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Simple Guides for Fresh Graduates
Going to college is no easy feat. Great parties and long holidays aside, it is one of the hardest times young people have to go through. During these times, their finances are tested to the limits. They also get to take their first dip into the world of personal loans in the form of student loans. So when graduation comes, students cant help but feel finally relieved to be free from their studies.
But not for long though. As soon as the caps tossed up in the air, the reality of the real world sets in. As graduates, they are now on their own and the responsibilities are much harder than before. In the real world, they have to worry about finding a career, managing expenses, transport,living, savings, the list goes on and on. So heres a quick guide for graduates on how to get started in the real-world.
Job
In finding a job, one must try to stick to his or her field. This is going to be worth it in the long run because it will allow them to move forward in their career. A job that pays higher but is unrelated is surely tempting. However, it can possibly cause dissatisfaction and career stagnation in the future.
Income
With a full time job one must refrain from mindlessly spending all of their pay check. They must learn how to budget and save. If they have student loans, now is the best time to pay them off. Student loans are low rate interest loans so they should be easy to pay off slowly.
New Place
New employment, sometimes requires one to move cities. They can opt to rent with a friend or someone who is looking for the same deal. This will enable them to save on rent money. Another good way of saving is subletting.
In most cases, a landlord would require money-orders or checks as deposits. Therefore opening a bank account (if a person is new to the city) is important. Keeping money in the bank acts as security for any financially independent individual.
New Car
Taking a car loan is a crucial decision. Fresh graduates must be able to afford at least a 20% down payment. This way paying it off from salary becomes easier. Having good insurance for the vehicle is also a must. This should be researched efficiently to get the best insurance deal.
These are only a few but essential things to consider in the real world. However, expenses do not stop there. As ones income increases, so does their financial responsibilities such as taxes, mortgage, health care and so on. Budgeting, saving and careful research is the key. When all three are managed well, theyll support themselves just fine in the world.
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.