@homeloans Home Truths about securing a home loan

One of the rudiments of a free economy is owning property, and in more ways than one

the activity in residential property markets often draw a parallel with the health of the economy of that country and like a forest has light shining through and other times remains dense.. 

Recent developments have perhaps challenged this thinking, especially when it comes to securing a bond or getting a loan to buy a home.

Not too long ago some of the cities in the US were almost entirely owned by investors with the experts proclaiming them brilliant buy-to-let destinations.

Many investors in the United States and the UK and around the world lost fortunes when the bubble burst although now prices have seemingly corrected themselves - in some instances properties have dropped to almost half the value that they realized at their peak; but as with so many boom-bust cycles, those cities are starting to look attractive once more.

For investors new to this kind of investment, it simply means that houses are now so inexpensive that if you do buy property at the current prices the rental income that you can earn may cover 100% of your bond/mortgage plus more.

These opportunities do exist in South Africa – as a matter of fact according to a recent survey conducted in South Africa almost all South Africans still believe in investing in property. With interest rates still hovering at their lowest in 30 years around 8.5%, this belief continues.

Even in today’s volatile economy, buying a property is perceived as being a good investment but an even bigger majority said that they would rather buy a property as opposed to renting a property if it can be afforded.

Owning property has a far more optimistic connotation than renting. Thing is – renting is often the only option available when it comes to finding a place to stay, especially if you cannot secure a bond.

If you are struggling to obtain finance to purchase a property, ensure that you have a strong credit record before you embark on this sometimes arduous journey. If you have no idea where to begin, it might be wisest to call on the experts to assist; bond originators as they are known in South Africa, are able to help with the legwork and paperwork, and will be able to compare products in addition to lenders on your behalf. You no longer have to embark on this journey on your own.

Using Email Marketing to build your South African Business

The good news is that e-mail marketing is more than just that. The options are endless when you embark on this type of an email campaign - from newsletters to promotional offers to customer service announcements and invitations. In this way you get to pre-sell visitors before you even attempt to sell them. After that you can then send up a follow-up email to strengthen the message. With the right email marketing software you can send out a million emails anywhere in the world from South Africa at a cost of .01 cent each.

This is an inexpensive method for a small business in South Africa to get going. It is also fast and effective.  To ensure that your mail reaches the intended recipients, adhere to the right spamhaus spam filtering rules and includes a link that gives your clients a way of unsubscribing if they no longer wish to receive your correspondence.

Selling products or services from your website allows you to send a series of follow-up auto-responders to your customers after they have signed up for your newsletter. That way you are able to offer "subscriber-only" discounts and that is a great way to generate more website leads. In this way you build a trust with your subscribers and your monthly newsletters will establish a credible source of information about your products or services.

You can create a plethora of new mailing lists or even upload your existing client database from an Excel spreadsheet.  And remember too that clients respond far better to emails that have been personalised and address them by their first names. There is no other way to coordinate such massive product launches in a short period of time than by an e-mailing campaign. This huge promotional attempt will spill over from e-zines to forums, creating a buzz for your product in less than a day.

So, regardless of whether your South African emailing marketing concentrates on your list only or incorporates the use of other lists, you will derive multiple benefits from your efforts.

When Do You Need a Debt Counsellor?

If you have tried absolutely everything to cut back and still find yourself drowning in debt, then it is time to seek the services of a debt counselor.

How this works:

• Debt counsellors are there specifically to help you budget and to work out how you can successfully clear all your debts.
• Debt counselors are there to negotiate, on your behalf, a debt repayment with your creditors.
• In order to work with a debt counsellor you need to earn a fixed salary.
• It makes no different how large your debt might be, you need to first earn fixed money to start sorting out your debts.
• If you feel that it is necessary to do so, you can approach a debt counsellor on your own.
• If you are in deep trouble and deep debt, chances are that either a magistrate or your creditors would insist you seek the services and the help of a debt counsellor.
• In short, a debt counsellor will take an in-depth look at what you earn, what you need to pay for (essentials) and what you can afford to pay every month in order to reduce your debt
• The debt counselors will present an offer to your creditors so that you don’t have to do so in a personal capacity.
• This is far less personal hence far less stressful.
• You need to take along your personal documents when seeing a debt counsellor such as your ID, bank statements, bond agreement, loan agreements your store card and vehicle repayments.

Once your debt has been paid off you will receive a certificate of proof.

There Is No Shame Living Within Your Means

There are definite steps to get your finances in order. Don’t ignore your debt so that you can get on top of your debt.

If you are up to your eyebrows in debt, you are without a doubt not the only person in SA to be in this situation. SA credit bureaus have about 19 million credit users presently on their books. Last year in June the debt that was outstanding by consumers was R1, 23 trillion.

It is not uncommon for South Africans on the whole the ignore debt and hope that it would disappear.

Here are a couple of ideas to lighten your debt load

• Do not spend money on frivolities
• Did you know that you are permitted to return your car or household goods if you are no longer able to afford these?
• If you are in a position where you can not afford installments on an agreement, you are entitles to give written notice if you can no longer continue and if you would like to cancel the agreement.
• Trade in your car for a more modest one to reduce your debt.
• If you have a problem paying your debts, speak to your credit provider and arrange more affordable terms.
• If it takes you longer in the long run to pay off your debt you will end up paying more.

Do not run away from your debts – make arrangements with your creditors to pay off your debts and if your credit provider does not want to compromise contact the NCR which will offer you a list of debt counselors that are registered under this umbrella.

Managing Your Finances

              

It is a known fact that there are many women who just simply do not take care of their financial situation. Many women, although well-educated, are simply not aware what their finances look like and neglect this very important aspect of their lives.

Working too hard on a career and neglecting your money is akin to a plumber not fixing his own pipes.

Having the life you want is directly dependent on managing your finances correctly.

It is a well-known fact that little things and small amounts of money add up, and that it is important to consider the buying and saving decisions that we make – even the little ones.

Start saving early, and if you start saving an amount of R500 every month at the age of 25 you will have R10 million in retirement capital. The secret here is compound interest. Your money grows quickly when you earn interest on your interest over a long period of time. If you do not start saving really early you have lost some of the benefit of investing early. If you have not started early, then it is never too late to begin.

The best way to start saving, of course, is by paying yourself first every month. The very best way to do this is to set up a debit order so that you get paid on a regular basis. You won’t even miss the money once you get used to having that small amount less every month.

Paying off your debts is a good idea. If you are able to pay off your credit card or put a little extra into your bond each month then you will find that you pay less interest.

In the long term you would be surprised at the substantial amounts you would be able to save.

Paying off your bond is far more important than all those little things that we so love to indulge in. Remember that your bond is by far your largest asset and also your biggest debt.

Start managing your money by taking control of your finances and don’t sit back and expect that it will all work out on its own.

Women and Money

The chances are that many of us will live well into our eighties. We will therefore have to provide for ourselves for 20 to 30 years after we have stopped bringing in the bread and butter.

There are a couple of common financial mistakes that women make.

The first is thinking that a man will take care of things, especially the finances. There is no such thing as Cinderella in real life.

Girls who are well-educated and are independent often think this, too, but it is seldom the case. This is the main reason why so many married women leave the finances up to their husbands.

Life is pretty unpredictable, therefore it might be best be prepared should you get divorced, are widowed or if your husband should become retrenched. These are all the realities of life.

Not having your own bank account is well – stupid! Should your husband die, your bank accounts could well be frozen.

For the running of your daily life a joint account is fine, but as said before, if one or the other account holder should die, the money is immediately frozen, and this is not a good place to find yourself in.

If you have a baby the financial implications are often underestimated by most women. Babies are EXPENSIVE, and before jumping into motherhood, remember that a baby is forever, and a very costly exercise. Having a baby impacts on a woman’s earning ability, therefore having to depend on a husband could put financial strain on any family. Very few women go straight back to work after taking maternity leave or continue to work the same as before.

Don’t use your retirement money if you resign from your job to have a baby – rather hold onto this. Even a tiny amount will add up over the course of time. Continuing to save in your own name is a good idea even if that money comes from your housekeeping budget.

The secret is in the planning; therefore it is a good idea to take care of your finances no later than today!