Short Term Finance

Short-term finance also known as short term lending has many benefits,Such as helping you pay your bills on time or an unforseen medical expense. Short term finance can also help with things such as car or house repairs as most people do not always have a emergency fund of when things go wrong. This type of finance needs to be paid usually within in 4 weeks and sometimes up to 12 months, although 3months is usually the norm this type of finance. Longer term short term finance is usually needed if your looking to buy a house before your house actually sells or a business that needs to be funded quickly etc.
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Property finance

Now is one the best times to buy investment properties while interest rates are the lowest they have been n the last 60 years. When considering buying an investment property you should use an interest only finance, so you can keep more money in your pocket. One of the biggest mistake new property investors make is they think they need to pay down there mortgage as quick as possible, which is not the case as you need to keep your serviceability available. By using an interest only finance you can buy more properties quicker, as you use your equity from your first home to buy home number 2 and so on. If you use principle and interest finance then you will not be able to service investment property 2 without it coming out of your pocket. Using interest only finance means you can simply have the interest paid out by the house for you.

Remember property investing is a long term investment so there is no need to pay out your mortgage as fast as possible as you accumulate more properties you will soon learn that interest only finance is the way to go when buying an investment property.

There are also other types of finance such as capitalizing the interest, which is good to use in a booming market, but considering we are in a global financial crisis it would not be wise to use this type of finance and is mostly used by experienced developers.

Property development finance

Property development finance is not discussed much as a lot of developers like to keep this to themselves. There are several different property development finance packages that can be used. The most popular way is of course property development finance which usually is ran buy a group of private lenders offering finance for a good return on there money usually 15-20% and if you fail they will take your development site and keep all the profits so it is quite a risky business, At the moment as there is a global financial crisis and people loosing there jobs everywhere. This type of finance may have worked well during the commodity boom now however with everything slowing down this would not be a wise choice.

Other types of property development finance are projected profit loans used by smaller developers for things like a house and land package this type of finance is usually much easier to get if you can prove to your bank that your project will actually sell and make a 20% profit, as they will lend the money on the end result similar to a business loan you can get this type of finance just a little over the current mortgage rate which is great as interest rates are extremely low at the moment.

Development finance through a bank used to be quite easy to get, but now with the economic downturn they are much harder to come buy and a lot of banks want to see 50% presales before even taking your application seriously for development finance.

Prepaid mobile phones verse monthly deals

How many $0 upfront mobile phone plans have you been tricked into? Don’t worry your not alone plenty of consumers have fell for this trick time and time again the next greatest phone comes out and a telemarketer or door to door sales man offers you a mobile phone for free or even tells you have won the mobile phone they just need your details fast forward a few months you have an outdated phone then you could of bought prepaid for $150 instead you are stuck with a 24month contract costing you at the very least $20 a month sure you may get an offer of a hundred bucks worth of calls a month the only reason for this is so you use you phone more frequently and once you have ran out of your free $100 monthly limit then your paying over the call rate you would of paid if using a prepaid mobile phone so at the end of the day your left with an outdated phone usually resulting in an unpaid bill and a bad mark on your credit rating because unlike prepaid mobiles you have no credit limit.

Prepaid mobile phones are much better in my opinion as they are a one off costs and you can only use the amount of credit you have purchased not only this but you will find most of the new flash phones offered on contracts become prepaid mobile phones in a few months anyway so at the end of the day you get to keep up with technology and save your credit rating and don’t have an unpaid phone bill hanging over your head.

Personal finance Guide and Tips

Personal finance can be a great way to buy things you want now and only pay in small weekly or monthly instalments. One of the most widely used personal finance is finance to buy a car or motorbike, as we need to upgrade our transport every couple of years. However be careful of spruikers at car yards offering in house finance, as these are often above the normal interest rate that you can most likely get at your bank or elsewhere. Just because they say they will give you easy finance doesn’t mean you should take it. remember to research all of your options and if there interest rate and establishment fees stack up against the majority of other sources then use this finance option.

When choosing your personal finance lender make sure to read the fine print there are plenty of tricks for example there is a car yard that advertises no interest finance, however the cars are over priced it will say something like no interest finance buy this car for x amount a week usually around $100 over 4yrs this means for that car worth around $2000 you would of paid $20800 sure no interest why would there be when your giving them more money legally then any bank or general lender would make off the deal? For instance if you went and bought the same car for $2000 but used bank finance currently around 10% at $2000 you would only pay $10 a year in interest as opposed to $5200 see the difference?
Personal finance can be a great way to buy things you want now and only pay in small weekly or monthly instalments. One of the most widely used personal finance is finance to buy a car or motorbike, as we need to upgrade our transport every couple of years. However be careful of spruikers at car yards offering in house finance, as these are often above the normal interest rate that you can most likely get at your bank or elsewhere. Just because they say they will give you easy finance doesn’t mean you should take it. remember to research all of your options and if there interest rate and establishment fees stack up against the majority of other sources then use this finance option.

When choosing your personal finance lender make sure to read the fine print there are plenty of tricks for example there is a car yard that advertises no interest finance, however the cars are over priced it will say something like no interest finance buy this car for x amount a week usually around $100 over 4yrs this means for that car worth around $2000 you would of paid $20800 sure no interest why would there be when your giving them more money legally then any bank or general lender would make off the deal? For instance if you went and bought the same car for $2000 but used bank finance currently around 10% at $2000 you would only pay $10 a year in interest as opposed to $5200 see the difference?

Motor Bike Finance

Motor bike finance is usually quite easy to obtain there’s nothing wrong with getting finance on that bike your going to love fo years to come just be careful and make sure it is in fact the bike you will keep for a few years as you may workout paying a lot more then it is worth if your just going to buy a bike to stuff around on for the weekend then I would not even consider finance as you can by cheap reliable bikes for a few hundred bucks online and if you can’t save a few hundred bucks then how are you going to pay a thousands in finance for the best bike you can buy?

You may also consider using a lease agreement if your going to be using this bike for a business and use it on a daily basis that way you can claim a lot of expenses on your tax and reduce the repayments for your motorbike finance this would be the more smarter way to obtain the bike you want and pay less for it in finance costs.

Another option might be simply be to save up rather then getting finance work out how much will this bike costs you if you get finance now as opposed to saving for 12months and waiting it out as a rough calculation say the bike finance is $50 a week for 5 yrs this would costs you $24,700 if at the general 18% interest on a $13000 bike as opposed to saving up for 12months say at $100 a week to give yourself $5200 and by then that 10k bike is most likely around this sort of money and you can now buy it all because you were careful with your finances for 12months.

Motel finance

Motels can be a great investment if your going to run one yourself however a lot of financial intuitions do not like them and you will be hard pressed anyone who lends above 65% on a motel so to even start looking at this option you will need to either have a lot of cash or equity before applying for motel finance another downfall with motel finance is the interest rate is usually extremely high compared to a general commercial mortgaged interest rates.

There is one well known way around this is by using low doc finance and telling the lender you are buying the place as your residents this way you can get a residential mortgage interest rate however the motel can generally not have any more then 6 units in the building to be eligible for residential finance if you can buy a motel that makes a good income this way you will be laughing as your paying half the costs in interest then your competitors on their finance for your motel because you simply researched instead of jumping in feet first.

You will need to do a lot of research before picking the motel you want like checking out occupancy rates how long it has being profitable and if there is areason that the occupancy rates are a lot higher then last year this could be something is being constructed in town and a lot of workers are staying there this would be a bad choice because as soon as the work is finished so will the occupancy rate of your motel

So in conclusion does lots of research try for a 6-unit motel to get residential finance as opposed to specialized commercial interest rate, which will bring your overheads down dramatically.

Line Of Credit

A line of credit loan is used when you have a certain amount of equity in your home you can use this for things like renovations adding a pool and landscaping for your family home line of credit finance is also commonly used for things such as purchasing a vehicle going on an oversees holiday or used for start up capital or to buy a established business.

The reason Line of Credit Finance is used is simply because you only pay around your current mortgage rate in interest which means that your paying a lot less then you would with regular finance or an unsecured loan and you can have your loan paid off quicker.

A lot of investors use this type of finance to offset there investment properties they simply take out line of credit finance and put it in an offset account which in turn brings the costs of there mortgage rates down.

When applying for line of credit finance is your going to use this loan for business purposes it is wise to tell your lender that you will be using this money for other purposes such as buying a boat car, motorbike or going on an overseas holiday,

The reason for this is simple because once you tell the bank your using the line of credit finance to start up a business or even buy an established business they will immediately will put you onto a business lender which you will then pay a higher interest rate and have to provide the bank with a lot of financial information on the business you are considering buying which isn’t always possible depending on the structure of the business your applying the line of credit finance for, this is also quite a hassle if your planning on a starting your own business using which essentially is your own money.

Using line of credit finance also known as a LO.C and L.O.E,

Which is simply an abbreviation for line of credit or line of equity.

Is a great way to finance a new motor vehicle overseas holiday or home renovation

It is also another way to buy an investment property depending on your level of equity, you may be able to buy more then one investment property using line of credit finance as long as the properties pays itself off after all costs.

Remember a line of credit is a great way to access money without paying a lot in interest and has many uses and can help build your wealth if used in the correct manner, or you may just want to go on a extended family holiday or buy a new car why finance at a higher interest rate when you can access your equity at a much less rate then personal loan finance which is more commonly known about and used by the people unaware they can pay home finance interest rates to take money out of there home instead?

Credit Cards

Credit cards are another form of finance that can lead to financial disaster if used improperly and with so many offers for credit cards it’s quite frustrating and you often signup for a credit card with things you don’t need or want and a higher interest rate then another credit card offer you have gotten in your mailbox or seen advertised on tvs many people have several credit cards and don’t seem to realize this is not free money this is finance wrapped in a pretty piece of plastic usually you take up the offer for this type of credit card finance because it offers low interest for x amount of months only to find out after that period has expired your paying well over what you would of paid for credit card finance offered by your local bank.

Credit cards are not all bad though as they are quite useful especially debit/credit cards that work just like a credit card so you can purchase stuff off the internet safely however these type of cards have no finance attached and you can only spend what is on the card which makes more sense because why would you pay 18% interest on some items you bought off Ebay to save money in the first place defeats the purpose doesn’t it?

There are also great ways to utilize a credit card such as getting a credit with 0% interest for 6months which there are plenty around at the moment use the money from that card to find a profitable business venture pay the money back once you have achieved the goal this is also quite risky and requires lot’s of research to use it to it’s full potential as you will want the card paid back before the 0% interest finance term expires in effect the credit card company has unknowingly lent you money to make some extra money as you close the card down and put the money you made in your pocket this is one hell of a way to get back at the credit card companies and can be done several times over but remember be careful and make 150% sure that what your going to invest the money in will actually pay off otherwise you will be left with a huge credit card debt on your hands.

Commercial Investment Finance

Buying a commercial property is a great way to increase your wealth and now is the best time to look at commercial properties while the interest rates are at an all time low. Commercial finance is quite easy to get approved for however you will need some cash to pay for value fees and we are not talking a few hundred bucks here like you would need for a house the bank will charge anywhere from $5000-$10,000

To have your commercial property valued and in most cases this is needed upfront some ways around this are to get an investor to lend you the money for a part share in the commercial property and sometimes a commercial lender may incorporate the cost of the valuer into the loan but this rarely happens with commercial finance the most common way to pay this fee is buy using equity in your own home to secure the value of the building and it is highly recommended that you get your own independent valuation as banks are very conservative especially in the global financial down turn we are currently in.
Use interest only finance, you should always use interest only finance whether investing in a commercial property or a residential property.
Using interest only finance simply means you have more serviceability and can most likely buy a bigger commercial property then using principle and interest finance or more then one small commercial property to spread your risks across several sectors.

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