Posts Tagged ‘making’

Property Business Investment Loans – Making The Right Choices

December 4th, 2018

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.

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

November 11th, 2018

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.

The Power of Making a Specialized Small Business Investment

September 4th, 2018

Anyone who is into business understands the power of making a specialized small business investment and the effects that it can have on the entire business success. Investments are what keeps the business going but you have to make sure that they are good investments. Even if they are a small investment throughout time it can be beneficial. Understanding whether an investment is important or not will be explained as you continue to read this article.

In order to know if a specialized small business investment is worth doing you need to understand the meaning of ROI and what it means. ROI stands for return on investment and it is what you gain back from making the initial investment. Now in order to know whether the investment was worth it you need to minus the initial investment from the ROI and if the amount if greater than the initial investment you are in profit and it was worth it. But if the amount is less than the initial investment you are in loss so it was a bad investment.

It is very simple but powerful formula that you can use while testing out different promotional methods. Most people don’t know this and do not do their calculations when it comes to investing. As I was saying before that even if it is just a specialized small business investment if you are in profit it will definitely continue to help your business in the long run. So remember to always keep this formula in mind when debating to invest into a new promotional method or whatever it may be.