Friday, 20 April 2012

UAE Mortgages - get your UAE homeloan

40% of the properties in the UAE in the last quarter of 2011 had mortgages - that equates to 960 home loans.

The banks are lending again and we can assist you with this home loan today just send us your enquiry.

Average Rates have settled between 5% and 6% - and the criteria is still fairly steep and credit analysis remains stringent.

Thursday, 19 April 2012

Aiming for the Prize

Did you know that you can plan and work out as much of a plan and method as you wish, yet chance will have the last laugh?  If you think you have the right formula to win that coveted prize, win at roulette or poker, Lady Luck is either going to be smiling down on you or she is not.

Do we get rich or do we get bankrupt? Do we arrive home safely or have an accident? We all like to believe that we have a measure of control over our lives but we forget that there is a more powerful force pulling the strings, and that is Lady Luck.

An auspicious winner at any casino is the casino’s best advertisement, and if you want to throw a 5 or 6 when rolling the dice, you are more than likely going to be throwing the dice twice as hard than if you only want a number one or a number 2, doing this quite subconsciously.

Many individuals have tried finding a pattern in the nu8mbers when playing the lotto, but few actually win the big prize or any prize at all, for that matter.

It is all a question of luck, and the more you try the greater your chances are, really. Everything seems to be a numbers game in life, so if you have a prize that you simply covet, best play as often as you can so that you increase your chances.

What are my costs when getting a home loan?

So the real questions are:  what does it cost to apply for a home loan.

Whether you use a mortgage consultant, or as we call it a bond originator, or apply directly from a bank consultant at a branch, or whether you apply online to a bank - the feeling is that surely there must be different charges related to each method.s

At one stage a few years back, this was true, however, bond originators charge the client nothing as they are paid by the bank for a successfully transferred and registered home loan.

The same way a bank pays there internal consultants a salary - all these costs are part of the cost to company for the bank when they prepare their product offering and has no financial implication on you the client.

The mortgage originators charge nothing as they are paid by the banks, exactly the same way a bank pays for the salary of an internal bank consultant, so the bank costing are automatic in all of their products whether it is home loans, personal loans, car finance, opening an account etc.

In fact using an external source actually decreases the cost for the banks as they (the originators) carry their own overheads monthly, whereas internal staff are a larger cost to company for the banks.

So when you apply for a home loan what do you get charged for:

1. Initiation fee - ranges per bank but approx R 5,000.00 and more for juristic person
2. Monthly service fees ranging up to R 160.00 a month approximately depending on your deal
3. Cash deposit service fees if you deposit cash
4. Early termination fees if you cancel your home loan early
5. Then you have transfer and registration fees on your property and mortgage that could range up to 7% of the purchase price in total.
6.  there may be an insurance fee for householders and home owners insurance

So with all these costs you can always ask the experts for advice.

But be aware that these costs are above your monthly mortgage cost.

Monday, 16 April 2012

Levies - do not be misled at all

This is not just one large unwanted expense that owners are oblige to pay and unique to sectional title units and also not part of your home loan.
Full title owners and share block owners have the same obligations - that's right.

These are the kind of costs included in levies:

Water and electricity, refuse removal, gardening service, homeowner insurance, security systems, plumbing roof, painting, swimming pool, gym, cleaning materials and a management fee cost and all of this information is available from your body corporate.

Wednesday, 11 April 2012

Capital gains tax - how to calculate when I sell my property.

Let’s face it…government is now targeting the so-called “wealthy” amongst us! A major focus in the 2012 budget speech was the switch from taxing companies who declare dividends (thereby encouraging companies not to declare dividends), to the shareholders who will now get taxed on the receipt of dividends. Another almost “under the radar” focus was the increase in capital gains tax! or CGT as we know it.
From a financial planning perspective, now is a good time to look into the way in which capital gains tax was calculated in 2011 and compare that to how it will be calculated from March 2012 onwards.
But let’s quickly summarise how capital gains tax is calculated. In next week’s article we can discuss how it was calculated in 2011, and the week thereafter, how it’s going to be calculated from March 2012.

So here’s how capital gains tax works…

  • At the end of each tax year (February) we all have to submit an income tax return (If we work that is!).
  • At the same time we need to include any taxable capital gain as income on that income tax return.
  • Your total capital gain for the year is off set against any capital losses in that year.
  • The net gain – or taxable capital gain – is included as income in that year.
  • Unfortunately net losses cannot be deducted from income. Losses get carried over from one year to the next and are used to offset any future capital gains

And here’s how capital gains tax is calculated…

  • CGT is triggered when you dispose of a capital asset. ‘Disposal’ generally means the sale of an asset, but it also includes things like death.
  • When you dispose of asset, you need to determine the proceeds. The proceeds would normally be the selling price.
  • Now you would need to determine the base cost of the asset. Without getting too technical, this would usually be the price you paid for the asset.
  • Deduct the base cost from the selling price, and it would give you either a gain or loss.
  • From this gain or loss you would need to deduct all exclusions and rollovers. If a gain is ‘excluded’ then there is no CGT payable. A ‘rollover’ means that the gain will only be taxed in the future.
  • Add up all your various gains for the year which aren’t excluded or rolled over.
  • Add up all your various losses for the year which aren’t excluded.
  • Now deduct all your losses for the year from all your gains for the year. If you have a net gain, subtract the annual CGT exclusion from it (R30, 000 in 2012).
  • Apply the relevant inclusion rate percentage to what remains after the annual CGT exclusion has been deducted, and voilĂ , this amount is included in your taxable income!

Tuesday, 10 April 2012

Best Mortgages in France for 2012

Wizard Midrand and their international partners currently have some brilliant mortgage deals for all non residents looking to buy a bit of special land and property in France.

The biggest benefits are simply

  1. super Interest rates starting at 2.09%.
  2. Fixed and tracker rates available.
  3. Loans from 21,500 Euros.
  4. Home Loans, investment, holiday homes, owner building and equity release.
  5. Up to 85% loan to value.
  6. 5 to 40 year mortgage terms available.
  7. max age 75 accepted.
  8. No credit scoring or credit search carried out by selected lenders.
Why use us
  • we have access to the widest range of mortgage products.
  • English and Italian speaking mortgage advisers.
  • A free pre-approval service, so you know you qualify for a particular mortgage before applying.
  • Very Competitive service charges.
the best service available - we make mortgage magic contactus now for more information.