As the world undergoes economic upheavals and conventional notions of financial jurisprudence get debated, many people are endorsing what is being called collaborative consumption.

For centuries now, we have approached life with personal pursuits in mind. The objective has been to survive, live without indulging in risks and securing as much resources as one can, but for oneself and the immediate family. In the process, people buy homes, make investments, own cars and build up an infrastructure of their own that contains a few utilitarian and many nonessential items.

Many expenses that are still considered imperative are being questioned and their rationale is being bombarded with some enlightening facts. The math shows that renting is more economic than owning a home. Yet, everyone dreams of owning a home. Not owning a car can make someone richer by a small fortune over the years but no one thinks of a life without a car.

That is where collaborative consumption is making heads turn.

Let us explore what collaborative consumption truly is.

• Today, many families are wondering if investing in a standalone house is really a good idea. Many people opt for strata titling and cooperative ownership. Many people are opting for mixed use developments or residential buildings where the total cost of upkeep or maintenance and service requirements is being shared. Even if you want to travel, you could use collaborative consumption by putting up your home for tourists to stay at and you can earn your right to use the same service when you travel to some city or town. There are websites dedicated to house swapping or renting a space of the property while on holiday, Airbnb,com is one example.
• People living in big cities often shun the car because they have adequate public transportation. For those living outside big cities or in remote towns, that is not an option. But people are exploring car pooling, sharing and renting cars when they need instead of owning a car. A car is a depreciating asset which will never really allow you to recoup all your investment or even a substantive fraction of the expenses.
• People are sharing tools at their homes, pets and crucial resources that modern lifestyles cannot do without. Concepts like crowd funding and sharing software solutions have already become popular. Why spend a lot of money to have exclusive access to something that can easily be shared and used by many people, thus reducing the cost to a fraction?

 

Collaborative consumption may eventually change the way we perceive and approach financial planning.

As a first-time home buyer, you may find yourself a little overwhelmed by the types of loans that are available to you. In part 4 of our series on types of home loans, we’ll cover some of the possibilities that first-time home buyers tend to miss.

If you feel as though honeymoon loans, low doc loans, or construction loans are not giving you the terms you require, then you’ll want to learn more about some of your alternatives. As you are going to discover, there are a variety of possibilities out there.

Other common loan types

Here are a few of the other loan types you should take the time to research in greater detail:

• Bridging loans: The concept of bridging finance simply means securing the funds you need to cover the inevitable gap that exists between having to pay for your new property, and receiving the money you’ve made from the property you’ve just sold. The lender will likely take security over both properties.
• Line of credit/equity line: Some people like to compare having a line of credit/equity line to having a huge, seemingly limitless cheque book. There is a very small sliver of truth to that, but it’s important to keep a few elements to this option in mind. For one thing, it’s not free money. You will have to remember that interest is going to continue to accrue on the balance. Furthermore, you can spend your approved limit all at once, or a piece-at-a-time. One of the nice things about this option is the fact that just because you have a certain amount in your line of credit, that doesn’t mean you have to actually spend all of it. At the same time, understand that you will not have to pay the interest on the money you don’t spend.
• Reverse mortgages: Chances are; you’ve seen one or two commercials that are advertising reverse mortgages. This option is designed to appeal to retirees who would like to use the equity that is currently built up in their homes to supplement whatever they are drawing from their retirement. The money is generally paid through instalments, although some lenders will give you the option to have it given to you as a lump sum. However, the terms of the loan can wind up providing a potential beneficiary with an unpleasant surprise, when it comes to inheritance later on.

 

This should give you a basic overview of these types of home loans. But remember, the Specialist lending consultants at YFG lending are there to guide you through the process.

Investing in a property can involve a variety of challenges and obstacles. It also requires at least a small measure of risk, regardless of how you are planning to invest.

However, even with all of this in mind, it’s worth keeping in mind that the rewards for investing in property can be extraordinary!

Before you can begin to enjoy the benefits of investing in property, there are several things about the financing side of things that must be understood.

As you look for property that is worth your investment cattle, there are a couple of things you will want to keep in mind from the very beginning. You will want to do your homework, in order to guarantee the lowest rates currently available. You will also want to do your research on the loan options that you are going to come across. It’s important to find something that will have the features you are after.

You may even want to seek additional guidance and expertise from your YFG Lending specialist, as it relates to the financing and the property market. You will quickly learn that one of the main benefits to the investment-first concept is that you will have the opportunity to get started on the property ladder, so to speak. Furthermore, you will be able to say you did this without making any compromises.

Nonetheless, you are still going to want to understand the work that is going to be involved in all of this. This isn’t meant to scare you off. It is simply important to understand that when it comes to buying your first investment home in Sydney, you will need to juggle a variety of concerns and decisions.

Make sure that before anything actually begins, you have a strategy laid out that is both elaborate and realistic. You are also going to want to do a ton of research. This includes the property in question, the area surrounding the property, and much more. You will also want to make sure you have learned all of the particulars, in terms of how they relate to your need to adopt a capital growth strategy.

Stay away from bargains. They tend to lack that essential component of having anything in the way of a meaningful future. Avoid choosing your investment based on emotion. What you want to do is let logic guide the decision making process that will score you the property of your dreams.

Buying a new car can make for an exciting milestone. However, unless you are planning to pay for the whole thing in cash, you’re probably going to need to secure a loan beforehand.

No one really likes to go through the loan application process, no matter how appealing or necessary the end result might be.

However, the loan process is a necessary process. Thankfully, there are a number of things you can do to ensure you get the loan you are after!

If you’re worried about getting approved for your new car loan, relax. There are several things you can keep in mind, all of which should serve to help you secure the loan you need:

• Clear the slate on your debts: When you approach a lender for a loan, regardless of the amount, you need to inspire as much confidence as possible within them. A great way to achieve this is to make it clear that you are consistently and actively working to pay down your various debts.
• Don’t be unrealistic: You may love to get the newest make and model with the latest features. However, this may not be the most realistic move on your part. Look for a car that realistically matches your budget and lifestyle. This can go a long way towards making you more attractive to a lender.
• You may need a security/guarantor: In certain situations, in order to gain approval, you may have to go after a secured loan. With this type of loan, the car will be seen as collateral or security.
• Compare: Applying for a loan will generally involve the lender performing a check on your credit history. This in turn can show up on your credit history, which can cause a variety of problems. Use the expertise of your experienced YFG Lending Specialist to assist you with the most suitable loan option for you.
• Avoid falsification: Be sure to be honest about your credit and financial history.

 

Getting your new car is not impossible by any means. Keep in mind the above tips, as you move forward. And remember - our experienced and expert YFG lending specialists are there to assist you find the right financial fit!

Through YFG Lending, you will have the opportunity to secure the application form you require. In the end, you want to make sure that when you are applying for a loan, you are going to go to a reliable source. At the same time, you also want to make sure that you are fully aware of what you are doing, as well as what is going to be required of you. These are a few things to keep in mind.

In terms of getting the loan you want, there are several things you are going to need to do, in order to succeed at getting exactly what you require.

How To Get The Loan You Need

The loan application experience can be different for everyone. Perhaps you are seeking a loan for your first home, or you are looking to refinance your current home loan, or maybe you are interested in obtaining an investment property.

The first thing you will want to do is determine the loan amount you require. You don’t want to borrow too much, and you certainly don’t want to borrow too little. Figure out how much you can comfortably stand to borrow.

Knowing the purpose of the loan can also go a long way towards helping you to find a loan with terms and values that are right for you. You will certainly need to work out your loan type, as well. This is going to involve looking at such possibilities as fixed mortgage loan, variable mortgage loans, a low doc loan, or an introductory rate. – but the Specialist lending consultants at YFG Lending can assist you with this detail, knowing the ins and outs of each!

It is also key to know what lenders are looking for in borrowers. Many of the top lenders are looking for individuals between the ages thirty and forty-five. Another strong selling point is if you have strong residential histories, have maintained a job for more than a couple of years, and enjoy a strong, consistent base salary. Just remember! - proof of income will be one part of your loan process.

If you are a new customer to the lending avenue you have chosen, you may need to bring some additional documents with you. These documents can include passports, Australian driver/firearm license, and your proof of age card. Additional documents might be required, and there are certain substitutions allowed, as well.

Make sure you study up on the loan features that will define each of your loan packages, but be sure to consult your YFG Lending Specialist lending consultant today!