By Charlie Brown

Real estate is a promising industrial sector. There can be a few market fluctuations, but it is a flourishing domain for investors to invest. Today, several opportunity zones can support lucrative retail and residential projects. A smart private real estate investment firm analyzes the future scopes of opportunity zones and invests accordingly. To know more about it, you can get in touch with Ricardo Rubiano . However, there are several advantages of real estate investments. The important ones are as follows:

1. It is simple to understand

The moment you start investing , it might seem slightly perplexing having a holistic view of the overall project. Several investment types depend on complicated algorithms and abstract concepts that can be somewhat challenging to grasp. However, when it comes to real estate, it includes buying physical properties. Also, the majority of people know about the nature of the real estate. Furthermore, making real estate investments is simpler to understand than difficult investments which get developed by the ace mathematicians.

2. There’s a scope to enhance real estate

Right after you purchase a stock, you keep it on hold for a while and then sell it for some profit. The stock success is based on company management as well as their corporate success, which you can’t control. Private real estate investments are qualitatively different.  You can exercise your control here. Even though it’s difficult to control the economic and demographic changes, you have a chance to manage several aspects of property management. If you properly maintain your real estate portfolio, you can enhance the entire value of your real estate investment and generate wealth.

3. It does not promote inflation

Simply put, real estate responds adequately to inflation. When inflation increases, the housing rents and values increase. Usually, real estate can be considered as a favorable hedge against inflation. The rental properties that get released annually are efficient. Hence, real estate investments are considered one of the ideal ways to avert an investment portfolio against inflation.

4. The real estate properties can work when the market is ineffective  (more…)

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As of January 1st, 2018, the Canadian federal government has introduced tougher standards on mortgage lending. Along with mandatory stress tests, these new standards reduce the amortization period for new mortgages from 30 years to 25 years, and reduce the amount of financing that banks can provide — from 85 percent of the home’s total value to 80 percent.

These new standards make lending less risky for banks, but they’ve also made it a lot harder for some Canadians to qualify for bank mortgages. In Ontario, many people are turning to non-bank lenders. According to a recent report, the number of mortgages refinanced through alternative lenders in the Toronto area rose by 67 percent between 2016 and 2018.

How Hard is It to Get Approved by a Bank?

Banks are required to put mortgage applicants through a stress test. To do this, the bank collects information about your total household income, the value of your existing assets, and any major outstanding debts that you have. The stress test determines whether you can reasonably afford a mortgage by applying your income and assets to a hypothetical mortgage with a similar structure to the one you applied for.

The bank will also use your household income and monthly expenses to calculate your gross and total debt service ratios. A debt service ratio shows how much of your total income is available to put toward mortgage payments. Your maximum gross debt service (that is, the gross amount you’re paying on a monthly basis) shouldn’t be more than 32 percent of your total income.

While stress tests are good for ensuring that you can afford your mortgage in the long term, they also project a worst-case scenario with a high interest rate. Under the tighter regulations, a stress test might disqualify you for the mortgage you’ve applied for, even if you can reasonably afford it at its current interest. Since a shorter amortization period means higher monthly payments, your gross debt service might have slipped above that 32 percent threshold if your income hasn’t changed in the past few years.

Banks may turn you down if you have bad credit, or if the property you want to mortgage doesn’t meet certain subjective standards. Getting approved for a mortgage can also be tough if you have non-T4 income — for example, if you run a business or are self-employed.


What Are the Alternatives?

The government regulations introduced in 2018 only apply to banks. While other credit lenders can utilize these regulations, they aren’t legally required to. Because of this, if you were turned away from a bank, there’s a good chance that you can still get approved for a mortgage loan through an alternative lender.

Alternative lenders are a good option if you need short-term refinancing to cover living expenses or renovation costs; if you’re looking for a second mortgage; or if you need a bad credit mortgage loan.

Because alternative mortgage lenders deal with riskier loans, their interest rates tend to be higher. But if you can’t get approved by a bank, paying higher interest rates over a shorter period may be a viable tradeoff.


Private Lenders

A private lender can be a small investment firm or an individual. Private lenders can offer short-term private loans, usually with a term between 1 and 3 years.

Because the individual mortgage loans are smaller, private lenders can afford a bit more risk. They often look at the suitability of the property being mortgaged before looking into your personal finances, something that can be advantageous if you have outstanding debts or uncertain income. Properties that aren’t eligible for bank mortgages, like small condos, can be mortgaged through alternative lenders.

Bridge Loans

If your long-term goal is still to qualify for a bank mortgage, private lenders can also offer short-term loans called bridge loans. These are especially useful if you have bad credit and are in the process of buying a home. A bridge loan is a small, temporary loan that can be taken out in the event that your purchase of a new home closes before you’ve managed to sell your old one. This loan “bridges” the gap between the price of a mortgage on a new home, and the sale price of the old home.


Research Your Lenders

When discussing alternative mortgage options, it’s a good idea to do some research and make sure that your lender is reputable. Look for reviews and compare rates with similar lenders. It is important to fully understand the terms of your mortgage commitment and ideally have a lawyer explain all the documents to you. Make sure you plan for the future, as well. If you are unable to afford a high-rate alternative mortgage in the long term, it may be best to sell the property before the lender can. A good lender will listen to your concerns and will be able to customize the mortgage to meet your unique needs.

By Charlie Brown

A certification program adds value to your overall profile while helping you to develop a specific skill set based on standardized tests. It shows the level of your excellence, commitment, and technical know-how concerning a particular platform. As soon as you receive a certificate, you can identify yourself with other individuals having the same demonstrated skills. It reflects not only on your understanding of the field but also on how serious you are about the choice of your domain. The benefits of certifications are multifarious for sure.

Increases your credibility

Getting a certification from a recognized vendor can lead to professional development. Even your existing employer may view it as your dedication and motivation towards the work that you do.

Keeps you abreast of the new developments

A specialized certificate course will help you learn about the best industry practices, modern technologies, and much more. It can make you an expert in the field of specialization you choose for yourself.

Ensures personal growth

Earning a certificate can be equally personally satisfying as you choose yourself for this to get rewarded for the efforts you make. With that, when professional acknowledgment happens, it works like the icing on the cake. However, keeping the tangible side of the benefit aside, these courses need a lot of self-discipline and motivation. Hence, if you complete a professional course, it means you were successful in upgrading yourself at the personal level too.

Gives you an edge during hiring

Animation and graphics designing has become a competitive field with thousands of applications reaching it every day. To get through for the position of an animator, you need to demonstrate a skill set that other candidates don’t have. And by chance, if someone applies for the same post as you have with similar skills but lack certification, your chances of getting that job will become brighter. (more…)

By Charlie Brown

Earning enough money is essential to lead a comfortable life. However, it is possible that at times expenses may outdo income and therefore one has to keep a tab on their expenditure. Insufficient income, shortage of disposable money and cash flow mismatch lead to enormous stress in an individual’s life.

Everyone wants a healthy financial condition. The point, however, is to recognize money as a tool. Money means different thing to different people. Some may see them as freedom, for others, it may be a cause of despair. For some, it can mean power or significance or high social standing in the society as well.

Life can be more straightforward if one has good money management skills. Some of these skills can be best mastered from taking the help of a financial planner.

Budget your expense

This is a basic requirement when keeping track of your income and expenses. While this may be boring for a lot of people, it is crucial if one is terrible in handling money. It only takes a few hours to list out all the expenses by using a spreadsheet or an app.

Budgeting makes sure that one lives within one’s means. It also helps one to understand their spending pattern and how it helps in the decision-making process in rationalizing certain avoidable expenses.

Track your spending

Small unbudgeted spending adds up to quite a sizable amount, and by the time one realizes it, the monthly budget has already gone haywire. Making only the budget and not adhering to it would make the entire exercise useless. One needs to update regularly as one pays bills and spends on other expenses. (more…)