Why Different People Qualify For Different Mortgage Lending Rates?

Special Mortgage Rates, Special Terms and Conditions

First Published: September 28, 2009 ADawnJournal.com

In an ideal world, everyone would have an absolutely equal share of money, opportunity and health, and what they would have would be adequate to live on comfortably. However, the world is not ideal, and through one reason or another some people find themselves having to be satisfied with what they have. In order to equalise things somewhat, there has to be a range of different options which can be applied in situations that require them. What this means in practice is that individuals will be treated differently according to their situation – with the proviso that it must be sustainable. This is why we see different people qualifying for different rates in terms of mortgage lending.

To take a hypothetical situation, an individual – let’s call him Mr. X – may have been living happily for many years in a comfortable job which entitled him to a carefree life, with a credit card bill which he paid in full every month allowing him to avoid interest fees. Suddenly, one day, a company moved into his area doing the same thing that his company was doing, but for a considerable amount less, and business migrated to the newer company. Mr. X found himself earning less commission, and was unable to keep up payments on his credit card, forcing him into a situation where his credit record was less positive than it would have been three years prior. Three years ago he qualified for an excellent mortgage interest rate. Now, he has to accept a higher rate.

This is clearly far from an ideal situation. Through no real fault of his own, Mr. X finds himself in a negative position. Is his bank wrong to approach things this way? From a business point of view, the answer is “no”. His situation created a position whereby he was considered to be more of a credit risk. Banks need to judge risk based on the facts that they have available to them, and quantifiable data. Although Mr X was generally a good payer, he has found himself in the same position as other people who may have been less responsible with credit payments. If the bank were to make an exception for him, though, they would have to do it in other situations and their margin would be reduced.

The price we pay for having a system of credit and borrowing in our economy is that it will sometimes “unfairly” penalise people who have conducted their accounts generally rather well. This system may be imperfect, but as we mentioned at the start of the article, this is not an ideal world. In order to make the best of your situation, particularly if you are one of the many people whose credit record has suffered from circumstances beyond your control, it becomes all the more necessary to look at ways of getting the best deal. This entails shopping around, saving for a deposit and in some cases waiting for your continued efforts to make payments to your credit accounts to be reflected in your credit score. And in the meantime, realize that positive behaviour is, eventually, rewarded.

Why Go Into Real Estate?

Why Should You Consider Getting Into Real Estate?

The world of real estate is one that is filled with challenges, and is never as straightforward as one would like it to be – as some think it may be from the outside, indeed. There is certainly no reason to suggest, though, that one should give up on the idea just because of the difficulties, it is these difficulties that make real estate what it is – an arena in which the strong survive and are rewarded handsomely for so doing. What is the story? Why should you consider getting into real estate?

1. The money. Let’s not pull any punches, very few people who get involved in the business of real estate go into it without money as their primary motivation. The most recognized way in which people make money from real estate is to buy a property when it is cheap, and potentially not very nice to live in, then spend some money bringing it into shape so that it can be sold on at a profit. The equation is fairly straightforward. You start with a modest outlay on a modest property. You want to maximize what you can bring in for it while not spending too much. Clever property developers will know how to improve a property while getting the best value.

2. Working for yourself. Sometimes there will be a lot of money in a job where you are answerable to other people. Sure, you enjoy the money, but when you are continually having to devote your time and skills to serving the need and request of someone else it can be tiring and unrewarding (except on the financial front, of course). Being your own boss means that you get to make the decisions and as well as being able to benefit financially you will also have the chance to make your personal philosophy into something concrete. This is something that is enriching in more than just the obvious way.

3. Standing in the community. This is something that tends to go hand in hand with financial success, of course. The two things are different, though. You can become a respected member of the community without a lot of money, and you can certainly make a lot of money without becoming a respected member of the community. But working in the real estate business can offer you the chance to really make ties that will stand you in good stead. Good property options will make a community far more profitable, and by contributing to that you may find that you are sought out by people with sway.

4. The journey is a blast. Often when someone buys a house, they do it up, sell it on and go back to work with a tidy profit in their bank account. This isn’t wrong. But if you realize  a knack for developing properties, you can continue reinvesting and keep making more money. When you are successful in real estate, it often means the big dream coming true – being able to retire early in order to enjoy your spoils at leisure.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to Ahmed Dawn Dot Com. This article originally published on the above website on May 1, 2009.

Why It Is Advantageous to Buy a Property in Canadian Real Estate Market

Canadian Real Estate Market Outlook

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to Ahmed Dawn Dot Com. This article originally published on the above website on Apr 3, 2010

Investing in real estate in Canada is a prudent step to take right now. According to recent reports, Canadian real property market is attractive. 2010 is a perfect year for any real investor in the country. Probably even international investor would be glad to take advantage of declining property prices. Many countries lack luring residential or commercial investment opportunities.

This means that an investor can currently expect a good return on property investment in Canada. Just like in other developed countries, Canadian commercial real estate market growth rate is slow. However the cost of these properties have not been too steep lately. An investor can choose to buy a commercial property in busy places where people are seeking business premises. Also buying a house in an area where income potential and employment odds for residents seems promising is perfect.

Buying commercial properties is often beneficial because one is assured of steady income flows. Furthermore, buying a property a time like now when prices are reasonable is wise. In future, a house’s value is expected appreciate and it is much more likely to cost more than its initial buying cost. Before one can buy any property, it is important to examine his or her finances. To be specific, a foreigner who intends to invest in Canadian real estates need not consider the currency conversion alone.

There are extra financial factors that are handy. For instance, a person may decide to purchase a real estate by paying a mortgage loan. The option is available to both the natives and international investors through banks, although the former is favored. As a foreigner, one needs to approach a Canadian bank to inquire about it. Some banks will definitely provide this type of home buying loan based on some conditions. An investor must ensure that his or her credit score is above reproach.

It is very possible to apply for a mortgage in Canadian currency from anywhere. Having a motive to relocate to Canada is a good intention still. To achieve this, one must find a good international mortgage broker. This is not an easy task because these brokers operate in some select countries. If an investor lives in Canada, it is easy to find a good mortgage broker. A broker is always useful to help investor during price negotiations. They are source of advice too.

Even before one can select a mortgage plan, evaluating his or her financial ability is crucial. Every investor knows his or her financial strengths. It is wise to consider that real estate prices can suddenly change due to fluctuating currency exchange rates. Select a home mortgage plan that is easy to pay, putting into consideration such random economic changes. As an international investor, it is important to seek consultation before signing any mortgage documents. Choosing to invest through a certain bank that supports international mortgage loans is a trouble-free approach.

A home buyer or a commercial real estate buyer, from Canada or a foreign country must not default in payment. This can hurt an investor’s credit score or result to a foreclosure process. Foreclosure is the process through which a real estate is repossessed after an investor defaults. This can be difficult for international real estates investors, although it can be a bad experience for anyone.

Why You Should Not Get Too Attached To Developed Property

When Buying To Let, Don’t Develop For Living

Many real estate investors fall into a simple trap on their first development. Having purchased a property with letting it out in mind – or even the idea of selling for a quick profit – they behave too much like themselves. That may sound wacky, after all we are all told often enough to “be [your]self” when we are young, so why change? The problem comes with the fact that a buy-to-let real estate property may look wonderful to you when you are done with it – but you are not going to be letting it to you. It is all too easy to become personally involved with the development and make a mess of it. So remember to take a detached approach when it comes to development.

One thing to remember about real estate development is that it tends to involve homes. Even if only subliminally, a house conveys to us the feeling that it is for living in, and when we come to develop it we often do this based on what we would like to live in. This is fine, in small measures. To put it another way, you need to be able to look at the house and feel that people would be at home there. It is not about standing back and thinking that you would feel at home, because you are not going to be living there. Adding idiosyncratic touches to the development because you feel it gives the house some character may well be an artistic approach, but remember that your idiosyncratic touches will make the character of the house your character.

This is not to say that a new development should be bland and consciously inoffensive. There needs to be something innovative about it if you are to realize a profit. To get an idea or two, it is helpful to view a house or two in the same area, houses which are selling for close to the price you hope to realize. By doing this you will be able to see what kind of stamp you want to place on the property when it is finished. Location is important when it comes to the kind of touch you want to put on the house. If your development is in a neighbourhood that is by tradition the place for retired couples, then developing a classic bachelor pad or a house for a young family is obviously going to lose you profits.

It doesn’t need to be rocket science – you can do some very simple research and find the ideal development property, then with a few simple touches have the ideal house or set of apartments to sell to the local market. Don’t make the mistake of getting too attached to the house, or to your idea of what it should look like. The chances are the potential buyers will have tastes which differ with yours. Save those touches for when you develop a property for living in. that is when you will need them.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to Ahmed Dawn Dot Com. This article originally published on the above website on July 11, 2009.

World's Riskiest Cities for Property Bubble

USB Releases Global Property Index

First Published: ADawnJournal.com Published Date : November 30, 2015

The UBS just launched its Global Real Estate Bubble Index that tracks the risk of property bubbles across the globe by analyzing various metrics. The risk of a property bubbles has increased dramatically for global cities, according to the USB report.

Here are the top ten cities on the list facing bubble risk:

– London

– Hong Kong

– Sydney

– Vancouver

– San Francisco

– Amsterdam

– Geneva

– Zurich

– Paris

– Frankfurt

Some highlights from the report:

– London is the most vulnerable city to have a property bubble.

– Sydney is the world’s most overvalued city.

– US city San Francisco is overvalued, but New York and Boston are fairly valued, and Chicago is undervalued.

– Vancouver prices in 2015 are 25% higher than they were in 2006.

– Sydney prices in 2015 are 30% higher than they were in 2012.

– Amsterdam is the second-most susceptible city on the continent.

– Hong Kong, the second riskiest city after London, has been in bubble risk since 2011.

– In Hong Kong, a worker would need to work 14 years to buy a 60 sq meter apartment.