On the surface, the cost of a financial plan is simple: generally between $2,000 and $4,000, depending on its complexity and where you live.
But dig deeper and you’ll find that the plan’s success also depends on you spending time to implement it.
Consider the case of a young physician who recently came to my office inquiring about a financial plan. His primary issues were cash flow with tax considerations, debt service and investment advice. I suggested he would also need an insurance review and estate planning, since he had none. At the conclusion of our getting-acquainted meeting, my colleagues and I quoted a fee for the financial plan and what it would include. He decided to work with us.
Next we had a goal-setting meeting and collected his pertinent financial documents such as his tax return, investment statements, debt statements and more. We provided risk-tolerance questions and discussed his short- and long-term goals in greater detail. Then there was an interim meeting where we reviewed his goals — to be sure we prioritized them correctly — his risk-tolerance results and his investment analysis.
A couple of weeks later, we had a plan-delivery meeting, where we reviewed the recommendations in all the areas of his financial plan. He took the binder home to review and start implementing the plan.
He returned in a month for a progress meeting. He had made some headway on our list of recommendations, but not as much as I had hoped for. At the conclusion of that meeting he told me: “You were very clear as to what the plan would cost me in dollars. What I did not know was the time it would take me to collect the information on which the plan is based, to meet with you, to read and study your recommendations and then to finally implement them.”
He was correct: It costs both time and money to enact a financial plan that will really help you. Eight months later, I received an email from the doctor, letting me know he’d completed all the recommendations. In the end he said the total cost, in terms of dollars and time, was well worth it.
Beware of additional costs
Keep in mind that with some financial service providers, there could be huge additional costs in the form of fees or commissions. This could also be a conflict of interest if your advisor recommends products that pay him more, rather than the ones that are best for you. So be sure you know exactly what fees are involved when you start working with an advisor.
While my recommendations in the doctor’s plan included specific changes to his insurance and investment holdings, I did not sell him any of the coverage plans that I recommended, nor did I sell him the investment products he needed. That’s because I am a fee-only advisor. I want my clients to know that I have no vested interest in the implementation of the insurance or investment part of the plan.
This is not the case for advisors who provide both a plan for a fee and then sell you the investments or insurance products as well. All too often, the insurance recommendations made by those who sell the products, too, include more and larger policies than what I would recommend. It is a sad fact that the commission may be driving the plan recommendations, rather than what is best for the client.
When you are looking for a financial plan, be sure that you use the services of a Certified Financial Planner and that the planner does not sell any products. To find such an advisor near you, contact Garrett Planning Network or the National Association of Personal Financial Advisors.
Last week Kristen and Julia, our rising high-school senior, visited McGill University in Montreal, Canada. By all accounts it was a hugely successful trip. Julia is thrilled at the prospect of furthering her education and expanding her horizons. She will be 18-years old soon and “on her own” as a freshman, hopefully, at a college of her choice.
Students may be worried about making new friends, studying, and adjusting to college life. Parents or guardians may share these concerns too, but they should not neglect legal and financial matters. Our 18 year-olds are now adults who can enter into contracts, make their own health care decisions, and are afforded levels of privacy to which we may not be accustomed. Who will make medical decisions on behalf of your child if he or she is unable to do so? What will you do if you need to get medical information in a time of an emergency? Will you be able to have access or make decisions on financial/tuition matters with the bursar’s office? Is it important to have access to your child’s academic record? Consider these items allowing parents/guardians to assist their adult children before they leave for college:
Health care proxy: This document allows your child to name someone they know and trust to make medical decisions on their behalf, if for any reason, they are unable to make the decision or communicate their wishes. While standard forms may be available on-line through state medical societies, your estate planning attorney can draft this document.
HIPPA release: The Health Insurance Portability and Accountability Act (HIPPA), a federal law, protects your child’s privacy even from parents. The act prohibits a health care provider from releasing any health care information unless your child provides the health care provider with a HIPPA release form naming you as an authorized recipient.
Durable power of attorney: This document allows your child to appoint an agent in order to manage his/ her financial matters. While parents may be paying the tuition bills, this does not grant authority to discuss or resolve their child’s financial issues with the college’s student accounts office or bursar’s office.
FERPA waiver: The Family Educational Rights and Privacy Act (FERPA) governs privacy of educational records and prohibits an institution from discussing a student’s record with anyone unless the student has granted authorization. Colleges may allow students to grant access to one or more individuals via an on-line wavier form. However, remember your children are gaining independence and responsibility. Simply engaging your student may prove an equally, if not a more effective means of communication about how they are doing in school.
It is important to keep signed forms available as you may need them if your child is traveling, and remember that authorizations can be modified or updated as their circumstances change.
This is not legal advice so please be sure to contact your estate planning attorney to address these important issues. If you don’t have an estate attorney ask your family, friends or financial advisor for recommendations.
I’m in the middle of wedding planning right now, and it has opened my eyes to just how incredibly expensive this whole thing can be!
I’m a frugal person at heart so the idea of spending a ton of money on one day seems a little silly to me. But it’s hard not to get caught up in all of it, and I’m finding that the costs are adding up quickly.
So, how do you have a wedding you love without spending more than you can afford? I’ve been thinking about this as I plan my own wedding. I’m fortunate that my parents have been very generous, and here are a few things I’ve learned along the way.
Yeah, I know. Big surprise that the financial planner is encouraging you to plan ahead. But there are two reasons why it’s helpful to make a plan before making any final decisions.
First, it’s amazing how quickly even the little costs add up. There are so many different pieces to a wedding that you can make a lot of seemingly reasonable choices and still end up with a big total bill. By planning ahead, you can see that happen before you’ve actually committed to anything and make decisions accordingly.
Second, it’s easier to get good deals when you’re on top of things early. Venues get booked, DJs aren’t available, and prices go up. The longer you wait, the less likely it is you’ll get your first choice and the more likely it is you’ll have to pay extra.
The Knot has a fantastic wedding budget calculator that can help you allocate funds across all wedding expense categories.
Your wedding doesn’t have to be like every other wedding. It can not only be cheaper to do things your way, but it can make for a fun and unique experience.
A friend of mine had a fall wedding and served pies instead of a wedding cake. This option was delicious and at least half as expensive; with pie at $2 per slice and wedding cake at $4 or more. Another one enlisted the help of her friends to make their own floral arrangements. I’m making small ornaments for wedding favors, out of paper (not expensive) and supplies I already had on hand.
Music, in particular a live band, is another expense that can be reduced, involve friends who have musical talents or crowd source a playlist from all your guests. There are an infinite number of ways you can get creative, save money, and make the wedding yours in the process.
Consider Your Guests’ Budgets Too
Your friends and family want to come celebrate with you, but for many of them it’s a big financial commitment. Doing what you can to make it easier for them will be much appreciated.
I have a friend who had a camping option, as one of the accommodations for her wedding. Not only was the price right, but it was a memorable experience. Suggesting accommodation options to guests with a range of prices is always appreciated.
For our wedding, we’re trying to make sure that people know how to enjoy themselves during the weekend without having to spend a ton of extra money, so we’re giving them a map of our favorite hiking trails in the area. Little things like that won’t make all the costs go away, but every little bit helps.
Occasionally cash is hard to find and paycheck remains to be a couple of weeks apart. Within this situation, a cash advance may be regarded as for quick access to extra money. Please read on for that important information about payday cash loans.
When investing in the initial cash advance, ask for a lower price. Most payday advance workplaces offer a charge or amount low cost for initial-time consumers. In case the place you wish to borrow from will not provide a discounted, phone all around. If you discover a deduction elsewhere, the money location, you want to check out probably will match up it to have your organization.
When you have to borrow some money from the quick loan provider, chances are the charges you will shell out around the cash are incredibly high-priced. It is far from rare for charges up to 200 pct. Companies offering online payday loans benefit from loopholes in usury laws and regulations so they are able to stay away from higher interest limitations.
When you are from the army, you may have some added protections not provided to typical debtors. Federal law mandates that, the rate of interest for payday cash loans are unable to go beyond 36Per cent each year. This really is still pretty sharp, nevertheless it does cover the fees. You can examine for other guidance initial, however, should you be inside the military services. There are a number of military services help societies prepared to offer help to military employees.
Just before a cash advance, it is crucial that you learn in the different types of readily available so you know, that are the right for you. A number of pay day loans have various insurance policies or specifications than others, so appearance on the Internet to determine what one suits you.
Avoid contemplating it’s time for you to relax once you receive the payday advance. You should always keep all paperwork close up accessible so that you tend not to neglect to make appropriate repayments. Missing out on repayment deadlines is a very pricey error.
Borrowing from the payday loan business. Indirect personal loans have greater charges than direct personal loans, and also the indirect lender helps keep some for their revenue.
You need to discover how significantly you may be paying on a monthly basis to reimburse your payday loan and to make sure there exists enough cash on your bank account to avoid overdrafts. Overdraft costs carrying out a bounced check out will just heap some more on the top of the previously extremely high expense of obtaining a payday advance.
The top rule about online payday loans would be to only use what you know you can pay back. As an illustration, a pay day loan firm may possibly offer you a certain amount on account of your earnings is good, but maybe you have other obligations that prevent you from making payment on the bank loan back. Usually, it is advisable to get the sum you is able to afford to pay back after your bills are paid.
Not merely do you have to concern yourself with the service fees and rates associated with payday loans, but you must keep in mind that they can placed your bank account vulnerable to overdraft account. Because they frequently make use of a submit-outdated check out, in the event it bounces the overdraft account fees will easily improve the costs and rates of interest presently linked to the financial loan.
When you are in the military services, you possess some extra protections not offered to normal individuals. Federal legislation mandates that, the interest for payday loans could not go over 36% yearly. This really is continue to rather sharp, but it really does limit the charges. You can examine for other help very first, even though, in case you are from the military. There are a variety of armed forces help communities ready to provide assistance to army workers.
The simplest way to take care of payday loans is not to have to take them. Do your best to save lots of a little bit dollars every week, allowing you to have a some thing to tumble again on in desperate situations. Provided you can help save the cash on an crisis, you are going to eradicate the requirement for employing a pay day loan assistance.
For individuals that find yourself in trouble in the situation where by they already have several payday advance, you need to look at choices to having to pay them off. Consider using a cash advance away your visa or mastercard. The monthly interest is going to be lower, and the fees are considerably less compared to payday loans.
When you want funds, you may not know where to convert. That is a dilemma which everybody has. Luckily, online payday loans provide you with a possibility to shell out your debts when you don’t have enough cash. Only use the tips organized on this page and study meticulously. It will be easy to have rear in your ft . shortly.
Get an All- Inclusive Holiday as Your Alternative Getaway
It would be fun to get a luxurious all-inclusive holiday, where you can get deals and offers for you and your family. This is a way of your holidays to have a combination of food, activities and relaxation without spending so much. For those who are on a budget, an all-inclusive holiday is perfect for them since their holidays are fully paid for before they step on the plane, with the activities all planned for and they will just have to focus on their vacations. There are many excellent luxury but cheap all-inclusive holidays that you can choose from especially if you are on a limited funds.
There are several sites that you can search offering an extensive range of cheap all-inclusive holiday offers that will find you a perfect place to stay in your holiday. With this site’s deals of all-inclusive holidays, your dream of a worry-free family vacation, or your romantic getaway, or a holiday among your best friends will become a reality and what you do is just to enjoy and relax on your holiday.
One example of an all-inclusive holiday is the island getaway that is cheap and stylish. A favourite island getaway is the Canary island because of its whole year of sunshine, sandy beaches and all inclusive resorts. Another option to discover is the diverse landscapes of Lanzarote, where you could spend time thrashing the sand on a dune buggy because of its volcanic sands, and enjoy a cocktail or two with the green landscapes around you. For those who wish for just luxurious relaxation, Tenerife is the place to be, with its all inclusive breaks complete with Canarian cuisine and on site spa.
If you want a holiday where you and your kinds can have fun, Malta is a great place with its soft beaches and adventure parks that are made for an all inclusive family getaway.
Another alternatives are the idyllic islands of Greece and the culture of Turkey. There are several water parks that they offer for the kids, and lots of ruins for you to browse around.
You can choose the Caribbean retreats as a great destination complete with a cheap all inclusive holiday package. It is considered as the best destination to discover because of its paradisiacal escapes and desert island fantasies.
If you are after for a thriving cultural scene and lingering reggae beats, then Jamaica is your destination, while if you are on your honeymoon or anniversary, Mexico is your romantic getaway.
Note that you can cut the price for your flights when you opt for an exotic all inclusive holidays. You might want to go on extra mile to the far flung Egypt with its pyramids and camels, or the Morocco with its endless coastlines and constant sunshine and the sands of its deserts.
Important Information That You Need To Know With Regards To Debt Management
If you happen to have a debt and you are having a hard time dealing with it as you do not know what to do to manage it, we would like to recommend to you to turn yourself towards debt management as this is one of the best solutions you can choose from with regards to matters as such. We really are strongly recommending you to look at this particular option and even take it into consideration as doing so will certainly help you come up with a smart and sound decision as to which among the options available is the best and the right one for the kind of circumstances you are in. If you want to have a clear definition as to what debt management really is, it is actually a term that is best used in reference to the act of managing the debt of the borrower. When it comes to debt management, one very important thing that you need to know about it is the fact that there might just be quite a number of factors that greatly influence your debt.
With regards to debt management, there are also other definitions of it which describes what it really such as one which speaks of it as one of the debt solutions available nowadays which can be used by those who are having a hard time or struggling to pay off the debt they owe. For those of you out there who are having a hard time dealing with the debt that you are facing, we would like to suggest you to go to CCCS or even visit their website as they are offering counselling and advices regarding debts for free. There is no need for you to worry about Debt management as this is not a new problem added to the ones you have instead, this is a solution that experts come up with to help debtors or borrowers pay off whatever they owe to their creditors or to someone they have a debt with. One example of this is the common practices observed during house buying as almost all of us will always be in need of mortgage to do so but, even with this kind of predicament, it would be unreasonable on our end to think that it would be best to buy our homes with the savings that we have. You can say that this kind of practice or mentality is the one that prompts us to have debts. With this kind of situation, you surely need to have debt management as debt management is a process in which the debts that you have will be consolidated into a one lower monthly payment. And the one payment that you will have from having your debts consolidated will be an amount that you can afford and also, this amount will be apportioned to all the creditors that you have.
Yes, it is true that debt management is very important, most especially when it comes to bad debts however, it is also important on your side to have knowledge with regards to how you can properly use it for good.
Finding a Debt Management Company
Are your credit card payments are going out of control causing you to find yourself in deep debt recently and now trying to keep up with mortgage demands which makes it more difficult to pay for the other debts you have? If yes, then there’s a great chance that your life when not working is frequently spent answering phone calls from creditors leaving you hopeless, down and depressed.
The main help that anyone who is suffering from debt issues must be given is to get debt help. With continuous rise in debt problems for the past several years, there has been accompanying rise in debt management companies, wanting to help people stuck in this situation. As a matter of fact, there are many that offer free advice without obligation so don’t just sit there and allow the total debt you have to grow on levels that are beyond your control. There are many options out there that can help you. As what said earlier, there are many companies offering debt solutions and some include:
Debt management program – otherwise known as DMP is a very flexible and effective way to manage debt. If you’re in debt to several creditors, then there are lots of such companies that will be willing to help you in consolidating your debts in just one affordable monthly payment that is appropriate to your means.
Simply put, DMP can be the best solution because you no longer have to deal with calls from creditors and your interest charges can be greatly reduced or at times frozen. The best part, you can do these things without putting your home at risks or taking out further loans.
Individual voluntary agreement – simply known as IVA, which can free you from your debts in as quick as 5 years. A formal agreement between you as well as your creditors which you mutually agrees with series of reduced payments for your total debts is the simplest way to describe IVA. This as a matter of fact is an alternative to bankruptcy and also, come with less consequences. So long as you have regular income and agree to meet the set payment terms for fixed period, you’ll be suitable to apply for IVAs.
Credit counseling – there is no doubt that debt advice is going to be your initial steps on that treacherous and long road to enjoying financial freedom. Debt is easy to get yes but very hard to get out of. This is the reason why getting debt advice is important as you can learn strategies on how you can free yourself from debts such as taking debt consolidation and the likes.
Various Services of Credit Counseling
What you are going to need for credit counseling is a reputable agency to which will be able to offer you with services and offers you various options. When you approach a credit counseling firm, you surely will be surprised after knowing the services that will be offered to you to help satisfy your needs. Every aspect of your debt relief need will be treated with a certain service. The article below discusses some of the services being offered by credit counseling firms that will help satisfy your needs.
The first thing that we need to know about first is what credit counseling is. This will refer to counseling and practical aid to which you could acquire from an organization so you will be out of debt. This will involve following some advice to how you could get out of debt and prevent yourself from getting more debts. The services below could be offered by a credit counseling agency.
Housing credit counseling is a type of service to which is offered to you through credit-counseling agencies. This kind of service is going to enable you in giving you the advice if it is financially okay for you to borrow money or to make a purchase of a house. The agency is going to give you with advice to which will save you from going to bankrupt when you are planning to own a new home. This kind of option is considered to be the most likely if you have to borrow when buying for a home.
A reverse mortgage service is being offered usually to elderly people. This actually means it is meant for people who are aged 60 or more. Such service will enable you to borrow more money even when you haven’t paid your mortgage. The condition is actually where you just need to live in that property so you will not be obligated to pay for the loan.
Educational services are also still provided by credit counseling agencies. The service is going to instruct you with some basic approach for learning self-mastery on financial control. They will likewise organize workshops and seminars and also provides you with helpful educational materials.
Another is with the budget and credit advice service, which would be the main service of credit counseling providers. This would be what makes this kind of agency a credit counselor. You are going to be provided with a particular counseling that talks with certain financial situations that borders you. Whatever the need, the agency is going to advise you and will lead you with financial independence.
The services to which are provided above are not the only things to which are being provided by credit counseling firms. There in fact are still others which are developed in tackling certain areas of credit counseling.
Some Tips about the Music Startup Industry
The music industry is undergoing changes because of the influx of startups that now gives artists more control with their careers. Before, it was in fact thought that it was actually on a dying scene, but the music industry actually is reviving itself through changes, everything to how this is made to the case of how it consumed and with how musicians are compensated to their work.
Most of the music startups are in fact made to target one of the two markets, which are either the fans or the musicians. The article below discusses the things regarding the music startup industry.
If you are ever a musician and also an entrepreneur, you already may be aware on how tough it could be to actually stand out from the many people. But when you already have stood on both sides on each of these industries, you may have noticed already which are the usual strategies that successful companies use. You could however use both music and technology to grow your startup.
New technologies nowadays now opens up their doors to fans for them to interact with musicians in a more tangible way, which helps to give more opportunities for the artist and also the entrepreneurs. This is going to help increase more the interaction with millennials and is able to also increase your social media engagement so much.
For you to succeed with the millennials, you must adapt yourself to the generational shift that is happening, through a way where they will consume, engage and listening with music. You could actually engage them through their own turf through incorporating music to your startup’s marketing initiatives through finding a publisher that has a music library which is able to suit your needs and licensing music to which is going to appeal them.
After you have found the right music in enhancing your special event or in advertising campaign, you could then license that song in order to launch a new product like what Jeep did with the song Renegades, which actually is the ideal tune for capturing millennial hearts with the message that echoes Jeep’s which are new vehicles that are perfect for adventure.
Once that your younger fans see you supporting their favorite artist, they are then going to know your startup shares their values. This then will be able to help in forming an instant emotional connection with your firm. Various startup companies don’t just help enhance live music experience, but is also going to help with streaming ones. In some websites, their platform offers mobile-streaming capabilities for live music events like music festivals with intimate performances, multiday and multistage coverages, unique concerts and also programming.
Some Facts Between Renting or Buying an Apartment
There are pros and cons between renting a home and owning one as experienced by many homeowners. One big disadvantage for example when you rent a unit is how close your neighbours are, to the point of hearing their shouts and footsteps.
For those who has the money, purchasing a home makes sense to them coupled with the fact that it adds stability to their wealth acquirement and the freedom to do what they want with their property. On the other hand, owning a home may prove to be not the best action also for some because of the maintenance, taxes, insurance and others that would cost more than renting, like in some places in the Pacific Northwest.
So, given that you are in the financial crossroads of whether to buy or rent your house, there are some suggestions that will make your decision as objective as possible.
First way to tell what is better, to rent or to buy, is to find out the P/R ratio or called price-to-rent ratio. This number that you figured out from the P/R ratio will give you a rough idea of the pricing placed on the homes in the area you are interested. You can get the ratio number by first get two similar houses or condos, where one is for sale and the other is for rent, and divide the sale of the one to the yearly rental of the other, and the resulting number after you divide is your P/R ratio. An expert said that if the computed ratio would result to higher than 20, then it is advisable to rent the property rather than buy it. If there is no available ratio data in your interested area, it is good to consult a real estate agent in that place.
Your next pointer in gauging the cost of the housing in the place you are interested is to make a comparison with it to your family’s income. From the figures you have found out, this will give you some sort of idea if the houses in that particular area is overpriced, and this will make you think twice whether to buy or rent.
A certain magazine has a rent versus buy calculator that can help you in your decision on what is best for you. Lastly, it should be your financial realization when you plan to own or rent a property for your home and not through the persuasion of others. For those who are still starting with a family, you can consider the work where you will be assigned versus the level of housing costs in that area, and this will be your initial facts to make a decision of settling in that area.
Important Considerations when Moving Into a New Home
In order for you to be able to successfully move to a new home, one should opt to make sure that you will check and look into the right things to pull such task off respectively. Technically speaking, there will be a lot of things that one should be concerned about but because moving to a new house is a case to case basis, having to consider what really matters for your specifics and needs really is important and needed. Consider the very items that we have below to ensure that you will get to land on the right one respective to your very needs and specifics.
To ensure that you are on the right track, to know what factors to check and consider is very important and to start off, you will want to make sure that you will have your finances checked and whatnot in order for you to make the right deal. Remember that it is important that you will have to check and ensure that you will have enough expense to back yourself up. To help yourself in making sure that you will have enough expense and whatnot is to consider using a mortgage calculator to ensure that things are well spent.
Yet another important factor that one should be concerned about is that your overall move will definitely be smoother should you decide to hire a professional moving company to help you through the process. In most cases, people tend to overlook such opportunity and the differences that you will get really is something that is far ahead and beneficial on a general note.
See to it that you will want to make sure that you will check their overall background to give you an idea on whether or not they are worth the selection. Remember that they should also be secured and insured should there are unprecedented events that may show up.
Keep in mind that packing should not be done near the said moving date but rather, it should be done ahead to avoid any problems and whatnot in the long run. To decide and ignore the importance of having such task done ahead is most likely to lead problems and procrastination. Packing on everything ahead is a great way to ensure a rather smooth move.
Schedule to see a doctor and other professionals such as dentists to ensure that you will not worry too much once you have moved in to your new home. One way to become successful on such regard is to make sure that you will make adequate plans ahead.
Understanding How to Get the Right Rates for Your Life Insurance There are plenty of things that can happen in life that can happen by surprise, and you may discover that some of these can lead to your death. Although you generally can’t predict your own death, you’ll tend to discover that life insurance can be good way to protect everyone. The goal of any life insurance policy will be to make sure that you’re able to enjoy your life without having to worry about what may happen in the future. You’ll tend to find that one of the keys to getting better life insurance will be to save money on how much you pay each money. This is because of the fact that there are plenty of other costs that people generally have to deal with. You’re going to find that saving money on life insurance premiums will therefore be something you’ll want to focus on. Luckily, you can turn to plenty of useful resources that will be able to clue you in to the best life insurance companies in the industry. As you spend more time looking into the life insurance options you can consider, there should ultimately be no problem choosing the right type of policy for your needs. You’ll find that there are a number of different types of online insurance companies you should check out in order to really get a feel for how much money you’ll be able to save. Anyone who is trying to make their insurance prices drop a bit will find that getting online companies to compete for your business can be one of the biggest money-saving strategies around. With a much lower overhead to deal with when dealing with running their business, you can start to see why most online companies will have greatly-reduced premiums compared to other options.
A Simple Plan For Investigating Policies
You can also talk with a few local companies about whether they can give you a life insurance quote. As you’re trying to determine the right kind of insurance policy for your needs, you will certainly want to see what kinds of features and offers you get from all of these local services. This means that you’ll often be able to get some incredible deals on the different types of insurance policies you may be signing up for.
6 Facts About Policies Everyone Thinks Are True
Anyone who is looking to purchase life insurance will need to make sure that they’re investing the right kind of time and energy into finding a reliable policy. You’ll find that it becomes much easier to feel certain you’re protecting your family once you’ve found a company that can give you life insurance for cheap.
A Comparison Between Renting And Buying A Home: Which One Is Best?
Transfer of residency is quite exciting and fun for some people.
Undeniably, you might feel lost and contused whether you are going to rent a property or go for a home loan, this kind of scenario is completely understandable. There is one thing that is certain for both options; it requires tremendous financial commitment for anyone who wishes to undergo the said endeavor.
As much as possible you need to be aware of the advantages as well as the drawbacks of both options so that you will be able to make a sound decision.
The Positive Implications of A Mortgage
The primary benefit that you are able to enjoy in availing a mortgage is that you will own the property. Since you are the owner, you have the full control of how the house should look like, from interior to the exterior designs you can decide which one you prefer.
This is also a good option if you intend to stay for a particular place for a long period of time, for instance five years or more. By staying for a particular home for long period of time, you will be able to regain the expenses that you spend in purchasing the property at a future date.
You must be aware that most banks will require their clients to start up with a 20% deposit on the property.
If by any chance you have a significant amount of money in a bank or you are capable of a 20% deposit then you are a prospect candidate for a mortgage.
That is why it would be best if you will look for mortgage with an interest rate that is quite low, this way you will pay lesser amount of money to repay the loan hence making it a good investment.
If you want to know more about the mortgage rates then it would be best if you are going to use a home loan repayment calculator to know the estimated amount that you will pay for every month.
If you intend to rent a home then the monthly payments will go directly to the property-owner. The money that they are able to get from your payment will be used for the mortgage of the property. Is it really beneficial to rent a home?
The Advantages of Renting A Home
With the information that you’ve got from reading the advantages of a mortgage, you may have already a decision in mind.
As mentioned earlier there are several benefits that you can get from renting and you ought to know these things.
You must bear in mind that buying a mortgage is quite pricey. Apart from the monthly payments that you need to pay, you must also put an initial deposit for the property.
If you have a limited amount of money then renting is your best option.