Property Business Investment Loans – Making The Right Choices

December 4th, 2018 by admin

In recent years bricks and mortar or property investments have become an attractive form of investment yielding attractive returns. Good profits have been made by business minded people who have been prepared to speculate in a property portfolio investment.

Residential buy-to-let properties have made up the bulk of these investments but there is a strong move towards 2nd properties for holiday and short-term lets. Commercial properties have followed a similar suit and appear to be propping up the pack in terms of investment yields in recent years.
Property business investment loans are now available and support the fact that property has perhaps been the most consistent of all asset classes over recent years in terms of inflation busting returns.

However property can be regarded as a finite asset which can also be a problem given its popularity with investors – therefore it is vital to find decent properties and finance that will enable a portfolio to continue to grow in value. Supporting this notion, on one side investors should attractive properties that are not over-valued and with good quality tenants. On another side the returns should support the investment outlay and where possible not leave the investor under-water in terms of annual outgoings.

There are an increasing numbers of lenders who have mortgages tailored specifically for the buy-to-let market those which provide essentially property business investment loans.
Property business investment loans (Buy-to-let loans) are often no higher than between 75% and 85% of the value of the property considered. This is calculation is known as the loan-to-value ratio. So if you are considering the best loans and choice aim to put down a deposit of around 25%. Even the best landlords experience periods when they have no tenants. It is therefore prudent not to over-stretch your finances. Ideally rental income should ideally be at least 130% more than your mortgage payments.

The rate of interest for property investment loans

Although there is a lot of competition for your business, interest rates are usually slightly higher for buy-to-let loans and maybe higher for business investment loans. Expect to pay around 0.5% – 1% above a normal standard variable rate for the privilege of buy-to-let finance. Having a bigger chunk of deposit will improve the chances of getting a lower rate which is a useful consideration if you plan to pay off the property earlier.

The best type of mortgage for property investment loans

Carefully shop around for the best mortgage deal and consider the type of loan that will work best for you. Your choice between a repayment or interest-only mortgage will reflect your expectation of what you want to paying off the loan at the end of the term.

Many property investors like the security of fixed rates so that they know exactly what their monthly payments will be and this enables them to plan ahead. A flexible mortgage may also be popular, as it has the ability to overpay when the property is let and take payment holidays or make smaller payments when it is not. As with standard domestic mortgages and good property investor should always be prepared to move the mortgage or property investment loan when an advantageous financial incentive of mortgage offer runs out.

Small Business Investment Ideas – Starting Your Own Dollar Store

November 27th, 2018 by admin

There are many lucrative small businesses out there that are easy to start up. One of my favorite small business investment ideas is starting your own dollar store. It might seem like it would take a huge investment, but it’s not as expensive as you might think. It’s a great way to get started as your own boss and make a huge profit.

The first thing you will need to do is find a wholesale company who will sell bulk products for cheap. You will be selling everything for $1 a piece, so try and keep your costs to under $0.10 a piece for each product. There will be exceptions to this rule, as some items you’ll know will be big sellers, but it is a good general rule. Also be sure to do your research in your area to see what products you think will be in high demand.

You’ll then want to scout out a location for your store. Try to find a place in a high traffic area that has a history of a lot of foot traffic. Locations near shopping malls and groceries stores tend to be good options. When people walk by those stores, they are typically ready to buy things – so they’re a great target for your business. You might also consider areas where people might be looking to kill some time, such as near schools or movie theaters.

This small business investment idea is a great one, because you’ll be able to run your own business and make a ton of money. People are always looking for a bargain, why not be the one to provide it for them?

Small Business Investment – Knowing Which Small Businesses to Invest In

November 20th, 2018 by admin

Every business can use a helping hand financially, from the big to the small. Many investors will avoid infesting in small businesses because of the lack of security involved with them, but there can be great profits to be made with this kind of company if you know what to look for. Choosing the right business to invest in will make all the difference in determining whether your money turns to profit or not. Here are some tips that should help your small business investment go as smooth as it possibly can.

When you first get involved with small business investment, you may want to steer clear of new businesses. Even if they sound like they will be amazing to work with, there is just going to be too much risk involved with a new business for it to be worth your time. After you know your way around investing a little more, you may look into putting money into an up and coming business, but not until then. You need to be able to make wise decisions about your money, and that may only come with experience. Focus on established small businesses before you do anything.

Once you have selected an established business to invest in, you may want to have a look at their business plan to see what the goals are for the future. As an investor, you should have a say in what goes on with the financing for the business. If you feel that there would be better ways for your money to be spent, be vocal about that. Then you can make sure that the small business has a chance of succeeding beyond where they are right now. If you are not able to put forth your opinion about the business financing, then you need to go somewhere else with your money.

It is always a good idea to choose businesses in markets that are expected to grow rather than decline. While you cannot predict how the market is going, it would be illogical to invest in DVD players over Blu-Ray players nowadays based on what people are starting to buy. The same comparisons hold true in almost all markets, so just be safe about throwing money into a company that is headed down the wrong path. You can trust your instincts for a lot of this process, and ultimately you should be able to see profits from your small business investment.

How to Know If You Are Making a Good Small Business Investment

November 11th, 2018 by admin

Making an investment is a very important thing to do if you are into the home based business industry. Some people see the value in investing while others think is a waste of time. Now the funny thing is that neither opinion is wrong because you will encounter certain promotional methods that will give you good results while you will come across others that don’t produce anything at all. This article will further instruct you on the best way to determined whether your investment was a good one or not.

The best way to determine if your small business investment was a good one or not is simply to follow the ROI formula. Now you are probably wondering what those that fancy word mean, well it is quite a simple term that stands for your Return On Investment. To understand what this is you must understand a little about business math, so here is a quick example lesson.

Lets pretend that the promotional method that you chose to use cost you 50 dollars for the month of promotion and in that month because of that promotional method you were able to make 200 dollars in your business. Now in order to get the ROI of this example you take your initial investment from the total amount you gain from that promotional method. In this case is 200 dollars minus 50 dollars, which equals to 150 dollars. Now the 150 dollars is your profit and your investment was 50 dollars. So if the promotional method follows the same pattern for every 50 dollars invested your ROI will be 200 dollars, which means 150 dollars profit.

Once you get the hang of this formula you will be able to tell if the investment is a good one or not by just calculating the ROI and the profit that you make from it.