Monthly Archives: February 2008

The basis of dividend payouts

When we treat dividend policy as strictly a financing decision, the payment of cash dividends is a passive residual. The percentage of earnings paid out as dividends will fluctuate from period to period in keeping with fluctuations in the amount of acceptable investment opportunities available to the firm.

If these opportunities are abound, the percentage of earnings paid out is likely going to be zero. On the other hand of the spectrum, if the firm is unable to find profitable investment opportunities, dividends paid out will be 100 percent of total earnings. For situation falling between the two ends of this spectrum the dividend payout ratio will be a fraction between zero and one.

Beating the market: Real estate investments

Investment in property is one of the most sought after tools in today financial market place. No other finance and investment tool offers the stability, simplicity and an excellent return as the real estate investment does. And if that investment is in a promising, emerging economy like that South Africa, it adds glitter to the gold. A very distinctive combination of highly developed infrastructure by the first world, availability of minerals and a strong intuitive entrepreneurial streak makes the South Africa Property listings an irresistible venue for investment.

What does this prominent emerging economy hold for the investors?

With 24% of world diamonds and 69% of platinum reserves along with a host of other minerals, the country promises to attract hordes of investments in times to come. With all these happening in the continent it is all but natural for more and more industrialization to take place over there.

Buying property expressly for investment purposes removes the emotional attachment to the property and thus it is looked purely as a vehicle of investment. You can let up your property on rent or on lease to the business companies. Utilizing the services of online portals you can lap up properties like opportunities online. Headings like real estate home for sale by owner should grab your attention. These new world online real estate companies have effectively blurted the geographical boundaries. They tie up at the local level with the property owners and developers and flash any property opportunity sale at their portals. Information on all available property is available on you mouse clicks along with graphical images. A lot of commercial property and South Africa Houses on sale can be found on these online portals. Tailor made customized solutions can be requested. That makes all your homework easy. The investment decision making is the only crucial aspect that must be executed by you. And all this technology is benefiting for both the sellers and the buyers. Once you have the property, your leasing, renting out or decisions on investment are also taken care of. Or simply if you already own your property there, just list them with these guys and analyze the bids. In other words, a business-to-customer and a business-to-business model in efficiently in place for the investors needs.

Do remember that there are many factors to be taken into considerations while planning for your real estate property investments and the capital growth projections do get influenced by a mix of local, national and international factors. Be prudent while investing.

Four Reasons for why you should opt for a re-mortgage

There were days when borrowers would take a mortgage finance loan and stick with it till they repaid the finance in its full tenure. Those days and incidences have now been confined to the books of history. The modern day finance management provides the borrower with the option of re-mortgage.

Reason No. 1

Get yourself a better deal – you deserve it

The mortgage finance market is now immensely competitive and is very aggressive to book new business. There is a possibility of cash back schemes and other value additions like free of charge home insurance

Reason No. 2

Get a low rate

There is an absolute chance that your current mortgage rates are higher than what the re-mortgage could offer you. Take the jump and catch hold of that lowest rate mortgage in the offering.

Reason No. 3

Liberate the equity

With the real estate properties rates zooming so high, a re-mortgage will help is settling your current mortgage loan and provide you with some extra funds.

Reason No. 4

Modify your mortgage type

A mortgage loan that you took years back might not be suiting your lifestyle and spending needs today. Restructure your loan to suit your today’s needs.

Decode the types of mortgage rates

Steering through process of purchasing a home could be scary at times, especially with multiple kinds of mortgage finance rates swimming all around you. It is for this that a good understanding of the mortgage rates will help you in taking a faster and secured home loan decision.

Here’s a small summary of some of the very popular mortgage rates available in the finance industry.

A fixed mortgage rate provides the user with an equated monthly installment. The amount of principal and interest in your EMI remains same all over the tenure of the repayment schedule. Neither the rates fluctuate nor the term. The borrower has a clear idea of his future cash flows and hence can plan accordingly. In an increasing interest rate regime it is recommended to get into a fixed mortgage rate contract.

Adjustable mortgage rates are, as the name suggest, adjusted during the tenure of the loan. The rates are attached to a benchmark index and it moves as the index moves. Such a contract rate is good in a decreasing interest rate regime.

Alternatively if you already own a home and wish to avail some financing out of it, the financing rate is referred to as the refinance rate. The refinance rates usually are higher than the first mortgage rates and have a shorter term than that of other financing and mortgage tools. The good thing is that you can get your home or property to serve as a tool for financing your other fund requirements.

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