Trading from home

Working from home may be the ideal situation for many people these days. But is trading at home a viable option?

Trading securities such as stocks or bonds, forex or cryptocurrencies can be done online. Most Broker firms have mobile apps so you’re never out of touch with your account even if you aren’t working at a desk all day long 

Day traders are often very passionate about what they do – arguably more than someone who’s stuck in an office job where they perhaps don’t enjoy their work quite as much as they should.

What is day trading?

Day trading means buying and selling financial instruments, such as stocks, within a trading day based on price fluctuations. For example, a day trader could buy bitcoin (or any other asset) at the market price and sell it once the trade has reached a certain profit level.

Day traders choose markets and assets with big fluctuations which give them the opportunity of multiple trades per day!

Sounds awesome right? Hold on, as we are going to see how to get started with day trading.

How to start day trading from home

Similar to anything that you do, Day trading requires effort and dedication before you become successful.

Choose (and learn) a market

The first step that you need to do is to pick a market and learn how it works. You could choose the Forex market or Cryptocurrencies which are known to be volatile. This means that you will get plenty of price fluctuations on any asset in any given day.

Choosing a market is not enough though. You will need to understand the market, how an event can affect price movements, how trades work and if the market is moving upwards or downwards.

Choose a Brokerage Firm

You should aim to find a reliable broker (such as E*Trade, Interactive Brokers, Ameritrade, XM or Exness). In order to find the best broker, you will need to study some reviews, ask questions in forums, check out the brokers’ websites and see if the broker fulfils your needs.

Some things to watch out for when choosing a broker are:

• Commissions
• Execution time
• Customer Support
• Support Languages
• Availability in the instruments that you want to trade with
• Leverage
• Withdrawal times
• Reliability

Another essential is that the broker offers demo accounts, which leads to the next point.

Register for a Demo Account

Before you start investing real money,  you should try out day trading by opening a demo account. Apart from being free, this will give you the opportunity to learn about how it works and what it looks like before risking any money.

Learn your Brokers’ Trading Platform 

Choosing the right day trading platform is crucial for success. You should look for a reliable, user-friendly and feature-rich platform that suits your needs so you can focus on trading without wasting time trying to figure out how to use it. Some common platforms that are being used by big brokerage firms are MT4, MT5 and cTrader. You should aim to use one of these platforms that come with many options and integrations.

Learn Trading Strategy

Learning your way around day trading is only half of what you need in order to start making trades on your own! You also need knowledge about several other aspects of day trading: financial markets, analytical skills for doing research on companies, currencies, Cryptos and stocks – not to mention knowing when certain events happen such as earnings reports or major announcements that might affect instruments’ prices.

Some common Day Trading strategies that you may find useful are:

• Breakout Strategy
• Scalping
• Momentum
• Reversal
• Using Pivot Points

Before you start investing money in day trading, it is important to first learn the theory behind these Day Trading strategies.

Set goals and know your limits

Setting your goals before you start investing any money, will allow you to focus your time on what matters the most to you. You should also know that there will be many trades that might not have a positive outcome, and even if they do then it is all down to luck.

Know when to walk away

It is important that you don’t risk everything in order to make some money; day trading can lead people into making bad decisions because of greed or fear. Know when enough is enough and end the trade before losses get out of control!

How to learn more about Trading (and Day Trading)

The markets can be tough to navigate. It is full of uncertainty, and it’s hard to know what will happen from day to day. For many people, this is a turn-off. They want something more stable in their lives–a career they can depend on for years to come with predictable income and growth opportunities.

The best way to learn about trading is through doing, but there are some great resources for traders of all levels that can help get you started.

• Blogs
• Webinars
• Video Training
• Trading Signals
• Expert Advisors (EAs)
• Courses

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How did Gold become so valuable? 

First, it is necessary to look back at the history of gold and why it became such a desired commodity. It all began long ago with ancient humans finding a metal that was durable enough to meltdown and not corrode if exposed to water. A “transition” or “post-transition” metal which is made of the forty-nine elements in the center of the periodic table is the perfect option to have met those needs. A bunch of those elements like platinum, palladium, and rhodium was too rare to find and use for currency. Not to mention the melting point of platinum for example is over three thousand degrees Fahrenheit to meltdown. That was not a temperature that ancient humans had the capabilities to reach. Copper and iron would begin to rust over time when exposed to water. Add these things up and ancient humans decided to use gold and in some cases silver to create their currencies. The bottom line is that gold as an element is quite uninteresting and easy to work with. Things created out of gold will be in the same shape they were created one thousand years later. Putting all of that together and the ancient societies decided to use gold and silver as the currencies and place value in those currencies, which is why gold has always been of high value. It is also still a pretty rare element, as it must be found and mined.

So what will Gold be valued at in the next 5 and 10 years? 

Another tough question to answer is the projected price of gold over a five and ten-year period. Gold predictions for the Next 5 Years are a little bit easier to project than going out ten years. In a five-year period, it is easier to predict the rise and fall of inflation, which has a dramatic impact on the prices of gold. Gold is priced per troy ounce for consumers. If you look back at prices going all the way back to 1950, prices, for the most part, stay somewhat stable in five-year periods. Gold seems to either spike really high at the beginning of a new decade or goes very low starting a new decade. A lot of this can be traced to new presidents taking office in the United States and also looking at economic down periods due to inflation. In the early 2000s, the price of gold fell all the way down into the 200 dollars ranges per troy ounce, all the way up to over 1900 dollars per troy ounce in the year 2011. The current price of gold sits around 1200 dollars. Gold prices since 2000 have seen the highest and lowest swings since 1950, and it all depends on how well the world is working together at any given time.

What does the future hold for Gold? 

Gold Predictions for the Next 5 Years will most likely hover around the 1200 to 1300 hundred-dollar range. There could be some bigger dips and fluctuations but it will probably remain pretty stable at the price point. But as previously state Gold prices since 2000 show that volatilities in the world market can greatly alter the price of gold. Make no mistake about it though, because of its strong background as a very reliable currency and the continuous trends of being a highly valued currency, gold will always be a great investment all over the world. As ancient humans discovered long ago that gold was hard to find but very easy to work with. If gold is an option as an investment goes for it and the returns will always favorable. Good luck and buy GOLD!

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Now it would be great if it were only that easy. It can indeed be a lucrative business, but only when approached the right way. The reality is that there are several factors to consider when determining if a property is a suitable investment or not. So whether you’re looking to get started in rental property investment or are already in business, these tips will help you navigate buying your next rental property:   

1. Have a Plan
2. Location
3. Research the Market
4. Know the Financials
5. Stay Away from Fixer-Uppers
6. Hire a Property Management Company

• Have a Plan

The most important thing you can do before ever looking at potential investment properties is to have a plan. First, consider whether you’re ready to invest in a rental property. Next, look at your financial situation and determine if you need to pay down some debts or save up more money before jumping into this business. Owning rental properties is a cash-heavy operation, so it’s wise to get your finances in order before starting.

• What type of property are you looking for? 
• What will be the goal of the property? 
• Will it be cash flow positive right away, or will it cost you money to manage at first? 
• Will the property increase in value over time? 

These are just some of the questions that you should answer before investing in a rental property. Have a strategy for every property you buy and stick to it. Buying real estate can be emotional. It’s important not to let emotions influence your purchase because it could jeopardize your plan and end up with a property that doesn’t generate your profit.   

• Location 

A popular saying in real estate is “Location, Location, Location!” It’s for good reason because it’s a huge determining factor in the value of a property. If a property is in a less than desirable area or even a bad part of town, the property value will suffer. On the flip side, if a property is within walking distance to stores and restaurants and is in a more affluent part of town, the property value will be more significant.

When looking for rental investment properties, it’s also wise to look at the tax implications for the area. Counties have different property tax rates, which can affect your bottom line. Another factor to think about with location is any additional fees you may incur. Some properties come with other expenses like a Homeowners Association (HOA) or Mello Roos tax. These fees can be in the hundreds of dollars per month and will make it much harder for your investment to be profitable.

• Research the Market 

Knowing what’s going on in the real estate market is crucial when trying to get started in rental property investment. The interest rate on a loan and the value of a property can be the difference between being profitable or costing you money every month. 

Interest rates tend to be higher on investment property loans than traditional home loans, so buying at a historically low-interest rate is always a smart move. Interest rates have a significant impact on your monthly mortgage costs, so the lower, the better!

Looking at past pricing data of properties over a few years can give good insight into whether a property is a wise investment. For example, if the price of a property is at an all-time high, it likely means there is increased demand for properties in that area, and you’ll be paying a premium to buy it.

Knowing where interest rates and prices stand is critical when looking for investment properties. Don’t try to force a purchase if the market conditions aren’t right. You’re better off waiting it out until a property comes along that fits within your plan. You don’t want to get into a situation where your mortgage payment won’t be covered by what you can charge in monthly rent.  

• Know the Financials 

There are a few key metrics that investors use when evaluating a property as a good investment. They can help weed out the properties that aren’t worth your time so you can focus on the ones that could turn you a healthy profit. When analyzing investment properties, consider the following:

The 1% Rule: Can the property be rented out for 1% of the purchase price every month? (i.e., if the property costs $250,000 to purchase, you’d need to rent it out for $2,500/month) If the property meets this standard, it could be a good investment. Investors often use this metric as the minimum standard for qualifying a property.

Average Rent for Nearby Rentals: Maximizing the amount of rent you charge will significantly impact the profitability of your investment property. To make sure you’re not leaving money on the table, check out the competition in your market and see what they’re charging for their properties. Again, it’s essential to compare with similar properties to get an idea of what you can charge. 

The 50% Rule: Another vital metric to measure is the amount of expenses your rental property will have. Managing your costs is just as important as maximizing your monthly rental fee. The 50% rule can help you estimate expenses. It assumes that 50% of the gross income from your rental will go towards costs to operate the property. This metric can help you understand how much revenue will be left over for you after you’ve paid the expenses.

• Stay Away from Fixer-Uppers 

For the newer investor, taking on a fixer-upper is a major project that often costs more time and money than they can afford. So if you come across a property that requires big-ticket renovations, you may want to leave those to more experienced investors who have the resources and connections to do the job correctly.

Your first few rental properties should pretty much be turn-key so you can get them on the market as soon as possible. Minimizing vacancy time and initial costs make a significant impact on your return on investment (ROI). Suppose a property only requires minor cosmetic improvements like paint and new carpet. In that case, it could be a good opportunity for newer investors to get the property on the market quickly and add some value in the process. 

• Hire a Property Management Company 

If you’re a newer investor, it’s important to remember that purchasing a property is only the first step in the rental property business. After that, the real work starts! Many parts of the business continually need to be managed to ensure the property is functioning correctly, your tenants are happy, and you’re making money. 

If you choose to take it all on yourself, it can be overwhelming. As a result, many rental investors choose to hire a property management company that will handle it all for them, especially if they have multiple properties. Check out what a property management company can oversee for you:

• Marketing your rental property
• Tenant screening and selection
• Manage regular property maintenance and tenant communication
• Rent collection
• Dealing with late payments or defaulting tenants
• Bookkeeping and invoice management

There are a lot of benefits to having a property management company oversee your property. First, they’ll charge you a percentage of monthly rent for their service, usually ranging from 5% on the low end to 12% on the high end. It’s worth noting that hiring a company to manage your property for you will make it a genuinely passive income source.

Final Thoughts 

There are a lot of factors to consider if you want to get started with rental property investment. Although it may seem overwhelming at first, you can navigate the process by sticking to the recommendations in this article. If you focus on maximizing the amount you can charge for rent and minimize your expenses and vacancy time, you’re well on your way to profit from your rental property. 

And remember, if you’re planning on investing in multiple properties or don’t want to manage the day-to-day responsibilities of a rental investor, save yourself the headache and consider hiring a property management company instead. 

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The financial benefits have been introduced in the Atmanirbhar Bharat 3.0 Package*. The Finance Minister has also announced an additional outlay of ₹18,000 crores for an urban housing scheme** so that it leads to the completion of real estate projects, job creation, and economic development. It is time for the homebuyers to gain financial benefits in the form of discounted properties, lower interest rates on housing loans, change in differential rates, and tax benefits.

Win-Win situation for Developers and Homebuyers

The reforms in the real estate sector during the pandemic are a welcome move as it was a much-needed relief in the real estate industry. The RBI’s decision to cut the Repo rates meant that the home loan lending rates were the lowest in the last two decades. With these reforms, the developers can get faster conversions and clear up the unsold inventory. Similarly, it offers affordability, income tax gains, lower stamp duty, and interest rates for homebuyers.

Benefits for Homebuyers under the Atmanirbhar Bharat 3.0 Package

1. Change in Differential Rates –

The Government of India is focusing on increasing consumer spending to boost the economy post the pandemic. The Finance Minister, Nirmala Sitharaman, did announce a stimulus package of ₹2.65 lakh crore under Atmanirbhar Bharat 3.0. The package had much to cheer for the homebuyers. As per the latest package, the central government has increased the differential rate between the agreement value and the circle rate from 10% to 20% to sell residential units up to ₹2 crores. This move will be applicable till 30th June 2021, which would be very beneficial for both homebuyers and builders.

Circle rate is the minimum rate approved by the government at which a property should be registered, and then the buyers pay the stamp duty on that value. The circle rate varies from circle to circle, i.e., area-wise. Even if the property rate is lower than the circle rate, the buyer has to pay the stamp duty on that rate. It is used to calculate income tax payable on capital gains concerning with sale/purchase of houses. These rules have been made to ensure that individuals do not get a chance to evade taxes. In the pre-Covid-19 times, the government allowed a concession of 10% below the circle rate, but now to boost the demand, the government offers a discount of 20%.

The objective of the announcement was to boost the demand among affordable buyers in mid segments. With the change in differential rate, the government is offering a financial benefit to the homebuyers. Even for the developers, it is good news as they can clear their unsold homes.

2. Updates in PMAY–

The Pradhan Mantri Awas Yojna (PMAY) has made steady progress since its launch. With an additional outlay of ₹18,000 crores in PMAY, “housing for all” can be achieved by 2022. Under this scheme, homebuyers can buy affordable homes in different states of India. The scheme focuses on bridging the housing gap in the country. As per the latest data of August 2020, a total of 1 crore homes have already been allotted in the country. More homes will lead to more employment opportunities.

3. Lower Stamp duty– 

Higher stamp duty has always been discouraging for the buyers. It is challenging for developers to find buyers with lower property rates due to high stamp duty. Now buyers can purchase a property under Section 56(2)(x) of the IT Act*** to showing relief of up to 20%.

4. Tax Benefits– 

Tax benefits have always been lucrative for homebuyers. First-time home buyers are already getting the benefit of interest deduction that lowers their tax liability. Another tax benefit is related to the difference in circle rate. For example, consider you are buying a home for  ₹70 lakh; however, as per the circle rate, the property’s rate is deemed to be ₹80 lakh. As per the Income-tax rule, if the quality exceeds 10%, then the developer would calculate the profit from the value of  ₹80 lakh.

The difference of ₹10 lakh will be shown as “Income from other sources” and pay the tax accordingly. The fresh announcement says that the difference has been increased up to 20% to avail of the tax benefits. Now this difference of  ₹10 lakh will not be shown as an income of the homebuyer.

The reforms of the package focus on the bigger picture. The much-needed reforms in the infrastructure and real estate sector would surely benefit the homebuyers and developers. Both the circle rate and tax benefits cater to the need of buyers and developers. The above-given reforms have been successful in persuading buyers to invest in a home. With a rise in work from home jobs, individuals are focusing on buying their own homes and investing for the long term. The COVID-19 pandemic has taught individuals the importance of having a home. Hence, first-time homebuyers are more inclined to purchase a new home in the present scenario.

The bigger picture focuses on a rise in consumer spending as with the home, you also buy furniture, home furnishing items, appliances, etc. Therefore, all the factors combined lead to the economic development of the country.

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As there is intense competition in the market for home loan, companies need to spend immensely on branding and promotional activities like advertisements on television, print media, digital marketing campaigns. Many housing finance companies do tie-ups with real estate developers for distributing home loans to their customers. As the core banking organizations have their own set of customers the NBFC mostly need to depend on leads generated through various sources like real-estate sites, digital marketing leads for generating business. There are some incentives offered to customers as well as real estate developers if the customer opts for home loans with the specific firms tied up with real estate companies.

Know your customer [KYC]:

The banks and the financial institutions need to verify the customers background and profile in order to process the loan as the background verification check of the customer. The bank asks for documents like Pan card, aadhar card, salary slips of past three months, ITR returns [income tax] for last 3 years. Additional to that based on pan number of the applicant CIBIL score rated by Crisil company is taken into consideration which helps the financial institutions to know whether the client has defaulted on any credits previously like credit card bills, Emi’s taken from some other institution or any other post-paid bills.etc. The CIBIL score of an individual is rated on 1000 basis points. The higher the cibil score more are the chances the loan of the customer may get approved. Hence even customers need to assure that they pay bills on time and maintain a good cibil score. In case of non-payment of dues the financial services firms/banks have the authority to seal the assets of the customers by issuing a legal notice to the clients.

Trend of the Home loans rates:

As the interest rates on fixed deposits are decreasing year on year the lending rates are also decreasing for customers opting for loans. The interest rates on an average on fixed deposits in India came down from 8-8.5% in 2012-13 to an interest rates of 5-5.50% in the year 2020.While the borrowing rates of the banks as well as the financial institutions has come down to as low as 6.75% from 10.50%.Banks also give 25 basis or else 50 basis points i.e:0.50% concession to women for loans.

Following are the interest rates of leading financial institutions:

The major benefits of taking loans by the customers:

[1] Customers don’t have to end up their savings for buying properties, while they can use their savings for their other necessities like basic grocery & other essential goods, children’s education, daily routine expenses like electricity bills, maintenance, fuel &  transport expenses.

[2] Customers can buy their future dream homes at an early stage rather than waiting for the savings to get accumulated.

[3] Depending on the age and income criteria people get time to repay their EMI for upto next 30 years for the loan they have taken.

[4] And foremost benefit is the customers can opt for income tax exemption on Emi’s thus helping individuals save money on tax liability.

Demands and trends for home loans:

For a country like India with a population of 1.3 billion people and an ever increasing population the demand for housing is about to grow. The migration from rural to urban cities in search of jobs is another factor which leads to increase in demand for housing. Even the trend of nuclear families is growing as people prefer to live independently and need privacy. The Government of India has launched a scheme called “Pradhan mantri awas yojana- a housing for all scheme” in which a first time buyer of house can opt for an interest benefit of Rs.2.67 lacks. Also banks have come up with special interest benefits for women home-buyers in order to increase the share of women owing their house on their own name. Out of the total flat buyers a majority of people opt for loans for buying, renovating & construction of houses. Thus the market for home loans stood at Rs.11.5 trillion as on march,2019. Thus due to the ever increasing demand for housing will lead to ever increasing demand for home loans in India. The more of a penetration is expected to happen amongst top 8 cities majorly Mumbai, Delhi Ncr, Chennai, Kolkata, Bangalore, Hyderabad, Pune & Ahmadabad  as these cities lead in migration due to plenty of opportunities. Hence most of the new emerging or startup banks/finance companies focus more on gaining market share in the top 6 cities or majorly top 8 as these cities have got huge potential market. The tier 2 cities of Nagpur, Jaipur, Lucknow, Coimbatore, Mangalore, Raipur.etc. are amongst the emerging markets in India. While the tier 3,4 & rural still remain under-penetrated by most of the private firms but have strong hoard of the Public sector banks in lending.

The Fluctuations in Home loan finance markets:

Due to pandemic Covid-19 which began in India since March,2020 the real estate market was totally shut down thus leading to downtrend in buying homes indirectly affecting demand for home-loans. Because of the pandemic, markets were shut & had immense job losses due to shutdown thus reducing the buying capacity of the public. Demonetization was  another set-back for real estate sector which indeed affected demand for housing as well as reduction in prices of properties as even home loan buyers also prefer to pay some amount exempted from loans in cash. With the cases of Covid reducing and reduction in stamp duty by government is again increasing the demand for housing. As affordability remains a major factor in buying decision amongst people the demand is extremely volatile in case of buying properties as well as opting for loans. Even during crisis defaulters amongst loans increases amongst existing customers as they are left with no income due to market closures & Job losses.

At Finance Zone, our mission is to help you get ahead with your finances. We know that money isn’t everything and some people have more than others. We believe it’s not what you have, but what you do with it. We are one of the best write for us finance

Before applying for a second mortgage*, a borrower must be aware of the eligibility criteria. The credit score requirement for a second housing loan is higher than the first home. The interest rates for a second home mortgage are lower than rental or investment property loans; however, the home loan interest rates are higher than the first home mortgage.

A benefit of having a second mortgage is that the borrower may cover his monthly mortgage payments by renting out their second/vacation home. Even if it is rented, it would be still be considered a vacation residence.

Requirements to Apply for Second Home Mortgage

The requirements for a second home mortgage are more stringent than a first home. As per the two government agencies that fix the loan conforming guidelines – Fannie Mae and Freddie Mac**, the requirements include negotiable and non-negotiable terms.

1. The non-negotiable requirement is that you need to at least pay a 10% down payment.

Flexible requirements

3. A borrower with a credit score of 680 or more can get approval for a second home loan.
4. If you have a credit score of 640-679, then you can get approval for a mortgage with a down payment of 25% or more.
5.   The acceptable range for debt to income ratio is up to 45%.

An ideal borrower meets all the above-given conditions. But if in one of the requirements, your chances are low. You can cover it up with other more vital points. For example, if you have a lower credit score of 640, you can still get a mortgage with a higher down payment equal to or more than 25%.

Second Property Requirements

Apart from the above individual requirements, the property itself has to meet specific guidelines set by the agencies –

1. The owner should occupy the second home during the year for a reasonable time.
2. It should be a one-unit home. It should not be a duplex or triplex.
3. It should belong solely to the buyer.
4. It should not be managed by an operating company in terms of occupancy.
5. The property should be suitable for use around the year.

The first rule is very significant. It explains that you cannot finance a second home mortgage if the property is rented out full-time. To be eligible for a mortgage, the owner must reside in the second home for some time during the year. This suggests that your second home must be treated as a recreational residence.

What are the best ways to Finance a Second Home Mortgage?

To buy a second home, the best way is to finance your new property through the use of home equity. Most families have the largest available asset as home equity. As borrowers offer high-quality collateral to lenders, they get access to lower interest rates with home equity loans, reverse mortgages, cash-out refinancing, etc.

Home Equity Financing 

It is a standard mortgage loan that allows borrowers to access a large amount of cash for a home purchase at a lower rate of interest. This form of home equity financing is one of the most popular and easiest ways to finance your second home. Being a secured form of financing, lenders do not interfere with how cash proceeds are used after disbursement.

Types of home equity financing

Home equity loans– A borrower can get money against the equity created with your home. The repayments are made in equal monthly installments over time, similar to a standard mortgage loan for a first home. The borrower gets a lump-sum payout at a fixed rate of interest for the housing loan duration. As the rate of interest is fixed, the borrower can plan to repay with discipline. With home equity loans, borrowers can get a large amount of cash to buy a second home at lower interest rates. A borrower must ensure to avoid any default in payments that would adversely impact their credit score.Home Equity Line of Credit- (HELOC)- A HELOC sounds similar to home equity loans. A HELOC works like a credit card. The borrower can withdraw funds whenever needed. The benefit of a HELOC is that you are bound to pay interest only when you withdraw funds..

The two important terms for a HELOC is draw and repayment period. The credit limit set by the lender is based on your credibility. You can withdraw funds as much you can within the limit. During the repayment period, you have to pay the interest charges for the funds utilized. The benefit is that the borrower has to pay only the interest charges and not the principal. Other benefits of HELOC are flexibility in use, quick source of funding, tax concessions, etc.

Reverse Mortgage

Another option to finance a second home is through a reverse mortgage. A reverse mortgage is available when you are 62 years old or more. Such loans are government-sponsored loans allowing borrowers to avail funds without requiring repayment until you leave or sell your home. A reverse mortgage is an attractive loan option for senior citizens wanting to buy a second home without giving away their savings.

Under this loan option, the interest accrues until it remains outstanding. The balance of payments keeps on increasing if the prices are not made. After the borrower’s death, the legal heirs are responsible for the exceptional loan if they wish to possess the asset. If the balance outstanding is high, lenders may force the legal heirs to sell the property.

Cash-out Refinance

Another way of arranging funds is cash-out refinance. Under this, you refinance your mortgage available at lower rates of interest than your current interest rate. The loan is against the difference between the equity and outstanding loan of your home. It increases your monthly payments as a larger amount is now exceptional.  

Loan Assumption

Another exciting way to finance your second home is to find out a seller that already holds an FHA/VA loan. This means that you can take over the mortgage payments from the seller of the property. It is only possible when the seller has an outstanding FHA or VA loan at a lower rate of interest. If you are lucky, you can identify a seller wishing to sell his/her vacation home with an outstanding government-backed mortgage.

At Finance Zone, our mission is to help you get ahead with your finances. We know that money isn’t everything and some people have more than others. We believe it’s not what you have, but what you do with it. We are one of the best write for us finance

What you should know about the P&L account;

Profit and loss account is not just straight addition and subtraction of numbers. There are lots of things that come in this tabulation. let’s take a look at some basic things you should know:

1. Revenue

This is the money made from the sales of goods or from services rendered by the business during the period in which the P&L account is made. It is tabulated in a table of its own and summed.

2. Expenditures

There are the costs incurred when acquiring or manufacturing your products/ when rendering your services. This involves direct costs only. That is the costs that are related to your product or service.

3. Operating expenses

Operating expenses are expenses incurred as you carry out your business. This can include utility bills, salaries, rent, and adverts, and so on.
Other tabulations include:

Gross Profit:

This is often calculated by subtracting direct costs from revenue.

A positive gross profit indicates that the business is making gains.

The P&L account is a very important tool for every business. It can be used to attract investors for businesses. It shows the investors that the business can make profits and is worth investing their money. For express calculations of your business’ profit and loss, and accountants Conwy can help you solve them.
It can also be used to make projections of the future financial strength of the business.

Conclusion

If you are not skilled at calculations, using programs that are made for these calculations or hiring a professional is best. Keep in mind that if you’re anywhere near Conwy and North Wales, accountants North Wales are always available to help you improve the success and growth of your business.

Online installment loans have a better acceptance rate

There can be nothing more demotivating than looking for loans when you need to pay your employees and you face loan rejection on all fronts. A lot of businessmen face rejection due to their credit history. Banks and most other loan agencies usually reject loan requests by people who have a bad credit score. To avoid such circumstances businessmen started to turn towards online installment loans. The deal with these loans is that they work with private lenders who are not bound by protocols to follow for giving out loans. To know the working of these loans in detail one can check direct lenders for installment loans fast transactions and exactly how they avoid checking the credit score. Since the credit history is no longer a major factor here the acceptance rate for these loans is way higher than others. This makes installment loans a very safe and dependable source of financial support in times of need for businessmen.

Mortgages are a thing of the past

Mortgages are an age-old tradition where a lender gives the borrower a sum of money and takes some part of the borrower’s property as an assurance of getting the money back. This tradition has been carried down and is still being used by most loan institutions. This method is not considered to be the best and is certainly not a good way of promoting company-customer relations. Other than that, considering that people take a loan when they are financially drained, taking control of their property will only put them under more pressure. Due to such reasons new-age companies, especially the ones providing loans like online installment loans, do not ask for any type of mortgage. The whole transaction of sending money to the borrower is done without the inclusion of any type of collateral.

Fastest Service

Businessmen need to get quick results on all fronts to be able to run their business successfully. Even while applying for a loan they would want all processes to be up to speed and would want the money to come to them as fast as possible. Without financial aid reaching businessmen on time they would end up stalling important dealings including procurement of raw materials, paying various vendors, clearing salaries of employees and so on. When comparing the speed of processing, online installment loans have come out to be the fastest. The application is filled up online and the money is sent to the businessmen within 24 hours of the application submission. 

Versatility 

Versatility is a trait in loans that are highly desired by a lot of businessmen. Since businesses are forever changing and mostly quite unpredictable, the business owners need to have money for all sorts of dues. If by chance the owner runs out of money and takes a loan for some reason, he/she will only be able to use the loan for that reason. If an important payment comes up suddenly the businessman won’t be able to use the money from the loan for this new hurdle. He would have to apply for another loan which would cause more delays. To counter this one can apply for an online payday loan as it is highly versatile. It does not matter what reason one provides for the loan and the borrower will have full control over the money unlike in other loans. 

Borrow only the amount needed

A lot of times with almost every loan a business owner has to forcefully borrow more than needed. This happens because most companies do not give out loans of small amounts as they do not make enough profit. With online installment loans in the picture, businessmen don’t have to worry about such things. Installment loans have limits as low as $100. This way they don’t make anyone borrow more money than they actually need. 

Equality of Interest Rates

A lot of companies resorted to unequal interest rate allocations based on the credit history of the borrower. If the borrower had a good credit score then the interest rate would be lower than average and if the credit history was not so good then the rate would be higher than average. This obviously sparked a lot of outrage amongst all the public including businessmen. They started turning to companies that provided loans without any biased dealings. Online installment loans came into the view as they do not make any distinctions while allocating interest rates to different customers.

There are many other benefits that can be cited for the use of installment loans for business dealings, especially business running costs. The various features of this loan, as discussed, aid in the smoother and more efficient running of businesses. Without loans like these available in the market the growth of businessmen and businesses alike would not have been the same. The growth rate would have been much slower and this line as a career path would not be as glorified as it is.

While there are many reasons and possibilities why businesses fail, often the one that tops the list is lack of differentiation. 

While we’re on the topic, 58 percent of consumers are not brand loyal. Because of that, you are constantly in competition with other businesses in your industry. That’s why in today’s hyper-competitive market, being unique and standing out is as important as ever.

While it may seem like a relatively understandable concept, far too many businesses are not putting it into practice. 

If your business lacks some personality and you don’t know how to change that, you’re in the right place. Here are five concepts that you can use to help make your business unique and stand out from the competition:

1.) Provide Exceptional Service

Plenty of businesses claim that their service is what makes them different. But as the old saying goes, “talk is cheap.” So, if you want to talk the talk, you need to be able to walk the walk. You have to deliver exceptional service that – you can guarantee – your customers can’t get elsewhere.

In today’s ultra-competitive business landscape, losing customers over poor service is unacceptable. Nowadays, customers are now smarter and have more options than they have before. So, if you want to keep your business afloat, you need to give them all the right reasons to stay. It all starts with exceptional service. 

Respond to inquiries and concerns as soon as possible, acknowledge criticism and comments, don’t make promises you can’t keep, and offer perks and unique benefits that they can get when they acquire your services.  

It’s all about coming up with a way to offer extraordinary services that go beyond what the competition is doing. 

2.) Address Customer Pain Points

This one may sound like marketing 101, but you’ll be surprised at how many businesses do not mention it. If you want to attract and win customers over, the best way to do that is to provide a solution that will alleviate their pain.

For example, let’s say you’re running a dental clinic. The number one pain point that you need to address is the perception of people who think that going to the dentist is scary and uncomfortable. The smell, the lights, and the sound and feel of drills don’t make for a pleasant experience. That’s why your main challenge is to make people think a different way about going to your dental clinic.

You can go for a spa-like atmosphere. People feel good and relaxed when they’re in the spa center. By combining both concepts, you’re fulfilling your role as a dental clinic while easing the burden that your patients would feel whenever they step into your establishment.

You can offer customers refreshments while getting a massage while they wait for their appointment. While they’re getting treated, you can provide them with noise-canceling headphones so they won’t have to hear disturbing dental tools. That way, once they enter your office, they will feel as comfortable as ever.

There are a ton of ways you can address your customers’ pain points. The first thing you need to do is determine what that is and work your way from there.

3.) Do Business Differently

This one is a simple concept that’s quite challenging to execute. Being unique is harder than doing what others are doing. For the latter, you can simply scout at what they are doing and replicate it. But if you want to stand out and gain an influx of customers, you need to change this approach.

Instead of copying what others are doing, you should look for ways to do it differently.  Scouting is still essential, but not to imitate what others are already doing. Instead, you should use that information to do business differently than what they are doing.

Let’s say you’re running a property management firm. If you scout out your competitors, you’ll know that most property management firms have an in-house maintenance team for making repairs on properties. While this sounds like a great idea, there are also problems with this type of approach.

For one, the work is often mediocre, not warrantied, and clients are overcharged for the work in most cases. Since property management companies earn money on repairs, they are incentivized to get the job done quickly and cheaply. Second, the payment options are limited, customers are having a hard time choosing their preferred method of payment.

You already know that it’s a problematic approach, so don’t do it. Instead, you can partner with third-party contractors. That way, your clients will be able to choose their own contractors. The same goes to your payment options, you should automate your business billing so your customers will also have options on their payment method. 

Here are some of the best financial software you can use to automate your billing:

1. ChargeBee
2. ReliaBills
3. Recurly
4. InvoiceASAP
5. ChargeOver

The bottom line of this tip is to always look for ways on how you can innovate from contractors to billing, as long as your customers are happy. Remember that just because you’re doing something different doesn’t mean you’re the more attractive one. It should be unique, effective, and beneficial all at the same time.

4.) Branding That Stands Out

If you want to stand out, you also need to find ways to improve your branding. Again, it all comes back to doing business differently. You also need to have a different approach with your branding. 

The first impressions of a brand are formed within the first ten seconds of a customer finding out about it. That’s why you must get your branding right. Recognition requires you to stand out from your competitors. Just look at Royal Dutch Shell, one of the world’s largest oil and gas companies. Their brand logo is a graphic representation of a pecten shell. What does that have to do with oil and gasoline? Nothing. But that’s the point. It separates their brand from the others and make them unique.

Another critical factor in branding is color. Sticking with a consistent branding color and font will help improve brand recognition. Think of Coca Cola’s vibrant red or McDonald’s bright yellow arches. 

90 percent of purchasing decisions are made subconsciously. That’s why brand recognition matters a lot. So, don’t skimp on this one.

5.) Build a Strong Online Presence

In today’s internet-driven world, consumers rely on the digital space for all of their inquiries, including finding the right business. In fact, 97 percent of consumers find local businesses online first. 

That’s quite different from the traditional way where we just stroll around town or ask people for the best recommendations. Everything can now be done online with a tap of their fingers or a click of a button.

Because of this, building a solid online presence is absolutely crucial to business success. There are many resources on how you can improve your online presence, so we’ll keep this one brief. 

Just remember that if you have a weak online presence, you are losing the business battle. Here’s a list of the main areas where your brand needs to focus on building a strong online presence:

• Local SEO – local search engine optimization; involves improving the visibility of a website or web page in a search engine’s organic or unpaid search results.
• VEO – voice engine optimization, or voice-based search engine optimization. The process of optimizing content to give it the best chance of becoming the primary response in voice searches.
• Local Business Listings – involves online portfolios containing information about you and your business.
• Social Media Marketing – the use of various social media platforms to promote a company’s products or services.
• Content Creation – the creation of a written or graphic representation of information to digital media; intended for a specific audience in specific contexts.

If you haven’t tapped into the realms of online marketing, all of these terms may sound like jargon to you. That’s why we highly suggest that you spend more time establishing or improving your online presence so that you can reach as many customers as you can. 

In addition, once you’ve established a solid online presence, you can also make use of all the tips. This time, it’s more convenient for both you and your customers.

 Wrapping Up

Being unique and standing out from your competitors is not an easy feat. It involves patience, perseverance, and a lot of hard work. Just remember that it’s less about what your competitors are doing and more about understanding your target audience and appealing to their needs. Use this as a guide to establishing a solid business strategy. 

Author Bio:

Ossian Rey Muscad is a Digital Marketing Consultant in ReliaBills that helps businesses get paid on time. Loves milk and small chat.