Friday, December 27, 2013

Car Loans Versus EMI Schemes

Asset financing is one of the fastest growing products in the finance sectors of most countries. The purchase of cars is one of the aspects that are driving the trends of asset finance. Car loans and Equated Monthly Installments (EMI) are among of the products available in acquisition of cars. The provision of these products varies with the options customized to favor particular clients depending on their cash flows. In addition, the products have been developed as a marketing and customer retention strategy by the financial institutions.

Car Loans

The Equated Monthly Installment (EMI) is a payment plan that requires fixed monthly payments from the borrower to the lender. The payments are to be made at a specified date of the calendar month. The payment pays off both the interest and principal of the loan in monthly intervals over a specified period until the loan is paid in full. Purchase of car through EMI requires that the car’s value and interest be paid off in regular monthly installments. The borrower is not expected to pay in excess of the agreed monthly installment.

Car loan involves borrowing of money to purchase a car. The sum borrowed amounts to the value of the car and allows the borrower to pay for the car in full. Interest is levied on the sum borrowed and an agreed time within which the principal and the interest is to be paid in full is made. The lender expects that within the stipulated time, the borrower will have cleared his or her debt in full. Car loans do not have strict rules controlling the payment plan. The borrower may make varied amount in monthly payment provided the minimum value is exceeded.

Unlike ordinary payment plans, EMI plans do not allow the borrowers to pay in excess of the agreed fixed monthly payment. The process of acquiring an EMI car payment plan involves identifying whether the monthly installment will be made in advance or in arrears. EMI in advance requires that a prior installment be made to the bank by deducting the amount from the loan disbursed to the car dealer. On the other hand, EMI in arrears does not require an advance payment to the bank thus the principal and interest are higher. Once the choice is made one-time charges and associated fees are paid then the sum is disbursed to the car dealer.

The main advantage of EMI is that it works on a fixed amount of money to be paid once a month. The scheme is convenient for budgeting. However, what does not meet the eye about the scheme is that it is expensive. Compared to car loan, EMI is expensive and is insensitive to economic fluctuations. The scheme is also punitive because it holds the borrower in a prolonged financial relationship with the bank that prevents the borrower from accessing other financial opportunities. The fact that the loan repayment cannot be expedited makes the borrower obliged to loan over the specified period. Meanwhile, you can acquire your car and a provisional driving licence.

Tuesday, December 24, 2013

Student Loans: How Do They Help You?

It is very important for young adults to build a solid credit for themselves in a bid to meet future financial needs in an easier way. Students in general are advised against taking cash advances and use of credit cards. However, it should be remembered that if you’re avoiding them too much, it might get difficult for you to secure loans for your future needs. Mortgage and car loans have almost become a necessity today and it becomes very difficult to find affordable rates on them without proper credit scores.

Student Loans

Taking a student loan and paying it back on time can be wonderful way of bolstering your credit scores, thereby strengthening your chances of obtaining the traditional loans (like the ones mentioned above) at good rates. The student debts work as the mortgage or car loans, whereby you need to repay the same in small installments every month.

So, how do student debts aid you, besides building your credit? The installment option helps you to hone your budgeting skills in a major way. You can pay them over a number of years and learn a bit about finance management in the process as well. Your first step in financial matters can well get a head start with you opting for a student loan.

Now cash advance or short term payday loans are often availed by students in a bid to tide over temporary financial problems like meeting an urgent medical bill or else paying up a semester fee. They are very easy to secure. You have to be above 18 years of age and won’t even be required to furnish your credit scores for qualifying. But the catch here is the high rate of interest attached. You might as well have to shell out an APR as high as 400 percent. You can get more information about them if you get in touch with Alfred.

They are very effective in meeting your short-term financial needs as they are arranged much faster than their traditional counterparts. But the high rate of interest can turn out be a major issue. In case, of a default you might see the rates almost doubling with the expenses almost spiraling out of control- so much so- that you might as well be caught in a debt trap. Student loans, on the other hand, provide a safer option with moderate rates and a longer repayment option. If you’re a bit smart with your savings and expenses you can jolly well manage paying the installments on time.

How Should You Go About It?

  • You need to do a bit of homework in a bid to settle for the best deals available in the market. There are a number of lenders willing to help you with student loans. However, you need to watch out for a few things before investing.
  • Make sure that the lender you’re consulting enjoys due reputation in the market- its best to avail services of those lenders whom your friends or acquaintances have already consulted and recommend as well. It saves you from the additional head ache of carrying out a thorough online research.
  • Compare the rates offered by different lenders. Calculate the rates and then settle for a deal- take help of the online loan calculators.
  • Make sure that the cosigner you’re roping has a good credit history.

Thursday, December 19, 2013

Significance of Family Income Benefit Insurance in the Present Market

Family income benefit policy is a new type of insurance cover in the market. This is different from the conventional insurance policies as it pays out the benefits in the form of monthly income instead of a lump sum. The payout thus received by the family or dependents of the policyholder after his death, is tax-free. Now, you might think that the absence of a lump sum is a major disadvantage of this cover.

Family Income Benefit Insurance

But if contemplated deeply, you would be able to understand that its actually beneficial for the bereaved members of the family, who are not really in the ideal state of mind to exercise due discretion in controlling their expenses with a huge amount of money in hand. In fact, young families find it particularly difficult to control their expenses with their main breadwinner dead. Owing to their general inexperience, it becomes difficult for young family members to stick to a budget and cope with the loss at the same time. Therefore, there is every chance that they go overboard with their expenses. In these cases, if they are handed with a lump sum then there are chances that they will be left with almost nothing after a few years or so. A monthly earning, on the other hand, would make sure that the dependents are duly sticking to a budget. Here are a few features of the policy that you should know about if you are particularly looking at securing the cover:

The policy can be availed for a fixed period of time. However, the dependents of the insured will only receive the benefits if he dies within the term of the policy. For instance, if the policyholder selects a ten year term, then his beneficiaries will receive the payout only if he dies within those 10 years and not after that. If you die in the 8th year, your family will be paid for the next two years.
  • A critical illness cover can be added if the insured is diagnosed with a serious disease.
  • It can be applied for both by single and joint applicants.
It generally doesn’t have a surrender value. If you stop paying from the middle of the term then the policy will cease immediately and you won’t be paid anything. It would be advisable that you seek due information about this particular clause from your insurance carrier.

A Few Things to Remember

Choosing the right kind of family income benefit insurance plan remains crucial for ensuring that your family or dependents remain well provided for, after your death. Make sure that you are selecting a plan that is sufficient to provide for your dependents, keeping your present volumes of debt in view. If you don’t want your family to compromise on the kind of lifestyle you have promised for them, then you would be required to carry out due calculations before zeroing in on your plan as well.

It would be advisable that if you are securing the cover as a couple you settle for two single covers instead of a joint cover. Two single covers would cost a little more than a joint cover, but in that case your children would also stand to gain more.

Tuesday, December 10, 2013

Closing A Deal for Home on Rent: Check What All it Requires

If you are taking up a home on rent in India, then there are series of steps you should follow. Though property investment in rental space is less than the property purchased but rental properties requires a thorough probe as you are planning to stay on someone else assets. You need to be cautious, as a wrong decision can leave you in trouble. You need to aware of few important facts which are essential to consider and reconsider.

Home on Ren

Glimpse at the Needful

Migrations of population from sub-urban areas to urban cities especially in the Tier 1 cities like Delhi, Mumbai, led the population grow exponentially which drastically affected the realty market. Boost is felt. Both the investors and developers are exchanging deals to make their share of profit. Realty market here is full of different sets of buyers. With need spectrum varying from the purchase of villas, apartments and independent houses to rental deals on similar properties. Finding a property which is available for sale is much easier than finding a property on rent. Dealers and developers entertain players who are willing to invest big amount in the market than the small investors, taking up miniscule capitalization. In fact suitable rental property cannot be an easy meal to access on the platter. It can be tough hence investor needs to be cautious about several important facts.

Period of Stay: Your period of stay might help you a lot to decide upon the type and the size of the property. If you have plans to settle in the city for long then you can definitely invest in big house else a small property would also suffice the purpose.

Quality of Rental Homes: Even if you are taking a property on rent, don’t forget to enquire about the quality of the property. Older properties require high maintenance which can be a trouble later. If you don’t wish to heap on your expenses then make sure that you access deals in newly-fangled projects. Developers come up with different sets of properties which assure plethora of amenities and low maintenance cost at least during the starting phase. If not a new pedestal then 3-4 year old property would also be a good deal.

Property Documents: Before affirming a property to be your new home, check for all the needful documents. With appealing terrace garden, a modular kitchen and spacious master bedroom following the suite, make sure that the owner of the property also provides you with requisite sets of documents. Property document is important as it comprises details as in rent renewal date, amount of rent to be paid, the amount of security deposited, background of the tenant and the landlord, signatures of the parties, maintenance cost, utility cost and other few details. The information incorporated may vary from one geographical location to other.

Get a Tip from the Master: If you are new to the city and exploring a home on rent then go sagacious by hiring services of some experienced property dealer. These players are experts in the area and have full-fledged knowledge of city and different kinds of properties which might fit in with the budget and kind of property you are looking for yourself.

Location Convenience: Don’t miss out on it. Explore the surroundings. Check out for important institutions as in health care center, central market, police station, fire station, oil and gas stations, recreational center, cafĂ©’, restaurants. Most importantly ensure that your house property is well-connected to transport system day and dark.

You can easily find low cost rental spaces in isolated area, but choosing them can be a regretting decision for you. Look for well-planned society in midst of amenities and requisite set of facilities.

Author Bio: Writer by profession, Subhadra Bhadauria pools her writing work for famous realty site 99acres.com. She is a regular blogger and enjoys writing. She has been for long engaged in the industry and updates the investors about the residential property scenario in India.

Friday, December 6, 2013

Fixed Index Annuities: A Safe Alternative to Low Paying Bank CDs

A fixed index annuity is a relatively new financial option offered by insurance companies. It was created in 1994 as an alternative investment to stocks, mutual funds, and CDs. When you invest in a fixed index annuity you get the attractive features of tax-deferred growth and a guarantee that you will not lose any of the money you put into the annuity. 


Today there is a surge in interest by life insurance companies to get into this lucrative market. Many companies that only used to offer variable annuities are now offering fixed index annuities to their clients. Unlike variable annuities that invest in different mutual funds, the performance of fixed index annuities are tied to a single index such as the S&P 500 Index.
  • Stock market alternative: Older individuals who are nearing retirement may be hesitant to put their retirement savings at risk in a volatile stock market. They do not have the luxury of time to recover from big losses in the market. Even those who are younger may be risk averse after the historic bear market that lasted for almost 18 months (October 2007-March 2009).
  • Mutual fund alternative: You get diversification through a mutual fund or group of mutual funds, but that does not protect you in a declining market environment. While mutual funds are less risky than owning an individual stock, you can still lose a lot of money in a bear market environment. You need only go back about 5 years to see that employee 401-K plans, which typically consist of mutual funds, dropped in value by more than 30 percent.
  • CD alternative: A certificate of deposit is a very safe investment, but in today's low interest rate environment, where the 10 year Treasury Bill is paying well below 3 percent, CDs are paying less than half that amount. With a fixed index annuity, you are usually guaranteed a minimum rate of return; and if the underlying index does well, you can earn a substantially higher return on your investment.

Safe Money

Money that you cannot afford to lose should not be put at risk. A fixed index annuity is a suitable stock market alternative or mutual fund alternative for anyone who has the goal of preservation of capital. When you buy this type of annuity, your contractual agreement will guarantee that you will never lose a dime of what you invested or the annually credited gains if any, and will also usually have a minimum interest rate that you earn each year while you hold the investment.

Making the extra money you want and need

A fixed index annuity is similar to CD in a retirement account without the potential to double, triple, or increase your interest rate by even more in a year. In addition to the base interest rate you earn, you can participate in the positive returns of the index.

While you typically may receive about 50 to 75 percent of the increase over the course of your investment year (a one-year period that starts from the day you purchase the annuity), that can make a substantial difference in your earnings for that year. You may also have a cap on the maximum amount of extra interest you can earn based on the performance of the index.

One of the best features of a fixed index annuity is that you do not lose any money in a year when the stock market and index fall. So, if you are tied to the S&P 500 Index and the stock market is down by 15 percent in one year, your interest for that year is the guaranteed minimum.

While a fixed index annuity is not appropriate for everyone, it does make sense for people who want to invest in the stock market at a low risk. In good markets, you will not earn quite as much as an index fund outside of an annuity, but in bad or bear markets, you will still have all of your safe money. 

Author Box : John G. Ziesing is a president at Advanced Capital Management, Inc. Born and raised in Florida, he feels a special commitment to helping Florida's seniors build their wealth and preserve their hard-earned assets. Since 1986, he has served hundreds of individuals and families, tailoring long term, personalized financial plans for them that carefully preserve their principal and maximize returns.

Safeguarding Your Finances When Moving Abroad

Moving abroad, whether for work or for pleasure, can be exciting and adventurous. However, it can also be a good way to lose a lot of your assets in transition. Whatever your reason for changing locations, here are a few things to consider when planning your finances. Large concerns to small, you don’t want to see your money go to waste. 

Moving Abroad

Banking

Transferring your assets from bank to bank internationally can be an arduous process. Obviously in many cases you’ll need to convert your money from one currency to another in order to be usable in a new country. Banks will often disagree on limitations and procedures within countries, so you can bet that there will be some discrepancies between banks internationally. Therefore, if your current bank has international ties, you might be better off sticking with them.

Also consider leaving a sum of money in holdings in the country you’ve lived in most of your life. Especially if you aren’t sure how long you’ll be living abroad, it’s nice to know that there will be a little bit of help waiting for if you need to go back. This tactic might also come in handy if there’s a large difference in the value of the dollar between your country of origin and destination. Waiting to convert money until the economy is in your favor can be a smart move.

Insurance

Research what options you have before you arrive at your new home. Insurance laws differ greatly from place to place and the way carriers handle clients could be markedly different than what you’re used to. Plan to consider multiple options before choosing a company, even if your employer has presented you with options of their own.Luckily most sites, like Australia’s GIO life insurance website, will lay out simple bullet points for you so that you can eliminate plans that won’t work for you quickly. This will make the process of selecting between viable plans much more smooth.

Also keep in mind that your beneficiaries on your plans might not be moving with you (for example, if you’re moving after retirement and your children are staying home). Make sure that your will and your death insurance will guide your assets safely to their hands over international borders by consulting your insurance provider and a lawyer.

Taxes and Laws

I would of course recommend hiring a tax consultant or experienced accountant to guide you through the process of filing your taxes with a new government. However, you should also try to familiarize yourself with the common knowledge that your new countrymen consider to be basic.

So, too, you should make sure you understand at least an elementary amount about your new country’s legal system. It’s important to know what is or is not going to get you in trouble with the law and what fines you could face. I’m not saying that you should set aside bail money, but you should at least be aware of whether bail is even an option in your new home.

Adjusted Budget

Besides learning to think in terms of your new currency, you’ll also need to pay attention to the average costs of products. Most things from fuel to milk will have a new standard of price so you should prepare a living budget in advance. Learning on the fly is a sure recipe for making costly mistakes.

Culture

This might sound a bit funny, but I did say I’d look at smaller considerations as well as large. No matter what culture you’re coming from or which culture you’re adjusting to, there will be differences in the way money is handled. Saudi Arabian culture reveres those who spend large sums of money while many other cultures, such as that of the Irish, generally tend to frown upon lavish lifestyles.

An example of money being used differently by country is the issue of tipping servers. In the US, it’s customary to tip somewhere around 10% when dealing with food servers, though it is not enforced. In the UK, however, servers are paid with much different wage standards and are therefore not expected to receive tips. While it never hurts to tip your server a little extra, knowing the cultural norms of how money is handled will help you socially as well as financially.

The best thing you can do for your finances and your family is to do ample research via consultants, friends, and the good old internet. Any surprises you might come across in finance with such a large move will at best cause hiccups and at worst lose you money. Be forward thinking when approaching your international move and think outside the box to anticipate costs before they turn a grand adventure into a mire of unnecessary expenditure.

Author Bio: Chris Jensen is an insurance adviser and writer who specializes in international business. He’d like to help others learn from the mistakes he made in his own move to Australia.

Three of The Biggest Obstacles to your Company's Growth

You can easily start a business, but can you manage and sustain it to be a profitable venture? Most entrepreneurs can't get past the first year of operations because of the challenges that come with starting a new business.

Business Growth

Cash flow has always been the biggest problem for most new businesses. Cash is like the oxygen that sustains your business, once it runs out, you either get the support to keep you alive as long as possible or your business fails. Some businesses have the money but they still fail, shut down or give up after a few months of being in business.
These are three other reasons why most business are not growing and ultimately shut down.

Poor Customer Service

Customers are the business, without them you have no business. Treat them right and you will have repeat businesses, treat them wrong and they will run to your competitor who offers better customer service.

Don't just be good at serving your customers, be insanely great at what you do and they will do business with you again and again. If you can't handle customer support as a business, you should consider outsourcing it to call center services that can competently handle all your customer complains whilst you focus on delivering your product or service to your clients.

Hiring The Wrong People

Your employees are your biggest asset as a business. If your team are not performing as they should, you are most likely to run into problems in the future. Right from CEOs to the most recent hire, everyone on board should maintain the maximum focus to achieve your company's goals.
Every member of your team should know where the business is headed and what they need to do to get there. New hires should be given the right training to be able to adapt and integrate into the company culture as quickly and seamlessly as possible.

You should not only consider qualifications and experience when bringing a new person to join your team but find out how passionate they are about their work. Try to find out how they work and look into their past employment to know if they take initiative or think outside the box to solve problems.
If your employees do not believe in your vision as the company's founder, it is likely to affect how they work. Provide all the necessary resources to keep your employees happy at work to deliver as required.

Losing Focus

What was the single most important thing to you as business when you first launched your product? What is the single most important thing to you right now? If your answers to these two questions are very different, there is a problem. Most businesses start of on the right foot but can lose focus as they grow their customer base and turn larger profits.

There some things you can't control like where the market is headed and government policies that could determine how businesses operate in the future. These circumstances might change the way you perceive your business's mission or place in the market, but you should not lose sight of the reasons you started the company in the first place.

Focus on what you can control. For example, consider how you treat your customers and employees, or how you manage your cash to stay in business. Set goals and targets and stick to them, ask how to reach the single most important goal you have set for yourself. The future of your business depends on you and your employees. Give it all you can and you will be on the right path.

Finally, remember to make the most of new technologies that can transform the way you work for good.

Monday, December 2, 2013

Exploring the World of Opportunities in Finance Industry

The career in finance is not exactly all bout money, but it is almost there. For the business graduates who take up the courses in finance, it’s just the beginning. The most important thing is to take a closer look at the available career options and conduct research about which industry seeks new professionals. This multifaceted industry offers a range of employment opportunities, which meet the skills, and interests of different individuals. The financial services industry also includes other sub-industries, which encompass tremendous employment opportunities. To succeed in this super dynamic field, you need to research, find out and land the profile which best matches with your skills sets and interests. 

Financial Career

Career in finance requires professionals to have the ability to function in global economic environments and propose business solutions,and understanding and interpretation of economic and financial events of a company. 

The institutes offering courses in finance help the individuals to develop skills so that they can well serve the industry at various profiles such as chartered accountant , general manager, chief financial officer, controller, chief accountant, auditor or tax adviser, financial consultant, accounting expert, to name a few.Besides, the courses also equip the students with the skill sets so that they can support and actively participate in the management of business risks.

Professional Skills

Every job requires defined skill sets, which include:

A. Cognitive competence in areas like

  • Finance
  • Managerial Accounting
  • Audit
  • Taxation

B. Attitudinal competencies

  • Interpreting accounting and financial information for management decision-making
  • Interpreting cost information for planning, control and decision-making
  • Designing, implementing and monitoring strategies for economic and financial management in a company
  • Establishing and developing solutions for different financial situations in organizations
  • Identifying and managing business risks in organizations
  • Making decisions for investment and financing companies
  • Ability to relate to people for work effectively in team

C. Evaluative competencies

  • Developing management activities with social responsibility, an ethical framework based on entrepreneurship.
  • Generating new business opportunities for the common benefits.
  • Grow as a person of integrity, enhancing their personal values ​​and professional skills.

What does a finance professional do?

The accounting and finance students develop their analytical abilities to work under pressure within a team, and to make decisions. Here are some of the work areas for the finance professionals.
  1. Finance Manager: The finance managers are responsible to budget and project cash flows, and determine the ways for investing and financing projects. The finance managers need to collaborate across different types of business functions so that they can determine the allocation of budgets and manage assets.
  2. Chartered Accountant: Chartered accountants are given the responsibility to examine, project and make plans of different types of financial transactions. They audit, analyze, verify, and interpret theclients’ accounts, and advise them about their tax filing, executorships, trusteeship as well as liquidation.
  3. Cost Accountant: The cost accountants are responsible to analyze the process constraints and margins, target the costing projects, and trace expenditures.
  4. Tax advisors: Tax advisors offer advisory and consultancy services to their clients and ensure that taxes are managed in the best ways and they are benefitted from the tax advantages.
  5. Internal Auditor: Theyassess the effectiveness and efficiency of a company’s operations. The internal auditor brings a disciplined and smart approach to check and improve the effectiveness of risk management and governance processes, among others
  6. Controller: The controller keeps track of the financial activities of the company, plan the budget, manage finance projects, propose investment strategies, and assistthe working and administration of the financial offices, among others.
Author: Working as a writer, Rashmi Karan is an avid follower of the education trends. Contact her to seek suggestions about the higher education and employment related queries and professional courses available across different colleges and universities.

Sunday, December 1, 2013

Selecting A Career In Finance Can Be Great

When it comes to selecting a career, you need to be very thoughtful. You should not only consider your skill and interest, but also the job conditions. The financial industry holds a good position and selecting a career in this field is definitely a wise idea. There are many different positions within the finance industry, and you can select from among the different positions to suit your needs. Finance is an important part of the economy. Businesses depend on it to a great extent. Most big and small companies take the help of financial advisors to get valuable suggestions on managing the finance. Therefore, entering into this industry can create the future for you. 

Career In Finance

Dealing With Different Tasks :

Once you enter into the finance industry, you can get hosts of designations ranging from financial advisor, financial planner, or personal financial consultant. These professionals are responsible for carrying out hosts of tasks. One of the primary tasks that they do is to offer financial advices and suggestions. Being a part of the same group, you can help people choose the right form of investment, insurance and different other financial products. There are other tasks ranging from retirement planning, estate planning, and college funding. You might even have to carry out an analysis on general investment.

Working In Various Settings :

If you select a career in finance, you will not have to be worried about the availability of jobs. You can work in various settings ranging from the insurance companies, banks, securities and commodities brokers or financial investment firms. As a financial advisor, you can even be self-employed operating in small investment firms. These are some of the interesting works that you will definitely love to do. In fact, the importance of the role played by a financial advisor or a person associated with finance can never be ignored or underestimated.

Great Payment Opportunities :

The professionals associated with the finance industry enjoy some of the most valuable positions. As a part of this profession, you can expect to get great payment opportunities. You will just require a degree in finance, and consequently you can get paid above $50, 000. Being good in numbers, you can even obtain a position as a bookkeeper in a small business where you can earn more than $30, 000 a year. Thus, the value of earning a finance degree will definitely pay for you in the future years to come. 

The most important benefit that you will get from a career in finance is that you will be able to select from a wide variety of specialization. You can focus your interest in a specific field and go for a specialization. This will make it significantly easier for you to find a job of your choice. You will also love doing your work with passion and interest. Consequently, the efficiency towards the work will increase delivering high productivity by clicking here. This will also help your clients enabling you to attract more customers for financial planning and management, as a whole.

Investing In Real Estate Can Be A Great Idea

If you want to invest in an asset from where you can get good returns in the future, real estate is the ideal option for you. It is considered to be the best option because it is here where you can get the returns of your paper asset along with the security of owning the land. The land is a fixed asset, and in this market of inflation the price of the land will definitely rise. There are many different ways through which you can invest in real estate. In fact, it is not always necessary to own a land in order to make the investment. You can carry out the investment only through papers. 

Real Estate

Increasing Popularity Of This Form :

Investment in real estate has become an increasingly common and popular option in the recent years. There are plenty of opportunities in this market for making big gains, but buying and selling properties involve lots of complications. Therefore, if you want to avoid the complications and hassles associated with property investment, you can go for other kinds of investments in the real estate market. Make sure that you are well aware of all the existing options before finalizing your decision.

Investing In A Group :

If you want to own a rental property without the hassle of being a landlord, you can invest in a real estate group. In this case, a company will buy a set of properties, and then allow the investors to buy them. It is the company that will manage all the aspects of the property. You will have to buy the property with the help of the company. This can definitely be less hassle for you, and you will enjoy the benefits of being a part of the real estate market. Make sure that you select a reliable and reputed investing group.

Trading In Properties :

There is another important way through which you can invest in real estate. You can simply trade with the properties by buying them for a short time and selling them under favorable circumstances. You can earn a profit by selling them. However, in order to carry out such forms of trading, you need to have a very good knowledge on the current market conditions. At the same time, you need to emphasize on properties that are undervalued or are very hot in the market. 

The most important thing that you should always keep in mind is that investing in real estate is not easy. You will have to understand the market very well. Moreover, before investing you should research well. Once you have developed a deep understanding, it will not be difficult for you to make significant gains and returns on your investment. Since the gains are huge, larger numbers of people are currently investing in the real estate market. Thus, it is rightly up to you to decide whether you want to invest in the same. Take all the necessary measures required to invest in the right property at the right time you can click here

Wednesday, November 27, 2013

Things to Keep in Mind before Choosing Company Registration Services

Singapore is currently being ranked as #1 worldwide in numerous lists regarding business practices. It is strong in the trade and investment endeavors and also has more than 50 comprehensive Double Taxation Avoidance Agreements. Singapore also has strong intellectual property laws and these are strongly enforced. So it is normal for a new entrepreneur or a foreign company that want to register a company in Singapore.

Company Registration Services

Using Singapore’s Business Consultant Companies or Dealing with ACRA Directly

Company registration services are widely available in the country, with some offering great services. There are also international consulting companies, which work in Singapore and offer comprehensive advices to have in mind when registering a company.

There is also choice not to deal with consulting companies and paying for their registration services. An entrepreneur can deal with the Accounting and Corporate Regulatory Authority (ACRA) directly but has to have an amount of information beforehand that usually can be bothersome to obtain and keep in mind during all the process.

By hiring a consulting company, the entrepreneur doesn’t have to deal with intricacies of registering the company and only need to take care of more immediate details like name of the company, business structure or any other type of documents that are requested. As such, it is greatly advised to hire a company with registration services to register the business in a confident way.

Getting the Best Registration Services

A search in the Internet will get results from numerous amounts of Incorporation firms, but not all of them are completely professional and reliable. By checking each website, reading feedback given by other previous users, and consulting with other people by requesting their opinion on the appearance of the website and company overall, can help greatly to understand if that company in particular is reliable. One must not forget that a website is portal to one’s business so it usually shows one’s professionalism and reliability.

Inexperienced consultant companies should be frowned upon since it can hinder all the registration process and even start improperly the business which would be a major setback. It is also important to check the fees that the registration company requests, and see if they are merely introductory fees, which could hide other expenses, like administrative fees or shipping charges, in other steps of the registration, or if they are complete fees for all of the registration process.

Registering a company with ACRA usually takes 14 days or more, so the entrepreneur should check the time that the consulting firm takes to do the process herself. Finally, a good customer service is required since it is very important for the entrepreneur to have a readily available representative to answer all the questions regarding the process.

Best Choice for the Entrepreneur

Deciding whether to deal with all intricacies of registering a company or hiring a business consultant company to do the job might come down to decide to have or not a confident starting step in the Singapore business world. It is greatly advised to hire a company and the most important thing anyone should have in mind is to check if the company is reliable or not.

Author Bio: Chris Kam is the Director at Budget Accounts Pte. Ltd., Singapore. He provides expert advice in areas of corporate accounting, tax planning and cost savings. With his extensive experience in this field, he is successfully guiding clients in Company Secretarial Services and helping investors to achieve their financial goals.

Friday, November 22, 2013

Funny Retirement Jokes that Make Sense

Retirement Joke 1 – How I Made My Money

A young man asked an old rich man how he made his money.
The old guy fingered his worsted wool vest and said, "Well, son, it was 1932. The depth of the Great Depression. I was down to my last nickel."
"I invested that nickel in an apple. I spent the entire day polishing the apple and, at the end of the day, I sold the apple for ten cents."
"The next morning, I invested those ten cents in two apples. I spent the entire day polishing them and sold them at 5:00 pm for 20 cents. I continued this system for a month, by the end of which I'd accumulated a fortune of $1.37."
"Then my wife's father died and left us two million dollars." 

Retirement Plan

Retirement Joke 2 – Last Wishes

An elderly woman from Brooklyn decided to prepare her will and make her final requests. She told her rabbi she had two final requests.
First, she wanted to be cremated, and second, she wanted her ashes scattered over Bloomingdales.
"Bloomingdales!" the rabbi exclaimed. "Why Bloomingdales?"
"Then I'll be sure my daughters visit me twice a week."

Retirement Joke 3 – Paint my Portrait

An elderly woman decided to have her portrait painted.
She told the artist, “Paint me with diamond earrings, a diamond necklace, emerald bracelets, a ruby broach, and a gold Rolex.”
“But you are not wearing any of those things,” replied the artist.
“I know,” she said. “It’s in case I should die before my husband. I’m sure he will remarry right away, and I want his new wife to go crazy looking for the jewelry.”

Retirement Joke 4 – I Do Like This Job

On the day before his retirement, a construction worker sat with his supervisor at lunch.
"Last day, huh?" asked the supervisor. "Are you looking forward to retirement?"
"Let me put it like this," said the construction worker. "The most miserable existence I can imagine is spending years constantly performing manual labor, under the direction of a tyrannical overlord."
"Wow," said the supervisor. "I didn't realize I was making your life so miserable. In fact, I thought you liked this job."
"I do like this job. I was talking about my wife's plans for my retirement."
 
If you are yet to reach your thirties, there’s a chance that you haven’t even given retirement a single thought. Retirement jokes such as the ones above could either be funny or depressing depending on where you see yourself as you get old, which is inevitable, and so is retirement.

In the words of French writer and existentialist Simone de Beauvoir: “ Retirement may be looked upon either as a prolonged holiday or as a rejection, a being thrown onto the scrap-heap. ” How you see and how you want your retirement years to actually be like is entirely up to you.

Every decision you make today has an impact to your future. You have the power to decide now if you are going to be joking happily with friends and family when you finally retire–or be the butt of the joke. If you have started noticing how days and hours seem to be going by faster than usual, then perhaps it is time for you start preparing–or at least, thinking about–retirement now, regardless of how old you are. Let’s help you get started:

Calculate How Much You Need

One of the first things you need to do of course is to determine how much you need to live comfortably after retirement. Do you plan to travel the world, dive into a second career, or run a business? Visualize what you want to be doing when you finally stop being part of the labor force and start planning savings and investments to help meet your retirement goals.

Save 1% More, Build a Retirement Fund

You do not have to be thinking about building a retirement fund but saving is a definite must for anyone who is earning income, whether you are in your 20s or 50s. Finance experts advise setting aside at least 5%-or as much as you can afford–of your income in a savings deposit account. If possible, raise your savings percentage by at least 1% including bonuses, every year. And when the right time comes, you can allocate some of your savings to a retirement fund. If you are too deep in debt that you can’t seem to save enough, perhaps you need to assess your lifestyle, and find areas where you can possibly downsize.

Take Advantage of Employer Benefits

Find out if you can avail of a retirement plan with your employer or insurance provider. In the US, for instance, taxpayers can avail of a 401(k) plan wherein enrolees can get access to a pension fund upon retirement by making regular contributions. If you are already enrolled in a similar program, it will be wise to review your annual statements and assess whether the cost delivers enough value. If not, you might want to switch to investments that require lower fees.

Claim Tax Breaks

Depending on your income and your age, you might be entitled to tax credit. Call a finance expert and find out whether you can save up on your retirement fund by claiming tax credits.

Diversity Your Retirement Funds

Aside from government programs, there may be other ways for you to invest on retirement. Americans have the option to apply for a Roth account, which is a tax-free retirement plan that may contain investments, or health savings accounts. There are similar programs in Canada and the United Kingdom as well.

Social Security

If you have been paying social security for a while, you might want to check your statements to ensure that everything is in order. Check if your income history is properly recorded and know more about your expected payout from your Social Security account, as a form of insurance.

Author's box: Ian G. Elbanbuena is a blogger and infopreneur who writes on various topics mainly finance, self-improvement, business and marketing. At present he works on behalf CompareHero.my, Malaysia's leading comparison website. This portal helps individuals in making the best decision by comparing rates from different finance providers.

Tuesday, November 19, 2013

Take 5 Simple Steps to Ideal Commercial Property Deal

There is one saying for commercial property investors, If nobody remembers you, just miss out few mortgage payments and world will get you know you are alive. Investment in commercial property is not all about location and amenities allied but several other aspects are involved. Whether land for sale or leasing out constructed property you need to be thorough with few most important aspects of this industry to avoid any bad deals in the future.

Property Deal

Lot happened in the credit crisis that took place in the year 2008. Real estate values fell steeply, especially for commercial properties. As per Massachusetts Institute of Technology Center for Real Estate the dip in the commercial property investment was by 10.6% in the fourth quarter alone which affected the market adversely. But to keen investor, these low times typically reveal the genuine capitalization opportunities. According to a survey conducted by Marcus and Milichap Real Estate Investment Services, out of 1,229 investors, 51 % of planned to increase their commercial real estate investments.

Despite of significant dip in the realty market, half of the players still plan to expand their commercial holdings. Every commercial property investor wish to have additional flow of incomes on their property, economies of scale, better market for goods sale, affordable deals and bigger pay off from the commercial real estate investment. Consider the tips below and know how it can be accomplished.

Be a Realty Professional: - Be a professional. Before plunging in to the market affirm that you are well-grilled with all nuts and bolts. Also consider your needs as in whether you looking for land for sale or a space in complex would suffice the requirement. Size of the property is another important aspect to contemplate over. Try to gain access on the market rates in different localities. Take an average property price. Also see the market condition, if its tighter credit environment, its better to carry cash than going for credit deals.

Action plan is extremely necessary:- For most realty player success starts with better blueprint. Set your parameters as it is really important. How are you going to buy the property? How much you expect to make on the deal? How are the other property players making use of the property? What is the lease amount? For how many years property will be engaged? How the market tends to grow? These questions are vital to get an answer for.

Find motivating players: - You need to get in touch with motivated sellers who are ready to sell off their property below the market price. The fact is even at low price a seller would make huge profits. The profits might go relatively low, but no seller would make a flat deal. You have to find such players who are ready to sell of their property at little low price as nothing can take up better shape without a good seller.

Discover your neighborhood: - For a commercial property deal, it is sagacious to explore everything in the surroundings. Check the market area, localities around and your neighborhood, whether its a professionally planned market or a residential society.

Go for Three Pronged Approach: - Do lot of research work before taking up any commercial property deal. You would abhor an asset that fetches you no good returns and underwent depreciation over the period of time. So be on a safe side and explore internet and different websites, classified ads to get a catch hold of bird dogs who can help you with property deal in the area or the city you long hunting for. Real estate bird dogs can help you with best transactions in exchange of just a small referral amount.

Author Bio: Subhadra Bhadauria is an ardent writer with leading real estate site 99acres.com. She is a regular blogger and relishes writing. Home is important to all, therefore the writer extensively highlights various home renovation tips that not only ensure better living space but healthier lifestyle too.

Monday, November 4, 2013

Why is it Necessary to Have an Accident Insurance?

Car drivers are most of the time excluded in the auto insurance cover policies since it is always deemed to be the driver's responsibility to exercise utmost care while driving on the roads. The passengers and the vehicle are the elements which are covered thus there is a need to get accident insurance cover as a driver so as to be insured against any unforeseeable eventuality which may befall one in the course of driving.

Accident Insurance

The benefits arising from taking an accident cover may be explained as follows:

Medical bills payment: This kind of a cover ensures that in case of an accident where the driver has to undergo a medical treatment, all the hospital bills are paid out thus relieving one of the financial burden. The bills covered are such as;
  • Doctor's fees which may be charged for examination, surgery or therapy.
  • Special diagnosis tests such as X-rays, laboratory tests and scanning.
  • Purchase of the prescribed drugs.
  • Charges for therapy exercise which may be aimed at correcting a condition resulting from the accident.
Quality medical care: This insurance cover also ensures that quality medical attention is received since one will not be forced to settle for lowly priced medical facilities due to lack of money. One may also access other medical benefits like;
  • Ambulance services so as to get the medical care as fast as possible.
  • Getting admitted since this service is not available in hospitals which are not fully fledged.
  • Highly qualified medical professionals who would give a thorough check-up and diagnosis.
Immobility or disablement benefits: In a case where the driver becomes disabled or suffers from paralysis due to an accident, Life changes because one may not be as productive as before and thus may struggle in making the ends meet. Accident insurance may take up to be paying periodical allowances which may assist the victim to;
  • Meet the daily upkeep needs.
  • Take care of the dependents together with their life interests.
  • Complete other financial obligations such as repayment of the existing loans.
Death benefits: These are the payments which are made to the driver's next of kin or dependents and are meant to compensate them for the loss. They can be paid in two ways;
  • Periodical instalments where the payment is spread to a number of the periods agreed on.
  • A lump-sum which is a one-time payment of the total amounts receivable. Where the driver used to be the sole breadwinner for the family or the dependents, these amounts can go a long way in helping them to start income generating projects which may substitute the gone source.
The driver's medical inquiries in UK can be done through contacting a Dvla Contact which is available on the government's website so as to get information such as the status of the accident insurance cover. More information about the following can is also available;
  • Vehicle registration and inquiries about tax.
  • Vehicle hire service providers may contact this number in order to ascertain the validity of the driving license of the one who is hiring.
  • One may also get information regarding own driving license.
Post by Webb Ward.

Sunday, November 3, 2013

How Difficult is it To Get Business Finance?

If you’ve tried to get a loan from the bank for your business lately, you know it’s no slam-dunk. All the advertising where banks claim to be SME friendly sound great, but when you get nose-to-nose with a banker it’s another story. Some of the reasons that make it seem so difficult are that many credit managers feel that they’re lending you their money instead of the banks. They take almost personal responsibility for maximizing repayment.


Another is that they are particularly suspect of new ventures. Since 4 out of 5 or 80% fail within the first three years, many lenders require a three-year history of doing business. Lastly, with the impact of the credit crunch and tighter lending criteria since the implementation of the National Credit Act, getting business finance is getting more difficult

Here are some tips to make lending you more attractive to the bank. First, start with a two-part presentation. Initially submit a brief overview of your loan request. In this overview include:
  • Excerpts from your business plan about your business concept, management team, and financial projections.
  • Credit history overviews of the principals of your business.
  • Brief answers to key lender questions of how much you’ll need; how you’ll use it, and how will you pay it back?
This should be a two to three page document and can be considered a mutual qualifier. It determines if the bank has any interest in lending you funds before you spin your wheels for hours in front of the credit manager. You may want to end the document with your phone number so that the banker can call you back for an appointment or discussion.

If you’ve dazzled the credit manager sufficiently and have obtained an appointment to meet with him, then it’s time to prepare the “big guns”. The ammo you’ll come prepared with will be three years of personal tax returns for all the principals of your company and the existing business. Include credit reports on all principals, a complete and impressive business plan, and collateral and capitalization information.

This sounds like a lot of information and will require immense effort, but that’s why business ownership isn’t for everyone.

In addition to being prepared with all that paperwork be prepared for any off-the-wall questions the lender might throw at you. Take time to think about and originate a 30-second commercial about what you plan on doing and how it will benefit them and the business.

Be prepared to explain away any credit blemishes that show up on the credit reports before the banker has an opportunity to worry about them. Be sure you’re able to show “cash-flow” understanding and awareness, without which any business is doomed. Plot your most realistic estimated cash flow and bank account balance. Make sure the bank balance never goes negative, and for a good touch show the loan repayment as a separate line item. This shows the banker that you understand priorities.

Collateral may be needed to satisfy the lender’s angst about repayment of the loan, and unfortunately most small businesses have too few assets to satisfy this need. Many entrepreneurs are forced to provide personal surety to the bank jeopardizing their personal assets such as their home. This may seem scary, and it is, unless you’re really sure of your success.

It sounds like a daunting task, but with some preparation and determination it can be done. It’s not as easy as all the ads you’ve heard, After all, that are why you’re an entrepreneur instead of a corporate slave isn’t it?

Author Bio: LoanFinder SA provides a 3-in-1 service offering which includes our free loan-finding service which can find you a loan, a 24-month legal & ID assist plan, plus credit snapshot report which can provide you with your credit status and info to determine your creditworthiness.

Monday, October 28, 2013

Important Things to Know About Home Loans

It can be confusing for people as to which home loan they should choose. This is understandable as each have different kinds of debt, interest rates and other policies to comprehend. Below is a detailed explanation of some of the most common home loans available.

Home Loans

Fixed rate home loan

A home loan with a fixed rate lets you enjoy a static interest rate which will not change during the duration of your mortgage. This is the most used plan provided by banks and credit groups. This loan lets you enjoy a fixed monthly fee to pay. This can give you an ease of mind in knowing you’re monthly expenses won’t increase because of the mortgage.

The only disadvantage you may have here is when interest rates go down. This period allows those with other house loan plans the benefits of reduced monthly fees. However, you can benefit from the period when interest rates are rising.

Your payment is mostly used to settle the interest of the loan during some of the first period of your mortgage. Once the interest is paid, the rest of your monthly expenses are used to cover the principal. You can discuss with your lender if you want to pay the principal first. You also have the option of increasing your payment in order to settle your debt faster.

Adjustable rate mortgages

Adjustable Rate Mortgage (ARM) loans are the opposite of fixed rate loans. However, most ARM loans provide a fixed rate during the last half of the mortgage period. Availing of this loan allows you to enjoy a very low initial rate of interest. For the first months or years, you may pay less each month in comparison to a fixed rate loan.

The disadvantage of taking an adjustable rate mortgage loan is the period when the rates are high. During this time, your monthly payments also increase. However, you can also enjoy the period when the rates are low. This is when your loan payment is lowered.

Balloon payment home loan

The balloon payment home loan is derived from the final payment of the mortgage. You only pay the total interest fee throughout the period of the loan. However, the entire principal owed must be payed right away at the end of the mortgage. The term “balloon” is based on the large fee being asked from you on the due date.

This loan is usually taken by individuals who believe they can get the finance to cover the “balloon” in the future. For those who are not able to pay the due date fee, they have the option to take another financial loan to cover the expensive principal. However, there are risks which can occur.

The balloon payment home loan should not be taken without fully considering your financial status. This plan is suitable for you if your salary is low, but you’re expecting a promotion or a raise in the future. The monthly fee of the balloon payment loan is much lower than other plan which is perfect for most people.

Everything mentioned above can help you clarify some of the common home loan plans. This will allow you to choose which is suitable for your financial status.

Taryn Jacob is a Senior Financial Advisor for over 2 years now. She’s a graduate of Banking and Finance at Melbourne Business School then later moved to Brisbane. Ventured to do journalistic practice, she currently writes for Heritage Bank specialising in home loans.

6 Reasons Why Mortgage Broker Mentoring is a Must

Broker mentoring is a must if you dream to earn a name for yourself in the field in the time to come. It’s a lucrative field but do not let yourself fall into the world of fantasy without first getting trained by the best. Get yourself enrolled into a mortgage broking course, for example.

Mortgage Broker

Listed below are 6 reasons that explain why having a mortgage broker is a must.

Wealth of Knowledge

For the reason your mentor has experienced various seasons in the field for long both as an entry level professional and high level manager, he can teach you some really helpful tricks used in the game. Something that took him his lifetime in learning can be learnt by you in a few sessions. By learning from a good mentor will help you to strike really good deals in the time to come. Mortgage broker mentoring provides you with this knowledge without having to fail a hundred times. That’s the real catch.

Contacts Matter

it’s not only about learning the nuances of the game all the time. Experienced mentors also carry lots of high profile contacts with them and you can benefit from them if you mentor thinks you to be the right candidate in making. It’s always about approaching the right contact in the business, if you want to make a big sale.

Discovering Opportunities

when new to the game, you will always find yourself landed in confusion in discovering who will be the best client for you. You may get involved with a less profitable client at the expanse of a good one. This is where an experienced mentor comes into picture. He will always assist you in finding the right kind of opportunities.

Point Of Reference

the job of mortgage broking involves dealing with a lot of paperwork. You are expected to be perfectly acquainted with the nitty-gritties of the job. It’s possible that your client may not even be able to arrange the most basic documents required for borrowing a loan. During such tough times, you can always seek advice from your mentor.

Every Trick isn’t mentioned in Books

you cannot learn everything by reading the course books. There will always be some real life experiences of your mentor which may turn out to be helpful for you. Mortgage broker mentoring is not about spoon-feeding a student but enabling him to find his own path when traditional ways are closed. You may analyze their personal experiences and employ them as reference in times of need.

Emotional Support

a mortgage broking course can only help you in entering the field of mortgage broking. It doesn’t guarantee you an instant success. There always lies a probability you may struggle to secure adequate number of deals in the early part of your career. These are the times where you can easily fall back upon your mentor and gain some emotional strength. So, for all these reasons having a mentor is a mandatory requisite for a novice in the field.

Author Bio: Andrew is a specialist Redrockbroker consultant and provides Mortgage broker training. Andrew’s knowledge and experience in mortgage finance has personally assisted his clients around Australia to achieve their business, financial and investment goals.

Thursday, October 24, 2013

Two Reasons to Find Good Home Insurance in Texas

Any type of assurance that your home, car or life is being cared for on a financial level can prove to be quite benefic, so getting a home insurance in Texas seems to be the smart thing to do. But there are other aspects as well; ones which may not cross your mind if you don’t give this the thought and attention needed to make an informed decision. It’s always better to rest easy knowing that your finances won’t suffer that much if something would happen to any of the important and expensive material things in your life.

Home Insurance

Why Home Insurance in Texas

Your home is probably your biggest investment, regardless of how you look at it. You may spend years coming up with the money to be able to buy one and a simple, uncontrollable thing like a storm or flood can take it all away within minutes. No insurance means that you’ll have to start over from scratch, or with too little compensation to account for your loss.

Texas, like almost all locations on Earth is exposed to the elements. Huge storms can occur, floods can happen and you’ll be in danger within minutes. While you and your family can take refuge almost immediately, especially if the authorities inform you of a possible disaster heading your way, the house will remain exposed and will have to face the conditions. In most cases, if it’s a really huge storm or flood, there are almost no chances that it’ll remain unharmed in the process. Getting insurance for situations like these can help in case something like this will happen, as you’ll have access to funds which can allow you to rebuilt, repair or even relocate if the situation is dire enough and you don’t want to risk a second disaster.

Other Insurance Plans

Often enough, people who get home insurance should always look for bundled insurance plans. This could lead to significant discounts and savings overall. You can have your car insured; certain objects in your home or even get comprehensive life insurance plans. Together, these will allow you to rest easy knowing that your personal belongings and your family will be taken care of if something would happen to you or your important possessions.

When looking for any type of insurance plan, make sure that you’ll be given a free estimate of how much it would cost you. If you’re not happy with an insurance plan you already have, feel free to ask around for better options. To find out more of Texas home insurance, visit Get a Policy.

Monday, October 21, 2013

Here’s 4 Ways To Finance Your Dream Car

You’ve found the car that makes your heart race at 120 beats per minute. Now only one thing stands between you and the car of your dreams: financing the purchase. In a perfect world, you’d pay the full price in cash without blinking.

But if you’re like the seven out of ten car buyers who don’t live in a perfect world, chances are you’d be paying for your car through one of several financing institutions.

Finance Your Dream Car

Understanding the basics of each car financing strategy is key to choosing the vehicle financing strategy that best suits your situation. Here is an overview of vehicle financing strategies that may be available to you.

Banks and Vehicle Finance Companies

You can get a car loan from a bank, or other financing institutions. The car that you purchase will serve as collateral for the vehicle loan. This means that the lender can repossess the vehicle if you default on the agreement. Vehicle loans are a popular car financing option because they generally offer reasonable interest rates and are relatively easy to get.

Two factors are likely to affect the total cost of the car loan. One is the term or duration of the loan. Generally, the longer the term of the loan, the lower your monthly installment will be. But you’ll end up paying more towards interest and this will increase the total cost of the auto loan. If you can afford it, get a short-term loan. Your monthly installment will be higher, but you’ll be paying less money over all. The second factor that may affect the total cost of your car loan is your credit rating. Creditors with less-than-stellar credit history are usually charged a higher interest rate because of the higher credit risk.

Dealer Financing

Like traditional auto loans, dealer financing is reasonably easy to get. Most dealerships have relationships with numerous lending institutions, so they can arrange vehicle loans even for car buyers with blemished credit histories. To compete with traditional bank financing, many dealerships offer deals at prime less a few percent. These deals are available to car buyers with stellar credit ratings.
Always get pre-approved financing from your bank or any other financing institution before approaching the dealership for possible financing. By getting loan pre-approval from another financing institution, a car buyer gets the upper hand when bargaining for a lower rate on dealer financing.

Using Your Mortgage To Finance Your Vehicle

If you own a home and have accumulated substantial equity on your property, and you have a facility that allows you to withdraw any equity like an access bond, then you may consider using your mortgage to finance your vehicle purchase.

The interest rate on your mortgage is usually lower than the rate you will get on any vehicle financing agreement so you could end up saving a considerable amount of money if you use this option. You need to be disciplined with this approach and pay the vehicle over the life of the vehicle 48 – 60 months (as if it were any other vehicle financing arrangement). The temptation to pay the vehicle off over the term of the mortgage might result in lower monthly payments however with the added interest you will end up paying much more for your vehicle.

Used correctly this strategy provides one of the cheaper ways to finance your vehicle and is the basis of single credit facilities offered by banks to High Net worth Individuals.

Buy Your Vehicle Cash

Few people are fortunate enough to be able to purchase a new vehicle cash, however if you have the means then this is the cheapest option as you won’t be paying interest / finance charges.
Banks don’t generally finance vehicles that are older than 5 or 6 years and buyers in this sector of the market typically finance their vehicle purchases using cash resources.

Even though it may be the cheapest option from an interest rate / finance charges perspective, if you use the vehicle to generate an income or receive a car allowance then financing your vehicle via a lease or rental and claiming the deductions permitted in terms of the Income Tax Act may actually work out cheaper.
Author Bio: LoanFinder SA provides a 3-in-1 package which includes a free loan-finding service which can find you personal loans online, a 24-month legal and ID assist plan and a credit snapshot report which can provide you with your credit status plus creditworthiness.