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How to be a Successful First-Time Property Investor
Property is one of the most secure forms of investment. With a well-developed investment strategy, it is possible for anyone to build wealth through their property investments. The great news is that it does not require massive sums of money to start on the property ladder.
Step 1. Approach a property investment as a business
Approach property investing with a business mindset in order to maximise profitability from investments. By approaching it as a business, you are less likely to make decisions based on personal preference and attitudes. Make sure that you structure your investments correctly, seek advice from tax professionals, do the numbers and comply with all legal regulations.
The Benefits of Using a Private Lender
Most individuals and businesses usually think of traditional financial institutions such as banks when they think about obtaining a loan for a new business or house. While these types of financial institutions can offer great financing options, private lenders can be a more viable option if you find it difficult to secure a loan from a commercial lender. Also, borrowing from a private lender offers a number of advantages.
Quicker access to funds
By borrowing from a private lender, you can usually access funds more quickly. As the private lender will probably not be using a formal or fixed assessment process to approve your loan, you might be able to secure money much more quickly.
What Your StartUp Needs to get Capital Financing
You have an exceptional product or service in mind and have identified the right business model, but you have no capital to bring your idea to market. Many entrepreneurs who find themselves in this position seek out venture capital to raise funds for their business idea. To secure venture capital, however, you need to be fully prepared for demonstrating why your product or service has potential.
Is venture capital financing for you?
Venture capital funds startups with billions of dollars every year. One thing to be aware of as you explore different options for financing is that a venture capitalist or firm will usually retain a degree of control over business decisions (along with receiving equity in the company). The venture capitalist becomes a partner or co-owner rather than a passive investor. This can be an advantage if you find a party whom you can work collaboratively with.
How to Pay Off Your Loan Faster
A loan can help you make a necessary purchase or fulfil a goal more quickly. However, loans must be repaid at some stage, and the sooner you fully repay a loan the less you pay in servicing it. Anyone can repay a loan faster with some strategising, planning and self-discipline.
Switch loans
When it comes to larger loans such as a home loan, switching can sometimes be a rewarding strategy. Switching to a lower-interest loan and/or consolidating a number of loans into the same home loan could enable you to save more on interest and shorten the repayment term. At the same time, it is important to check all of the fine-print terms and take fees and charges into account before making the switch.
The Risks of Small Business Loans
Lending to small businesses is usually considered to be riskier than lending to larger enterprises. However, small businesses that are finding it hard to access financing can improve their chances of getting a loan by broadening their lending options and submitting a good application.
Why are Small Business Loans Considered Riskier?
Small businesses play an important role in the economy. However, lending to small businesses is usually considered to be riskier than lending to larger businesses. This is due to the fact that small businesses tend to have fewer assets that can be used to finance repayments. Larger enterprises usually have a longer history and more assets that can be used as collateral for financing.
Commercial Real Estate Financing in 2013
There are indications that demand for commercial real estate financing will be strong in 2014. In 2013, sales in the commercial property sector exceeded $17 billion, and a record of $20.6 billion was set by the market in 2012.
2014: A Crowded Market
While the trend looks positive for commercial real estate sales in 2013, the crowded market may present challenges for property investors. David Rees from Jones Lang LaSalle has stated that 2013 figures show that investors were willing to take on more risk by investing in assets with shorter-weighted average lease expiries or in assets that required capital expenditure. He added that investors were looking for non-CBD properties that had given features.
Investment Property Tips for 2014
With low-interest rates and expected double-digit capital growth in Australia’s capital cities, it looks like an excellent time to enter the property market. These are some practical and timeless property investment tips for anyone planning to invest in property in 2014.
Tip 1: Develop a Plan
As with any financial goal, buying a property requires a plan. Your plan is a blueprint for achieving the stated goal. Write down a plan for achieving your property investment goal and break it down to key action steps. These can include saving for a deposit, shopping around for the right investment property, and finding the right investment loan. Add a realistic timeframe for each milestone and start acting on your plan.
How Social Media is Changing Finance
Social media has had a profound impact on how we share and access information on the Internet, and the personal finance and financial markets are some of the areas that have been changed by social media. The impact of social media has arisen in part from providing users with new ways of connecting with companies and learning about finance.
1. Product and Service Information through Social Media
Research suggests that a growing number of consumers are using social media to source information about financial services or products. A recent study by Cogent Research revealed that almost 70% of those surveyed reallocated investments, or changed or began existing relationships with investment providers due to content from social media.
New Year Financial Resolutions
The holiday period is usually of time of excess and enjoyment, and so the beginning of a new year is a good time to ask yourself where you would like to be financially in the coming year. These are some financial resolutions to inspire you for a more financially rewarding future.
Resolution #1: Start a Budget
Setting up a budget might not sound like the most exciting financial resolution, but following a budget is the best thing that anyone can do to improve their financial situation and start on the road to building wealth.
Business Start-Up Tips
Thousands of people start their own business every year. If you have an entrepreneurial spirit, you might be dreaming of starting your own business. Entrepreneurs tend to be creative and great at brainstorming new ideas, but it’s also important to take time for practical steps such as creating a business plan and sourcing funding. These tips will prove useful for fresh start-ups as well as established businesses that are in the process of expansion.
1. Creating a Business Plan
A business plan guides the ownership and management team of the business, but business plans are also essential for attracting funding from investors and obtaining financing from banks. A business plan should be sufficiently detailed: it should include a mission statement, product or service descriptions and outline of unique features of the product or service.
Business plans usually contain a comprehensive market analysis, a description of the management team, a marketing plan, a cash flow statement and other financials such as revenue projections.