Tag Archives: finance

3 Ways to Financially Prepare for a Home Purchase

Buying a HomeBuying a home is a big financial commitment that you must be ready for to avoid sinking in debt. It’s something you only do if you are already confident about your savings and your source of income. This way, you wouldn’t have to sacrifice other aspects of your life and you wouldn’t feel pressure when paying your monthly mortgage. Here are some things you can do to prepare yourself and your finances for a home purchase.

Improve Your Credit Score

Something that all lenders will look at is your credit score. This is a good indicator of how financially responsible you are because a higher credit score means you know how to pay your bills on time and you never miss a due date. Low credit scores often lead to smaller loans with bad terms. If your credit score is currently low, then it’s time to make a change and make an effort to pay your bills on time.

Be Employed

Not having a job is not a good look when visiting lenders, unless you are an entrepreneur with a well-established business. Whether you’re a doctor, accountant, dentist, engineer, or any other professional, you need to stay employed if you want to get the best home loans in Sunshine Coast. The longer you are employed, the better the loan you’ll get because it means you have a stable job and career.

Put in a Good Down Payment

While there are banks out there that only require as little as 1% to 10% down payment, that also comes with less impressive terms. The best way to avoid high monthly mortgage payments is by putting in at least 20% down payment on the property. This is also a good way to measure if you truly are ready for a home purchase. If you can’t put in 20% down payment, chances are, buying a home is still too much for you.

Follow these tips to make sure you buy a home that’s right for you when it’s the right time.

Why Buying a New Motorcycle is a Good Investment

Motorcycle Used bikes are typically cheaper than new motorcycles. But second-hand bikes always come with a few setbacks. For one, some of their parts might be needing repairs soon. In addition, the value of used bikes tends to depreciate faster than new bikes. Unless you’re a beginner who doesn’t want to shell out a huge amount of money for your first bike, it is always better to purchase a new motorcycle.

Motorcycle Title Loans

Apart from its pristine condition, new bikes are good investments because they are eligible for vehicle title loans. The cash you’ll get from this loan is usually based on the value of your bike. So in times of emergencies and you need fast cash through a car title loan, you’ll be thanking yourself for buying a high-priced brand new bike.

Technology for Safety

As bikes today get faster and better, you need to ensure that you’re riding in a vehicle that can give you enough protection on the road. Hence, it is a smart decision to go for new motorcycles as they come with the latest safety-focused technologies. After all, it doesn’t hurt to pay for your own protection.

Warranties

Generally covered by warranties, new bikes won’t break your bank in times of repair. Even if you spend a higher amount in buying a new motorcycle, the warranties will save you a lot of repair costs. At the end of the day, purchasing a new bike might be cheaper than buying used bikes that require too many restorations.

With these three things in mind, buying a new bike is certainly a good investment. But remember that purchasing a vehicle should always depend on your needs. If you’re an amateur rider who is still learning the ropes of biking, a used motorcycle is ideal. If you’ve been riding a bike for a few years now, though, or you want a motorcycle for a daily commute, a new bike is more appropriate.

Can Debt Be Seen As a Good Thing?

DebtThere’s no such thing as bad press, and with the right spin, even things that are on everyone’s “would rather not have” list can turn into an asset.

For example, no one likes to have any kind of debt on their books. In fact, it’s one of the biggest detriments to getting lending institutions to hand over the quick cash people need for a new car, or a remodelling project. But, there are times when the presence of debt can actually convince lenders to give you money faster.

The only thing that lending companies like Rapid Loans wants to ensure when they review a loan application is that they’ll get their money back. Once you understand that simple fact, the easier it is to put your situation in a positive light. Supposedly negative elements such as debt will become just another brush that you can use to draw the picture you want to paint.

The secret is to keep debt at or near manageable levels for as long as possible. It doesn’t matter that you’ve been paying for things for most of your adult life, just as long as you don’t dig an inescapable hole. The reason for this is that you could frame your debt as part of being financially responsible and forward thinking.

If the sources of your debt payments are primarily from a mortgage or home improvement projects, then you’re not in debt because you manage money poorly. In fact, it actually communicates the opposite, since you’re making your money work while keeping its flow under control. A savvy personal financial strategist like yourself would have no trouble paying back any loans in the eyes of a lender.

This is of course just one example of how people can make the best out of a potentially bad situation. It just goes to show that nothing is set in stone in the financial world, and there will always be a way.

Tax Compliance or Tax Avoidance: Which Path Should SMEs Choose?

Tax AvoidanceThis truth may sting a bit, but for your own business’s sake, don’t ignore your tax bill. One of the many pains of running a business is that dreaded annual visit to the IRD to pay taxes in full.

But, tax compliance is essential in managing a successful, profitable business. Here are a few tax-saving strategies to take the stress out of those impending financial woes.

Recognize the Risk

Small to medium enterprises or SMEs usually have this misconception that they are at lower risk of a tax audit. The truth is that they are prized targets, as they are a big source of tax revenue. The government has to make sure that businesses meet their tax obligations. Changes in compliance costs will only prompt them to change tax laws and administrative processes. If you think you can outsmart the IRD, think again. Their auditors eat numbers for breakfast.

Tax Planning and Budgeting

The trick is to save tax effectively all year round. Last-minute tax planning for the financial year can badly hurt your cash flow, and it will affect every aspect of your business. When you’re laying down your budget plan for the entire year, always keep your taxes in mind. Ignoring it will not make it disappear. Also, declare your income properly. If you don’t, it will only attract the IRD’s attention.

Keep Good Records

Good recordkeeping is one effective way to avoid a painful tax audit. Make sure that you set all the deductions you’re entitled to and have your documentation in place. No matter how small your business is, you’re still obligated to do some level of accounting. If you can’t do it yourself, hire an accountant. It is a worthy investment. Search for accounting firms that focus on helping out SMEs, such as The Income Tax Professionals Ltd.

Be Prepared for an Audit

The IRD is not stupid. They are an omniscient presence that will turn on you the more you put off your taxes. But, they are not your business’s enemy. And if you’re really serious about your business, you should know how to face an auditor head on and settle disputes as professionally and calmly as possible.

If you have all these in place and if you have the right attitude towards tax, you will not have to go about those precious business hours in constant fear of a visit from the IRD. If you truly want your business to grow, and if you care about your employees, then, organise those tax reports and make sure you can pay for future tax bills.

Strange, Sneaky Things That Affect Your Credit Score

Credit CardCredit scores dictate a lot of dealings, including their outcomes. Though several lending establishments like RapidLoans.com.au have been incredibly tolerant of bad credit, the fact remains: one is in for a tougher time with financial talks should their credit score be sub-par.

Various factors can affect a credit score, though most of them are quite unexpected. How about the more nondescript ones? Here’s a quick list of things that can cause bad credit:

Library Fines

While libraries don’t deal directly with credit reporting agencies, several of them do turn over unpaid balances to collection agencies. In turn, the agencies may report  the balances to credit reporting establishments they have ties with. For readers, it is best to carefully read library policies before taking out anything.

Unused Credit Cards

Think putting off using your credit cards gives you a sense of security? Think again. Acquiring credit card debt is indeed bad for your credit score, but failing to use them can do damage in certain occasions as well. If a card goes unused for a long time, a specific issuer may label the card ‘inactive’. This will reduce your overall number of accounts and may affect the credit utilisation rate. The higher this rate, the lower your credit score.

Closing an Old Credit Account

In several situations, cancelling a long-held, seldom-used account will shorten the length of your credit history. This can lower your score. Should you need to free up obligations, get rid of newer cards in favour of an older one. The latter’s longer credit history may prove useful down the road.

Unpaid Parking Tickets

It pays to watch where you park and know the local laws by heart. Like library fines, unpaid parking tickets can also be turned over to a private collection agency if you’re not careful enough. From there, the process follows the same path as library fines all the way to your credit report.

The factors listed here might be a bit unexpected, but you must take them seriously. Getting your credit score up requires every bit of foresight from you, so you can expect less troubles in the long run. This just proves that even the most routine of things can have a massive impact later on.