The Essential Guide To Investing In A Pandemic Era

If you are fortunate enough to have a nest egg in the bank, you might be keen for it to work more aggressively for you.

In the current unstable economic climate caused by the coronavirus pandemic, people are more cautious with their finances.

You can still embark on a lower risk portfolio for your investments to help you outperform what your savings would accrue if left languishing in a bank account.

While you might be concerned about keeping your job and the value of the property market, you don’t have to put your investments on hold. This would be to the detriment of your financial future.

Being brave and bold is integral to sound investing. While bitcoin is not ever going to make an appearance in your portfolio, there could be room for lower-risk investments that will enable you to make money over the long-term.

Short-term quick wins are always riskier, so forget about these for now. Instead, focus on these sorts of investment opportunities to help you ride out this pandemic.

Bricks And Mortar

Investing in property is still seen as safe as houses (excuse the pun.) By purchasing the worst house on the best street and by investigating property auctions, you could pick up a bargain that could see you outperforming the property market.

Look to purchase in an area that is already well-established and desirable. Consider the sort of investment you want.

Whereas in the past, you would have been eager to purchase cheaply, undertake some renovations, and sell up, all within three months, this flipping style short-term investment can be tricky to maintain when the housing market is so volatile.

With the pandemic showing no signs of abating, potential buyers are cautious when it comes to parting with their cash. They would rather sit tight and ride out the global health crisis, waiting for the housing market to stabilize.

However, buying to let is a great opportunity to purchase a dwelling, make it habitable and rent it to tenants. Ensure that you do your sums.

If you can cover your home loan monthly repayment with the rent that you charge, your bricks and mortar investment will pay for itself.

You can keep the property for a decade or more, before reassessing and possibly selling up releasing the equity that you have built up in your asset.

Your Own Business

While you might not be keen to give up your full-time role altogether, the coronavirus pandemic may have given you time to reflect on your professional goals.

Some people have a burning desire to begin their own money-making side hustle. Think about what you are passionate about and think about how you can turn this hobby into a business.

If you are eager to invest in yourself and you want to set up a business purchasing furniture, upcycling and delivering it across the country, you need to think about protecting yourself legally.

When you are out on the road, you need to ensure that your vehicle insurance covers trips for business.

Ensure that you have the number of a lawyer for car accident injuries, just in case the worst should happen. If you end up expanding and have a fleet of vehicles, this is crucial.

You might want to make terrariums for local community groups, design custom tee shirts for millennials, or you might want to sell your art.

Invest in this and you could have a small side hustle that brings in extra income every month.

Wine

If you want a hands-off investment that requires very little input on your part, investing in your favorite tipple could be ideal.

Think of wine in the same way as antiques or art. The older and more scarce it gets, the more desirable and valuable that it becomes.

You can purchase a dozen bottles of rioja from a vintage year. Store it in your cellar or pay for a professional wine merchant to store it and sit on it for a few years.

You can monitor the wine market in the same way as Forex, and consider when best to sell. Think of wine as a more interesting bank account to tie up your cash.

Low-risk investments are the way to go in a pandemic world. You need to be cautious but not risk-averse.

Follow these inspirational ideas to revitalize your investment portfolio and help your money work aggressively for you. Maintain a balance in your investment portfolio and you will still have the capacity to prepare for your financial future.

Buying Investment Property: Istanbul

As a city, Istanbul is vibrant and bustling and is a magnet for people from all over the world. Unsurprisingly, then, the property market in this location is equally as buoyant. Read on and find out more about the advantages of buying Istanbul property. 

A number of factors combine to make an investment in Istanbul property a sound and realistic plan for people who may not even have considered doing something like this before. The tourism industry here is booming with millions of visitors a year, and, therefore, there is great potential to invest in apartments and villas to lease them out to visitors. Select the right location within the city for your purchase, and you’re almost guaranteed to receive a high return on your outlay. 

Other factors combine to increase the chances of that too, from the low price of property here to the competing demand from a rising population. More than that, the economy is also sound: many foreign investors look to this city because property laws are favorable and the rate of unemployment is low. 

Compared to other cities in Europe where property prices are high, there are many bargains to be had in Istanbul property as well. With the purchase of some apartments costing as little as $70,000, the market is open, and your return on investment will be good. More than that, because demand is continually high for both long and short term lets, you won’t be struggling for tenants or even buyers if you choose to sell in the future. With lenders offering deals as good as a home loan variable rate under 2%, this can be a financially viable solution for a lot of investors. 

An Introduction To Investing In Istanbul Property

There are many benefits that are associated with investing in property in this area, including high returns on investment, a booming tourist industry, and much more. Continue reading to discover more about the ins and outs of investing in Istanbul property.

There is no denying that investing in Istanbul property is a wise decision, but this does not mean that you should rush into the process or that you can afford to take shortcuts when conducting research. There are plenty of properties in the area, and lots that need to be considered. You should research the various areas, the different rental prices, and it is always a good idea to take a look at forums and other websites where you can find tips and advice that have been left by those who have already purchased a property in Istanbul. 

Istanbul may not be Turkey’s capital, but it is the leading city when it comes to the property market in the country. It is also one of the fastest-growing cities in Europe. Despite this, properties are still relatively cheap when compared with those in other cities in Western Europe. However, do be warned that not all properties are cheap, you can find million-pound properties in the more desirable and exclusive areas of Istanbul. This highlights why you need to conduct your search with care. 

Property Builds Wealth More Consistently Than Any Other Asset, But Why?

If you look at the portfolios of the most successful people in the world, you’ll find the same pattern. They all own enormous quantities of property. 

The question, though, is why? On the face of it, things like stocks earn more on a percentage basis, so why is real estate the best? 

Behavioral Reasons

On paper, equities outperform housing over the long-run. Therefore, the rational investor should plow their excess dollars into the market and then simply rent as cheaply as they can. But that’s not really how people behave. 

Let’s say you have two people, both earning $4,000 per month. One has a mortgage of $1,000 they must pay each month, and the other has a rent of $500.

The first person – the one with the mortgage – is locked into building their wealth by the bank. The mortgage forces them to build their equity and pay down the loan. They can’t get out of it. And even if they try, they’ll have to pay massive transaction costs. It instills an enormous amount of discipline on them – to the point where it consumes their lives. 

At the end of the process, though, they come out of it as wealthy people. They have an asset that they own once they finish the mortgage. And they can then pass it onto somebody else at a profit. It seems like an excellent investment. 

The person renting, however, doesn’t operate under the same constraints. Instead of having a disposable income limited to $3,000 per month, they have the full $3,500.

They could save the extra $500 per month and put it into stocks. But that’s not how people operate over the long-term. There’s always a more pressing expense that they need to make today to feel as though they are living their lives.

They don’t have the discipline to continually plug away at their work, paying down their mortgage month after month. And that’s where problems with their rate of saving can emerge.

Buying a property outright is the best option for the majority of people because it forces financial prudence. 

Leverage Reasons

When people look for real estate for sale, they’re essentially levering up to buy an asset with an expected return. They borrow money cheaply, and they attempt to sell housing services to other people. 

By contrast, very few people go into debt to buy stocks. It’s too risky and expensive. Plus, unless you pick winners, the fundamental economic logic isn’t on your side. 

The opposite is the case with property. It’s a sure thing. So lenders are much more willing to keep rates low. And when they do, that’s when opportunities open up for a quick return. 

Appreciation

House prices continue to rise. And political pressures mean that that is unlikely to come to an end any time soon. Simply put, property owners are too large a group of people for politicians to attack with policies.

For that reason, house prices will likely continue to rise ahead of the rate of inflation. Something will eventually give out, but we don’t know what that is yet. 

Conveyancing: What It Is And How It Works?

Finding a perfect home for all your needs and desires is nothing less than a blessing. 

After weeks of hunting down the directories and classifieds, somehow, you’ve managed to find that perfect place you can call your home. 

It is close to your kids’ school, within the reach of your office, and has a secure countryside to it, besides the availability of groceries and daily needs. 

However, there’s still one more thing between you and your dreamy abode- all the necessary documentation and paperwork.

It needs no saying that filing the paperwork is a complex and cumbersome process, let aside the boredom it has to itself.


Nonetheless, you can hire someone to act on your behalf and take care of the paperwork and settlement process.

Conveyancing

It is the process of transferring ownership of a realty.

This seems simple to understand…eh? Well, not quite simple, it is. You can very well understand that there are a lot of complications that may come up. 

Although hiring a conveyancer is not legally required, having one on your side can help simplify the process and avoid any future troubles.

Typically, a conveyancing transaction consists of three stages- pre-contract, pre-completion, and post-completion. And only a licensed conveyancer can help you with these three stages.

A conveyancer is a professional expert specializing in solicitations and advisory related to property dealings.

What Does A Conveyancer Do?

According to a recent survey, many of the home buyers do not know the complete details of documents and legal obligations necessary for successful transactions. 

This could lead to future conflicts and may also forfeit any deposits that a homebuyer has made towards the possession of the property.

A conveyancer would charge a nominal fee and draw out the details of all the necessary documentation for transferring the property ownership in your name. 

Not only that, but a good conveyancer would also undertake the tasks upon himself and would ensure that they are fulfilled, while you can focus on moving into your new house. 

According to this post, http://waymanandlong.co.uk/new-services/property-law/conveyancing-prices/ you should consider a conveyancer’s professional help whenever you are buying, selling, dividing, or modifying any of the real estate entities. 

Particularly, when you are not aware or are doubtful about the legal implications of any mistake, it is all the more important to have a conveyancing agent by your side.

Keep reading for more information about how these professionals can help you.

When you’re buying a property

A conveyancing agent or company would perform a multitude of tasks on your behalf, as a buyer of the property. Some of these tasks include:

  1. Preparing and lodging legal documents like agreements and contracts.
  2. Checking the types of property and naming titles followed by assessing the easements and other information.
  3. Depositing the money in the account of the trust for safety reasons.
  4. Adjusting the rates and taxes and subsequently saving you some money.
  5. Settling the property, handling the payments from your bank, or the trust account.
  6. Representing and negotiating your interests with the seller’s agent or advisor.

When you’re selling a property

A conveyancer not only can help you with buying a new property but also if you are looking forward to selling your old house.

  1. Completing the legal documents.
  2. Negotiating with the buyers.
  3. Representing your deals to the buyers on your behalf.
  4. Requesting any dates that need to be extended.

By now, you must have a really good understanding of what a conveyancer does and how they can help you. 

But, at the same time, you may also be worried about finding the appropriate professional for your needs and that too within your budget.

How do you find and hire the right conveyancer?

Finding a conveyancer is quite similar to finding a real estate agent or a lawyer. Nonetheless, here are a few tips to help you.

  • Ask your friends, relatives, and even search online for references within your desired area.
  • Interview the prospective agents whom you deem fit within your criteria.
  • Run a background check on your prospective agent to ensure their quality of service and customer satisfaction.
  • Make sure to check their licensing.
  • Reconfirm the budget and their reputation before hiring them.

Although you can DIY the conveyancing process, it is, however, not recommended, for the reason buying or selling a property is not like shopping for daily needs. 

Any mistake can result in massive financial losses, apart from the emotional and mental stress that you’ll be going through. 

So, make sure that you hire only the best conveyancing agent for your needs for a peaceful future at your dream home.

How To Create An Investment Portfolio To Set You Up For Life

For those who have yet to dip their toes into that particular pond, the concept of investment can be pretty intimidating.

Many of us imagine Leonardo DiCaprio in The Wolf of Wolf Street – lots of men shouting down the telephone and looking at screens full of numbers, or complicated graphs.

Not only that, but the risk involved can also be scary. Who knows if the money that you are going to put in will make you money, or is even legitimate to begin with?

However, if done right, investments can be pretty straightforward and can help to set you up for life.

Perhaps you are hoping to make a passive income alongside your regular job, or maybe you are looking for something to fund you through your retirement years.

Perhaps you want to leave your children with something to help them in their lives after you have gone.

Whatever reason you have for wanting to set up an investment portfolio, here we share some tips and tricks to help you get started with building a portfolio that will set you and your family up for life.

Have a clear goal to work towards

Before you do anything else, you need to think about what it is you want to get out of your investment portfolio.

Are you hoping for capital growth, an income, or a combination of the two?

What it is you are looking for as an end result will have a bearing on the type of investment that you go for. 

What level of risk can you tolerate?

One of the main principles of investment is the risk versus reward payoff.

There is never any guarantee with any form of investment, so the risk will always be a factor, but as with anything, some types come with more risk than others, and this is something you need to take into consideration.

Generally, higher-risk investments will give you a higher return – otherwise, why would anyone ever bother taking the risk in the first place?

However, that is never a guarantee and is something that you need to be prepared for. Can you afford to take the hit if it does not quite go to plan?

What you need to consider is the volatility, which is how much your investments will potentially fluctuate in value.

When it comes to volatility, the length of your investment can make a difference.

If you are investing the money in something, for say, ten or more years, you can tolerate higher volatility.

This is because there is more time for the investment to recover from any short-term fluctuations. 

Have you thought about asset allocation

We will cover why diversification is crucial and the different ways of building a diversified portfolio below, but the allocation of assets is one of the key points of portfolio creation.

You might opt for stocks and shares and bonds, property, or something tangible such as fine wine, art or precious metals.

You can check out some of the Noble Gold Investments reviews here if gold is something you would be considering.

What is investment diversification, and why is it important?

Ploughing all of your allocated funds into one form of investment can be incredibly risky.

If you put it all into property, for example, and the property market collapses, your money might as well go down the drain.

However, if you have a bit of money invested in property, some in stocks, others in cryptocurrency, you are not risking all of your money disappearing at the same time.

You have heard of the saying ‘don’t put all of your eggs in one basket’? Well, that is precisely what we are talking about here.

Once you have chosen how to allocate your funds – say, for example, in shares, you can then diversify by sector.

You may want to buy shares in banks, which is fine. However, if you pour all of your share allocations into the banking sector, and there is a financial crisis like the one in 2008, the value of your shares will dramatically tumble.

In this case, you may want to buy shares in various sectors – healthcare, precious metals, technology and so on. Then, if one industry collapses, it is not going to affect all of your shares.

You also should consider spreading out your investments globally. By investing in different regions, you are not limited by the stock market of one country or the economic policies of a particular government.

However, this can also add an extra dimension of risk to the process.

What are some of the things you could consider investing in?

What to invest in

Property

People have been investing in property for as long as they have been building houses because it is a generally low risk and high return form of investment.
There are several ways in which you can invest in property, from buying and selling, renting out for either residential lettings, commercial or vacation lets, or flipping.

The advantages of this form of investment are that it is relatively stable when compared to other types.

The sale of property takes time and is always in demand, making it much less volatile. You also have the opportunity to leverage your investment, meaning you can buy more with less.

Generally, with a property, you put a deposit down, and your bank lends you the rest.

The downside is that it is not very liquid – you cannot access your money at the drop of a hat if it is tied up in property.

It can take weeks or even months. It also has high entry costs, as to get a foot in the property market can cost you thousands.

Cryptocurrency

In the investment world, cryptocurrency is the next big thing. Cryptocurrency is a form of digital currency, the most popular one being Bitcoin, which you may well have heard of.

It is relatively new, having only been around for a little over ten years, but so far, it seems to be a pretty solid investment.

Those who took the plunge early on are seeing huge returns on their money. In July 2015, the price of Bitcoin was just over $280. In December 2017, it was $17k. 

The disadvantage with cryptocurrency is that being so new, it is difficult to make any long-term projections about how it will do, so the element of risk is high.

It can also be volatile – there have been periods where the value has shot through the roof and then dropped quite dramatically before jumping back up. Being an intangible asset, this can make many potential investors nervous.

Stocks

Stocks are one of the most popular and common forms of investment. They are easy to buy and accessible to the vast majority of people.

You can purchase them through a stockbroker, a financial planner, or you can buy and manage them yourself online.

You can make money in two ways – as a day trader or a buy and hold investor. Both buy low and sell high, investing in fast-growing companies whose value is appreciating.

Day traders hope to take advantage of short term trends while buy and hold investors expect to see their return grow over a more extended period of time.

One of the good things about stocks is that they are incredibly liquid – they can be sold quickly and easily so you can access and use your money.

However, investing in stocks does come with risks. If you have invested significant amounts of money in one company and they don’t do well, the value of their shares will plummet and with that your money.

There is also the risk that, if the company goes into administration, as a stockholder, you will be at the bottom of the list to receive your money. 

Precious Metals

As with property, precious metals such as gold, silver and platinum have been used as a form of investment for many years due to their inherent value.

Platinum can be quite a volatile investment, so most people tend to spend their money on either gold or silver, both in bullion form, which can be measured in weight, or fine jewellery.

Coins also hold their value and can be a collectible asset. Gold tends to keep its value even in periods of economic uncertainty and can be traded in quickly if the money is needed.

Knowing what form of investment to go for depends on a whole range of factors: your appetite for risk, the liquidity of the asset, the entry fee and it’s volatility in the short and long term.

You also need to consider how hands-on you want to be – do you want to buy it and leave it to do its thing and make money, or do you want to be involved?

Before making any significant investment, talk to a financial advisor and weigh up the pros and cons. 

How To Find The Right Expat Mortgage For You In Australia

Australia is a beautiful land. It becomes difficult to leave once you have tasted the warm weather and feast your eyes on the fantastic wildlife like kangaroos. 

While the experience feels like a dream to many, it is not impossible to settle in Australia. For starters, the country is teeming with expats, and opportunities for settling are immense.

Australia has a vibrant housing market, with many houses waiting for occupants. The mortgage market is accommodating, which implies getting your own home is possible. 

Over the past few years, however, expats in Australia have been experiencing difficulties obtaining a desirable mortgage. 

It means, settling in the country could not be easy after all. For this reason, we have put together this article to point you in the right direction in case you might need a mortgage. 

In this article, we highlight the steps you should follow and the right places, to obtain a desirable mortgage for expats.

What is an expat mortgage?

Expat mortgages are what the name suggests; mortgages designed to facilitate homeownership for expats. 

Not just in Australia but across the world, expats experience difficulties obtaining this facility because of a lack of proper information. 

A lender might be reluctant to engage an expat because of uncertainty around his/her length of stay. If they access mortgages, expats might have to pay punitive rates.

Lessening the barriers to accessing expat mortgage in Australia begins with approaching the right mortgage broker. 

A mortgage broker in Melbourne like this can facilitate access to the mortgages by assessing the loan requirements of the client. Besides, they create a profile of the client’s financial situation. 

Using the profile and the requirements, the brokers identify the right lender whose terms are appropriate to the client. 

Things to consider before applying for expat mortgage in Australia

What’s your Visa status/subclass? 

A mortgage broker can do all the research to ensure that you get the appropriate quote, but getting a mortgage on favorable terms when you do not have an acceptable Visa can be impossible.

Non-resident expats pay more in hidden costs, such as legal fees and loan establishment fees. 

If you are going to buy a property to live, then you can breathe easy because some of these costs may not be applicable. 

The amount you can borrow

Lenders do not have similar terms for mortgages just for competition’s sake. 

Nevertheless, there is consensus that establishes the mortgage amount accessible at about 80% of the property’s value. 

Other factors, such as your visa status, monthly income, creditworthiness, and savings, among others, also affect the mortgage amount you can apply for. 

Your mortgage broker should be able to help clarify such issues so that you have a better experience, facing these hurdles after initiating the borrowing process. 

In which currency do you earn your income?

The denomination of your income is critical to lenders when considering mortgage applications. If, for example, you live in Australia, but your income is in USD, some lenders might reject your application.

The problem lies with the risk in the exchange rates. Changes in the AUD/USD exchange rate might undermine your loan commitments. 

Therefore, the lenders would not want such risks, primarily when it works in your favor.

What do you do then? 

A good mortgage broker will find a lender with the most favorable terms for expats whilst encouraging the client to open an AUD-denominated account. 

Alternatively, you could open an account with a local bank to facilitate transactions. From the account, you should pay any attendant fees and costs without much hassle.  

Deposit requirements

Most Australian lenders require a deposit before approving mortgages. 

Generally, for expats, 20% to 30% is the figure you are likely to part with, but some lenders might be okay with deposits up to 20%. 

Expats pay higher deposits because they do not fall under the Lenders Mortgage Insurance (LMI) scheme. The LMI applies to Australian nationalities. 

The policy of the lender

Lenders treat applications for expat loans differently, depending on prevailing conditions. 

With a broker that understands the mortgage landscape, you should be able to obtain favorable loans despite an unfavorable lender policy.

expats mortage australia

What is the purpose of purchasing property?

Expats are welcome to buy property to let. Buy-to-let arrangements are popular, especially among expats who intend to resettle back home in a short while. 

Some lenders might charge higher interests for expat mortgages enabling buy-to-let schemes.  

Finding the right expat mortgage is just the beginning of the process. 

In addition to these factors for consideration, you must provide supporting documents to facilitate access to the loan. 

A good thing about approaching a broker from the start is that you will get the heads up about the required documents. 

For example, a mortgage broker in Melbourne can assist you if you live within the region. 

Since brokers will come to see you, therefore, there is no need for you to travel to bank branches to seek assistance from far-off places.

Some of the documents you may need to provide include:

  1. Identification documents–your passport should suffice for this requirement. Ensure that the passport is valid and that you have supporting documents at hand if need be. 
  2. Proof of qualification to buy property – in Australia, foreigners must obtain permission from the Foreign Investment Review Board (FIRB) to purchase a property. It is prudent to start with getting FIRB’s nod before initiating the process of an expat mortgage application. Note that FIRB demands a fee to give out the approval.
  3. Proof of legal residence – if you have a valid passport, you should be able to skip this requirement. However, this requirement is dealt with on an issue-by-issue basis. Just ensure you have the proof with you to increase the chances of success. 
  4. Creditworthiness documents–you might need a credit check for this requirement. However, bank statements, proof of wages, and tax returns should sail you past this hurdle. 
  5. Can you service the loan? – It is an obvious requirement since it is in everyone’s interest to see the loan cleared when due. For this purpose, bank statements should suffice. If not, utility bill receipts should provide enough evidence to this end. 

In Closing…

As you can see, it is possible, but tricky, to obtain an Australian expat mortgage. 

Even with a good knowledge of the Australian mortgage landscape, one is better off getting proper advice and guidance. 

Mortgage brokers offer valuable insights and assistance to ensure that you get the best deal.

Alternative Investments: It’s Worth Considering

Making an investment can be a great way to increase your capital and even generate long-term income. However, choosing the right investment is never easy. 

As well as considering traditional investment opportunities, why not think outside the box?

With these alternative investments, you could diversify your funds, reduce your risk, and make a substantial amount of profit. 

Cryptocurrency

Cryptocurrency has hit the mainstream media, which means more people have realized what a valuable form of investment it can be. 

Although you’ll need to consider the implications of crypto tax, you can still make a decent return if you invest at the right time. 

Before you can make money, however, you’ll need to ensure that you understand how the industry works and where the pitfalls lie. 

Property

Investing in property is always a popular option. Although property prices can decrease, most people assume that it’s a relatively safe investment in the majority of situations. 

What’s more, the property can be a great way to build capital and generate income. 

If you buy a residential home and rent it out, for example, the value of the property should increase over time and you’ll benefit from getting a regular rental income. 

Peer-to-Peer Lending

As more people look for alternative borrowing options, new forms of investment arise. 

As a peer-to-peer lender, you can loan money to an individual or a group for a specified amount of time. 

In addition to getting the loan amount back, you’ll get an additional amount of interest too. 

With reputable platforms dedicated to the practice of P2P lending, it’s relatively easy to set yourself up as a peer-to-peer lender. 

While getting your money back isn’t guaranteed, there are safeguards in place to try and minimize the risk you’re exposed to. 

seed investment

Seed Investments

As a seed investor, you’ll be putting money into a startup business or an enterprise in return for an equity stake in the organization. 

While this type of investment can offer substantial rewards, it’s always going to be dependent on how successful the startup is. 

In general, this is one of the riskier forms of investment, but it can be a fun and potentially lucrative way to invest your capital. 

Commodities

People have been trading in commodities for years, so they’re becoming more of a mainstream choice of investment all the time. 

However, you can make high returns by investing at the right time. Standard commodities include gold, silver, and platinum, as well as natural gas and oil. 

However, soft commodities can also include wheat, sugar, and cocoa beans, so there are plenty of options available. 

You’ll need to follow the market carefully to ensure you make the right decisions but, for many people, investing in commodities is a way to achieve great returns. 

When to Invest

Deciding to invest your money is a big decision, so it’s important to do your research and seek advice. 

Some investments are riskier than others, so be sure to assess the level of risk you want to take. 

By learning more about the respective markets and seeking guidance from professionals, you can learn everything you need to know about making successful alternative investments. 

4 Easy Tips for Getting a Mortgage

Getting a mortgage is probably one of the most stressful and exhausting parts of the homebuying process. 

Since the housing crisis and the market crash that started back in 2007, mortgage applications and reviews have been more detailed and strict than ever, requiring endless paperwork and extensive income verification.

There are various things to consider when shopping for a mortgage that can impact the success of the entire mortgage process and impact how much you spend – not only on obtaining the mortgage but also on your home over the long run. 


To help first-time homebuyers tackle all these challenges successfully, here are mortgage lending tips suggested by leading banks and financial institutions. So, fasten your seatbelts, and let’s get started. 

Tips for Obtaining Mortgage

#1 Gather all your documentation


The first thing that you need to do for successfully obtaining a mortgage is getting all your financial paperwork in order.

Key papers you need to keep with yourself while obtaining a mortgage include recent pay stubs, your bank statements, salary slips, and tax returns. 

Self-employed applicants will need to provide two years of tax returns and their most recent profit/loss statement showing revenues, expenses, and costs during a fiscal year. 

#2 Get yourself in top financial shape

In addition to getting your paperwork done, it’s a good idea to get yourself in top financial shape. This will increase your chances of obtaining a mortgage. 

Being in top financial shape means improving your financial profile. For starters, avoid carrying excessive debt. 

Your debt-to-income ratio is also a crucial factor that lenders consider when looking at your loan application.

Reducing debt could make your finances look more attractive. 

Use the freed-up money to pay down debt or increase your down payment for the home, both of which could help you put in better shape when it’s time to apply for a mortgage. 

Reviewing your credit history and score is another critical effort. If your credit score needs improvement, try making multiple or frequent payments using a credit card.

Lenders also look for job stability when they evaluate your ability to repay a loan. 

#3 Shop around and shop more

Reviewing multiple mortgage lenders or mortgage shopping is a critical step – and it’s one thing that many first-time homebuyers often ignore. Most first-time buyers often just go with the first lender. 

But you should never settle on the first lender you talk with.

Every company has different terms, and you should check with every company and go with the one with the most favorable conditions.

#4 Get pre-approved early

It’s more than heartbreaking when you find the perfect home, then find out that it exceeds your budget.

Getting a pre-approved loan can prevent disappointment later on. So, it’s essential that you get a pre-approved mortgage before going for home shopping. 

These are the few tips that you should follow before going for a mortgage and home shopping.

Following these steps will increase your chances of obtaining a successful mortgage for buying the house of your dreams. 

 

How To Raise Money To Invest In Your First House

As such, that’s mainly what this post will focus on. If you can’t afford a house, but want to invest in one, here are some tactics to help you save up and raise the funds you need. 

Be warned, these ideas aren’t instant. 

They won’t make money magically appear in your hands right away. Some work quicker than others, but they’re all worth looking at. 

Stick to a budget and save money

Yes, a boring piece of advice, but good advice nonetheless. Budgeting means you restrict your overall monthly spending. 

It requires a great deal of planning to get your budget right. As an investment beginner, you need to work out how much money you need to save. 

This will typically be enough to afford a downpayment on a mortgage. 

Take this figure, then consider how much money you can save each month. Soon, you’ll work out how tight your budget needs to be based on how soon you need the money. 

For example, the downpayment is $2,400, you set aside $200 every month, and you reach the figure in a year. 

That’s not an accurate representation of downpayment figures, it was chosen as the easiest way to explain the point!

Sell annuity

This tip might not apply to everyone, but it will be useful to some of you. Do you have annuities of any kind? 

This can include a pension, a legal settlement, even casino winnings. 

It is also considered a type of investment, with the aim being that you get regular payments from the annuity into your account. 

Sounds pretty good, but it won’t help you get the money you need for a house. Instead, you should look for annuity buyers that will offer a cash sum for your annuity. 

It lets you unlock the money in your annuity and use it a lot sooner. This extra influx of cash can help you buy a house in full, or at least afford your mortgage. 

Downsize

Downsizing is where you look at your life and basically make it smaller and less extravagant. 

If you owned a home, you’d sell it and buy a smaller one that costs less and is easier to handle. Of course, you don’t own one, so how can you downsize?

Realistically, downsizing is easy! Here’s an example, sell your car and buy a cheaper model. Instantly, you may have an extra thousand dollars or so. 

Another idea: stop buying loads of new clothes every month. Or, sell expensive things – like shoes – that you no longer wear or don’t really need. 

In essence, you get rid of unnecessary expenses in your life. This can help you generate some extra funds right away, as well as assisting in your efforts to save money. 

All three of these ideas will help you raise the money to invest in your first property. 

It won’t happen overnight, but if you stick to the changes you make, you’ll be amazed at how much sooner you can afford the investment. 

Investment Options You Should Consider In Your 20’s 

A lot of twenty year olds are earning quite a lot of money. Unfortunately, they often have no idea what to do with the profits they make. 

This could come from their main business or it could be from side hustles and self-owned business ventures. 

The money ends up being spent on things that provide short term value or entertainment but nothing long-lasting. 

That’s why you should definitely be exploring investment opportunities. You might think that in your twenties your options for investments are limited. 

Particularly, if you don’t have a massive level of savings. However, we’re about to show you that you’re completely mistaken. 

Here are some of the investment options that you can dive into right now. 

The Stock Market

trading-security

You probably think that you need to be an expert on different companies and the economy to benefit on the stock market and from trading shares. 

Again, we’re happy to say that this just isn’t the case. Anyone can earn a lot of money from the stock market.

 It just depends on whether you are willing to put the effort in and whether you are approaching this from the right direction. 

First, you don’t have to navigate the stock market by yourself and this isn’t really advised. Instead, you can opt for a stock broker. 

They will help ensure that you stay on the right track with your investments and that they suit your individual financial situation. 

You do need to make sure that the level of risk remains firmly under control. 

Brokers will also help you understand when it’s time to buy and sell which can be crucial if you want to make a lot of money. 

You are never going to do everything about the stock market without a college degree. 

But you can make the right choices with some independent research and a little investigation into the companies that you are interested in. 

If you don’t have a lot in your savings account, then you can also think about penny stocks. 

Penny stocks are great because they are available at prices that really anyone can get involved. It doesn’t matter how much you have in your accounts. 

They are a low risk which means that you don’t have to panic about losing a lot of money either. 

However, if you’re lucky, one of them could go through the roof. This is rare, but it’s not unheard of. 

Forex Trading

work pay

If you’re looking for another investment opportunity that is perfect for twenty-something year olds on a limited income, then it’s definitely recommended that you research the forex market. 

Forex is for the most part, easy to access and the best part is that you can get a foothold here without much money in your account at all. 

You can invest as much or as little as you like, depending on your financial profile. 

There are a few different choices here. For instance, you might need help to pick a platform that you want to invest on. 

The good news is that the platforms are very easy to use and in no time at all, you’ll be trading like a pro. 

Something to be aware of with forex is that you’re trading currencies. So, you need to have a firm grip on how currencies change and what is likely to impact them. 

There are various different variables that cause currencies to rise and fall. By understanding these and predicting patterns, you can easily win big on this market. 

Property 

buying property

Alternatively, you might want to think about investing in property. 

As soon as you hit twenty and start earning some money, it seems as though everyone is pushing for you to jump onto the property market. 

The good news is that the property market is more accessible than you think. 

For instance, you can access government support schemes with some providing you double what you save. 

You do have to pay this back when it’s time to sell, but once you get your hands on a property this becomes a lot easier. 

Many people think that now is going to be the perfect time to buy property for two reasons. 

First, interest rates are low and second, the value of homes are going to go straight through the floor. 

While this might be the case, there’s also probably going to be less opportunities for investments on the market. 

So, 2021 could be your best option, unless you find the perfect home to buy and then flip it. 

If you are going to invest in property, house flipping is definitely the best way forward. To flip houses, you  need to look for the perfect fixer-upper. 

It should have aesthetic issues but nothing that is going to be ridiculously expensive to fix. 

There are lots of homes on the market like this but you need to make sure that you are checking for anything from wiring issues to shot pipes. 

These are going to be expensive to repair. The idea is to fix the home up fast and sell it on for a quick profit. 

If you’re good at this, you can make a fortune and a lot of people do start in their early years.
However, it is a risky venture and not everyone gets lucky here. Investments are always, on some level, going to be a game of luck, and the property is no different. 

Cryptocurrency

Finally, whether you have savings or not, it could be worth looking at the world of cryptocurrency. 

Many consider this to be the future of currency and while it’s a little late to make millions from this investment, it’s not so late that you can’t still make money. 

Particularly, if you have plenty of cash doing nothing. 

A few thousand will buy you one bitcoin and it’s rising so quickly in value that this could easily be double the value in five years. 

So, if you want passive investment crypto could be the way forward. 


We hope this helps you understand some of the greatest investment possibilities you can consider right now.