home, people, moving and real estate concept - happy couple havi

Over recent years, the high cost of living coupled with financial struggles has resulted in more and more younger people choosing to remain with their parents rather than moving out into their own place. People tend to live with their parents for much longer than in the past simply because of the increased financial security that this offers but there are some younger people who are keen to become more independent and get their own place.

However, officials are urging the younger generation to take some time to think about all of the costs involved before taking the plunge and flying the nest. Many younger people who have never lived alone before are not even aware of the costs that are involved and simply tend to think about the cost of renting a property or the cost of mortgage payments if they are considering buying. However, officials have pointed out that there is far more to take into account than just the cost of the accommodation itself, which is something that many younger people fail to realize when they are making their decision.

Other key costs that need to be considered

One of the key things that younger people will need to work out is how much bills will come to each month, as it is vital that they are able to comfortably manage these payments in addition to their rental or mortgage costs. This includes bills such as gas, electricity, broadband and water rates in addition to any existing debts or payments that have to be paid. Another essential cost that has to be considered is the cost of food and household products, which can really add up over the course of the month.

People who are considering moving out will also need to think about one off payments that they need to make. This includes payments for removals if they have items that need to be moved from their parents’ home to their new home. In addition, it includes the cost of purchases such as appliances for the kitchen, furniture, decorating, and other items needed to make the new place practically and homely.

Insurance is another thing that is often overlooked by younger people who are keen to move out. In order to protect your belongings, it is vital to take out contents insurance and if you are buying your own home you will also need to look at buildings insurance – something that is generally covered by the landlord if you are renting. On top of this you may have other insurance premiums that you have to make such as vehicle insurance or pet insurance, so you need to ensure that all of these are manageable otherwise you could end up invalidating your policies.

Experts have advised any younger people who are thinking of moving out from their parents’ home to sit and work out their income and go through the outgoings carefully before taking the plunge, as this could help them to avoid getting into financial hot water.

home, people, moving and real estate concept - happy couple havi

Cash-Advance-USA

‘Tis the season to look back at the Christmas season and ask yourself, “How much did I spend over the holidays?!” It is the New Year, but the month of January is the time when many households deal with the credit card bills, an insufficient paycheck and have sort of a Faustian situation.

Several studies highlight the fact that a majority of consumers have taken on additional debt to cover their holiday purchases. Even those with incomes less than $35,000 added an extra $700 to their debt totals. With a difficult economy, price inflation and bills in the mail for everything, a lot of people are applying for payday loans online and getting hit with exorbitant fees.

However, due to government regulations and short-term loan enterprises making tighter and stricter rules, it could be difficult for some to attain a loan. Therefore, Cash Advance USA announced in a news release Wednesday that it would be relaxing some of its credit requirements for cash advances and payday loans this year.

“Nearly 75 percent of applicants who approach us for low interest cash advance loans report at least some credit issues on their application. We can’t continue to ignore such a large proportion of borrowers and in response to their requests, we have eased credit requirements for our cash advance and payday loans in 2014,” said Mark Miller, founder of http://www.cashadvanceusa.net, in a statement.

Credit scores for most people range between 300 and 850, but the company does provide an array of loan options for those who are in the lower end of the FICO spectrum, including customized selections for customers in need of a loan.

For those who are in serious debt trouble, the company listed some tips that individuals can take to lower their debt burdens, such as establishing a budget, cut back on all kinds of expenses, paying more than the minimum payment on your credit card and even seeking professional assistance to tackle your debt load.

Last year, Cash Advance USA took a number of options to extend its payday loan to more customers. Specifically, it provided several installment payment plans and announced cash advances with no credit checks>. It argued that due to soaring healthcare, housing and education costs, bad credit was increasing. Read More →

home-loans

A reverse mortgage is a loan that is specifically meant for home owners. They can take out the loan based off of the fact that you have equity in your home. Instead of you paying for your mortgage, you will be getting a pay check from owning your home.

There are multiple ways that you can choose to receive your payments. If you choose to get your payments through tenure, you will receive an equal amount each month as long as one person is still occupying the home.

The other major way to receive a mortgage is through a line of credit. If you choose this option, you are allowed to take out the amount of money that you want until your line of credit has run out. This can be a better option for someone who wants to control when and how much money they get. It can be an especially helpful tool for home owners who have paid their monthly mortgage for years, and need a little extra cash now.

The amount of money that you can borrow through a reverse mortgage depends on a variety of factors. Despite the facts that everyone has to be at least 62 years or older in order to qualify for a reverse mortgage, your age will still impact the amount that you can borrow.

If you are on the younger side, you probably won’t be able to take out as someone who is on the older side. Another factor that considers how much you can borrow is the current interest rate. Finally, the estimated value of your home and the fraction that you have paid will impact how much money you can borrow.

Qualifications:

Age- In order to qualify for a reverse mortgage loan, you have to be at least 62 years old.

Type of home- Your home has to be either a single family home or a 2.4 unit home (at least one unit has to be owned by the borrower). There are also some condominiums that can qualify for a reverse mortgage.

Misconceptions:

Sometimes people confused a reverse mortgage loan with a home equity loan. However, they differ because a home equity loan requires you to have a steady income. A home equity loan will also require the borrower to pay a monthly fee based off of the interest. When you have a reverse mortgage, you are required to pay three main things.

This includes the property’s taxes, utilities, and flood/hazard insurance premiums. Another common misconception about reverse mortgages is that you cannot change your mind after closing. The truth is that you actually have 3 days after closing the loan if you want to cancel the reverse mortgage. This regulation is referred to as the “right of rescission”.

A reverse mortgage loan can be an awesome option for a home owner who is in need of some cash. When it comes to how much money you can borrow, you will be able to borrow more if you are older and the interest rates are lower.

home-loans

etf-funds

With over a trillion dollars of assets under management to date, ETF products are a significant driver of investment prices.

However, while investment markets are already so highly driven by macro-economic policies, the rise of the ETF has also contributed to the increased correlation of investment returns across different asset classes, and therefore made it even more difficult for a careful investor to make a respectable return on the overall market. Because of the way in which market correlations constrain today’s investment markets so heavily, we need to be able to understand how it is that ETF investments are distributing market returns throughout the market, and how we can adapt to that constraint.

ETFs increase asset correlations mainly because of the way in which they are so tightly bound by their portfolio guidelines. For example, while a Mutual Fund is allows a small amount of leeway in their portfolio holdings, and can therefore over or under allocate their positions based on their returns and analysis, ETFs are required to maintain their portfolio holdings in accordance to their investment mandate. The end result is that an ETF must re-balance itself at the end of the trading day.

This means that the fund will need to sell off excessive growth, and average down on losing positions in the portfolio. With so many different funds of varying different sizes, the end result is that the gains from those positions that over-perform are then effectively reduced at the end of the day, while the losses of under-performing securities are also reduced. The effectively makes for a flatter performance across the entire market, but also means that different asset classes will also begin to perform similarly.

What happens when a fund that holds mainly Apple shares needs to sell off its position in Apple to balance out the rest of the portfolio? The grouping of stocks that didn’t actually realize any gains that day will be bought up, and Apple, which performed very well that day, will be pared down. This illustrates how it is that the correlation can create the perception of a performing market, when really it is simply a few positions that are carrying the market higher through ETFs.

The end result of this kind of correlation is two main outcomes: firstly, we’ll see that there is a perceived threat to the markets from the tied responses, because it creates an apparent lack of transparency. In order to combat this lack of transparency, investors start to move into assets that do not trade on an exchange, such as real estate or private equity holdings. The second trend that emerges is an increase in short-term volatility on a daily basis.

Specifically, as ETFs correct their portfolio holdings at the end of the day, a great deal of trading will take place in assets that would not normally have a reason to change in value, or might perhaps be moving in a counter-intuitive direction given the day’s movements.

As ETFs adjust the market prices of securities in accordance to their portfolios, rather than the actual value of the investment, there will come a seemingly sporadic short-term movement in the equity markets at the end of the day that can mislead investors into thinking that there is perhaps something going on with the position itself. While such an adjustment will arguably correct itself over time, it is somewhat stressful to watch a stock rise on good news, and then decline quickly at the end of the day simply because an ETF position needed to adjust its overall holdings.

etf-funds

home financing

When planning for the financing behind a new home building project, a buyer has a variety of options available to them to help mitigate the various financial risks of the project itself. Specifically, because of the way in which a new home building project faces so many different possible failure outcomes as a result of poor planning, or setbacks to the project that will require additional funding, a buyer stands to benefit a great deal by taking the time to break the project down into a number of financing stages, which will limit their exposure to debts into discrete units of obligation.

The easiest way for a consumer to break down their new home construction project into discrete borrowing units is to look at the tangible aspects of property that go into the project itself, and determine how it is that they contribute to the project in terms of their lendability as collateral. For starters, we can look at the raw land underneath the property as a tangible unit of collateral that can be borrowed against independently.

This means that a buyer can finance the purchase of the raw land through debt before making an obligation to start the project itself. From there, the buyer is able to take as much time as they’d like before they start the financing agreement for the actual build itself, and can therefore make sure that they are in a position to move on the project without fear of losing the location itself to another buyer. Read More →

new-home-risk

When starting the new home construction process under a draw mortgage plan, there are a number of possible setbacks that can crop up over the course of the building year that can cause some serious impediments to the project itself.

Simply because of the heavy involvement of the financing bank in the project, and the risks associated with engaging such a large project as building a new home, a buyer needs to make sure that they have planned in a way that keeps them aware of all the short-fall risks that can impact their purchase. Most importantly, new home builders need to make sure that they are in a position to actually complete the construction of their home, or risk losing access to financing part-way through, and therefore wind up with nothing but a partially completed lot that cannot be lived in.

By far, the greatest risk associated with building a new home is the risk of a ‘shortfall’. Shortfall risk is the risk that a construction project may fall behind in its completion schedule, which means that the project would require additional funds to complete a particular stage of the project. For example, if the process of digging a foundation for a new home build takes a bit longer than initially planned for because of frozen soil, the construction company involved would require additional funds to continue with that particular stage of the project. Read More →

Construction

With interest rates as low as they are today, home buyers are finding that they have more and more options available to them when they are looking to find their dream home. Between condo projects, town-homes, duplexes, bi-levels, acreages, and family homes, the average home buyer is in a unique position to be picky about exactly what features come with their properties. This characteristic is epitomized by the increasing availability of customized home solutions, in which a buyer can contract out the construction of a house that meets their exact design specifications.

While this option would normally be considered to be extremely costly, and somewhat unnecessary in light of a renovation, the availability of cheap mortgage financing in today’s economy is opening up this opportunity to more and more consumers. By then simply taking the time to understand what our financing options are for building a new home, a consumer can start planning around their new home construction goals.

By far, the easiest way for a buyer to finance a custom built home is through a program that allows the buyer to forward funds upon completion. These programs are generally run by larger manufacturers, which have the capacity to start a construction project without more than a deposit from the buyer. In general, a builder will require a buyer to put 5% of the final purchase value down upfront, and then they will begin the construction project. Read More →

Investment Risks

When looking at all of the opportunities associated with investing in international opportunities, it is important for personal investors to remember how it is that these potential returns come in hand with a variety of additional risks that are exclusive to that kind of position. Between the currency, interest rate risks between the two countries alone, a personal investor needs to be aware of which products can be used in conjunction with their foreign investments, so as to fortify the position over the longer term.

By far the largest risk associated with foreign investment stems from the fluctuations that occur between the different currencies involved in the transaction. For example, an American investor may realize a 9% nominal gain by holding funds in an Indian Certified Deposit, which is a reasonably safe investment in that country, and provides an extremely high comparative rate of return.

However, because of the way in which the inflation rate on the Indian Rupiah tends to exceed 10%/year against the US Dollar, the investor will actually lose money against the currency exchange rate, and walk away worse off as a result of the investment. Alternatively, if the investor has placed their money into a shared deposit in a country with an appreciating currency, such as the Czech Republic, the investor could walk away with an even greater return on the exchange rate. Read More →