Tag Archives: foreclosure

Safeguarding Your Property

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Your financial wealth is not determined solely by the amount of money you have in your savings account; the value of the assets you have accumulated over time is another factor. Many people believe that purchasing a home would be an important acquisition that would boost their net worth.

Owning a property can provide you with a physical sanctuary that will give you the peace of mind to excel in your other financial endeavours. Knowing that you and your family will always have a place to call home can also give you the impetus to work harder to protect this important legacy.

Whether you direct your money into the ownership of property, place funds in formal investment options, or invest your resources in operating your own business, it is important to consider all the possible challenges that could arise which could jeopardise the preservation of your wealth. Continue reading Safeguarding Your Property →

3 Ms of Money- Dealing with Debt

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Writing my first book, The 3 Ms of Money, has allowed me to take a look back in time at all the BIG money mistakes that I have made. One of the worst wrong turns I have made is to think that having access to other people’s money (OPM) would make life easier.

Borrowing money can be a very destructive practice, as it lulls you into a spending lifestyle that isn’t sustainable. When you are dependent on a source of income that doesn’t come from you, you lose sight of the fact that you are living beyond your ability to produce. As your desire for credit grows, eventually the monthly payments become too high to manage, and then your debt mushrooms beyond control. Then you have to keep on borrowing to stay afloat. Very often at this point, you can’t access any more credit and your entire financial well-being is impacted.

The Bible says that the “borrower is servant to the lender” (Proverbs 22:7). I have found this to be true. For years I worked hard to pay off thousands of dollars in loan interest. And for what? Useless trinkets and idle entertainment that were long forgotten!

I teach people that debt is not only about borrowing money. It’s any obligation where someone else has delivered their part of the deal, and you have not. Just recently, I almost got tempted to take a great mobile phone offer where I could get a ‘FREE’ Nokia E71. In return I would have to sign a 3-year contract with the mobile company. After thinking about it some more,I realised that I would only be selling myself into 3 years of slavery to pay for this ‘free’ phone. What if I hated their service? What if they raised the monthly cost? I couldn’t complain because they had supplied their end of the deal.

I decided I would just save up and pay for it in CASH, thank you.

Anyway, you can read more about my misadventures with debt and what I had to do to get myself out of the mess I had created when The 3 Ms of Money is published.

Keep thinking and acting Financially SMART!

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Homeownership Challenges

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According to recent news reports, mortgage interest rates are set to rise drastically as a result of the interest rate increases on Bank of Jamaica (BOJ) securities. Financial institutions will have to raise the interest rates paid on deposits in line with market rates, and therefore they will be forced to charge more for loans.

How will these developments affect Jamaica’s housing market? According to real estate industry experts, increases in mortgage costs will have a negative impact on both existing and prospective home owners.

BOJ data revealed that up to June 2008, the amount of mortgage loans in arrears for three months and more had risen by some 71 per cent over the previous year. Delinquency rates are expected to grow even more as the cost of homeownership increases.

In addition, most consumers’ income levels are not moving up to match these increased finance costs, so many hopeful homeowners may not have the cash flow required to qualify for a mortgage. Continue reading Homeownership Challenges →

Buying a home? Don’t buy more than you can afford!

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Owning a home is one of the biggest dreams for most persons. They envision the time when they can get rid of their landlords, make their own home décor choices, and stop worrying about home security.

However, owning a home can become more like a nightmare if you bite off more home than you can chew. It’s important to match your home ownership plans with what you can truly afford.

The mortgage meltdown in the United States has had far-reaching implications on the global financial marketplace. While Americans face thousands of devastating foreclosures and some stunning bank crashes, the rest of the world is reeling from the effects of the reduction in credit availability and the fall in the American consumers’ spending power. Continue reading Buying a home? Don’t buy more than you can afford! →

Buying vs. Renting a Home

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“I’ll be forty years old this year, and all my friends keep encouraging me to buy my own home before it’s too late. I’m very comfortable with my rented property and I really don’t want to spend a lot of money buying a house. Am I making a financial mistake by continuing to rent instead of buying? “

The biggest financial dream of most persons is to own their own home. However, an increasing number of people are opting out of home ownership, even though they may be able to afford to buy.

Is purchasing your own home the great financial benefit that it’s always portrayed? Or could it be more profitable to put your cash in other forms of investments? There is no one answer that will suit every person.

Buying a home is a significant investment of time and money, and you will need to consider the pros and cons of renting versus buying, in order to decide what’s best for you. Continue reading Buying vs. Renting a Home →