Archive | Finance RSS feed for this section

101 Money School

PropertyTutors and Gilligan Rowe & Associates are running a free information evening in the 4 main centre’s, Auckland, Hamilton, Wellington and Christchurch. This free event could help you create the financial future you want. This event is a joint project with PropertyTutors and Gilligan Rowe & Associates and offers people the chance to learn about crucial money concepts.

Read full story Comments { 0 }

What is a Deposit Bond

A deposit bond is a substitute for a cash deposit for the interim period between the signing of a contract and the eventual property settlement. It is the easiest and most convenient tool available while purchasing property when an immediate deposit is required.

Read full story Comments { 0 }

What is Floating Term Mortgage

Floating term mortgages are the opposite of fixed term mortgage and refer to a mortgage that comes with a variable or floating rate of interest. A mortgage is taken by people wanting to buy property and it is essentially a loan with the purchased property used as collateral. It is also called an adjustable rate mortgage.

Read full story Comments { 0 }

What is a Fixed Term Mortgage

Fixed term mortgage is a type of mortgage that has a fixed duration of time. A Mortgage is a loan taken for the purchase of real estate, and is secured by the property being purchased with the amount. That is, the property being bought with the loan serves as collateral for the loan.

Read full story Comments { 0 }

What is Interest only Mortgage

Interest-only mortgage is a form of mortgage in which the borrower is expected to pay back only the accruing interest and not the principal mortgage amount. The interest only option can last for a few years, though the loan seekers can pay more than just the interest. A mortgage is a loan taken for the purchase of property and the property in question is treated as collateral.

Read full story Comments { 0 }

Home Equity for Loans

Home equity can be used by home owners to secure loans. This becomes possible by using this home equity as collateral against which banks and other financial institutions would lend money. As collateral the home equity serves as a guarantee that the money taken as debt will be repaid. Failure to repay would mean that the lender can sell the home to recover his loan.

Read full story Comments { 0 }

What is Cash Flow Negative

Cash flow negative is a self explanatory term, implying a negative cash flow, or a condition when the income is less than expenses. It indicates higher cash outflows than the flow of income coming in. In the property sector cash flow negative refers to those property investments where the expenses incurred on the property are higher than the returns it yields.

Read full story Comments { 0 }

David Windler on Property Finance

David Windler specializes in finance for residential property investment and he is a regular guest speaker at The Masters. Have a look at a sneak preview of what David will share at The Masters May 2011.

Read full story Comments { 0 }

Cash Flow Neutral

Cash flow can be positive, negative or neutral. It is positive when the inflow as income is higher than outflow and expenses. Negative cash flow refers to a situation when the income is lower than the expense and neutral cash flow refers to a state when the income matches expenses. In the property sphere, cash flow neutral implies that the rental income matches the expenses involved in holding a property. Since they are equal it means that the rent exactly covers the expenses including maintenance charges, loan installment, insurance, and other charges.

Read full story Comments { 0 }

Cash Flow Positive

Property that is cash flow positive is the best investment to make. Cash flow positive means that the returns or income is more than the expenses incurred. In the case of property it implies that the returns from it, in the form of rent, is higher than the expenses involved in maintaining that property. This implies that the property investor is able to save some amount each month after paying off all the property dues.

Read full story Comments { 0 }
Page 1 of 212