The Online Finance and Real Estate in India

Finance for real estate is now easily available in India. The property boom is not restricted to the national capital region but it has even transcended to satellite towns and remote semi-urban areas in and around the national capital. The number of transactions in the real estate sector has increased a number of times, making it profitable for the banks and other lending institutions to offer more finance opportunities to the buyers.

In India, the most of the borrowers in home loan segment fall in the first time buyer category. It means that they are either tenants or living with their parents in their ancestral house. As the salaried-class is spreading and emerging stronger than ever, more and more people are becoming capable of buying house. Their need to get finance from banks is being taken care of by all the major players in the market. Banks like ICICI, Standard Chartered, HDFC and all the nationalized banks are offering home loans at attractive rates.

The procedure for taking a home loan is rather easy. You can directly approach the bank or call for a meeting to be arranged with the bank’s loan executive. This can also be done over the Internet. The banks may ask for various proofs like those related to your residence, income, spouse’s income, number of dependants, etc. Based on a number of parameters, the banks arrive at your credit rating and offer you varying amount of loans.

Home loans in India come in various forms inviting fixed interest rate or floating interest rates. There are hybrid loans also that are a middle path between fixed and floating options. The borrower can put a part of his loan amount under fixed rate and expose the other part to the floating rates that depend on market conditions and the interventions by the Reserve Bank of India.

The Internet as a medium of loan arrangement is fast catching up in India. Many websites are coming up that take care of individual and corporate finance for various purposes like buying real estate, investments, business operations, etc. This medium of finance is growing rapidly although it is surely in its nascent age as far as the Indian market is concerned.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by addi vardhaman

Problems and Difficulties in Capital Budgeting

Problems and Difficulties in Capital Budgeting

*Dr.P.Shanmukha Rao  **Dr.N.V.S.Suryanarayana

 Capital Budgeting may also be defined as „The decision making process by which a firm evaluates the purchase of major fixed assets. It involves firm’s decision to invest its current funds for addition, disposition, modification and replacement of fixed assets.

„Capital budgeting is concerned with allocation of the firm’s scarce financial resources among the available market opportunities. The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project with immediate and subsequent streams of expenditure for it“. The problems in capital budgeting decisions may be as follows:

a)     Future uncertainty: Capital budgeting decisions involve long term commitments. However there is lot of uncertainty in the long term. The uncertainty may be with reference to cost of the project, future expected returns, future competition, legal provisions, political situation etc.

b)    Time Element: The implications of a Capital Budgeting decision are scattered over a long period. The cost and the benefits of a decision may occur at different points of time. The cost of a project is incurred immediately.  However, the investment is recovered over a number of years. The future benefits have to be adjusted to make them comparable with the cost. Longer the time period involved, greater would be the uncertainty.

c)     Difficulty in Quantification of impact: The finance manager may face difficulties in measuring the cost and benefits of projects in quantitative terms. For example, the new products proposed to be launched by a firm may result in increase or decrease in sales of other product proposed to be launched by a firm may result in increase or decrease in sales of other products already being sold by the same firm. It is very difficult to ascertain the extent of impact as the sales of other products may also be influenced by factors other than the launch of the new products.

Assumptions in capital budgeting:

The capital budgeting decision process is a multi-faced and analytical process. A number of assumptions are required to be made. These assumptions constitute a general set of conditions within which the financial aspects of different proposals are to be evaluated. Some of these assumptions are:

  1. Certainty with respect to cost and benefits: It is very difficult to estimate the cost and benefits of a proposal beyond 2-3 years in future. However, for a capital budgeting decision, It is assumed that the estimates of cost and benefits are reasonably accurate and certain.
  1. Profit motive: Another assumption is that the capital budgeting decisions are taken with a primary motive of increasing the profit of the firm. No other motive or goal influences the decision of the finance manager
  1. No Capital Rationing: The Capital Budgeting decisions in the present chapter assume that there is no scarcity of capital. It assumes that a proposal will be accepted or rejected on the strength of its merits alone. The proposal will not be considered in combination with other proposals to consider the maximum utilization of available funds.

The next step in the capital budgeting process is to various proposals.  The methods, which may be used for this purpose such as, pay back period method, Rate of return method, N.P.V and I.R.R etc. The project should be accepted if NPV is positive it should be clear that the acceptance rule using NPV method is to accept the investment project if its net present value is negative (NPV CASH OUTFLOW).  The positive net present value will result only if the project generates cash inflows at rate higher than the opportunity cost of capital.  A project may be accepted in NPV = 0.

The internal rate of return (IRR) method is another discounted cash flow technique, which makes account of the magnitude and timing of cash flows. Others terms used to describe the IRR Method are yield on investment, marginal efficiency of capital, rate of return over cost, time adjusted rate of internal return and so on. The concept of internal rate of return is quite simple to understand in the case of one-period projects. The IRR is calculated by interpolating the two rates. The accept project rule, using the IRR method, is to accept the project if its internal rate of return is higher than the opportunity cost of capital (r>k) note that k is also known as the required rate of return or cut-off rate. The project shall be rejected if its internal rate of return is lower than the opportunity cost of capital.

The project study is undertaken to analyze and understand the Capital Budgeting process in power sector, which gives mean exposure to practical implication of theory knowledge. To know about the company’s operations of using various Capital Budgeting techniques. To know how the company gets funds from various resources.    

The financial management is essentially concerned with the planning and   controlling of the financial resources of a firm. It expresses the procurement of funds along with their efficient use in order to maximize the firm’s benefit. The assets have two broad classification viz.,

  

Immobilienmakler Heidelberg

Makler Heidelberg



Source by S.R.PADALA & NVS SURYANARAYANA

Finance Positions

When looking for a position in the finance sector, it is important that you are qualified since you will be dealing with a career that requires accuracy and efficiency. The finance sector offers marketable and very lucrative careers especially if you find the right one for you and use it to your advantage. In addition, there is a wide variety of financial positions to choose from, so it greatly benefits individuals who have more strength in one sector of finance and may not be very good in another.  

The positions here always give you a choice to work independently or for a company. When starting out, it is important that you join the employed workforce so that you gain the experience and knowledge before you decide to go it alone. In this career choice, it is easy to double up or have two jobs. An accountant for example can have a nine to five job and then use the evening to work on another person’s accounts.

There are numerous financial positions in the banking sector. You could start as a bank teller straight out of college but end up in corporate finance or investment banking. The banking industry has always given individuals a chance to progress as long as they are hardworking and committed, the positions are achievable. It is also advisable that you keep growing your portfolio by taking courses since the financial field keeps growing. This will give you innovative and strategic ways of improving your way of doing things. You will also have fresh new ideas that you can contribute to the financial world.

Whatever position you decide to go for, be ready to make tough decisions, have analytical thinking and problem solving skills, and be a level headed leader.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Mercy Maranga

How Do I Calculate Finance Charges?

Having some knowledge of how to calculate finance charges is always a good thing. Most lenders, as you know, will do this for you, but it can helpful to be able to check the math yourself. It is important, however, to understand that what is presented here is a basic procedure for calculating finance charges and your lender may be using a more complicated method. There may also be other issues attached with your loan which may affect the charges.

The first thing to understand is that there are two basic parts to a loan. The first issue is called the principal. This is the amount of money that is borrowed. The lender wants to make a profit for his services (lending you the money) and this is called interest. There are many types of interest from simple to variable. This article will examine simple interest calculations.

In simple interest deals, the amount of the interest (expressed as a percentage) does not change over the life of the loan. This is often called flat rate or fixed interest.

The simple interest formula is as follows:

Interest = Principal × Rate × Time

Interest is the total amount of interest paid.

Principal is the amount lent or borrowed.

Rate is the percentage of the principal charged as interest each year.

To do your math, the rate must be expressed as a decimal, so percentages must be divided by 100. For example, if the rate is 18%, then use 18/100 or 0.18 in the formula.

Time is the time in years of the loan.

The simple interest formula is often abbreviated:

I = P R T

Simple interest math problems can be used for borrowing or for lending. The same formulas are used in both cases.

When money is borrowed, the total amount to be paid back equals the principal borrowed plus the interest charge:

Total repayments = principal + interest

Usually the money is paid back in regular installments, either monthly or weekly. To calculate the regular payment amount, you divide the total amount to be repaid by the number of months (or weeks) of the loan.

To convert the loan period, ‚T‘, from years to months, you multiply it by 12. To convert ‚T‘ to weeks, you multiply by 52, since there are 52 weeks in a year.

Here is an example problem to illustrate how this works.

Example:

A single mother purchases a used car by obtaining a simple interest loan. The car costs $1500, and the interest rate that she is being charged on the loan is 12%. The car loan is to be paid back in weekly installments over a period of 2 years. Here is how you answer these questions:

1. What is the amount of interest paid over the 2 years?

2. What is the total amount to be paid back?

3. What is the weekly payment amount?

You were given: principal: ‚P‘ = $1500, interest rate: ‚R‘ = 12% = 0.12, repayment time: ‚T‘ = 2 years.

Step 1: Find the amount of interest paid.

Interest: ‚I‘ = PRT

= 1500 × 0.12 × 2

= $360

Step 2: Find the total amount to be paid back.

Total repayments = principal + interest

= $1500 + $360

= $1860

Step 3: Calculate the weekly payment amount.

Weekly payment amount = total repayments divided by loan period, T, in weeks. In this case, $1860 divided by 104 weeks equals $17.88 per week.

Calculating simple finance charges is easy once you have done some practice with the formulas.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Peter Kenny

Mortgage Aggregators in Australia

Mortgage lenders in Australia rarely deal with brokers that cannot submit a high volume of successful home loan applications to them each month. For example, a particular bank or non-bank lending institution might refuse to deal with an entity that cannot close at least one million dollars worth of mortgages with them on a monthly basis.

For most mortgage brokers this may not seem like a daunting task. One million dollars worth or home loans may constitute anywhere between one and five successful applications. Most brokers would be able to close at least that much business each month and would therefore be able to do business with the particular lender.

However a problem arises when the scope of the mortgage broker business model is considered in full. Brokers are in business to offer choice to their customers. In Australia, brokers offer mortgage products to their clients from up to around thirty different lenders. It is this choice that attracts customers to brokers instead of applying directly with a lender. A problem arises when each of the thirty lenders demand that at least one million dollars worth of business is closed with them each month. This would mean that in order for the broker to maintain a business relationship with all thirty lenders, they would need to close over thirty million dollars worth of home loans each month, evenly spread between each lender. This is an impossible task for even the best mortgage broker to achieve.

Aggregators solve this problem by acting as an entity between the lenders and brokers. An aggregator will have several brokers working for them – perhaps hundreds – and will allow them to submit their home loan applications through them. The aggregator will in turn send the applications on to the lenders. This business model ensures that more than enough applications are sent to each lender each month to maintain the relationships. The final result is that each broker working for the aggregator will be able to offer home loan products from the full range of lenders.

Mortgage aggregators are often found in the form of franchisors. The franchisor can have up to several hundred franchisees working for them. The franchisees will use the brand name of the master franchise and will often receive benefits such as training and software. It should be noted that while the franchise model is popular with mortgage brokers in Australia, not all aggregators are master franchises.

Because mortgage brokers receive their income by way of commissions awarded by lenders for successful home loan applications, it follows that aggregators receive a portion of the commissions for all loan applications put through them. Brokers therefore surrender part of their commission in return for the benefit of using an aggregator. There may be additional franchise fees payable if the broker is a franchisee, although this arrangement will vary from franchise to franchise.

In all, aggregators are a necessary part of the mortgage broking industry in Australia. They allow brokers to offer their clients a wide variety of lenders and home loan products and provide an umbrella entity that can assist brokers with training and support throughout their careers.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by michael sterios

Homes of the Future: Luxury Real Estate’s Technology Boom


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These days it seems as though technology advances at the speed of light. Blink twice and the next breakthrough is available. It’s not just about phones or computers-cutting edge technology is now available in every field to make life easier. Nowhere is this more evident than in the luxury real estate market. Innovations can be found in every room of the house. From state-of-the-art security systems to tech-laden bathtubs, the high-tech home is the new dream home.

The smart home is arguably the most influential development in home technology. The idea of controlling various systems (such as lighting and heating) remotely has been around a few years now, but more products are now available that integrate into the connected home network. Home security systems, door locks, and smoke and carbon monoxide detectors can keep you safe, while programmable thermostats, window shades, and beds keep you comfortable. There are also products to keep you entertained, such as TVs, sound systems, and lighting. Refrigerators, ovens, and crock-pots are all operable with a push of a button. Imagine riding home from work in your self-driven car, making sure your lights are on, the kitchen is a comfortable 73 degrees, and your dinner is ready the minute you step in the door.

Some homes are outfitted with technology down to the studs. With smart glass, your windows can darken themselves or turn into a movie screen. Other options include solar-thermal cladding to reduce heat loss, self-healing concrete so your driveway never gets a crack, and anti-bacterial tiles to keep your bathroom squeaky clean. Even building materials themselves are advancing with the digital age. Homeowners want it all when it comes to technology, and contractors and builders can provide it for them.

Smart homes are climbing to the top of „must have“ lists around the country, and many sellers are ready to deliver. In fact, in a survey of more than 500 luxury real estate agents, 60% said they are seeing more smart home features in listing descriptions than two to five years ago, with agents also noting these features help sell homes faster. High end now means high tech-an oven ought not be just stainless steel; it must also let you adjust the temperature from across town with your tablet. There’s no better, or more desirable way to deliver the comfort and extravagance of luxury real estate to buyers than with smart, up-to-the-minute technology.

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Source by Alfred Ardis

Better Ways of Understanding Finance in Today’s Market

As I write this article, the state of global finance is very much uncertain.  One country sneezes and the rest of the world catches cold.

Nothing is certain – jobs least of all.  There once was a time when, if you had a job in a bank, you were set up for life.  Not so any more.  There are factories, retailers, industries, and banks, falling down all around.

However, this is a phenomenon that repeats itself:

Every twenty years or so, in the financial world we experience a recession.  Recessions, by their very nature are temporary.  Some recessions are worse than others, and this one appears to be bad.  But it is still temporary.

It doesn’t have to be as bad as it seems.  We all – but in particular the media – do tend to think of ‚bad news‘ as ‚good news‘ and we talk ourselves down into even more ‚bad news‘.  It’s not possible to open a newspaper or turn on the TV without being bombarded with facts about how bad and how gloomy the times are, and how we are all diving into an even deeper recession.

Why is that?  The main reason seems to be that bad news sells papers better than good news.  It’s the same with any news, anywhere in the world.  If the media were to start talking about ‚good news‘ we would all suddenly feel a lot better, but there would most probably be fewer newspapers sold!

So it’s time to check out the other side of the coin.

Whatever your financial state of the moment, it’s essential to PLAN your personal finances. Remember the old saying:  

Earn $50.00 and spend $50.50 – result: Misery – but  
Earn $50.00 and spend $49.50 – result: Happiness

What’s the answer?  Well, it’s essential to make a budget.  Taking precise notes of everything being spent over the week (even down to the odd newspaper or stamp) and working out exactly where savings could be made. This is a very good start.

Paying your bills on a monthly direct debit system is another good way to budget wisely.  In doing this you would have no big bills coming in to surprise you – it’s all broken down into bite-size chunks that are more easily digested.

If at all possible pay off your debts – it’s essential to become debt free as soon as possible.  If you have debts, and you also have some savings, just think about the cost of your loans, against the amount of interest your savings are earning.  There really is no comparison.  So use any savings you may have to reduce your debts. This includes paying off your credit card debts, and car loans.

The greatest form of finance control is self-discipline. Understanding finance also includes self-discipline. Sometimes you have to deny yourself small pleasures in order to obtain the bigger more important things.  Finance also means that you need to set your priorities straight.  Sacrifice may seem like a lot at the moment but the end will justify the means.

Credit cards do have their place. It’s great to use a credit card, but essential to use it wisely.  If you settle the bill completely at the end of each month you will have no interest to pay.

It’s true to say that the majority of us working people exchange their time for money (work) for most of their lives.  Whereas rich people don’t do this.  Rich people invest their money and make it work for them.  They collect passive income, including rents, share dividends and interest.  Ok, money makes money, but there are ways to get out of the treadmill situation, and jump aboard the train to freedom. The rich people also earn money from royalties – doing the work once and then earning royalties forever – from books, articles, reports, software and so on.

There are many ways to avoid financial disaster. They won’t automatically come to you – you will need to search for them and do something positive for yourself!

A very satisfactory method of helping to make ends meet is by starting up your own home-based business.  I say home-based because there are no overheads – no rent or salaries to pay – so great for small start-ups.  

From personal experience I can recommend Internet Marketing.  This is a fast-flowing modern business that will suit virtually anyone.  There are unlimited niches to specialise in.  It’s ideal to get someone with Internet Marketing skills to help with the start-up process, but once a little groundwork has been accomplished, rapid progress can be made.

This article may be copied and distributed, so long as the signature file and active links are also included.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Maggie Gee

Finance and Lease of Equipment, New and Used, Special Financing Programs

Finance and lease for all types of equipment, new and used, are offered for sale with special pricing by dealerships and auction houses through out the United States.

Some dealerships have partnered with local and/or regional banks to move these off lease used equipment listings with special dealer financing being offered.

Cash buyers have the best opportunity to acquire available new and used equipment listings for the lowest price.

Additionally, repossessed used equipment listings are spread out across the United States enabling all prospective customers to participate in these specials…

Banks and all other lenders are holding repossessed used equipment listings in their repo and off lease inventories. They must move these repossessions due to the factor it is impairing their cash flow and working capital. These deals are listed with auction houses, liquidators, banks and participating brokers. Additionally, these repossessed properties are offered in truck paper and commercial trader.

Furthermore, new and used equipment tems are offered by asset management groups include construction equipment, photographic and printing equipment, restaurant equipment, machine tools, maintenance equipment, surveillance equipment, telephone, communication equipment, medical equipment and computer systems.

If you have good credit, conventional financing and leasing can be arranged for all types of equipment acquistions. If your credit isn’t stellar, we have specials off lease and repo finance programs descibed below….

Off lease and equipment repos are also available for the customer without good credit. Qualifying credit scores can start as low as 550..Additionally, down payments on special dealer lease financing can be low as a couple of thousand dollars down…Both finance and lease programs welcome start up business to apply for the lending programs.

Happy hunting for your equipment acquistion and its related financing and leasing programs.  

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Rick Reed

Finance Help: How to Build Your Wealth?


Building up the stock of wealth is one of the most important aspects of financial planning over the lifetime. A professional financial planner can help you take wise, informed decisions regarding matters related to investment and wealth-building. Indeed, seeking the help of an expert financial advisor is an absolute must, considering the rather intricate nature of working mechanism of any financial economy.

Investing your savings wisely is extremely important for income generation at a steady pace, and consequently, wealth-building. Everyone has a limited period of earning over his/her life, while consumption patterns are generally spread all over one’s lifespan. The income and consumption trends need to be so arranged that there remains enough savings that might be used for investment purposes. This is where finding a financial planner becomes important, since such professionals are well-equipped to help clients in growing their wealth-stock.

There are quite a number of professional financial planners whose services can be hired by common investors. With the increase in the number of financial advisors, new entrants in the financial markets need not wonder how to find a financial planner any longer. Finding a financial advisor is the first step in the process of building up one’s wealth. Top planners generally give his/her clients certain basic, beneficial tips. Some such recommendations are:

a) Investment: Savings need to be invested properly in order to earn the targeted rate of return that you have in mind. A proper evaluation of one’s own readiness to take risks (for a higher return) need also be done,

b) Choosing money market instruments: Investors have a wide range of financial instruments (including stocks, mutual funds and bonds) on which (s)he can invest. Depending on the target rates of return and risk-bearing tendencies of clients, a financial planner recommends investment on any one (or, more) of these instruments.

c) Diversification: The financial markets are dynamic, with market conditions changing at a rapid pace. In such a scenario, diversification is an absolute must. It is not advisable to invest all your money in a single type of financial instrument (bearing the same risk-levels). The invested amounts should be spread wisely among different stocks, bonds and funds,

d) Property purchase: Buying property is a good way of building wealth. You can actually be saving while making mortgage payments, as the value of property rises simultaneously.

e) Knowledge: Professional financial planners have a lot of experience of dealing in financial markets. Investors need to gain adequate knowledge about the markets from his/her advisor. This would help them gradually develop the requisite expertise for effective income-generation and to gradually build up wealth stocks

The last quarter of the 20th century has seen the US economy being hit by one of the worst recessions since the Great Depression. This has turned many investors pessimistic regarding the investment opportunities that might be available. However, prudent decision-making capabilities ensure that opportunities to invest remain even during the recessionary phases, so that you can still prosper and build your wealth. Some of the instruments where profitable investment is possible are:

i) Gold: Investing in gold is widely considered as a safe hedging method in a recessionary economy. However, the current rates of return need to be constantly checked,

ii) Treasury bonds: These government bonds have steady, fixed rates of return, and are not much affected by market conditions. The rates of return and the prices may alter, but only in small amounts,

iii) Online savings: As the economy enters into recession, the US Federal Reserve starts reducing the key interest rates. In such periods, the returns from online saving channels have been found to be rather steady, and

iv) Investment in necessities and Exchange-traded funds (ETFs): The sales of necessary goods generally remains steady, irrespective of market conditions. Hence, investing in necessities is an intelligent option during recession. Returns from ETFs also hold up well during these periods.

There are other ways too in which you can effectively grow your wealth, even during recessionary periods. As long as investors has a clear idea of the target rates of return (s)he wants to attain and is aware of the pros and cons of various investment channels, an expert financial planner can help him/her build wealth, even during a recessionary phase.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Sam Williams

The Important Aspects Of Business Finance

Business finance is one of the most important aspects of running and maintaining a business. Finances dictate the success or failure of a business. If a business owner does not properly maintain their business finances then they will soon see problems arise. Business finance is something that every business owner must deal with and understand.

Part of business finance is setting up proper cash flow. A business owner needs to clearly define their accounts receivable and accounts payable. They need to maintain a steady and balanced cash flow at all times. This means they must never let your accounts payable exceed their accounts receivable in any given month.

A business owner must also carefully manage their debt. They should never let their debt get too high or out of control. They should maintain regular payment schedules to ensure they do not fall behind on repaying any debt.

Keeping clear and concise records is extremely important to keeping business finance under control. A business owner should either hire a professional or use some type of bookkeeping computer software to maintain accounting records.

It is important for a business owner to maintain a business budget, much like they would for their household. This will help them ensure they are keeping track of all the money coming in and going out of the business. This is a good method to avoid getting too much debt.

Proper record keeping can also help out should the business owner need to get a loan. Lenders prefer to have records to refer to when making a decision on a loan, especially for a business. Businesses are seen as risky because they can easily fail. Lenders like to see proof that they business is doing well or at least a forecast that shows significant proof the business will do well. This is what good record keeping does.

Business finance is something many people do not think too much about when starting a business. This is why so many businesses fail. When a business is just starting up lenders like to see a good business plan in place, including a financial plan. This shows the business owner is really understanding all that is involved with taking a business successful.

Every business owner should have their business finances in mind at all times. Money is the biggest indicator of success in business, so it makes sense for that to be one of the top priorities of a business owner. For proper business finance a business owner should maintain records for all of the money going in and coming out of the business. They should track all debts and money owed to the business, as well. By practicing good business finance, a business owner is going to be one step closer to ensuring their business succeeds.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by James Copper

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