Month: April 2017
Loans are the most common way of getting funds when in need. However, the process might not be very easy since different lenders have different requirements so you need to know exactly what you want and choose wisely. So here are some of the most important things you need to consider when taking out a loan.
1. Type of loan
There are many types of loans that could be taken up for different purposes. Some of them are; business loans that you could take to start up your own business, home loans which would assist you in building your home, personal loans which could be for any personal finance need, education loans that would help you in your education etc. It is vital that you know what you need the loan for an apply for that particular type since some types get incentive rates. For example, most lenders provide concessionary rates for education loans than personal loans.
2. Interest rates
The interest is the premium the lender charges for providing you with the loan. These rates could vary according to the type of loan as stated before. The lending market is very competitive since financial institutions are eagerly waiting to grab customers. Hence, it would be wise to shop around to get the best possible deal. Make sure there are no additional fees such as appraisal fees, underwriting fees, administration fees etc. are included in the interest charge.
3. Length of loan
The payment method offered by each lender will depend on the length of the loan. Some could charge extra fees for taking the loan for a longer period while some lenders charge an additional fee known as the ‘prepayment penalty’ if you pay off the entire loan early. Hence always talk to your lender and clearly understand the terms, conditions, guidelines of the payment plan. Your payment plan could also depend on the inspection of your due diligence in Hong Kong, performed by the lender.
Most lenders require you to pledge collateral as a security. A lender might perform a background check and analyze your best credit rating agencies and worthiness and then decide the need for collateral. Hence do keep some property with you that you could pledge.
5. Down payment
Not all lenders require down payments. However, if yours does then you need to be in a position to pay it. Down payments lower your total loan amount since the interest will be charges on the loan amount less the down payment. So, larger the down payment, lower the loan.
You may need to move to a new city for work, or perhaps you’re going to live on your own for the first time. There are many things to consider before deciding on an apartment. Here are some helpful things to keep in mind if you’re planning on renting out a new place.
One of the most important things to consider before picking an apartment is its affordability. You’ll have to decide on whether it will be a short term apartment in Hong Kong or one that you plan on staying in for a longer time. As you will probably for at least a year, make sure it is within your budget. You’ll have to consider the rent as well as utility bills and other costs. It is best to spend 30% of your income or less on housing.
You’ll need to decide if you want a serviced apartment with all the facilities or a regular one. You’ll also need to make sure the apartment has at least basic amenities such as high speed WIFI. Check if it has other facilities too, such as a rec room, a pool, gym, sports area and a laundry room. It’s best if you pick a place that has at least some of these.
This is another important factor to keep in mind. If you’re a student or just enjoy peace and quiet, its best to choose an apartment in a tranquil, suburban area. Also consider the neighborhood and if it suits your tastes. If you’re outgoing, you might prefer an area that has more shops and restaurants close by.
If you need to travel to work or university regularly, it makes sense to pick an apartment close to these places. Also see if it has a parking lot where you can park your vehicle or a bus stop close by. You don’t want to have to walk too far and waste time getting to your destination. See if grocery shops and any other markets or eateries are within easy walking distance too.
This one is a must. Not only should your neighborhood be a safe area but the building you choose should have tight security as well. Your budget shouldn’t matter so much when picking a safe area that is crime-free. So do some background checking on the neighborhood too. Also make sure the windows and doors of your apartment have secure locks and see if there is a fire escape.
Take your time to pick the most suitable place so that you won’t regret your choice in the long run.