Finding the Best Investment Property Interest Rates

People nowadays are searching for added ways to build up their earnings so most of them are drawn into investing particularly in real estate as it is gaining reputation in the market. Many find this beneficial and can produce better proceeds than your regular investment. Then again, any type of business would always entail not only expertise in the field but also sufficient capital to fund your property investment. That is why there’s the presence of investment property lenders or banks to support you with your financing.

Loaning is your only answer if you don’t have cash to acquire and upgrade a property. But most people are still worried of borrowing from lenders or banks because of investment property interest rates. It is similar to regular loans where you can pick between variable or fixed interest rate. When you loan from a bank, there are ways to save cash by reducing the amount of interest that you will pay. Due to rise of lending companies, banks are giving special offers and discounted rates.

Interest rates will influence on how you are going to pay for your loan, so if you have lower interest rate, you will be paying for a smaller loan. So it is vital for you to find the best investment property interest rates.

* Compare – lending companies compete with each other and it is in the best interest of the investor to search for the company that offer the best rate.

* Property investing – some lenders extend lower interest rates for property investment as it is considered a low risk investing. This is a good thing for those who foster their wealth through real estate.

* Borrow more – some lenders offer discounts on interest rates for a person who borrows more. This may appear risky but as long as the investor knows what he’s doing, why not? It will produce great return if money are used wisely. Borrowing more can also mean an opportunity to remodel the property, if possible, for an growth in revenue.

* Loan calculation – this is very [helpful|useful especially|specially if the investor focuses more on real estate investing because it can give you the best loan [option that will suit your needs. While some people use home loan calculators to find better investment property interest rates, it is still advised to speak to a consultant who can complete the calculations that is precise to his or her goal and situation.

Generally, it is very important for you to find a loan with a reduced interest rate as this will affect how less you are going to pay for your loan and save you a lot of funds. Again, search for special offers and discounted rates on investment property, and then compare providers to make sure you are getting the one with the best investment property interest rates.

Investment Property Home Loans

Home loans are useful for buying any properties and are typically associated with helping us to afford the homes we intend to live in (hence the term ‘home’ loans). However there can also be good reasons to take out loans for properties other than your home, and investment property home loans mean that you can afford to start investing in property and making money from those investments without having to start off as a multimillionaire.

Investing in property as we all know is one of the most reliable investments anyone can make. This is or several reasons and we’ve all heard them quoted a hundred times: everyone needs land, the population is growing, its almost guaranteed to increase in value… etc etc You can further increase the success of these investment opportunities then by investing in properties in up-and-coming areas, or in places that are soon to have a lot of money spent on them for development. At the same time there are so many ways for you to make money from a property investment that it makes tonnes of sense as a way to tie up your money and watch it grow.

The problem is however that property is obviously very expensive and is a very considerable investment. This means that not everyone can afford to buy a property outright, and thus they believe they can’t join in on these lucrative investments.

However that need not be the case, and with investment property home loans it’s very possible to afford to buy properties that you might not otherwise be able to as you won’t need to pay for them in one lump sum. By spreading out the cost of your property with an investment property home lone, you can then make the investment much more manageable. Of course you will pay more for investment property home loans than you would buying the home outright as you will have to pay interest. However the idea of this purchase is that you’re making an investment which means hopefully you will make lots of interest yourself on the purchase. If all goes to plan then you will be able to earn significantly more than the interest on the loan making that negligible. This is even more the case if you somehow increase the value of the property rapidly. For example if you are fairly adept at DIY and maintenance, then it is a great money making scheme to buy up properties using a loan, to make them more presentable by painting and decorating, and then selling them on for a large profit. It’s possible this way to make thousands in a few weeks or months’ worth of work.

Another great thing about an investment property home loan is that you won’t be living in the property which frees it up for you to lease it out. For example then you can take out a loan and rent the property out, then use their rent to pay the loan back before selling it on for a massive profit margin.

Using Your Home To Invest

Many people dream of owning some investments one day. People look forward to owning something that will hopefully give them some money in the future. For a lot of people though, this dream never eventuates as lots of people think that they need to save lots of money before they can think about investing any money. Sadly, lots of people don’t know the tricks to budgeting and saving money so their dreams of investing remain on the “to do” list for many years.

Having a good control over your money is certainly the first stepping stone before you consider any investment. Saving sums of money will lever you into certain investments such as term deposits, managed fund, shares etc. However if you wished to invest in a property, it would be really difficult to save sufficient money to buy an investment property especially if you already owned your own home. So what can you do as an alternative?

Well if you already own a home you are likely to have some equity in it especially if you have had it a long time, paid a lot off your home loan or if property values have risen since you purchased it.

What Is Equity?

Equity is the difference between what your home is worth and what the balance of your home loan is. In other words it is how much of your house you actually own.

e.g. Jack has a property worth $380,000 and he has a home loan for $180,000. His equity is therefore $200,000.

Peter and Jan have a property worth $684,000. They have a two home loans totalling $249,000. Their equity is therefore $435,000.

How Does Equity Increase

There are a number of ways that the value of your equity can increase

1. Paying down your home loan

2. Paying out your home loan

3. Property values increasing

4. Improving your home so the property is worth more

How Do You Use Equity To Invest

Banks are generally willing to lend you money against the security of your house. They take a mortgage over your home which gives them the power to sell your home if you don’t repay your loans. They are often willing to lend about 80% of the value of a property. This means you might be able to take out a loan against your house and use that money to invest.

e.g. Jack’s property is worth $380,000. IF the banks were willing to lend him 80% of the value of his home, then they might consider lending him $304,000 ($380,000 x 80%). As he only owes the bank $180,000 on his home loan, he could have the potential to borrow some more money and to use this money to invest. He could potentially borrow up to $304,000 giving him access to $124,000.

Peter & Jan’s property is worth $684,000. IF the banks were willing to lend them 80% of the value of their home, then they might consider lending them $547,200 ($684,000 x 80%). As they only owe the bank $249,000 on their home loans, they could have the potential to borrow some more money and to use this money to invest. They could potentially borrow up to $547,200 giving them access to a further $298,200.

What Sort Of Investment?

Depending upon how much equity you have available, you could use your equity to invest in any sort of investment that suits you and your particular circumstances. You would need to speak with an accountant / financial adviser / real estate agent / share broker to discuss your different investment options. You would generally be looking for investments that have the potential to rise in value over time. These are called capital growth investments.

There are many tricks to investing wisely and you should always do plenty of research and consider all of your options and personal circumstances before making a decision where to invest.

Loan Repayments

Any loan you take out to buy investments is likely to have some sort of regular repayment plan. As an example you might have to make a loan repayment each month or you may have to meet an interest payment every quarter. You can explore your loan options with your loan broker / banker.

A lot of investments don’t give you sufficient income to meet the repayments on the investment loan (such as property) or if they do, the income may not come through regularly enough (your loan repayment might be due monthly, but an investment such as shares generally only pays dividends half yearly). Before you look at borrowing to invest, you need to ensure this new commitment sits well within your budget and that you can afford to carry additional loans.

Risks

There are risks with all forms of investing and these should be carefully considered before you make any commitments. A financial professional will be able to discuss these with you. Borrowing money doesn’t increase or decrease the risk of a particular investment. That investment would carry its own risks irrespective of whether you paid cash for the investment or borrowed money for the investment. The investment itself doesn’t change based upon where you sourced the money.

What additional risks you do carry if you borrow money to buy investments is that if the investment falls in value and if under a worse case scenario you lost all of your money, you would end up with a debt owing to the bank for something that you no longer own or was worth less than the loan.

You should therefore consider the strength of the investment and the likelihood of it going up in value over time. It might not be wise to chase speculative investments if borrowing money and remember any investment that looks too good to be true generally is.

Hopefully this article has given you some ideas how you can use your home equity to buy some investments. This article is intended as a guide only and naturally you need to speak with financial professionals who specialise in the fields of financing and investing so you can do the appropriate research before you decide whether or not borrowing to invest suits your individual circumstances. Happy researching and happy investing!

Enhance Your Fashion with Estate Jewelry

When it comes to fashion don’t play safe, have some fun with your style and enjoy your look. Make your fashion statement! And the world will notice! Estate jewelry is the perfect finishing touch to your wardrobe so don’t forget to compliment your look with jewelry!

Even the most conservative dresser can find a beautiful piece of estate jewelry that says loads about them. Show your personality with your jewelry. From the serious corporate executive to the sexy flirt there is an estate jewelry necklace or earrings for you!

Estate jewelry stays in style year after year. It stands you out from the rest of the crowd. While others are busy buying the same modern necklace, earrings, or brooch, you’ll be showing off your unique style and tastes. You’re not likely to find someone wearing exactly the same piece as you.

You can turn estate jewelry from sophisticated, to fun, to trendy. Dress it up or down. Mix and match color, style, shape, and size. And you simply cannot beat the quality of estate costume jewelry from the past.

Estate jewelry can be used to show your individual personality. Think of it as fashion art and personal expression. We tend to think of our fashion statement as our hair style, the clothes we wear, the shoes and hand bag we carry. But your jewelry is an important part of that fashion statement.

Every now and then you change the style or the color of your hair. Each season you add and remove pieces from your wardrobe. But your estate jewelry will take you from season to season, year after year. All you need to do is mix and match it to give it a whole new look.

All types of estate jewelry are very flexible. They can be worn to the office, to that important executive meeting, for a night on the town, to the beach, or for that intimate evening. Bring out your softer feminine side, the sexy goddess, or present simple charm, sophistication and elegance. Wear it with your most formal evening gown, your casual sportswear, your office wardrobe, or your favorite pair of jeans. Wear it in the summer, winter, fall, and spring.

Estate jewelry is available with a variety of base metals. Silver, gold, copper, and brass are all popular. There are shiny pieces, matte piece, there are glittering rhinestones, subtle gemstones. Large pieces, dainty pieces. There costume jewelry of the earlier eras was often based on design ideas of fine jewelry and it had an artistic flare that has never been surpassed in the jewelry industry. Truly a time period where jewelry stood out above the rest. And it still does!

Estate jewelry has been popular for many years but just recently it has seen an incredible surge in popularity. Women are tired of looking like everyone else. They want to show off their unique personality and their very own fashion statement. Since this can be difficult to do with clothing that is mass produced and jewelry that is mass produced they have turned to estate jewelry for that gorgeous unique finished touch. They know that they will have the finishing touches that no other woman has. When they walk into the room they know that they will be unique and beautiful and make their fashion statement! No one will forget!

Estate Jewelry is Ready For Teen Fashions

If you’ve ever gone shopping with a teenage girl you know that teenagers can be a very picky bunch!. Their physical and mental growth has them experimenting with all kinds of fashion items to improve their image and their look. Teenage girls have a fashion statement to make too! And estate jewelry is ready for teen fashions!

A teens fashion statement which includes both clothing and jewelry plays a role in their identity, how they fit, how they feel, how they blend. It has a big role on their self esteem during those developmental years. And moms and dads they don’t want your input! This is a time of discovery and you can be guaranteed if you like it they’ll toss the idea out the door in ten seconds or less. But that doesn’t mean you can’t subtly steer them. Estate jewelry and fashion jewelry are affordable choices that can work well for teens. So just gently lead them in the right direction and let them make their own discoveries.

Teen girls are busy picking up clues and tips from their favorite celebrities. The celebrities that teenagers watch in their favorite music videos, movies or television show greatly influence what a teen girl will see as fashion and trendy jewelry. And these days more and more of the celebrities are choosing estate jewelry because it is unique and does make a statement of individuality. So don’t be surprised if you teen finds estate jewelry attractive.

These days we hear allot about hip hop jewelry trends and we see plenty of bling bling replicas on the market. Manufacturers have replaced the real diamonds and gems worn by the celebrities with cheaper stones and metals so that teen girls can have jewelry that looks much like their favorite stars but at a much more affordable price.

Pierced and non pierced body jewelry has also grown in popularity. Teen girls are using it to make their fashion statement. The good news is that there’s a great selection available at an affordable price so mom and dad won’t go broke.

Friendship bracelets hit the streets about 10 years ago and they continue to grow in popularity being one of the hottest jewelry fads for teens. Friends exchange these friendship bracelets and wear them all the time. There style can be of the most basic twist or more elaborate with beads and sparkling faux gems.

Beaded jewelry is also very popular. Teens love the big and bold look of large beads and love to mix them up adding color and flare to their wardrobe. Estate jewelry is perfect for picking up a terrific mix of beaded jewelry for a very low price. And the girls love it because it is different and unique unlike the modern stuff found on the shelves. And because their favorite Celebs are choosing it, it becomes an option for them as well.

Another teen fad between friends is a necklace that’s similar worn by all members of the group. This identifies them as their own little clique. Their necklaces may have pendants or rings attached or just be plain.

Fashion rings are also very big with teens. Good news is you can buy estate jewelry rings and fashion rings for as little as $5.00. Your teenager will love them, wear them, break them, and forget about them and you’ll know they got their moneys worth.

The teen years are a time of growth and becoming independent so let your teen girls wings open and let her experiment with her fashion style. Remember you did it too many years ago. And remember to let your teenager know there are many options when it comes to jewelry. Estate jewelry is one of the most sought after jewelry by celebrities and if your teen is like most teens what the stars wear they want to wear.