Posts tagged: home loans

4 Tips to Getting Commercial Property Finance for Investment

property financeCommercial property finance to buy a new commercial premises sounds simple but it may be far from easy. Lenders are diligent about who they lend to, and for commercial property, the process can be a bit difficult to go through. There are, however, some things that you can do in order to get the commercial property loan that you need.

The process can become less problematic and painful when you follow these tips and it will also help you get a better deal from the loan.

1. Have a Corporate Structure Diagram Handy

Commercial borrowers have many complex corporate structures. The specifics of these structures may include superannuation funds that are self-managed, a trust in the name of one’s family, associated businesses, special property vehicles, and so on.

This structural diagram is crucial if you are to get the commercial property loan that you are after. If this diagram is not clear and presented in a way that the lender is able to comprehend, it may reduce your chances of getting the commercial loan you want. If it is filled with inaccuracies, it will further confuse the lender and reduce your chances to acquire the loan.

Your business structure, once understood by the lender, allows them to expedite the loan approval and shave off weeks from approval time. They’ll know why you’re a good candidate to get the loan from the start.

2. Get the Documents Ready

Before you apply for a commercial property loan, it is crucial that you get all the relevant document and “proofs” gathered so that you are able to get friendly terms for the loan (and the loan itself) approved in a shorter time frame. Make sure that the documentation is all up-to-date.

Typically, what lenders would ask for are your most recent financial statements. That includes a statement of financial position (assets and liabilities statement), income and equity statement and more. Other than that, they’ll need copies of your sales contracts and leases, outgoings statements, tax return papers, rentals schedule as well as your bank statements.

They need all of this documentation in good quality so that they can assess whether they should give the loan to you. When you have done your homework and prepared these things well in advance, it shows professionalism and you will be able to get a commercial property loan for your chosen premises. stamfordcapital.com.au can help you get the right lenders for a commercial property.

3. Value the Property Right

If you are trying to get a loan against your commercial property, you need to be able to show the correct value for your property. Make sure that you are not overstating it otherwise you may be considered “highly unprofessional” by the lenders. You may not get the commercial property you’re after.

4. A Property Strategy

The lender wants to see what your strategy regarding the property loan is. Do you want it for investment purposes, so that you can expand, and if so, what are the specifics of the plan? The lender will be willing to give the loan when there is an expected outcome clearly presented in front of them regarding the utilization of the loan they give you.

Long Term Investment Options

long term investmentsInterested in investing for the long term? Can’t figure out a suitable option? Your primary aim is to get a decent return on your investments. Risks do exist in the financial world, which you can mitigate by diversifying your portfolio and combing the available options together.

The time period associated with long term investments is around 7 years or greater. Generally, you are on the lookout for return rates averaging to 8 % to 8.5%. High risks are expected for some of the options, but are usually acceptable because the returns are also worthy.

Before proceeding ahead, educate yourself on the various options available, and accordingly make a decision. Let’s walk you through the best choices for long term investments in Australia.

Savings Account

A savings account offers an interest rate of only 1% to 3%, but is still utilised by many Australians, simply because it is risk-free. You deposit a certain amount from your income monthly, over which interest is compounded.
You can open up a savings account with any bank of your choice, and can manage it through the offered app.

Bonds

Bonds are type of a loan, issued by the government and companies in an attempt to raise money. Investors lend an amount to the issuer of the bond for a certain time period during which they receive a return regularly. The return rates associated with bonds are higher than savings accounts.

Gold

Gold is a popular long term investment option, especially for those looking to diversify their portfolios. Gold always tends to maintain its values and cannot default unlike fiat currencies, which makes it a suitable investment option when economic disturbances and fluctuations are prevalent in the financial market. In such scenarios, gold responds differently compared to other assets, which helps you mitigate risks.

Investment advisors at goldbullionaustralia.com.au suggest that gold should ideally take up around 10% or more of your investment portfolio, but there can be variations. Once the value increases and you start realising returns, you can sell gold through simple processes to generate a profit.

Shares

If you invest in shares, it means you are a partial owner of the company. Your wealth grows when share prices increase and when you’re paid dividends. Shares are a risky investment option, and so it can be hard to figure out the ones that would maximise returns.

Property

Buying and selling property is a common investment strategy in Australia. You get money from the profits earned on the sale or as a regular income, if you rent out the unit or land. Property investment has become riskier these days, but you can address them through numerous ways.

Term Deposits

Terms deposits are god way to accomplish your long term saving goals. You put your money into a term deposit, which is then tied down for a certain period. Choose any suitable period from between 1 year and 5 years, keeping in mind that you won’t be able to make any withdrawals during this time. You earn an interest during this period, and aren’t allowed to make any withdrawals.

So which of these options have you already invested in? Do let us know what works best for you.

Top 5 Tips for Buying High Yield London Luxury Property

luxury real estate propertyThe time is actually right and perfect for the primary buyers. Since 2007, as per the mortgage lenders council news, first, buyers have achieved the high ranking. Offcourse, as per the recent surveys did, the primary buyer is still facing some ups and downs when it comes to the buying of the property. According to MyVoucherCodes.co.uk poll, primary buyers relied on their current banks for lending instead of finding a mortgage deal in the market. The following tips are beneficial if you are new to buying a property and all ifs and about would be answered.

1. The 95% mortgage with unbelievable deals and rates for the first time buyers, you have to be realistic by thinking above the deposit to save some. There are lots of hidden costs included in buying a new property in London, such as surveying fees, solicitors, removal man and also you are eligible for paying new home stamp duty fee. Stamp duty is active in UK sand depends solely on the property price, in the UK the cost is around £125,000 and above.

2. There are many people involved in the property buying with whom you have to deal other than mortgage worker. The first one is the real estate agent and the second is the one that helps you in sale process- solicitors. You should contact a local solicitor if you are moving to a new area such as to north from London. The local solicitor is more informed about the local area, developments, and issues and can help you accordingly. They can give you in in-depth property information that makes the buying easy for you. If you are moving to north eats, contact the local solicitor of the new castle. Always go for the mouth of mouth, such recommendations are quite helpful in getting the right person for the right job.

3. People get trapped in mortgaged because of the knowledge gap according to the research of MyVoucherCodes. Always do your homework before accepting any mortgage, it can please you but might ruin you completely. You should evaluate its worth in the coming years and make sure whether it’s the best for you or no. Increase your knowledge about mortgages and know the difference between a variable, fixed and tracker before you make a final decision.

4. When you are done with a search of your dream house, make sure about its freehold or leasehold. Freehold homes and flats mean you own the property but not the land on which it is built. You can face a difficult situation in future when you are planning to sell the property, as you might inquire service charges subject to the lease length time.

5. At last, once you got your dream house, your next search is for furniture and other essential things. You must have some in hand if not then try gumtree, freecycle and eBay to get bargain items rather then getting financial stress. That’s human nature when we have a new house we want everything to be new. But in reality this is not possible every time, always fill the house with essential things first and then move on.

The Fatal Mistakes that Will Kill Real Estate Profits

estate profitsInvesting in real estate is a sure thing, right? It’s really easy isn’t it Wrong and wrong again. Sure, if you are good at it, investing in real estate can be a very safe investment, but it is by no means a sure thing, and it can be pretty tough going if you aren’t prepared for it.

That being said, you shouldn’t be put off from such an investment because investing in property can often be the safest option. What you should do is avoid making the following fatal mistakes that will kill your real estate profits and make your life more difficult than it needs to be:

Not Casting a Wide Enough Net

The worst thing you can do when investing in real estate is not spending enough time looking at enough properties. If you’re too eager to get started and you just throw all of your money at the first promising property you find, you’ll probably end up with fewer returns and more problems that you would have if only you’d taken your time.

Choosing a Property Because You Love It

It might seem like buying a property because you love it is anything but a mistake and that might be true if you plan to live in it yourself, but if you’re buying it as an investment, you need to put your serious hat on and choose your property because it’s being sold at a good price, it’s in a neighborhood that’s up-and-coming, and you can actually make some money from it. Sure, if you love it, that’s a bonus, but it should never be the sole reason that you buy.

Thinking Your On Flip or Flop

Flip or Flop is undoubtedly entertaining TV, but if you think that your property investment project will be just like the ones on the show – you’ll buy at a ridiculously low price, renovate the building to an amazingly high standard in a ridiculously short period of time and sell it on for a ridiculous price, you’re in for some major disappointment. Although that kind of stuff can and does happen, it’s uncommon, and unless you’re a skilled investor with lots of construction skills and lots of time and money, your journey is likely to be a lot more slow and steady.

Not Using a Property Management Company

Property management from Opulent Real Estate Group takes all of the hard work out of your hands and ensures that you can find good tenants quickly and that any repairs or issues are solved quickly, usually with very little input for you. A lot of real estate investors think they can manage their portfolio by themselves to save a little money, but it soon becomes evident that they are out of their depth and things can go south quickly. Don’t let that be you and hire a property management company.

Not Doing Your Due-Diligence

It should go without saying, but you must do every check it is possible to do before you buy a property. If you don’t do that, you might be surprised (and not in a good way) by damp, bad neighbors, a new development that sees the value of your property plummet and so on!

Avoid these fatal mistakes and a decent real estate investment profit you are likely to make!

Don’t Let Your Home Be The Cause Of Financial Problems

home money issueWhile home ownership is the goal that many people share in life, very few homeowners actually consider the negatives of home ownership. That is until they are a problem for them. Although for the most part, home ownership is a fantastic financial choice, there are also times when owning a home can have a detrimental impact on your financial health. However, this is usually when you don’t take the necessary steps to protect yourself and your home from financial issues. To learn more about protecting yourself from financial problems that could be caused by your home, read on.

Protect your property from the unexpected

There are times in life when we choose to skip paying certain bills because we see them as being necessary. Whatever you do, don’t make property insurance ones of them. The fact is that anything could happen at any time, which is why taking out homeowners insurance from a reputable company like Trusted Choice is so important. Whether a storm hits and destroys your home, a house fire ruins your property, or a break-in leaves your home in tatters, it is vital that you have adequate protection in place. Every home needs insurance, because the fact is, you never know what might happen, and it is always best to be protected.

Make maintenance a priority

A common mistake that far too many homeowners make, which turns their properties into money pits, is not taking maintenance seriously. If you take the time look after your home and deal with any issues that occur as and when they do, your home should remain in better shape. However, if you leave these issues to worsen over time and don’t deal with them, then you may end up with a home that is falling apart and will cost a lot of money to put back together again. If you aren’t big on household DIY, don’t let that put you off of keeping up with your home’s maintenance, call out a contractor instead. Never put off with household problems as they will only end up costing you more to fix.

Invest for the future

If you want to ensure that should you want to sell your home in the future, you are able to do so easily, and for a good price, it is important to keep your property up to date. This means being willing to invest in new technologies as and when they are available, such as solar power, for instance. These kinds of investments will come at a cost, but the fact is that by choosing to invest in them, you can give yourself and your future the financial security needed. The more up to date a property is, the more easily it should sell.

There you have it, a guide to everything that you should know about ensuring that your home is not the cause of financial problems. Take note of the tips above, and you can make sure that home ownership does not leave you in a financial hole.