Loans for Home Improvement & Renovation

Home improvement includes house repairs as well as house renovation. House repairing is an ongoing process for many people. There is always a breakdown of one thing or the other in your house. Plumbing is one of the most common repair works. Electrical job is another important repair work.

House renovation or remodeling is more expensive and less frequent than repair work. House renovation includes painting, wall papering, installing heating system and air conditioning system, etc. You may also undertake bigger home improvement projects such as adding new bathroom fixtures, redesigning your kitchen, changing the way your garden looks, turning your backyard into a basketball court, building a new room, etc.

For all these home improvement jobs, you need to spend money. If you do not have money for this, you can take out a home improvement loan. A home improvement loan [http://www.apply-4-loans.co.uk/home-improvement-loans.html] can be obtained from banks, building societies and private lenders. You can take out a personal loan to carry out a home improvement job. Personal loans are usually unsecured, i.e. you do not need to offer collateral to obtain such a loan. It can be used for a small home improvement job such as a repair work or small remodeling job. It is repaid within a short period of time so that the borrower does not have to pay a huge amount of interest.

You may also take out a secured home improvement loan. To obtain a secured loan, you have to offer a property as a security. If you are a homeowner, you can offer your house as a security. Your property may be repossessed by the lender if you default in repayment of a secured loan. There are several benefits of secured loans. The rate of interest on secured loans is lower than the interest rate on unsecured loans. Lenders offer flexible repayment terms on secured loans. You can spread your loan repayment over a long period of time. This makes the amount of your monthly installments small. Whether you choose a secured loan or an unsecured loan for home improvement, you must carefully study its pros and cons before applying for it.

Commercial Property Investment Mistakes and How to Avoid Them

You’ve probably heard about the commercial real estate bubble, here’s the ugly truth that lenders and other insiders don’t want you to know. Despite all the hype, not every commercial property is in trouble. The key for you as an investor is to avoid certain pitfalls and learn from other investor’s mistakes.

Before the economic and credit boom that has led into the recent downturn, conventional lenders capped loan amounts at 65 percent of the value of the property. This means that your $10 million commercial property would qualify for a maximum loan of $6.5 million. The current problems with commercial property investments started when hedge funds and private equity lenders began offering much higher loan to value ratios, meaning they would lend against your investment property with as much as 80 percent of the value of the real estate.

Mistakes Made by Commercial Investors

Some investors decided to refinance their $10 million commercial property for $8 million and get $1.5 million out tax-free! What seemed like a great deal at the time has come back to ruin the typical commercial property investment. The problem was that these loans needed to be refinanced after five years. Owners who pulled money out of their investments like this began down a path that has led to the troubles we are seeing now.

Fast forward from then to now and you’ll see that the entire economic climate has changed. Most sources of financing for commercial real estate have dried up. Owners with a property that needs to be refinanced are finding that unless the LTV ratio is 65% or less and the property is performing perfectly, it’s almost impossible to get refinancing for their commercial property investment.

You can’t tap into those hedge funds and private equity firms because many of them have gone out of business. So you are left with two options:

1) Create a workout with the existing lender where they refrain from foreclosing against your property in exchange for a slight increase in the interest rate, or other benefit that you can give the lender. In some cases the benefit to the lender is that they don’t need to take your property back. The truth is that the lender really doesn’t want to take back your property if they can avoid it.

2) Bring other investors into your deal by offering them a decent rate of return on their investment along with giving them a chunk of your equity. Make sure to contact a commercial property investment attorney who can help make sure that you meet all of the SEC guidelines if this is the path that you choose to go down.

What Makes a Safe Commercial Property Investment

The problem with many owners of commercial properties today is that they got into a deal with a bigger loan than they should have. Now, these commercial property owners can’t ride out the recession because the loans are coming due and they’re short, or worse, upside-down.

Investment rule #1

-Leave the equity in your property.

· Successful property owners don’t pull out their equity at the top of an up cycle; they leave the equity in their commercial property investment so they can ride out the downturns. The “commercial meltdown” doesn’t apply to property owners who left their equity untouched. While it’s true that the commercial property values have come down from a high peak. The typical commercial real estate investment is far more valuable today than it was 10 or 15 years ago.

Investment rule #2

-Stick with conventional lenders.

· By taking a short term hard money loan commercial owners placed themselves at the mercy of the fickle market. A conventional lender would not have financed more than 65 percent of the property value, allowing the owner with a cushion against fluctuating property values.

When structured correctly, your real estate investment may not provide you with an overabundance of excitement, but during times like these, a stable, performing real estate investment is just fine.

Homeowners Loan For Home Improvement

It is a common public perception that when you apply for a home loan or housing loan, you will need to build up a house or purchase a new property. However, lenders are now offering a homeowners loan that borrowers can avail of to improve the house that they live in.

Here are some of the frequently asked questions and answers when it comes to homeowners loan.

What is a Homeowners Loan?

A homeowners loan is made available to home owners who want to do maintenance work on their houses. Maintenance work include: repairs, landscaping, expansion of their property, installation of swimming pools and any other improvement that can be done on the property that will increase its value.

There are several types of homeowners loan which include: refinancing solutions, loan grants, personal loans or unsecured loans, first mortgage loans and second mortgage loans also known as home equity loans.

Refinancing solutions are usually the best option that homeowners can avail of. If you refinance your mortgage, you can lower your monthly amortization payments and possibly receive cash for home improvement purposes.

Unsecured loans or personal loans are given to individuals who do not want to put their properties as collateral against the loan they want to have released. Usually banks and other financial institutions will extend this kind of loan.

First mortgage loans are usually given alongside home improvement loans. This type of loan is usually availed of during the term of the initial mortgage.

What are the requirements needed to apply for a Homeowners Loan ?

If you apply for a homeowners loan from banks and other lenders, be sure that you know the specifics of your house improvement. Details are needed such as the estimated cost and an improvement plan will also be handy.

Who are qualified to get the Homeowners Loan?

It usually depends on the lending agency but most of the time a good credit score is needed to get any loan and that includes the homeowners loan.

For low-income families, the government usually grants special housing assistance for potential house repairs. These government agencies also help the low-income families with issues regarding home ownership and community development. Also, some non-government agencies give special assistance when it comes to repairing houses brought about by disasters.

For individuals who want to avail of a homeowners loan, they must keep in mind the amount of income they are earning. Debtors should always keep in mind their ability to pay in applying for any kind of loan. Do not make the mistake of entering into a loan and realizing halfway that you can not meet the required payments that you agreed to.

Make sure that you understand every clause and agreement that you enter into while signing the loan agreement. It is a financial obligation that can have legal repercussions if you default your payments.

As a tip, scout several homeowners loan providers and choose the one with the best package that you can manage and pay off depending on your present financial capability.

Visit Loan Answers to find more useful Articles, Guides & Loan Tips. You can find Home Loans Articles, or search our main site for Questions & Answers about Homeowners Loan for Home Improvement

A Quick Commercial Property Investment Guide

As the residential investment property market becomes fierce, many investors are starting to recognise commercial property as a viable investment option. So, don’t put all your eggs in one basket and consider diversifying your investment portfolio by investing in commercial property.

What is Commercial Property?

The term commercial property (also referred to as commercial real estate, investment or income property) refers to building or land intended to generate a profit, either from capital gain or rental income.

What Type of Property is included in Commercial Real Estate?

Commercial real estate is classified as property assets that are primarily used for business purposes. Commercial real estate is commonly divided into the following categories:

1. Office buildings

2. Industrial property

3. Retail/Restaurant

4. Multifamily housing buildings and

5. Farm/Rural land.

In addition to the above, commercial real estate can include any other non-residential properties, such as:

>> Medical centres

>> Hotels

>> Warehouses

>> Malls and

>> Self-storage developments.

What are the differences between Commercial Property and Residential Property Investments?

When you invest in commercial real estate, you still expect to rent out your property and receive rental income from a tenant as you do when you purchase a residential property investment. However, the major difference between investing in commercial real estate compared to residential property is the Rental Agreement. With commercial real estate, the property is usually leased to a business under a detailed contract for a much longer period (e.g. three, five or ten years).

There are some other important differences such as:

>> The Tenant is usually called a Lessee;

>> Vacancies between tenancies can be longer;

>> Goods and Services Tax applies to commercial real estate (i.e. to the purchase price, rent received and any expenses in relation to the property); and

>> Maintenance costs are usually paid for by the Lessee, which means net rental income tends to be higher.

What is an Annual Return on Investment?

The “annual return on investment” is the amount earned on the investment property. The amount earned, is expressed as a percentage, and it is called the property’s “yield”.

So, if you are considering investing in commercial real estate. You should always ask yourself the following questions:

1. What return on investment will you get?

2. What is the property’s yield?

How is the Yield calculated?

Yield calculations are worked out by dividing the annual rental income on the property by how much the property costs to buy. For example:

Gross Yield = annual rental income (weekly rental income x 52) / property value x 100

This is best illustrated by using the following example:

>> Assuming you buy a property for $950,000; and

>> Rent the property out for $2,000 per week ($104,000 annually).

Your Gross Yield will be 10.9%. It will be calculated in the following way:

($104,000/ $950,000) x 100

If you want to invest in a commercial property, you need to keep in mind all the information mentioned here. You can seek help and guidance from a professionally qualified and expert finance broker, who specialises in obtaining the right funding for your investments.

Truly, having an independent and expert finance broker on your behalf can secure your eligibility for a commercial property loan, not to mention get you the best loan deal that suits your individual needs and objectives.

A Guide to Loans for Home Improvement

Here is a general guide to loans for home improvement. Home repairs and improvements can be costly, but by finding lenders and taking out loans for home improvement you can help to make any project much easier on your budget. Materials, hired labour, planning, and professional help can all be covered by loans for home improvement. Indoor or outdoor, renovations, restorations, or additions to your home are all types of improvements that can be covered by loans for home improvement.

Applying for a Loan

Applying for loans for home improvement is the same as applying for any other secured loan. You should be sure to do all your research first and determine the best lender for your needs. Often, a number of lenders will be more than willing to offer loans for home improvement that are secured by the equity in your house If you’ve paid off your mortgage or lived in your home for a long period of time, your home may be appraised before being used as collateral.

Remember that collateral is what a bank or lender uses to secure a loan, and will usually result in them offering you a loan at a lower rate in exchange for the agreement that if payments are not made the collateral becomes the property of the lender.

Loan Interest Rates

The interest rate that you have to pay on loans for home improvement will depend on several different criteria, including your credit history, the value of the equity in your home, and even the amount of money that you make per year. After checking these factors, the lender will then calculate your loan interest rate.

It’s important to remember that not all lenders will offer you the same rate, however, so you should take the time to shop around at a number of different lenders in order to determine which one has the best interest rate to offer you since finding the best interest rate means saving the most money. Once you have your loan, your home improvement project can begin.

Loan Repayment

As with all loans, paying back loans for home improvement on time is very important. Missed payments can lead to negative reports being placed in your credit history, which can affect every major financial decision that you’ll make for years to come.

Remember that your loan will have to be repaid in a timely manner, so be sure that you have a payment plan you can afford. Including your loan payments in your household budget can help you to keep your finances under control, and with careful budgeting you might find that you have a little more money to work with than you originally thought.

Additional Advantages

Depending upon the improvements that you’re making, you might be able to save some money on your heating and cooling bills. Energy-efficient appliances might help to lower your bills as well.

As an added bonus, if your credit score is lower than you’d like then the regular payments that you make over time on loans for home improvement will help to bring your score back up to where you want it to be.

Understanding Commercial Property Investments

Do you ever feel that you should be looking more at investments in commercial property in the saturated residential property market? If this is in your mind, you are joining the new wave of investors who wants to diversify their investment portfolio with the unstable economy.

How big exactly is the commercial property market? Generally speaking, commercial property investment is not as straightforward as residential market. In Malaysia, it is almost sure that any piece of residential property will be lapped up the moment it is launched, and everyone at some point of their life will be looking for a house of their own. Some may buy a piece of residential property and rent it out instead. For commercial properties, there are a lot of other considerations.

1. Location

Location is a very important factor when it comes to investment in commercial properties. It may be true that a lot of people are looking into creating their own business, and it will not be too hard to find someone to rent your property start their business, but if the location is not right, the chances for renting out is slim.

When you wish to invest in a commercial property, look around to see whether there are other residential properties which will support the business. You may want to take a good look at the whole development project, and check residential population surrounding the commercial lot that you are aiming for.

Also, do check if the area is a flooding area, or are there any other disadvantages. Parking space is a very important factor of consideration for any business to thrive in this modern world, and you ought to make sure that there are parking spaces near the property you wish to invest in.

2. Features

Sometimes, the success of commercial properties also comes with the features included in the project itself. For example, some properties may be managed by the developer, with facilities such as wi-fi zone, making the commercial blocks into event venues or even being selective about the types of business and brand name to qualify as tenants. Some commercial properties with such strict criteria about tenants include BM Utama in the mainland Bukit Mertajam, and Straits Quay in Penang island.

Both are project examples of two contrasting backdrop. Straits Quay is a high-end sea facing project by E&O, with very high traffic coming from its branded tenants and expensive condominiums and landed property support. Meanwhile, BM Utama is a 7-unit exclusive commercial lot owned by BM Utama’s property developer, DNP Land, and is meant to become part of the lifestyle support for the almost sold-out BM Utama. The 7 units are called The Gallery, which is available for leasing only, to ensure the quality of retailers.

3. Price

Although people are talking about market price, as an investor, you should take into consideration the price and the size of the property. It is important to note that your property lease are usually based on long term contracts, and for some cases may span for 10 years instead of the normal renewable 1 or 2 years for residential properties. Also, you need to remember that returns from residential property comes from the capital value increase, but for commercial properties, it comes from income. Although commercial properties generally will cost more than residential properties, you will still need to sieve through to see if the investment can really bring you back a good return. Is the rental price of that property able to cover the loan that you took for the purchase?

If you are buying the property for the sake of making it into a hub for your own business, then it is up to you to ensure that the business that you are going to do will bring in enough sales and income to cover for the loan repayment of the property.

Commercial property leases provides an average contracted income stream of about 7 years.

4. Ownership

When you buy any property, you need to be very clear about the type of ownership that you have. Is it a freehold or a leasehold property?

Although leasehold properties are usually released with a certain amount of payment when the expiration term arrives, there may also be conditions where the land is taken back for new development. When the lease-land period is almost reached, property prices will drop significantly.

You also will want to check on the previous ownership of the property. Most properties may have more than one owner sharing the ownership of the property, so you should get a background check about this with a trusted lawyer, also to find out if there are any underlying problems to why the property is up for sale. Make sure the property sale gets consent from all legal owners.

FullHouse.com.my is No. 1 Penang Property portal. This is the best place to start your Malaysia property search whether you are an investor, buying for your own, or looking to rent. At Fullhouse.com.my, you can find thousands of Penang apartment and condo for sale and rent with detailed information about each property, including maps and photos.