Finance

3 Reasons You Should Invest in Land

HomeOne of the greatest investments you can make is to buy land for sale around Point Cook, Victoria. While most people tend to purchase houses, buying vacant land is one of the best investments that are capable of providing you with steady cash flow.

The simplicity involved in buying land compared to other property types makes it a worthy and inexpensive investment. If you’re contemplating between purchasing a house and forking out cash on land for sale, then these tips might come in handy.

Asset

Land has a zero-depreciation rate, which makes it a stable investment. Unlike property, you don’t have to carry out renovations. If you buy a bigger lot at a lower price, you can subdivide and sell it at a profit. Land is the only long-term investment that has a certain return on investment.

Farming

While you may leave your land lying fallow and still make a profit at the end of the day, you can plant some crops for sale or home consumption. In an era where finding organically grown food is proving difficult, you can enjoy fresh produce directly from your garden. If your land is big enough, then you can decide to grow crops for sale.

Control

Compared to other investments such as shares, you can determine the value of your land. With the value of shares, the control is in your stock broker’s hands as well as the stock market. However, with a piece of land, you’ll have the luxury of not only checking the market rates but also determining the price you think it’s worth.

Before you make an offer for purchasing land, make sure you carry out thorough research to avoid buying land that is overpriced, that is not resalable, or public property. The first step is to decide how much you’re willing to spend on buying land and finding a trustworthy realtor who can help you.

Home Loans: How to Apply with a Bad Credit

Personal loan application with approved stampApplying for a home loan is not easy. Not only do you need necessary documents, you also need to have a good credit standing. This is the part where many people find it hard to comply. With inflation rates and economy fluctuating, it can be hard to make ends meet at one point in time. More often than not, bad credit discourages people to apply for home loans, which should not be the case.

You can apply for a home loan in Guilford and other states even with a bad credit. It might be a bit challenging, but it is possible to get approved.

  1. Honest credit evaluation

The first step in understanding your credit is by having an honest credit review. A credit report will help you understand what you did wrong and therefore, help you bounce back from it. This is also needed when you apply for a home loan.

  1. Take your time

Lenders will not keep you on the blacklist forever just because you had a bad credit standing Take your time and build your credit standing up while doing so. A year of successful payments and debt reduction will definitely help. Others, wait at least two years after bankruptcy or three years after a foreclosure to be eligible for a mortgage again.

  1. Loan type

The government knows that not everyone can get a good credit. That’s why there are certain loan types specifically made to accommodate people who have a bad to barely good credit standing. Ask your lender what type of loans you can apply with your credit score. There might be more requirements needed from you, to prove that you can pay. But, such loan types can be approved.

Do not let your bad credit pull you down. Rise up and see what you can do to get your finances in order while at the same time get the loan that you need.

Three Mortgage Facts that Will Surprise You

Mortgage Loan AgreementUnless you have some real cash holed up somewhere, you will need to take up a mortgage loan to finance your home purchase. Also, just like many things in life, you ought to know facts about your mortgage to get the most out of it. Understanding these facts will enable you to find the right lender and take full advantage of the current market. Here are some astonishing facts about mortgage loans.

Your Mortgage Can Be Sold

It comes as a surprise to many borrowers that their mortgage loans taken in Iowa or elsewhere changed hands. Some of them may also feel uncomfortable, especially when they wanted to work with the initial lender. However, you need not worry since the new lender will still honor the terms of your loan. It’s a thing that mortgage lenders do to create room for giving out more loans. Just stay on top of your statements so that when it happens, you will submit your payments to the right bank.

Mortgage Rates Keep Changing

It’s unfortunate that many borrowers think that mortgage rates are constant. You might be used to specific prices, but don’t believe that these changes are always gradual. What you see today in the market may not be available tomorrow. This means that you have to move with speed. Also, different lenders have different prices, so you should choose the most affordable ones.

Stay on Your Job until Closing

It will be a grave mistake to quit your current job before closing in on your new home. It’s not surprising to see people leave or change positions immediately after making an application. What they don’t know, however, is that lenders will always go back to your credit again before closing. Here, they check your employment status and finances. The secret is to stick to your job and avoid funding anything significant before closing.

A mortgage loan helps you make your dreams come true. However, to get its benefits, you must be well-informed. The given facts will go a long way in helping you get the right mortgage.

Three Things to Remember When Expanding Your Business

business team discussing plans for expansion in an international marketExpanding is something that many businesses are afraid to pursue. And there are good reasons a business owner would be afraid: it can be costly. The risks are higher. The stakes are higher.

But you will never know what will happen if you don’t try, won’t you?

The uncertainty should encourage you more. Who knows? Your business expansion might become successful in its first years. With the right strategy and frame of mind, you may increase your odds of having a great launch.

If you are looking for some ways to make business expansion quite easy, here are some tips from ARF Financial, a trusted loan and financial company, you need to keep in mind.

1. Get in touch with your suppliers.

Keep in mind that when you are expanding your business, you are actually expanding your workforce. And by that, it means that you have to bring in more sets of equipment and raw materials. Logistics will be a major concern here. To prep your business, you will need to explain your plans to your suppliers.

2. Expand your budget.

To be able to expand your business, you will need funding. You may source some money from your profits, but if you do not want to lose your earnings to uncertainties, you can look for a loan finance company. Just make sure that you will work with a lender that has a low interest rate.

3. Prepare the marketing.

Now that you have decided to really launch a new product or open a new branch, you should beef up your marketing tactics. You should come up with ways that will help drum up some noise about your business’ expansion efforts. The social media can easily help you with that.

These are only some of the ways you can make your business expansion easier. You can seek the help of a reliable consultant.

How Much Will it Cost to Buy a Home in Utah in 26 Years?

a couple buying a houseHome buyers in Utah should aim to find the best mortgage rate in Salt Lake City and other parts of the state when planning to acquire a house, as average prices don’t seem to slow down anytime soon.

The median sale price for a residential property costs $347,000 based on research by the Gardner Policy Institute. However, as City Creek Mortgage and other experts noted, there is a possibility that it may rise by more than 50% to $700,000 by 2044.

Lack of Supply

Population growth combined with a lack of housing supply has led property values to increase exponentially. The research showed that nationwide prices in 1991 used to range around $125,000 before hitting $187,000. The higher number of citizens means that it greatly affected real estate prices, and caused them to increase higher than the national average.

Some local officials said that city councils’ approval for new development projects will be crucial to solving the housing crisis. In the meantime, it’s better to focus on finding the best mortgage lenders that can provide reasonable rates. Aside from population growth, the influx of luxury home buyers serves as another reason for more expensive prices.

Luxury Purchases

Homes priced at $1 million and above rose almost 60% in May in five Utah counties. The Salt Lake Board of Realtors said that 257 luxury homes went for sale in Davis, Salt Lake, Tooele, Utah and Weber Counties in 2017.

Sellers in the five-county region also offloaded 110 properties so far between January and May. The stronger demand for high-end houses affects values for lower-priced properties, partly because many sellers take the opportunity to raise their asking prices given the high demand and low supply.

Utah’s population growth would surpass the five million mark by 2050, which means more people would need to buy homes. It’s best to consult with a mortgage lender to learn more about your options before prices increase at a rate that may no longer be affordable for you.

house model with keys and ballpen on contract paper

3 Important Things You Should Know About ARMs

house model with keys and ballpen on contract paperThe adjustable-rate mortgage (ARM) is one of the core mortgage plans offered by a lender for people who wish to have their own house in Phoenix. VIP Mortgage notes that the first few years of home loan payments would significantly be smaller if compared with a traditional fixed-rate home loan.

However, this will soon be subject to change based on the housing market’s evaluation of its interest rates. An ARM is an excellent choice for home buyers, but how would you know if it’s going to work for you?

If You’re Only Going to Keep the House for a Short Time

If you’re planning to keep the house only for a few years and then get another one, then you’d probably want to consider getting an ARM for your home loan.

Since the initial few years of home loan payments would be smaller, it would save you more money if you choose to have an ARM instead. It is advisable for people who are considering selling the property after a few years.

If You Have Enough Funds to Pay It Off Sooner

If you have sufficient funds to pay off the ARM, better go with it instead of getting a fixed-rate loan. You’ll be able to save a lot of money and allocate it to other essential expenses. To pay it off much sooner than expected, you need to know how to budget your finances.

If You Bought the House As an Investment

A real estate property is a significant investment. So, buying a house and then either selling it or renting it out is an excellent way to keep your finances going.

To ensure you get your money back as fast as you can, you might also want to choose an ARM and then pay it off in less than ten years.

Applying for an ARM is an excellent option for people who want to clear off their mortgage much sooner. Talk to your mortgage lender and see if you’re eligible for it. Looking for several financial options will increase the odds of you owning your own house in the future.

Harp Home Loan Changes You Need to Know

loan word seen on a laptop screenSince its introduction back in 2009, the government-insured Home Affordable Refinance Program (HARP) has assisted homeowners by the millions. The HARP home loan has allowed mortgage payers to save hundreds of dollars each month. These savings enabled families to funnel funds into other areas of their financial responsibilities, such as education and recreation.

Now, almost a decade in existence, the HARP loan is seeing noteworthy updates. These updates are designed to make the program more accessible to a broader market and to expand HARP loan beneficiaries.

HARP 2.0

The newest iteration of the HARP loan allows for a more lenient approval of applications. It is made possible through these updates:

  • HARP loans are no longer limited to a loan-to-value ratio of 125%. It means you can now apply for this loan regardless of how far your property has depreciated.
  • HARP loan application no longer requires homeowners to be appraised or for their loan to be underwritten. Essentially, the program has a more streamlined application process.
  • For those who decide to refinance into shorter loan terms, risk-based fees will either be modified or eliminated.
  • Paperwork and other requirements may be waived by lenders such as Primary Residential Mortgage, Inc., especially in instances where applicants hold a minimum of 12 months of reserved mortgage payments.

Refinancing via HARP does not require borrowers to work with the same lender from which they had acquired their original loan. It opens up more options for the borrower.

HARP 2.0 Stats

Since these updates’ first introduction, 400,000 homeowners have decided to refinance their homes via the HARP loan program. It puts the number of HARP beneficiaries to 1.5 million since its inception. These numbers are a testament to the program’s value and credibility.

If you are currently looking for ways to make the most of your property and to adjust your mortgage plan, HARP loan could be worth your while. You may want to consult with an expert to know for sure.

Woman using calculator

Making a Clean Exit: Maximizing Your Business’ Value Before Selling

Woman using calculatorYou probably already know that building your business takes time and effort. When it is time for your exit, therefore, you should receive the best amount from selling your company. This will help you fund your next business venture or retirement.

Ubcutah.com, therefore, knows that getting a consultancy company to advise you on the best strategies is essential when selling a business in Salt Lake City. They will help you prepare for the sale and make your company more appealing to boost the price you get for it.

Here are some strategies they might recommend to maximize the value of your company.

1. Build recurring income agreements.

Sales are the engine of a successful enterprise. You should consistently increase your sales and profits in the period leading to your exit.

Pay attention to recurring revenue agreements since they will generate income for the new owner as they establish themselves. Recurring revenue agreements boost your business selling price since they make it more lucrative.

2. Create seamless routines and processes.

Creating a seamless routines and business processes ensures the business runs smoothly even long after you pass the business on to a new owner and possibly new management.

Start developing airtight routines early that will enable the buyer to operate it efficiently. Ensure you document all routines in detail to provide them a guide.

3. Retain your key employees.

The last thing any buyer wants is a high employee turnover. Buying a business with a skilled workforce brings stability and generates profits for the business. By retaining your best employees, you will increase your business’ net worth, especially if they commit to remaining in the company after your exit.

While it is true that you have to let go of your business once it is no longer yours, it is still in your best interest to make sure you pass it on in good condition.

Woman counting coins

Top 3 Mistakes When Refinancing That Could Cost You More Money

Woman counting coinsCurrent mortgage rates are on the lower end, but you can’t count on them to remain on the lower end forever. If you’re one of those homeowners who’s planning to refinance this year, you need to tread carefully because you might end up spending more than you bargained for. That said, avoid making these costly refinance mistakes:

Refinancing Without Sufficient Equity in Your Home

This would raise your overall mortgage costs. If your home equity value is lower than 20%, you would need to pay private mortgage insurance (PMI). This means that even if you manage to secure a low-interest rate in Utah, your PMI premiums would negate potential savings from a refinance.

Opting for a Lengthier Loan Term

Going for a longer loan term might reduce your monthly payments, but you might end up spending more over the loan term in interest. For instance, if your loan is worth $200,000 with a 4.5% interest rate, your monthly payments would be around $1,000. You would have spent upwards of $43,000 in interest, while saving up to $20,000 off your principal.

Overall, your interest would be around $164,000. If you decide to refinance the remainder, which is about $182,000 with a loan term of 30 years and an interest rate of 4%, you’d be paying more towards interest monthly. But, you save about $245 on your monthly payments. When you compare this to your original loan, you’ll only save $2,000 or less.

Doing Away with Closing Costs

Refinancing means taking out a new mortgage and replacing your original mortgage. This means that you’d need to pay closing costs again for finalizing the paperwork. On average, closing costs are around 2% to 5% of your mortgage’s value, such that you might need to pay $4,000 up to $10,000 for a loan worth $200,000. While you could opt out of paying closing costs, your lender would charge you a higher interest rate. This move could end up making your refinance more costly in the long haul.

Refinancing could save you a lot of money, but only if you go about it the right way and weigh all the pros and cons. It’s easy to just focus on securing the lowest interest rate, but you need to take into account other related costs. For best results, discuss your options with a reputable lender.

Woman counting money

When You Can’t Earn Anymore: Tips on Covering Your Finances

Woman counting moneyAs the story about the ant and the grasshopper has taught you in grade school, working hard while you can is your best answer for the “rainy days.” These can be anything from downsizing, an accident that incapacitates you, or just you reaching the age when you can’t work anymore.

But working hard for the money may still not be enough to secure your future. Financial planning for retirement or for unforeseen circumstances might also be needed. But how do you go about it? Here are a few things you can do while you’re still in your most productive years.

Save for your retirement

One way to achieve financial security in your advanced years is to start preparing for it now, never mind how old you are at present. The easiest and simplest way is just to save a portion of the money you earn on a monthly basis, treating it as one of your regular expenses like utility bills or mortgage payment. This way, you will force yourself to allocate the amount.

Keep your debts under control

Because you really don’t know what’s going to happen in the future, making sure you can pay off debts even when you stop earning on a regular basis should also be a priority. This is especially important when you’re nearing retirement age, as it will be one less thing to worry about and more time and opportunity for you to enjoy the fruits of your labor. Better yet, pay off debts as soon as you can!

Invest, invest, invest

It’s nice to have your cash stashed in some old, tin box under your bed, so they’re always at the ready when needed, but it’s better if you make your money earn for you. That means having a portfolio of different holdings that are conservative and aggressive. The latter will make more money for you while the former is your insurance should a downturn happen, and your aggressive holdings are recovering.

Get some insurance

Depending on what your situation is at the moment, there is an insurance policy that can suit your needs:

  • Payment protection – will cover your debts if you can’t pay them yourself due to illness or downsizing.
  • Short-term income protection – you will receive a monthly sum over a specific timeframe in case you can’t earn money because you got sick or laid off.
  • Life insurance – the most common protection that will financially support your family in case of your untimely demise.
  • Critical illness protection – as the name implies, it helps you financially should you get sick.

Losing the ability to earn money is always a life-changing experience. Making sure that you are covered as you adjust to the new reality should be a priority.