, labor, etc.

5. The Ongoing Fees, Marketing Fees and Royalties

You need to take a step back and understand how much you’re expected to pay the franchisor with regards to miscellaneous fees like royalties, marketing, etc. You need to determine how much this would cost, so you could set the right budget and accounting for royalties.

Before you invest in a franchise and sign on the dotted line, get clear answers to these crucial money matters. Once you do and you’re satisfied with the franchisor’s answers, you’ll feel more confident about investing in and running your very own franchise.

Need to Get Rid of Your Old Car? Earn from It at the Same Time

Selling Your Old CarWhen it’s time to buy a new car, what do you do with the old one? Trading it in for the new one is an easy way to go, but there are other ways to make money out of your old car.

If It’s Still in Good Condition — Sell It

A car that is less than ten years old should still be fairly easy to sell. Check online so you can get a fair idea of the market price for your car. Know that while you may see encouraging price listings, this is unlikely to be the price you’ll get. Make the most of the sale by giving your car a good face lift. Do some basic maintenance, such as oil change, transmission fluid, brake fluids and others to get your car in the best shape it can get without major overhauls. Make sure your paperwork is in order then advertise.

Be as honest as you can when you advertise and try to highlight the car’s best features. When an interested buyer contacts you, be upfront and tell them about any problems the vehicle has; you’re not going to fool anyone once they get a look at your car.

If It’s Started to Cost More Than It’s Worth — Junk It

Talk to your mechanic about selling your old car. If you’re told repairing your old car just isn’t worth it, then you will likely have a difficult time selling the car. Repairing your car is not worth it if your bill is higher than the resale price of your car. In such cases, look for a junk yard or a company that buys scrap metals such as McCamish Metals.

Choose car parts that are still in good working condition and sell them separately. You can then sell the remainder to junk shops or metal recycling facilities. Advertising car parts online and on neighbourhood bulletin boards should generate enough interest in what you’re selling.

What’s Right for You

In both cases, you can find professional help in dealing with the sale and disposal of your vehicle. It may cost you a little bit extra, but if you do not have the time to deal with buyers, it may be worth the price.