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If You Want To Know Your Company Debt, Watch Your CEO Personal Finance Habits

Nov 5

Posted by admin in Debt Consolidation, Loans, Personal Finance

I was surprised to know from a Ohio State University Study that the personal finance habits of a CEO can tell a lot about the financial health of a company. The chances are that if the CEO has personal debts its more likely for his company to be in debt and vice versa. Earlier I?d think that a company debt had nothing to do with the personal finance health and habits of its CEOs because it depended more on external economic conditions like the recession, inflation etc. But this study seems to have come up with more logical results. Of course, the leader sets the example, and his personal financial health and habits will obviously get reflected in his company financial health.

The study reveals that companies with higher debts have CEO?s who have debts on personal properties. These companies had 4 % more debt than those companies whose CEO?s have not taken any mortgage loans. According to Anil Makhija, finance professor Fisher College, who was a part of the study team, ?It?s not just the characteristics of the firm or the industry that determine a company?s debt choices. Our findings suggest that you have to also look at the personal characteristics of the CEO to fully explain these financial decisions,?

The study involved 1351 CEOs out of which 67 percent were on mortgage loans for purchasing their properties. The CEOs on an average bought properties worth $ 1.65 million and loaned about 66 % of the purchase price. According to the researchers how the CEOs handled financing their houses is the best way you can get to know their loan resistance levels. Of course commonsense does tell one that a person in the habit of loaning will always do so in every context whether personal or non personal. A CEO who has handled his personal finances money managementwith the least loans will always try to apply his debt resistance and control skills to his company money management.

Interestingly the study has deduced this result after considering a lot of factors that you may consider unique for each situation. For example, you might say that it?s not necessary for the personal finances of the CEO to be as good or bad as his company finances. But here, it might be that though the amount of finances may be different, the approach to managing money and towards loan and mortgage might be the same. The co-relation shows remarkable coincidence.

According to Makhija, ?Our study suggests that we have to also look at the personal traits of CEOs, because they can tell us important information about the financial policies of the firms they manage. Past research has generally ignored these traits in explaining how firms are financed.?

Well, I do agree with this study to a certain extent though not fully. I agree because, after all, your financial strategies and approach remain the same,calculator whether it?s personal or business finances. But I disagree with this study in that the company debt or other financial decisions do not depend solely on the decisions or the financial management skills of the CEO alone. They are interplay of external conditions and joint decisions taken by the company officials.

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Portland Property Investment Tips

Sep 4

Posted by admin in Real Estate

Buying an investment property can be one of the best ways forward to financial success. As well as generating a regular income stream from your asset, it also provides many tax advantages. However since the purchase of a property will be one of the biggest investment decisions you ever make, it is important to choose wisely. The stakes can be high (and costly) if mistakes are made.

With careful research and planning, purchasing an investment property can be very rewarding for your bank balance. We are focusing on looking at buying a Portland property, as we see great growth in the area, as it is becoming more and more popular each year as a place to live. Here are some general investment tips to ensure your maximise the chance of a successful outcome.

1. Try buying during the upswing stage of the property cycle. The government offers a considerable grant for first home buyers but there is no point rushing in and receiving this bonus if you pay more than the house is worth! Timing the property cycle and purchasing when the cycle is on the way back up will ensure that you get good returns on your investment.

2. Buy properties in lower socio-economic areas that are priced below the market, with the potential of improving. In Victoria, Australia there are a number of popular seaside towns such as Portsea, Phillip Island and Torquay, which you already pay top price for. The key to investment is finding something relatively unknown which still has all the characteristics of a popular town, and is set for growth in the near future. Portland is such a place, nestled on the West coast of Victoria just outside of South Australia. Buying a property in Portland will help you achieve potential growth and investment success.

3. Look for the right suburb. A suburb that has outperformed the averages in the past is likely to continue to do so. Suburbs close to a CBD or water are often good achievers. In the case of a Portland property you want to look for a house that is close to the beach, has good views of the bay and is in walking distance to the main shops.

4. Buy the right type of property. A property in an area that will achieve good capital growth will always appeal to future owners. Being able to resell your property should rank highly in case you need a large sum of money quickly. As an investment property, you will also need to ensure that it appeals to a wide range of tenants.

5. The property needs to generate a steady cash-flow. While this should not be the sole factor when buying a property, it is good to have consistency with income to pay the mortgage. Your investment property should also be tax-effective and provide good depreciation allowances. New houses may provide good depreciation allowances.

Buying a Portland property or any other investment property should be one of the most exiting things you ever do so make sure you take the time to research and prepare, and most importantly, enjoy it.

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Real Estate : Key Terms Buyers and Sellers Should Know

Jul 19

Posted by admin in Real Estate

So, you’ve decided to make that leap and become a home owner rather than a renter. Or maybe it’s time to trade up that first home for something larger to accommodate your growing family. Either way, choosing the right real estate agent relationship and being knowledgeable on the key terms is crucial to successfully purchasing or selling your first home.

The first step is to understand the three types of representation offered by real estate brokers: single agent; transaction broker; and non-brokerage. The non-brokerage representation is most commonly used for owners who are selling their houses on their own (For Sale By Owner or FSBO). Occasionally, a real estate sales person may contact a seller to request permission to show the property to a potential buyer. If the seller agrees, and the buyer makes an offer that is accepted, the firm will receive a commission agreed on between the seller and the broker. Before showing the house, the seller signs a non-brokerage agreement, and it is only valid for that one particular buyer. Another use for this relationship is when the seller finds a buyer, but chooses to have a brokerage firm handle the paperwork of the sale.

Transaction broker representation is the most commonly used, and in the state of Florida, it is the presumed relationship unless otherwise requested. The sales associate offers limited representation to both the seller and/or the buyer. This is ideal for both parties because the brokerage company can list the selling property and show it as well to prospective buyers. If the brokerage firm lists and sells the house, the broker receives commission from both parties involved. Limited confidentiality mandates that the sales associate cannot disclose to the buyer the minimum amount the seller is willing to take, nor can she disclose to the seller the maximum amount the buyer is willing to offer. This ensures both parties’ best interests are protected. Basically, the brokerage firm will provide leads and information in selling or buying a home, but will not provide advice on the negotiation process to either buyer or seller.

Single agent representation is when the brokerage firm is the sole agent for either the seller or the buyer, but not both. If the single agent contract is with the seller, the brokerage firm may list the home, but not show it to prospective buyers. If contracted with the buyer, the firm may not show their single agent contracted properties for sale. In this relationship, two brokerage firms must handle the sales/purchase contract -one for the buyer and one for the seller. The firm is loyal to the party contracted with, and will assist in the negotiation process to ensure their client receives the best deal possible. This relationship may be changed at any time upon signing the consent to transition to transaction broker notice. This type of representation is the least commonly used because of the limitations imposed on all involved parties.

There are some exceptions to these relationship disclosure requirements. The most notable is at “open houses” or model home showings. As long as the sales associate does not ask for confidential information, take any contractual offers or enter into negotiations concerning the purchase of the property, then no representation relationship needs to be established.

Besides the type of representation contract, there is one more contract real estate brokers will present sellers and buyers with. Concerning sellers, there are four types of listing contracts to choose from: open listing; exclusive-agency listing; exclusive-right-of-sale listing; and net listing. The most advantageous one for the seller is the open listing which allows the property owner to list the home with multiple brokers, as well as sell the property on his own. Whoever sells the property first is entitled to the commission. If the home is sold by the owner, then no commission is necessary.

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Life Long Investing For Your Future

May 25

Posted by admin in Investing

When it comes to investing, many first time investors want to jump right in with both feet. All too often, we see these same people start out investing with dreams of getting rich overnight. Sure this is possible, but it is also rare, as very few of these investors are successful. So as you can see this mindset is usually a very bad idea to start out with.

Now if you truly want to set up investing for the long haul for some later life events, such as funding a college education, purchasing a home, or retirement, you got a couple of options to chose from. However before you look at that, please consider the following.The problem is it seems like many people are not getting to the core reason behind investing.The core reason in investing is to make money with the lest amount of work possible. So for most people this seems like easy money or passive income. Guess what, it isn’t that easy or passive. It takes work and time. So please keep this in mind while considering how you want to invest for life.

So before you start, lets look at how it all works. To begin, please understand that there many different methods of investing. Now keep in mind, you do not need to invest in high-risk stocks and risk all your hard earned money, if you don’t want to. You can just as easily invest your money in ways that are very safe, and which will show a decent return over a long time period.

One such method would be with bonds. Bond certificates are similar to Certificates of Deposit. But instead of being made out by banks, bonds are issued by the Government. Now there are various types of bonds that you can purchase, so depending on the type of bond certificates that you buy, your initial investment could double or more over a specific time period. So if you aren’t quite ready to take the risks involved with mutual funds or stocks, at the very least you could invest in bond certificates that are guaranteed by the Government.

Next we have Mutual funds. Mutual funds are a bit riskier than bond certificates, but for the most part are still relatively safe. Mutual funds Basically exist whenever a group of investors arrange their money collectively to purchase stocks, bonds, or other investments. This can sort of off set the risk of investing by yourself.

Finally we have Stocks. Stocks, of course, are even riskier than Mutual funds. However stocks are a different vehicle for long term investments that allow for risk. Basically shares of stocks are shares of ownership in the company you are investing in. So when the company does well financially, the value of your stock climbs. On the other hand, if a company is doing badly, your stock value drops. So when purchasing stocks be sure you pick out stocks that are well proved.

So what to do to begin investing. First off realize that investing requires more than just jumping on the phone and calling a broker and telling them that you want to buy stocks or bonds right now. So before you invest a single penny, really think of what you hope to achieve with your investment.

Seriously before you jump right in, it is always best to ask some questions like the following:

How can I find out more about investing and how it all works?

What are my goals for investing?

What do I hope to achieve with my investments?

Funding a college education?

Purchasing a home?

Retiring?

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Interior defects to look for when buying a house

Apr 26

Posted by admin in Real Estate

Seeing inner defects are usual when buying a home. Brokers most of the time try to hide the flaws especially the minor ones. Shoppers are caught believing that they have availed a beautiful home and can commence leading the happy life. But, after a while, the defects unconceal voluntarily and soon the unnoticeable defect turns into a bigger dilemma. To stop this from occurring, it is advised to evaluate for the common interior flaws prior to buying a home.

Proper ventilation is a significant element you should check in shopping for a house. Not working ventilation can cause hastened deterioration of the other parts of the home. Improper ventilation can also have an effect the warmth in the home, especially when it’s summer. Because of this, prospective owners should evaluate if the house has working ventilation and if most exhausts are performing perfectly.

Buyers should thoroughly make sure the water ways of the prospective house. It must be evaluated if the faucets and flushes of toilets are all working perfectly. If the house has a secondary level, it should be checked if there is enough pressure for the water to get the higher levels of the property. More importantly, the pipes through which the water passes must also be checked for holes that can cause inner flooding.

There are many classifications of floors as well as kinds of flaws it can acquire. For houses with wooden floors, examine if majority of the floorboards remain tacked to the ground. Fractures, squeaking and empty sounds may imply damages. While, for homes with marble and tile floors, the best thing to do is to look for fractures or misplaced plaster from which can start the detaching of tiles. The best thing to do is to shop for a home with floors that remain maintained.

The walls are often times ignored. Nice paint put on by the agents may hide unevenness of the walls, having it neglected by the buyer. But, to be able to set aside cash from getting the wall redone, one should inspect for bumpiness or unsmooth areas. Finding these defects is important for it may point to learning a worse problem, leaks, and pests and insects. Usually swellings and bumpiness are implications of existing insect colonies, and leaks inside the walls. Hollow sounding walls may also lead to termites eating through the foundations. As such, knocking on the walls and checking for flaws is important for home shoppers.

Ceilings must be checked as well for repairs. Curving ceilings, water marks, and the existence of mildew implicate that there is a water crisis in the property. This can either be a broken pipe or a puncture on the roof. Faulty ceilings can also indicate improper ventilation.

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Tuscan Real Estate For Sale All You Have to Know About

Apr 17

Posted by admin in Real Estate

There’s the entire notion of the process when it comes to purchase real estate in another country, becouse it is not so easy to do: rules, regulations, and procedures vary widely from country to country, which can become quite confusing to a first-time homebuyer. Additionally, for better or worse, Italy is known for its red tape and bureaucracy, which can make everything even more difficult.

The first step is to find a local expert that can guide you through the process. Make sure that this counsel (preferably with a background in the law) is beholden only to you, and will remain loyal throughout the process. There are various agencies operating throughout the area that can provide this kind of service. The last thing you want is a conflict of interest that could result in favoritism being shown towards the seller or the listing agent.

Discuss with this agent exactly what you’re looking for in a property. You should know ahead of time whether you’ll be renting it out primarily, or whether it will serve as a second home for your family. Having these goals in mind will determine the areas you look in, as well as the kinds of properties that best suit your needs.

The next move to make is a visit to the country to look at properties. Be objective, and don’t get too caught up in specific villas, homes, or farmhouses for sale in Tuscany. Above all, get some perspective by visiting a number of different properties; settling for the first place that catches your eye can be a recipe for disaster. Once you’ve seen a bunch of different real estate and have, after careful deliberation, settled on the perfect place for your family, it’s time for the more financial matters.

Place a deposit to secure the home, and then leave the remaining legal matters to your lawyer. He or she can advise you on the tax matters, as well as questions of contract law. The contract procedure can be completed by your attorney, as long as you have signed a power of attorney agreement that grants them the ability to act in your place.

At the end of the day the hassles will prove to be worth it. When the running around is over, you will be the proud new owner of a home in Tuscany, Italy, one of the most unique regions in all of the world.

Purchasing one of the many Tuscan properties for sale can be a start to a new, fulfilling life for you and your family. As long as you practice some due diligence and patience during the process, you can make it pain-free, and at the end of it, you’ll have a gorgeous new home to settle into in the heart of Tuscany. That’s something that you can’t put a price on.

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Ten Tips to Buy a Luxury House for Sale in Tuscany

Mar 26

Posted by admin in Real Estate

Buying a house in another country can be an intimidating affair. There are language barriers to think about, and often words that mean one thing in English can mean something entirely different in the native tongue. That’s only one of the pitfalls you face. Below, we’ve listed ten tips for purchasing one of the prestigious properties for sale in Tuscany.

- Find a Lawyer You Can Trust: This one is crucial; you need to be absolutely certain that your lawyer is working on your behalf, and your behalf only. Many foreigners have been burned by dishonest agents, so perform due diligence when finding someone.

- Don’t Fall in Love at First Sight: There are thousands of historical Tuscan villas for sale; don’t immediately jump on the first one you see.

- Location: Like real estate the world over, prices vary greatly depending on where you look. Consider living a bit outside the city limits; you could save yourself a bundle and end up with a larger, more luxurious place.

- Talk to Your Accountant: There are certain tax implications that you may have to consider when purchasing a home outside of your native land. Talk to a tax professional to determine whether it is a good move financially.

- Buy to Own, Not to Rent: Many people bring in extra income by renting their home when they’re not living there. When you consider purchasing luxury property for sale in Tuscany, however, remember that it’s your home first and foremost, so think of yourself before potential visitors. A buy to let in Tuscany is a great investment, when done right.

- Don’t Forget Taxes: Taxes in Italy may be a good deal higher than the same taxes you would pay in your home country. Factor these prices in before settling on a property.

- Think About the Future: Look down the road when deciding on a property. Do you plan on doing a lot of work on your home, or would you rather have a house that you can move into right away? If it’s the former, check out some of the restoration villas in Tuscany: you might be able to find a steal that only requires a little tender loving care.

- Size Matters: How many bedrooms does your ideal home have? Will you be frequently entertaining visitors like family and friends? If so, consider purchasing a larger space.

- How Will You Get There?: One mistake that many first-time vacation home buyers make is a purchase far away from the airport. Remember that you’ll likely have to fly in and out… do you really want to live hours from the nearest major airport?

- Picture Daily Life: Living way out in the middle of nowhere seems romantic and quaint, but could become quite a hassle in everyday life. Is your new home near stores where you can buy food and other essentials? How far are you from a major population center with less frequently need but equally important goods?
These ten tips will help you find the perfect property in Tuscany, Italy.

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