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Category: Uncategorized

Asian Real Estate As a Hedge Against Inflation

Posted on December 7, 2016 in Uncategorized

For the last year or more, I kept hearing and reading the word “de-leveraging”. Companies and individuals are all busy de-leveraging. So, basically, people are saving more money, paying off their debts and spending less. Overall, it gives an impression that leveraging is undesirable and should be done away with.

Marc Faber famously said that, in Asia, the family run businesses in Hong Kong and Singapore have very little debt. Many rich families in Singapore do not have any mortgages. He thinks that Asian real estate will continue to do well. This gels with what Jim Rogers thinks about how we should own some real estate and he, in a recent interview in New York, actually said that he would buy some US real estate now if he were staying there.

We should also buy other tangible assets which would keep pace with or grow faster than inflation and protect or grow our wealth in the process. However, most of us are not in the same league as Marc Faber or the rich families he mentioned.

So, what are we to do if we want a piece of the action and own some Asian real estate? Do we work very hard to save money before we buy that piece of real estate? 100% cash upfront and without a housing loan? Or do we put down 20% and borrow 80%?

Quite simply, like any other investment, the answer lies in timing. Buy when the market is depressed or just turning up and hold for the long term. If you believe that the world is going to see extraordinary inflation in future, this is one thing we should do if we have the means. If we have the money, pay 100% cash upfront. If we only have 20% to

The Inevitable Transaction Called Loans

Posted on December 5, 2016 in Uncategorized

People do need money. And sometimes, or most of the time, people’s demands and needs do not cover or amount to that they are capable of earning.

Thus, even in ancient times, civilizations have devised how to lend money to those who need–through loans. But loans or money-lending activities should not be considered as charitable or divine act of giving or lending.

Even in the times of the Old Testament of the Bible, people make loans. And lenders do provide those needs, but there is catch. Every penny lent or borrowed should be returned, with interest.

Modern day loans

Loans have also evolutionized from the simple terms they had in the old civilization to the complex loans and lending systems we have right now.

Simple loans like that now are even made simpler. Simple money loans can be made with collaterals, and every lender will be much willing to provide for these loans. Why? Because the interests will generate them so much revenue.

What more, collaterals are guarantees. So if a particular borrower will not be able to pay back the loan, the lender will rake in the collateral and take it as their own asset.

The lender then, will be able to put the property or item on sale and collect the amount of loan borrowed from them, with the corresponding interest.

Mortgages

One common form of loans is mortgages. When you say mortgage, it means the loan is done with a particular collateral, usually a house. Mortgages are made if the borrower needs a substantial amount.

Proceeds from the loan can be used in a variety of purposes that might include hospitalization or disease treatment, further investment or other expenses.

Most mortgage companies, particularly in the UK, in the United States, and other developed nations, are thriving because a lot of borrowers take mortgage loans. Most of these borrowers are not always able to pay back, so lenders are left with greater portfolios of assets consisting of homes and properties.

Car loans

Everybody wants to drive his or her own car. That is why lots of banks now offer car loans to borrowers.

The terms of car loans can be sometimes very flexible and alluring. Some lenders opt for monthly payments that can be sourced from the borrower’s monthly income.

Car loans can last for years, raking in greater profits through interests on the part of the lender. But they are really flexible, and sometimes, the monthly due is very low and almost negligible.

Corporate loans

Individuals make loans, but did you know that companies also file loans?

It is because all forms of businesses need capital or more money for investment. Thus, we hear of companies that fall because of unpaid loans.

Even countries and governments make loans. There are large global banks that provide for loan requirements of such countries.

Usually, in those cases, developed countries form funds that provide assistance to countries in the third world. But loans given to needing countries must have purposes.

The International Monetary Fund and the Asian Development Bank for instance, provide loans to countries, which have significant infrastructure projects to fund.

Moreover, whatever form of loans there may be, you should be responsible when taking one. Do not overspend and live the lifestyle according to your spending capacity. That way, you can avoid luxurious and unnecessary loans.

Ways to Pay Up Your Graduate Loans

Posted on December 4, 2016 in Uncategorized

America has one of the most expensive education systems in the world and usually students who want to pursue a higher degree of education would resort to student/parents loans. Asian parents usually have no problem with this because a study shows that 73.2% of Asian parents or immigrants save up for their children’s college education the moment they are born or they call it “college fund” so that they don’t have to think about paying for parenting loans later on. But not all of the American population is like that. Some parents think high school education is enough for their kids but their kids might think otherwise and end up getting a graduate loan. This blog post is to give some options on how to pay back student loans after you have already completed your degree. This is for the purpose of students who don’t know where to start in paying.

1) Get another Loan with lower interest – Paying a loan with another loan is not good but what we are suggesting is you get another loan with a lesser interest to pay back the student loan and all you would pay for is that loan instead of the graduate loan which oftentimes have higher interest.

2) Have a financial schedule – As early as starting your years in college, you should already be thinking about making money or saving up money to pay up for your college loan. You can set up a financial schedule of how much you would save and how much you would need to spend while you are in college.

3) Savings – Paying out your student loans through your savings is a good way to pay it up. Spending too much while still under a student loan is not a good way to go and you will regret that later on because you are never sure as to whether what your financial condition is later on.

4) Make it a priority to pay up – Prioritizing to pay your graduate loan and setting your mind to that direction would eventually let you pay up for it.

5) If you get a job – Ask your company if they have benefits that they will pay for you graduate loan – There are some big companies who would pay for the graduate loans of their employees especially if they found the employee as an asset. Don’t be afraid to go ask the human resource in-charge if they have that benefit.

Benefits of Graduate Loans

There are so many benefits of graduate loans and some points we would like to add it up here:

1) Able to take up a higher degree of education
2) Immigrants have a chance to go to school and get used to the education system
3) Study now pay later benefits

Basically, student loans make it easy for you to study in college but paying it could be a problem if you don’t have it all planned out.

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