Is American Debt Necessary?

I sit and listen to way too much financial news. Secretary of the Treasury, Hank Paulson was just on television saying that we need to get the banks lending again. and I am thinking why? Are American financial institutions and consumers so much in debt that they need to borrow more money yet to pay off their old debts? Don’t any companies in the USA have actual profits that can cover their actual expenses without borrowing money? Does every business and corporation have to borrow tons of new capital each month or year to build their businesses and achieve a new threshold of growth? The hurry for the country to go lend more and more money when banks seem to be having trouble paying back what they already owe seems a little strange. Interest rates are still up and everyone wants to lend more money now that the rate is higher? More money to lend does not necessarily lead to more homes sold nor reductions in supply nor in lower prices to attract cash strapped buyers. If people borrowed less to begin with fewer of them would be loosing their homes in foreclosure.

Over a number of years I have learned to identify better than average businesses worth making investments in by realizing that better businesses do not go excessively in debt except in dire emergency circumstances and the best of the best do not have new needs for new major capital expenditures.

If you want to know how billionaires like Carlos Sims and Warren Buffet got that way the two factors of finding businesses that do not need to recapitalize and otherwise do not borrow excessively. Compare these two businesses: McDonald’s and Dairy Queen. if you go to a McDonald’s, you immediately see that the average franchise unit has been recapitalized. Fixtures though out the stores are new and up graded. The appearance of a McDonald’s restaurant is many times better than the average Dairy Queen . Some dairy queens are virtual time warps with out dated 20-40 year old store fixtures. Although McDonald’s restaurants can be highly profitable they are not necessarily more profitable than the average dairy queen. The American Economy can in essence remain a Dairy Queen with prudent lending and borrowing or it can go all out become America with all the latest stuff and relatively high debt to show for it. There is no reason to believe thus to believe that high growth is necessarily connected to increasing debt. If a restaurant franchisee has to take out debt just to modernize his existing restaurant it does not necessarily mean that the news borrowed capital expenditures will increase bottom line profits. What debt does is essentially give someone else, who otherwise, has no direct interest ownership of the bossiness a part of their operating profits. High debt can also influence market prices.

Real estate agents lust for low interest rates because they know it means that people will go crazy borrowing money to buy real estate when the interest rate is low. That raises the value of any real estate inventory they may own. The effects of easy money to lend is greater demand , higher prices with the cost of servicing the debt to lenders. Debt gives buyers immediate possession of property which may be a benefit but the capitalization is costly. The alternative is less debt and a lot less debt and there is no evidence that necessarily means slower economic growth because new capital spending does not benefit all businesses equally. For some business massive new capital expenses are the only choice they have. Some companies burn capital and waste it while others can really get some traction with it There are different ways to capitalize companies without using a lot of debt. The hurry to start a new debt cycle may not be something that is absolutely necessary. Debt is an added cost that has to have benefits that exceed the cost of making the payment on loans. The sad fact is that among world corporations, Not very many of them have good long term records of borrowing where the sustainable profit growth justifies taking on debt. There are several licensed moneylender in Singapore so the person who wants to issue a loan will be at ease while making a choice due to the availability of such money lenders. As they charge very least amount of interest over the allotted money.

The secret of easy credit was that most American borrowers were thinking that inflation would reduce the cost of borrowing . The other illusion is that borrowing money can save on long term taxes but it still may not beat direct low re-capitalization growth .

An Ultimate Guide For Buying Your First Condo!

There are mainly three primary living basics, which are condos, single-family homes, and the apartments. People prefer to buy the condos as the condos provide a luxury living at many affordable prices.

Condos are the individual units that offer a shared living complex and many different amenities like lounges, swimming pools, and many others. It will be much better to buy vaughan condos as you get excellent amenities.

Before buying a condo, it is important to know the rules and regulations of the condo community and consider a few factors before buying the condo which is as follows:

  1. Know the condo community

It is important to know the condo community and its rules and regulations before buying it.

There are some communities that have strict rules and needed to be followed. You must check all the guidelines of the condo association.

  1. Financing

It is important to know the financing method in which the condo association accepts the money.

Some condo communities want the buyers to apply for the mortgage and know the building operations.

  1. Maintenance and repairs

It is essential to know the maintenance and repair method of the condo association.

There are some associations that ask for the maintenance fees and do the monthly or weekly maintenance and repairs of the condos. You must choose the condo that provides maintenance and repairs service.

  1. Know the storage space

You must check the storage space available in the condos. Space must be enough for your necessary things and for your activities.

  1. Emergency fund

It might be possible that you love the condo and you need to finalize it after watching. You must have an emergency fund if the condo association offers it.

The emergency fund will help you to finalize the condo.

  1. Must check the amenities offered by the condo community

The high-class condo communities offer luxury amenities like swimming pools, playground, great design of the interior and exterior, and many others.

Buying a condo is not an easy task, as you have to consider many factors. Once you buy the best condos, you can have a luxury living standard.

The Best Money-Saving Tips When Buying A House

Buying a house is probably one of the major investments that a person would do in life. There’s no surprise that you want to make sure that you are getting a great deal as much as possible, which is why there would be rigorous planning that should be done before buying.

Of course, it is not cheap, and you should be financially prepared for any circumstances that might take place. However, there are still some ways that you can save some money when buying a house and use it for something else. Here are some of those ways.

  1. Hire a competent and experienced real estate agent

If you can find a good realtor that looks out for your best interests, expect that you will save not just money but also time and effort. This tip is surely critical for first-time home buyers.

  1. Save at least 20% for the down payment

Being able to give at least 20% for the down payment of your house will save you from paying costly mortgage insurance. It is a standard operation and serves as the insurance for the mortgage loan that you applied.

  1. Improve your credit score

It is already a given fact that the better your credit score means that you will have a cheaper loan. Good credit score means lower interest rate and other fees like lending fee. You can improve your credit score by paying your credit card balances and not applying for a new loan.

There are still many [source] that can help you save money when buying a house like timing, getting the right type of loan, getting multiple loan quotes, and so on. Saving some money will also benefit you like doing some modifications or improvements to make your next house more attractive.

How To Invest In Real Estate To Make Money And Build Wealth

There are several investment instruments where you can put your money. From stock investments to franchising small businesses to putting up your own business, you have an array of options to invest your money. However, each investment instrument has its own risks and associated factors that you need to consider. But there is one more form of investment where with proper and careful strategy; you can make a lot of money – real estate investment. Real estate investment is one of the most profitable and successful industries when it comes to investing. So if you are interested, here’s how to invest in real estate to make your money grow and build wealth.

Evaluate Your Finances

Before you engage in any form of real estate investment, make sure that your financial house is in order. This means that you need to carefully build and establish your own payoff consumer debt, emergency fund and automated retirement savings. As mentioned, real estate investments have some risk associated on it. That said, it is recommended to be prepared and ready at all times.

Invest in Real Estate Investment Trust

REITs or real estate investment trusts are pool of fund or money intended to fund the development, purchase and management of real estate properties. Real estate investment trust is usually designed to focus on a particular real estate type like hospitals, hotels, malls, or apartment complexes.

Study the housing market

One of the effective ways to start your plan on purchasing your win investment property is to know the local housing market. You can ask for recommendations from locals, real estate agents, leasing agents and other people who can help you analyze the reasons of moving so you can analyze the price history. Midwood Hong Leong Group has an exemplary service in determining the overall market of an industry in real estate.



Investment Options For Foreigners In Singapore Real Estate

The development of high-rise condominiums and apartments are very fast especially in Singapore and it is definitely a good way to invest. If you are a foreigner or an expat looking to invest on Singapore real estate you’ve probably heard of their Residential Property Act which allows foreigners or expats to purchase apartment or condominiums without the need of approval from Singapore Land Authority.

There is also an option to acquire a bigger property like vacant lands, house and lot, and other residential property upon the approval of Singapore Land Authority. Real estate purchasing is a really good income opportunity. You can do several things with your acquired property and some of it is listed below.

  1. Property Rental

The most common target customers for this kind of business are the Singaporean residents who don’t afford to buy their own house. It is also possible for Singaporean workers or students who need a place to stay closer to their school or work. This can become a great monthly income opportunity especially if you are looking to earn immediately.

  1. Transient House

It is somehow the same with property rental although; the transient house is for short-term lease only. The target customers for this are the foreigners or tourists who will be staying for short term business purpose or for purely tourist purposes. This is the best way to earn fast and see the product of your investment. You can easily attract customers by promoting it to your friends or the friends of your friends who want to visit Singapore.

  1. Office Space Lease

Freelance and outsourcing are most common these days and along with that the working space is not just found on common business areas where other firms are located most business owners also prefer getting a small flat that can fit their few employees this way it is more efficient for their business.

You can visit Piermont grand pricing to see what fits your budget!

Planning To Buy A Condo? Check These Perks & Limitations

Are you aspiring to buy a condo? Well, condos are plush residential units and these have always drawn investors, courtesy their cutting-edge ambience. There are some excellent perks of buying a condo. But there are certain limitations as well. The post below offers a brief on both the advantages & disadvantages of buying a condo so that you can take an informed decision.

Perks of buying condo

Less maintenance

A condo assures stress-free maintenance. From mowing the lawn to maintaining the swimming pool, everything is taken care of by Condo Community Association. You will simply have to pay a monthly fee and everything will be taken care of seamlessly.

Lower price and carries grants

You will be delighted to know the purchase price of a condo is always lesser than single-family homes. Moreover, some new condos come with CPF grants for buyers. One great example here is the Piermont Grand EC in Singapore. Besides, as a condo owner you won’t have to worry about dwelling insurance. Moreover, condo landlords are not even liable for the contents of tenants residing in their condos.

Plush amenities

A beautiful aspect of a condo is that it hosts and is surrounded by lavish amenities. From swimming pools to clubhouses to exercise rooms- you have everything here. Moreover, most condos guarantee 24/7 security.

Limitations of buying condo

High fees

While condos assure less maintenance hassles, these properties often command hefty Condo Community Association fees. If one condo unit owner is unable to pay his part of the fee any time, the fees will rise and others will have to bear the cost.

Difficult for short-term sell

If you are planning to sell your real estate investment in a short while, condos won’t be the right choice for you. Unlike homes, these properties are difficult to sell in a short term.

Condos make great investments. But you should consider the pros & cons first before rushing to buy a condo.

Is Living In A Condo Worth It?

They said that purchasing condo units are just for those people who have no plans having their own family but actually that’s the kind of mentality that everyone needs to change, several number of condo units are owned by families because they have learned the advantages from living in such shelter. Home buyers are more concern of their convenience and the environment especially when they have kids to raise that’s why most of them prefer to invest on condo units but do take note that weighing the pros and cons is still necessary before purchasing. Here’s the question, is condo living suits you? Let me share the list of the benefits from buying a condo unit.

  1. The Safety

Parents are really overprotective when it comes to their little rascals, so before they decide to live next door they always make sure if the environment is safe. Living in a condo unit guarantees 24/7 surveillance cameras and guard patrols, visitors can’t just easily get in they have to pass through the security and provide identification before you’re able to go the unit no.Moreover, the buildings also provide emergency measures in case of climatic disasters.

  1. Lower Price Down Payment

The sales agent of a certain condo agency company will allow the home buyers to choose the percentage of their down payment. Home buyers can pay the down payment at a lower price or the lower than the average price of the unit depending on the location and the condo unit types. To assure the exact payment and calculation for the units, always do your costing first and never hesitate to ask questions to the sales agent to avoid confusions.

  1. Community Amenities

Home buyers are also particular with the places around it, the distance they have to drive to do grocery shopping or driving their kids to school. Most of the condo units offer community amenities such as pool area, fitness gym, clubhouse, riviere by frasers or even recreational activities.