• The Different Advantages Of Vendor Finance

    Vendor finance is built around provisions that are tailored for both parties, i.e. the home seller and the home buyer. As the seller is the financer, there are very rare possibilities of nasty surprises like the finance falling through in the vendor agreement. Most of the people are prepared to do everything to meet the seller’s requirements as they are happy about getting an opportunity to get their own place.

    It would be likely for the sellers to arrange a period of settlement that is most suitable for them without the nuisance of banks and brokers interfering with everything when they consider and avail the opportunities of vendor finance. For majority of the buyers this is the only possibility to own a property and they will strive their best to stick to their repayment obligation.

    Below are few of the benefits of vendor financing a buyer into a property.

    The conditions of vendor finance agreement are a lot more accommodating and this also is dependent on if the vendor has a place to move into.

    According to the circumstances of the people concerned, vendor finance terms can be personalized.

    As the vendor can draw in more buyers, even individuals who cant gain access to conventional loans, they will generally sell their place faster.

    The vendor would be in a position to sell the home to the buyer at a much higher prize, they would be offering the financing. By supplying the buyers with more flexible payments, the vendor would be able to get a better price.

    The home buyers would move into the house as early as they have signed the contract unlike the much lengthy bank process.

    One of the other merits for the vendor is the tax advantages that they will acquire by selling their property in installments, nevertheless this should be correctly checked out as personal situations will vary extensively.

    With the assistance of vendor finance, the vendor would even be in a position to get continuous revenues from the property and will also be in a position to obtain a fast, beneficial and hassle free sale.

    Vendors would be in a position to have power over who is about to reside in the home as few of the vendors will have emotional attachment with the house. This is often one of the major reasons why people prefer vendor finance arrangements.

    Vendor finance arrangements are even a great option for buyers as they would be able to get their own home even if they are not able to get a loan.


  • What Is Holistic Financial Planning

    One of the newer phrases to find its way into the vocabulary of today’s more progressive financial planners is holistic financial planning. So what does it mean and why now? Also is this newer type of all inclusive financial planning something that you can benefit by?

    In broader terms, holistic financial planning identifies and takes into consideration the entirety of a clients financial situation both present and on into the future. When the client receives completely inclusive or complete holistic advice, they are far better able to make decisions that insure that their total objectives are more realistically obtained.

    In the past far too many financial planners and their clients took a far more narrowly focused approach to Financial Planning. Each consideration was held out and dealt with separately. One by one increments or facets of a persons finances would be analyzed and dealt with as a singular unit. In the end it was felt that all the pieces would fall together correctly and they often did.

    How Holistic Financial Planning Works

    With holistic financial planning however, all aspects of clients finances, goals, lifestyle and ideals are brought together at once and analyzed as a whole. A much bigger picture is viewed, if you will and also other peripheral aspects and factors such as clients principles are entered into the equation as well. Something that was rarely done in the past.

    Holistic financial planning begins with a preliminary financial advisory process that includes an initial fact finding stage. This initial stage of the process is geared towards assessing a clients likes and dislikes, general opinions, goals both short and long term. Also during this initial fact finding stage, information such as a clients risk tolerance is also gathered and filed for analysis. Then after the necessary preliminary information has been gathered, it’s on to the next phase.

    This secondary stage would be the strategy recommendation stage, where all of the data gathered is used to formulate an inclusive and objective strategy that takes all into account. In this stage the clients objectives and goals are prepared and laid out with a focus on creating wealth, debt management, taxation plans, estate planning and of course risk.

    While this process may sound simple on the surface, it’s not. In fact in some cases the entire preliminary review can involve several meetings and in the end what is arrived at must also be approved by the client. As these meetings and review sessions unfold, often times a client will be given several options to choose from, such that in the end the final plan meshes seamlessly with their principles and values.

    The final phase of the holistic financial planning process involves the monitoring/review process. As previously indicated, this a continuous and ongoing function in which benchmarks the applied overall plans outcomes and performance levels, factored against the clients perceived goals and objectives.

    This ongoing process includes periodic portfolio value assessment reports, workshops and seminars, portfolio review meetings and strategy sessions and of course the end of year pre-taxation strategy and planning sessions. So hopefully now you can see that it’s a system that provides holistic advice for clients geared towards growth, security and peace of mind.


  • Mathematics Of Finance

    The techniques of mathematics useful for the financial institutions like banks, investment collecting agencies, insurance companies and leasing companies etc, included in the mathematics of finance. Community used techniques of business mathematics included in the mathematics of finance are based on the concept of simple interest, compound interest and Annuity.

    Interest Interest is defined as the additional amount of money paid / received on each period at a stated rate on borrowed capital or investment. Interest is further classified into two classes i.e Simple Interest and Compound Interest.

    Simple And Compound Interest

    The interest earned on capital, when the interest is withdrawn as it is paid, then it is known as simple interest. Thus, in simple interest the capital remains fixed. While in compound interest the earned interest in each period is added to the original capital as it earned. Thus the capital, and therefore the interest on it, increases year by year.

    Annuity

    The idea of an annuity is based on the fact that every one of us desires to have a large amount in future but few of us are in a position to save an amount at present which after earning interest may become the amount as desired by us in future. However majority of us may be in a position to save small amount at regular interval of time to meet the future requirements.

    The regular periodic sequence of savings / payments / installments charged with compound interest is called an annuity

    Characteristics i.The amount of payment is usually identical throughout the term of annuity. ii.The interval of time in each payment period of an annuity is usually constant such as annually, half annually, quarterly or monthly. iii.Growth rate of money remain constant throughout the term of annuity and charged compounded. The rate of interest usually mentioned on annual basis but maybe compounded half annually quarterly or monthly basis.

    Applications 1.Business of insurance companies 2.Business of leasing companies 3.Business of goods sold on installments 4.Business of house building finance corporation 5.Business of Bound or Debenture 6.Amortization of debt etc. Types An annuity may be classified in any of the following three classes i.Ordinary Annuity ii.Annuity Due iii.Perpetuity

    Ordinary Annuity An annuity is considered as to be ordinary annuity if each payment is made at the end of each payment period and continue for a definite period.

    Annuity Due An annuity is considered as to be annuity due if each payment is made at the beginning of each payment period and continue for a definite period.

    Perpetuity An annuity is considered as to be perpetuity if the payment starts on a certain date and continue for indefinite period.

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  • Tips For Choosing Reliable Financial Planners

    Choosing a Sydney financial planner that is right for you can be very difficult and somewhat confusing task. Financial services in Sydney are numerous but naturally you want someone you can trust with planning your cash flow. So knowing where to start from requires some basic pointers.

    Before starting your search for experts take some time to analyze what your current fiscal situation is. There are many free calculators available on the internet that can aid you to start determining your actual fiscal position. In addition, this will also assist you get an exact idea of just what sort of support and guidance you are looking for from the expert.

    Next important thing is that you need to have an idea of what your objectives are for making economic blueprints. This will allow you to further determine what sort of advice and help you are looking from a professional. There are infinite areas in which you may require professional help. For instance, you only need help to plan for your retirement. Or on the other side, you may be seeking for assistance in all fields so that you can have a reasonably secure future.
    Now when you are done with these foundational works, you need to take out time to research before employing an adviser. There are some important things to keep in consideration that will help you choose on the best match for you. First and most important ensure that the service provider has the proper license that is very essential.

    Secondly, you need to investigate and explore the experience that the financial planner has. Find out how long the service provider has been in the business and in what fields they are experienced in. Depending on what sort of services you are looking for, you need to ensure that they have enough experience in the particular field. Choosing a financial service provider that is experienced in all fields can be helpful for your business and its growth. Therefore, you must ensure that you do not make any decision without doing your homework.

    Any service provider that you choose to employ it is suggested that you ask for references and check whether their previous clients and customers were satisfied or not. Or you can also ask recommendations from your friends and business partners.

    Not only this, find out how much the company charges for their services. For example, you need to know is this a fee for service provider or do the concerned company takes a commission from providers or so on. Be definite that you are comfortable the charges asked by the planner.

    Last, but not the least you must check the qualification and education of the advisor with whom you want to work with. It is quite important that the expert has advanced degrees so that they can proficiently handle all situations. Hope, these above mentioned tips will help you to choose the best financial planner in the town.


  • Regaining Financial Stability through Negotiated Debt Consolidation Loans

    Australia was one of the few countries around the world that emerged relatively unscathed from the financial crisis that gripped most of Europe, United States of America, and Asia. However, there were many businesses and individuals who had to take the unwelcome step of having to declare bankruptcy, a move that is literally the last resort for many people.

    Financial Meltdown

    With money flowing freely and credit cards being issued with the minimum of due diligence, the spending spree was quite large; however, when the economy slowed down and shifted focus, the creditors started pressurising their clients for repayments. For individuals and businesses that had problems repaying the accumulated debts, the only option left to them was to find debt solutions in Australia which would be acceptable to the creditors. This type of situation is tailor-made for the services of a debt mediator who can then provide the individual and the creditors with a mutually agreeable debt solution. The role of a debt mediator is to completely research the financial standing of the debtor, before they can even begin the process of consolidating all the debts. This type of solution through debt consolidation has proved to be one of the best solutions that are acceptable to both parties.

    Expert Debt Mediators

    One of the most common methods used to find debt solutions in Australia to repay creditors is to take a debt consolidation loan; this is a single personal loan provided by financial institutions, which can clear all or part of their outstanding debts. This solves any incipient problems of a creditor trying to pressurise the debtor to file for bankruptcy. One of the advantages of this kind of debt solution is that the debtor does not have to keep track of different debt repayments, because all the debts will be consolidated into one debt. With the consolidation loan, the part or full repayment can be done, but any future repayment is done with one payment on a monthly basis, freeing the debtor from having to keep track of various repayment issues.

    Clean Credit Score

    Defaulting on debt repayments, which is normally considered after a 60-day delay, is usually recorded in an individual’s credit history. This record might seriously impair the debtor’s ability to obtain any future credit, which would hurt them quite badly; the entry in the credit report is usually kept for a period of 5 years or longer. However, using the debt solution provided by your debt mediators through a consolidation loan would help to solve this problem and avoid a poor rating or credit score in Australia. This consolidation loan works on the principle of reducing or cancelling all or part of your debts, and consolidating the remaining repayments with a monthly single payment, which would be easier to manage for the debtor. By consolidating the debts, the debtor is able to easily manage their remaining debts or liabilities in an efficient and effective way without having to worry about when the next repayment is due.

    Author’s Bio:

    Author has many years of experience in content writing. He is the most celebrated and acclaimed author in financial sector. Now he is providing information on debt solutions Australia and credit score Australia.