Tag Archives: Investment

The Significance of Mortgage Rates in Determining Monthly Payments

House loan financingYou already know you can use a mortgage loan to borrow against, purchase or refinance any home, but, there is more to that. It is with first mortgages that you can buy a house or refinance a loan, with second mortgages allowing you to take out loans using the available equity, to add to a first mortgage.

You can also take advantage of the times when mortgage rates here in Ogden are at an optimum low to enjoy an equally lower monthly payment that you would have had you locked in the loan when mortgage rates were high.

Even a 0.25% dip can mean a whole lot of difference

Yes, you read that right. However, besides you identifying any dip from current average rate charts, it will need you to involve a credible credit union to know whether what you term as a low rate is what has been the case in the market. It is only until when you have confirmed that can you lock in that loan.

Should you notice that the mortgage rates are rising, it is advisable that you wait unless your projections for the project for which you are taking the mortgage show that unless you make the step now, the investment will not be cost-efficient.

The Other Jig of the Puzzle

Irrespective of when you take a mortgage loan, it is important you note that closing costs and loan processing fees remain a constant factor that you must take into account. These include, among others, escrow & title fees, lending, appraisal and credit fees, and insurance and taxes.

Whether you are planning to buy a (or borrow against your) Ogden home or to refinance a loan, you can benefit from understanding how the current mortgage rates can affect your monthly payment.

However, besides doing your research on that, engage a qualified financial service provider in discussing your options and determining a time that will be the most cost-efficient to take the mortgage.

Get the Most Out of Your Cash By Investing in a Pre-Owned Vehicle

Classic cars in a rowAs you start shopping around for a car, you’ll have to make several decisions. You have to choose a specific make, model, and year, as well as the color and the features that would go into it. While these are definitely huge, the biggest decision remains whether to invest in a brand new car or a used one.

There are many pros to buying a factory-fresh vehicle, but there are also quite a number of benefits to choosing a pre-owned one. Before you discount the thought of looking at and shopping around for used cars, SRQ Auto LLC suggests that you consider the following benefits:

More than just a lower price

Not many people are aware of this, but automobiles depreciate so quickly – and massively – that its value can dip to as low as half of what you paid for it in just its first year of use. And this value loss actually starts from the time you drive it away from the dealership.

The good news is that you can use this depreciation to your advantage. This is one of the biggest factors that drive people to buy used vehicles.

Getting more out of your hard-earned money

Say you have prepared $20,000 for your new car shopping expedition. With this amount of money, you can bring home a brand new automobile, but only of the base model. When you choose to go pre-owned, you can keep a quarter, even half of this amount as your savings, or use it to upgrade many aspects of your car, from the tires to the gadgets and the interiors.

There are many other benefits to going for a used vehicle, but these alone should already seal the deal for you. Besides, you’d also want to do the environment a favor, and pre-owned cars are the more eco-friendly choice.

Investing in the Future: An Eye Towards the End

Burial plots in LondonWhen discussing matters about real estate investment, residential and commercial properties always come to mind. There is, however, one type of real estate that many people often neglect — a final resting place.

Unless a real Elixir of Life or Fountain of Youth comes true, all life comes to an end. Property development often focuses on the living. As the world population grows, the demand for both residential and commercial properties increases. At the same time, the land where the dead can rest grows increasingly scarce.

A Hidden Investment

Funeral costs in the U.K. have increased and can go well past £4,000. The same holds true for burial plots. Burial plots for sale one to two decades ago cost roughly £30. These days, the same lots can sell for more than 1000% of the original cost. The numbers vary greatly, but Harley Investments Ltd and other experts say that most people would find them quite attractive.

A Better Investment?

If the practicality of investing in death appeals to you, there are investment companies you can talk to. They focus on decentralising burial locations from London and other areas with spaces to spare. As with any property investment, location is key. Naturally, plots that are in areas where space is fast becoming scarce will be more costly. If you are purchasing a plot (or more) as a matter of investment, you may be better off finding ones in cemeteries in development. In either case, purchasing the plot, whether for yourself or for investment, it is always better to purchase early and watch it appreciate in value.

What is the Catch?

As with any investment, there are risks involved. Cremation is far less costly than a burial, and more people are going towards the former. As a result, there is no guarantee that new cemeteries will attract more investors. There is still hope if the cemetery is near a community with a large population of Muslims or other groups requiring burial.

In the end, intensive research is necessary to ensure that your investment does not likewise end up dead. Make that investment before it goes even more costly the next few years.

Investment Strategy

Choosing an Investment Strategy: Rental Yields vs. Capital Growth

Investment StrategyProperty investment is more than about choosing a place that you feel is right. You will need to tailor a strategy that it right within your budget, and works for your needs and expectations of the investment. It is important to select an investment strategy before you even start searching for a property.

An investment property can offer regular rental yields and capital growth. The rent return comes from weekly or monthly payments your tenant agrees to pay over the course lease. Capital growth, on the other hand, is the profit made on the property because of its increase in the market value.

Focusing on Rental Income

Sentinel Property Group notes that focus on rental yields can be beneficial if you want to have an additional source of income. You may find properties that are positively geared, in which the rent payment covers all the expenses of the property with additional income for you.

Focusing on Capital Growth

The right type of property in an ideal location can deliver rewarding rates of capital gain over time. If you want to focus on capital growth, it is important that you keep or hold on to it, until you see a significant increase in the property’s value.  While this not a problem because of the tax relief that goes along with negative gearing, it is important to calculate if this applies to you.

Examining the Cons

Both strategies have their disadvantages that you need to be prepared for. On rental income, higher cash flow will mean that you need to pay higher tax on the income. For capital growth, the mortgage repayments may be higher than rental income, and your cash flow needs to manage this outgoing.

When choosing your investment strategy, think of what you can afford to spend and the potential costs of owning an investment property. These include the mortgage repayments, strata fees, management fees, repairs and vacancy periods. Make sure you do as much research before buying an investment property, and that you seek advice from industry experts.