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Real Estate: Leasing Is An Option
You may be thinking about purchasing a property or maybe making your first steps into the real estate business. You may be overwhelmed by the figures this implies and wonder where to turn for financing. You probably did not know that leasing contracts are also available from certain financial institutions for apartments and houses in different places and that this method provides cheaper financing in terms of monthly payments.
Leasing is an excellent financial option but it is not for everyone. There are people for whom leasing can be advantageous and there are also situations under which leasing is the perfect choice. However, there are also other financial products that may be more advantageous under different circumstances. Just like home loans are not for everyone, leasing is also not the perfect solution for any financial situation.
Leasing A Real Estate Property
A leasing contract grants the use of real estate property to the borrower. The financial institution either owns the property or purchases it and remains proprietor of it till the borrower decides to exercise the right to purchase it. In the meantime the monthly payment work exactly like rent payments but in the event that the borrower decides to purchase the real estate property, these payments are considered part of the purchase price.
Leasing is a form of financing that avoids the down payment usually associated to the transfer of real estate property and also reduces the amount of the monthly payments compared to mortgage loans. Though in the long run purchasing a property through leasing is more expensive, in terms of monthly payments it is significantly cheaper and more affordable and provides you with the possibility to change your mind and return the property without purchasing it.
Who Should Lease A Property
As stated above, leasing is not for everyone. Someone who can not afford the monthly payments on a home loan will find in a leasing contract a possible solution to his problems. Even those who do not have a fixed income can make good use of leasing because they can put amounts aside in a savings account whenever they have additional income and destine it for the lump payment at the end of the leasing term so they can keep the property.
Also, those who are not sure whether they will stay at a certain place or are not sure whether they have found their place in the world can find in leasing the possibility to abandon the property at the end of the leasing contract or keep it. They will have plenty of time to make up their minds this way and they will not have to spend so much on home loan payments if they will finally decide to move somewhere else.
As you can see leasing provides great flexibility and low monthly payments. The only drawback is that it is more expensive than financing with a home loan, in the long run. But if you fall under any of the categories explained above, you may wish to consider leasing as an option for real estate purchases.
Enterprise Risk Management in Business is used by Organizations to Manage Risks
Risk Management is about taking the necessary measure to seize opportunities and manage risks in business. There are many risks involved in the operation of business, which could affect the stakeholders within the enterprise. Some of these risks include Hazard Risk, Financial Risk, Operational Risk and Strategic Risk.
Enterprise Risk Management employs methods and solutions to address these risks and achieve the business’ goals and objectives. There are many risks including internal and external factors that need risk management solution. Risk management solution provides an enterprise risk management by integrating documentation and assessment of risks, defining controls, managing audits, identifying issues and implementing recommendations and remediation plans. The risk management solution includes powerful tools for risk analysis and monitoring such as configurable risk calculators and risk heat maps.
Risk management delivers effective management control through increased shareholder value, optimized risk or returns outcomes, reduced compliance cost and improved business performance. Because of the risk management solution, an enterprise or business would be able to put goodwill in its brand or output and have a premium over its holdings in the market. Furthermore, the increased visibility of risk in the enterprise provides the management a better internal control to address the risk.
If a bank grants wholesale lending to a particular enterprise, it would post various risks. And if the enterprise risk management is weak, a possible leak and business disadvantage would occur within the business, which is why tracking of collateral is needed to identify and provide quick and prompt method of eliminating errors of information. Tracking of collateral for wholesale lending automates the identifying of deposit to be collateralized and communicates the collateral requirements to the Treasury group. The treasury group that relies on the tracking of collateral reports will be able to calculate the interest and value involved in the wholesale lending. A management control within the business of wholesale lending by a bank does not only post benefits to the enterprise but also to the stakeholders within.
It maybe that an enterprise fails to measure the risks in its operation, which consequently affects the overall brand or image of the business. However, if risk management is applied, there is no reason for the possibility of leakage and weakness. There are many risk management systems solution available for various types of enterprise. This system solution is an automated system that measures the risks within the enterprise and provides methods and processes to seize the opportunities rather than failing to take the advantage. The system usually involves identification of particular events or circumstances relevant to the organization’s objectives, assessment of risk and opportunities in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress.
There are at least eight known components of framework for risk management, this include internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication and monitoring. The framework suggested would only be possible and attainable if implementation is strong.
The likelihood that a business would achieve its goal is dependent on the risk management and measures employed by every enterprise. Seizing opportunities is the key to a business growth.