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Is A Hard Loan A Good Investment Tool For Your Situation?

Is A Hard Loan A Good Investment Tool For Your Situation?

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Getting a mortgage today is nowhere as easy as it used to be. Less expensive interest-wise, if you don’t have the right assets or income to debt ratio, you may be left without many options. Hard money loans are the answer to many difficult investment situations. They are structured differently than traditional loans and are most commonly associated with much higher interest rates. Before you take one out, it is best to decide if it is worth it for your investment purposes.

Hard money loans are the perfect solution for investors who intend to purchase a house but never own it long enough to worry about the rate of interest. People who buy an investment property and expect to sell it quickly can benefit from a hard money transaction because they can get quick money without jumping through all the hoops or having the equity that it takes to be approved for a mortgage.

Hard money loans differ from traditional loans in many ways. Often not coming from a traditional lender, hard money lenders or HMLs are typically loaned from either small equity groups or private individuals. The major advantage is that they often do not take into consideration things such as credit scores. As much as twice the average of interest mortgage loans, they also are associated with high origination fees.

Other major advantages are that you can borrow up to 100% of the value of the home. Using the property as collateral, you can mortgage the property with the property, that is very attractive for business who are purchasing the home to fix it up and build quick equity then pay it off just as quickly. Often not making more than a couple of payments on the hard money loan, they aren’t concerned with the rate because it will likely not affect them.

Hard money loans are usually approved with very little paperwork and within just a couple of days. With traditional mortgage loans taking as many as 30 to 45 days to close, it is sometimes an attractive proposition to the seller. Being able to close quickly and to give cash on hand, many sellers may be more willing to take less than to have to own the house for longer than they want to.

So, is a Hard Money Loan for you?

If you are looking at buying a home for personal use, then a hard money loan is not the way to go. If you don’t have the funds to pay for a mortgage now, it is much smarter to clear up your credit, save for a down payment, and try to go the traditional route. If you are looking at a property merely for investment and quick equity building, then it may be a smart decision. The allure of being able to close quickly may save you on the price of the house, and although having a high-interest rate, you likely won’t be paying more than a month or two before you can pay the entire balance off. For more information about the potential to obtain a hard money loan, contact Blue Jay Equity investments for more information about whether it is in your best interest.

Vaping on the Rise As E-Cigarette Sales Hit $6bn

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For the first time in many years, sales of nicotine replacements in Britain fell as consumers switched to electronic cigarettes to shake off the habit.

Domestic sales of vaping products increased by a whopping 75% to reach £459m, while spending on nicotine replacements reduced by 3% to reach £137m, the first drop since 2008. It brings to an end 4 years of annual sales consistently growing by 5-6%.

The trend is the same worldwide, with sales of vaping devices, especially the best ones, growing by almost 60% to hit £3.9bn, breaking through the $6bn mark for the first time. This phenomenal growth can be attributed partly to the popularity of vaping in the US, where 10% of Americans use e-cigarettes. The US is the single largest markets for vaping products, with sales there doubling to £1.7bn according to statistics released by Euromonitor International.

Shane MacGuill, a tobacco analyst working with Euromonitor, said he was “reluctant” to conclude from this data that smokers trying to break free from tobacco were increasingly turning to e-cigs over other conventional therapies, but said the trend in bigger markets like the UK looks a lot like “correlation, perhaps even causation”.

Vaping sales in Britain overtook those of nicotine replacement therapies in 2012, and have now more than tripled them as new data shows. This means that Britain is now the second largest market for vaping products globally, surpassing Italy where total sales plummeted by 39% last year.

As we stand, the proportion of adults in Britain who smoke decreased from 27% in 1999 to 19% in 2014, and 24% to 17% in the US over the same time period.

Electronic cigarettes have emerged as one of the most potent threats to the tobacco industry which is already struggling with smoking bans, higher taxes, increase awareness and an overall decline in the number of smokers.

“Up until recently, tobacco firms have not faced any meaningful competition, be it from nicotine replacements or anti-smoking groups,” observes MacGuill. “However, the days of conventional cigarettes are numbered. The only question is how long it will take.”

It is however too early to predict their total demise, given that their sales in the UK actually rose by close to 1% to £15.5bn in 2014. The global market also experienced a growth of 6% to reach £452. Experts say this is value growth, which is due to cigarettes getting more expensive as a result of higher taxes. The volume growth is however very minimal globally, with the exception of China where the population of smokers, currently standing at 300m, is increasing.

Big tobacco firms are already readjusting, with many of them heavily investing in safer e-cigarettes research in a bid to get a slice of the lucrative market.

Can The Middle East Hold The Key To Investment Gold?

Can The Middle East Hold The Key To Investment Gold?

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The Middle East has traditionally had a plentiful supply of energy resources which has made it a primary location for investment but it is currently experiencing a boom due to advancements in technology and a growing population. Despite a fall in oil prices, the region is expecting growth to rise during the next few years as the economic base diversifies into new infrastructure projects and a focus on encouraging international investment in sectors such as health, technology, services, agriculture and food. This shift away from oil indicates that there are many types of emerging markets which should appeal to those wanting to make wise investments.

Qatar, Bahrain, Saudi Arabia, Oman, Kuwait, and United Arab Emirates make up the Gulf Cooperation Council (GCC) and are among the wealthiest nations in the world – providing ample opportunities for shrewd investors. Foreign direct investment (FDI) is expected to reach $3.5 trillion by the end of the decade with both Qatar and UAE now being upgraded to emerging-market status, which has caught the attention of investors across the globe. Despite this, it is not a simple process as each of the GCC member countries have their own tax structures, legal process and hiring requirements which can be difficult to navigate for first-time investors.

Fortunately, the drop in oil prices has forced these countries to look elsewhere to avoid their gross domestic product from crashing. Experts suggest the iShares MSCI GCC ex-Saudi Arabia in the utilities and transportation sector is a prudent investment while the iShares MSCI Frontier Markets ETF could also reap dividends in the long term. In addition, investors should look towards Bahrain as it has a more modern outlook than its peers which could make it a sensible choice for Western investment. Exchange-Trade Funds (ETF) linked to Bahrain include the Middle East Dividend ETF and Market Vectors Gulf States, which both appear to be less risky investments.

Real estate is also a prime area for investment and one of the many success stories in this sector include that of Arab business man Fahad Alrajaan, who is now the Chairman of Kuwait Real Estate Investment Consortium KSC. He has been named as one of the most powerful Arabs in the world with the business developing some of the world’s most impressive tourist attractions and real estate projects.

The Middle East should be seen as a prime investment opportunity because it is now simply too big to ignore. The trading volumes of stocks are very accessible for investors while stock prices remain relatively stable due to the region’s many powerful companies. The importance of the region to global energy and the world economy also means many of the world’s major global players will continue to invest in and support the region. Investors can take advantage of this by focusing on opportunities in the financial and banking sector, which accounts for almost 50% of the listed market cap in the Middle East. In contrast, listed oil companies make up just 2%.

There is no doubt that Middle East equities offer ample opportunity for investors that want lower volatility and higher returns with markets in the region becoming increasingly diverse and liquid.