Friday, July 21, 2017

Useful Tips for Property Development Loans

A property development loan is given to property developers who are looking to construct buildings and sell them or rent them out to other business. Factors to consider when looking for property development loans are:

Conducting Enough Research

It is important for individuals who are looking for property development loans to conduct a thorough research. One of the commonly made mistakes by homeowners or builders is choosing the wrong area for rebuilding or impatiently rushing into building the project. 

Conducting proper research and asking the right kind of questions at the start itself, will give the individual the right idea and the potential of the area that needs to be rebuilt and less likely to face issues in the future. 

Obtaining Permission

Obtaining the right kind of permission and approvals is very important before applying for property development loans. The individuals looking for the loans should determine if the intended development needs specific approvals from the government or the local authority. 

This can be a lengthy process. The type of development usually influences it. Even if the loans are approved by the lenders, it would mean nothing if the permission is not granted by the local authority. 

The Experience of The Customers or Developers

Lenders will enjoy the experience of working with people who have previous experience of working on property development. This is the main reason why lenders ask for the resume of the developers before proceeding with the conversation on the property development loans. 

If the customer has extensive experience in delivering quality projects, the lender will be more favorable. 

Competitive Quotes and Budgets

Before applying for property development loans, the customer should use quality workers to conduct the survey for property development or hire excellent external contractors for getting competitive bids. 

The cost of every development project will go up and it is a good option to take over running time or over budgeting into consideration.

Owning the Site of Property Development

If the property developer owns the site of the property development, the application will become more favorable in the eyes of the lender. If there is no debt associated with this land, a lender won’t mind in giving a 100% property development loan. 

Filling the Documentation Accurately

The property developer should not rush through. They should ensure that all the papers are filled accurately with precision. An incomplete form shows that the developer lacks interest and automatically reduces the possibility of getting the loan from the lender. 

The developer should be completely transparent, divulge all the details truthfully, and ensure that no information in the form is inaccurate. 

Fund the Development Appropriately

There are diverse ways to structure the financing component of the development project. Solutions can be flexible and they can have built differently in terms of schedules and different repayment models. 

One of the common options is the short-term finance for building cost and then a long-term loan option or commercial mortgages.

Many lenders in the market lend money based on the development project in hand and the geography of the site where the property is going to develop. 

The developer should look for an exit plan if things go wrong. The exit plan can include selling all the properties or refinancing them into a mortgage for the long-term.

The Developer Should Consider Using a Project Manager

Although, a project manager is an additional expense to the builder, he will be a cost-saving effort in the long run. In addition to being a middleman between different contractors, a project manager can make a significant difference on how well the budget and timeline can be maintained.

Overall, a property development in a rural area will be looked as a less secure option when building a property in a residential area. Considering these factors, getting the required approval for property development is not an easy task.

About the Writer

This post is written by Joseph Webb. Joseph is an excellent blogger and philosophers, His keen observation to provide useful information which helps readers to get more ideas. He can be found on Facebook and on Twitter as @aussiesmag.

Thursday, July 20, 2017

Frugal Spender: 4 Ways To Cut Costs On Your Everyday Bills

Saving money is something that many people try to do on a regular basis. Even if there are multiple incomes in the household, it's always a good idea to cut everyday bills and put a little money into a savings account in the event that there is an emergency. 

Sometimes, it seems like you're never going to get ahead because bills continue to increase no matter what you do about them. This is when you might want to consider changing a few services completely so that you deal with a new company instead of just trying to save a little money here and there.

Cutting Away

There are probably several things that you can cut out of your daily and monthly expenses that you don't need. One of them might be your morning coffee. 

If you save this small amount each day, it can add up to a significant amount by the end of the month. You can get a travel mug and make coffee at home to take with you to work in the morning or when you leave the house. 

Avoid going out to eat. This can sometimes be hard to do if you don't have a lot of time to cook at home, but if you take the time to prepare meals yourself, then you're going to be serving healthy meals that are less expensive. 

Another item that you can cut out is clothing. This doesn't mean that you can't get clothes and shoes when they are needed. It just means that you should look at secondhand stores and yard sales to get deals on items that are a fraction of the price that they would be new.

Changing Companies

After talking to the utility companies and other businesses and getting nowhere with lowering your bill, you might stand a better chance of getting a lower rate if you change companies. 

There are numerous companies across the country that offer many of the same services that may be at a better price than what you were paying before. Make sure you do your research, for instance some may think of this as an ACN Pyramid Scheme, when in reality ACN is a company that is offering the services you’re looking for at a more affordable price. 

Some companies will offer added incentives or discounts for signing up with them, saving you money while giving you a few perks.

Save Loose Change

Put a jar on a counter where family members can put their loose change inside. It could be change that you find in the car, in the couch or even from a yard sale that you have. 

At the end of the month, count the change that you have collected. Put this money into a savings account for emergencies. Another way that you can use the loose change that you have collected is to stock up on toiletries that you know you'll need. 

You could also pay extra on a credit card bill or an electric bill so that you have a small cushion for the next month.

Do Away With Buying Expensive Items

Buying name brands can sometimes lead to spending more money than you have to. In many cases, store brands are just as good as the name brand item, but they are less expensive. 

You can also get clothing that is considered the store brand instead of jeans and shirts that are only known because of the name that is associated with them. When you're shopping for holidays and birthdays, avoid spending a lot of money on expensive gifts by making your own.

Cutting costs on things that you use on a daily basis can be hard. Sit down as a family to come up with a plan of action. When you start to see that your savings add up to more than what you normally have available, then it will be easier to continue these habits.

6 Tips on How to Improve Your Online Sales

Shopping online is growing more and more popular every day. It is easier in the sense that it gets done quickly and you do not have to go anywhere. 

However, it is very demanding for the website owners as the customers can be skeptical towards buying something they haven’t touched or seen, tried on etc. It works better for the services, but then again, competition is vast so you have to come up with a way for your online sales to stand out.

Organize your shelves

The same way you put a thought into organizing your store shelves, equipment, and sales personnel, you need to think carefully about how you layout information on your website and what information it contains. 

Remember that it is your sales assistant and try to write descriptions of products or services as to answer any questions a customer may have.

Reach out to people

Set up social network accounts. This will allow you to regularly update your potential customers without too much hassle. You can even target them by joining certain groups. 

Encourage your visitors/customers to leave comments on your social network profiles and link them to your website. That way, newcomers will be able to read up on different experiences with your product/service.

Invite people to act promptly

Make the best use of your call-to-action buttons. They need to be striking and impossible to miss. You need to make your customers want to click on them badly even if it is just a sign-up. 

Having subscribers will allow you to send out newsletters and remind people of your existence regularly. Make the sign up as quick and easy as possible, perhaps even by using an account they already have with let’s say Google. 

This is a place to hire an SEO company to assist. Also, they could help increase traffic on your page which will boost the sales.

Record yourself

It doesn’t have to be you personally, but you can have promotional videos of your offers embedded on your website. 

Perhaps, you could even offer instructions on how certain products are used or even tour guides depending on the services provided and link them to your website. People prefer watching someone do it while learning how to do it over reading an instruction manual.


Use analysis tools to find out which pages of your website are the most visited and successful when it comes to sales. 

You can then adapt other pages to be more like the top ones. Also, analyze the products you are selling and divide them to your top and your bottom sales.

Offer good deals

This is a typical marketing strategy so you need to use it, offer good deals to your visitors. You now know what your most popular products are, so use them to sell other, less popular related products. 

Also, you can target the less favored ones and try to point out why someone would benefit from buying them even if they perhaps are not really top notch. Try offering quantity discount, buy one get one free etc.

Remember that your online visitors have a wide range to choose out of. You need to make sure that they choose you. Offer them as much information as possible so they feel like they are making a sane decision and are not being pushed into anything. 

Try to answer all of their questions related to a product. If possible, enable live chat on your website to assist them. Once they know they are making an informed decision they will think more of you and have greater trust for their future shopping.

Wednesday, July 19, 2017

What Is SMSF Investment and Benefits?

Self managed super funds (SMSF) has been embraced by many, with the most common reason is being able to control. At present, the super funds available publicly have not performed up to the mark and many investors feel that they could have done a better job. 

Another reason to opt for SMSF is that you are offered a wide choice in investments. To put it in short, these funds tend to offer a high level of flexibility and control. Listed below are some important benefits these SMSF investments offer.

  • With these SMSF funds, you are offered a high level of flexibility for using the advantages offered by superannuation. 
  • An increase in flexibility of different choices in investment and asset selection. 
  • Flexibility with the SMSF to use the different streams of pension income like Account Based Pensions which includes the transition of Retirement Income Streams. 
  • With SMSF you can think of owning the real property of your business in the fund of superannuation. 
  • With SMSF you are provided an opportunity to gear or borrow in investment via the LRBA’s (Limited recourse borrowing) only if the asset is allowed under the SISA act. 
  • SMSF offers an opportunity to reduce the income-tax on capital gains and investment income. 
  • You have total control over the investment portfolio with SMSF. 

Investing in Property With SMSF:

Although there are chances of the property market facing rapid changes, yet this is considered as a ‘safe investment’. Besides, this is easier to understand as compared to the share market. 

 With property, you can look forward to a rental-income and also growth in the capital but only once you have done a thorough research. Let us go through this link and find some reasons why you have multiple people investing in property through an SMSF.

Tax Benefits:

Besides the other advantages offered due to the investment in property, you can look forward to the tax benefits. Your SMSF will be taxed at only 15%which works out lower as compared to the personal tax rates. 

In case you are even required to sell your SMSF property only after a year, you pay a capital gains tax which is on the lower side as compared to selling a property not on the SMSF. 

 There is a huge difference in these taxes, SMSF property you will be required to pay only 15% of capital gains tax, but for an investment property which is considered as ‘normal’ you will be paying almost 46% tax. 

Potential Income:

Property is considered as a ‘safe’ investment even though there might be changes in the rental market. As long as the property is rented you tend to get some sort of an income out of this. 

To ensure you get a regular flow of income, you need to consider a property which is appealing to most people.

Expenses Tax Deductible:

All the expenses required to run the property along with the maintenance, taxes, strata fees, charges work out tax deductible.

Strategy for SMSF Investments:

Trustees of SMSF need to consider the needs of each member of the fund. Retirement of each member, growth targets along with risk profile needs to be taken into account. 

If the risk levels are different for each member, you need to consider a separate SMSF account. Trustees determine the level which is acceptable of volatility and risk. Investment diversification may be required. 

This means, the spread of investments over multiple types and classes of assets, investment managers or even countries. Diversification works out to be difficult initially when the available funds are limited.

The trustees should ensure there is enough and more liquidity to pay off the taxes of the funds.

About the WriterThis post is written by Joseph Webb. Joseph is an excellent blogger and philosophers, His keen observation to provide useful information which helps readers to get more ideas. He can be found on Facebook and on Twitter as @aussiesmag.

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics