Author: Xavier Monahan

How Can Investment From A Young Age Be Beneficial For You?

Starting to invest late can have negative consequences on your financial future. When you start investing late, you have less time for your investments to grow and earn compound interest. This means that you may have to save money to reach your financial goals. For example, if you start investing at 40 and want to save enough money for retirement, you may have to save more each month compared to someone who started investing at the age of 20 to have the same amount of money in the trading account that can be saved by the time they retire.

Investing from a young age can be a very beneficial financial decision with the appropriate trading app or Conservative Investing Apps. By doing so, you can take advantage of the power of compound interest, which is the concept of earning interest on your claim. Investing early gives you more time to grow   your money and earn additional income. Here are a few reasons why investing from a young age can be beneficial for you:

  1. Time is on your side: 

If you invest early, your money has more time to grow. This is because compound interest works best over longer periods. For example, if you invest $1,000 at the age of 20 and earn an average annual return of 7%, by the time you reach the age of 65, your investment will have grown to over $14,000. On the other hand, if you wait until you are 40 to start investing, your $1,000 investment will only grow to about $5,000 by the time you reach 65.

  1. You can afford to take more risks: 

As a young investor, doing share market investment you have a longer time horizon to ride out market fluctuations. This means that you can afford to take on more risk, which can lead to higher returns. For example, you may be able to invest in riskier assets such as stocks or real estate, which have the potential to earn higher returns than more conservative investments like savings accounts or bonds.

  1. Long-term financial success: 

By investing from a young age and opening a demat account you can set yourself up for long-term financial success. Investing can help you build wealth over time, giving you more financial flexibility. For example, if you invest in a retirement account, you can save for your retirement years and potentially have a more comfortable lifestyle when you are no longer working.

  1. You have an opportunity to learn: 

Investing from a young age helps you to understand the ins and outs of share market live and also allows you to learn about the financial markets and how to make informed investment decisions. By starting early, you can make mistakes and learn from them without risking your financial future.

Overall, investing from a young age can be a very beneficial financial decision. You can take advantage of compound interest, take on more risk, set yourself up for long-term financial success, and learn about the financial markets. So, it is worth considering if you are young and have some money to invest.

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New Construction Loans/Lenders

If you are a real estate investor, you may have experience in flipping homes. But have you tried building and selling homes? Obtaining new construction loans is one way to keep you going.

Construction Loans and how they Work

A construction loan is short-term financing issued by a bank for the specific purpose of financing a real estate project, such as a new home. You get a permanent loan or a traditional mortgage when you want to buy an existing house. But, when building a new house, especially if it includes buying raw land, this is where new construction loans come in.

Anyone investing money and time in construction can visit a new construction lender to apply for new construction financing. A small business owner, contractor, or individual homeowner can use construction loans to cater to their project. If you currently own land, your equity in the property can be the down payment for the construction loan.

The new loan lender requires the borrower to make monthly payments on the new construction loan when the project is ongoing. New construction financing is similar to a line of credit where you pay interest on the actual amount borrowed to finish each part of a project instead of a lump sum. Some new construction loans may need the balance paid off by the end of the project. Other than the actual building, you can apply for new construction financing to pay for construction equipment, building materials, or hire employees.

Requirements for New Construction Loans?

It is harder to obtain a construction loan compared to a typical mortgage. Most new construction lenders consider it risky to issue the loan as there is no asset to guarantee it.

Here are the requirements for New construction loans:

  • Down payment: All new construction lenders require a down payment of not less than 20% of the total project cost. If you own the land where the construction will occur, you can use it as a down payment.
  • Strong personal credit: When applying for a construction loan, you should include your personal credit history, even if you own a small business. New construction lenders want to see your business credit history and FICO score.
  • Financial documents: A prospective new construction lender will usually examine your past and current debt and payment history, including other loans on your property. Hence, you will be asked to submit proof of other assets, tax returns, and financial statements.

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