Great blog article on the Cape Town business plan competition, currently inviting business plan entries from Cape Town based entrepreneurs. The competition organized by Bandwidth Barn are hoping to make the initiative an annual occurrence, ensuring business finance is made more accessible to entrepreneurs in the region.
Both banks and the government has come under continued pressure to provide further funding to businesses hoping that such finance will create a enterprise culture in the Western Cape region. The idea is obviously for initiatives such as this to first of all support job creation in the area and also to boost the economy as a whole.
Right from the moment someone thinks of a business idea, there needs to be cash. As the business grows there are inevitably greater calls for more money to finance expansion. The day to day running of the business also needs money.
One of the main reasons a business needs finance is to start up in the first place. Depending on the type of business, it will need to finance the purchase of assets, materials and employing people. There will also need to be money to cover the running costs. It may be some time before the business generates enough cash from sales to pay for these costs. Link to cash flow forecasting.
Entrepreneurs have expressed their excitement for the opportunity and we trust that it will go from strength to strength.
Wednesday, 6 October 2010
Wednesday, 23 June 2010
South African Business and Arts Grants announced
Recipients of the first cycle of Business and Arts South Africa Supporting Grants for the 2010/2011 financial year have been announced.
A total of 15 business plans and projects were given project-specific grants – a significant boost for South Africa’s cultural landscape. The grants cover a broad scope of arts projects – from visual arts to dance; theatre; music; and more.
The 2010/2011 Business and Arts South Africa Supporting Grants are awarded five times in the financial year after deliberation by the organisation’s board. In a carefully designed and monitored process, both the arts applicant and the sponsor complete application forms.
Available on www.basa.co.za, these forms are designed to encourage the two partners to work together and identify areas of potential benefit. Business and Arts South Africa allocates funds to the project once it has assessed how the partnership benefits both the sponsor and the recipient. This is in keeping with the organisation’s belief in taking arts projects from “seed to strength to sustainability.”
The full list of recipients and sponsors (see below) is an impressive one and covers a range of different-sized arts projects being mounted across the country.
Applications for the second cycle of Business and Arts South Africa Supporting Grant s are now open. The closing date for this next cycle is 7 July, with recipients being notified on 4 August.
Details of the next cycles are available on the Business and Arts South Africa website, www.basa.co.za.
Supporting Grants: 2010
Organisation: Big Time Dance Troupe
Project: Queen E and her Entourage
Sponsor: Ellies (Pty) Ltd
Organisation: Rotary Club of Kloof
Project: Art and Music in the Hills
Sponsor: TBWA Hunt Lascaris – Durban
Organisation: New Music SA
Project: eMusic Indaba
Sponsor: SAMRO
Organisation: Cosmos Productions
Project: Theatre for Change Tour
Sponsor: Protea Hotels
Organisation: Africa Ignite
Project: Showcasing Kwa-Zulu Natal proud art, craft and heritage at the King Shaka International Airport
Sponsor: Airport Company South Africa Limited
Organisation: Aid to Artisans South Africa Trust (ATASA)
Project: South Africa Handcraft Exhibition featuring the women artists of the Ndebele
Sponsor: Nando’s Chickenland (Pty) Ltd
Organisation: Tshwane Leadership Foundation
Project: Feast of the Clowns
Sponsor: City Property Administration (Pty) Ltd.
Organisation: Ifa Lethu Foundation
Project: Home and Away – A return to the south
Sponsor: G&D Apparel
Organisation: Field Band Foundation
Project: Field Band Foundation
Sponsor: Ogilvy (Pty) Ltd Durban
Organisation: Johannesburg Art Gallery
Project : My Private Universe
Sponsor: Stokvel Cellular (Pty) Ltd.
Organisation: Baxter Theatre Centre
Project: Remix Dance Company: Loveaffair
Sponsor: Red Lake Trading 10 (Pty) Ltd
Organisation: Kearsney College
Project: Kearsney Choir Tour to World Olympics Game (July 2010) – Return upbeat Festival (August 2010)
Sponsor: The Jonsson Group (Pty) Ltd.
Organisation: University of Witwatersrand
Project: Drama for Life Progr amme
Sponsor: German Technical Co-operation (GTZ)
Organisation: Individual (Dr Fred Scott)
Project: Eleven Soccer and Art South Africa 2010 Project
Sponsor: Commerzbank South Africa
Organisation: Buntuzim Media Production
Project: Maboneng – Alex Multi Arts Experience
Sponsor: Santam Ltd
A total of 15 business plans and projects were given project-specific grants – a significant boost for South Africa’s cultural landscape. The grants cover a broad scope of arts projects – from visual arts to dance; theatre; music; and more.
The 2010/2011 Business and Arts South Africa Supporting Grants are awarded five times in the financial year after deliberation by the organisation’s board. In a carefully designed and monitored process, both the arts applicant and the sponsor complete application forms.
Available on www.basa.co.za, these forms are designed to encourage the two partners to work together and identify areas of potential benefit. Business and Arts South Africa allocates funds to the project once it has assessed how the partnership benefits both the sponsor and the recipient. This is in keeping with the organisation’s belief in taking arts projects from “seed to strength to sustainability.”
The full list of recipients and sponsors (see below) is an impressive one and covers a range of different-sized arts projects being mounted across the country.
Applications for the second cycle of Business and Arts South Africa Supporting Grant s are now open. The closing date for this next cycle is 7 July, with recipients being notified on 4 August.
Details of the next cycles are available on the Business and Arts South Africa website, www.basa.co.za.
Supporting Grants: 2010
Organisation: Big Time Dance Troupe
Project: Queen E and her Entourage
Sponsor: Ellies (Pty) Ltd
Organisation: Rotary Club of Kloof
Project: Art and Music in the Hills
Sponsor: TBWA Hunt Lascaris – Durban
Organisation: New Music SA
Project: eMusic Indaba
Sponsor: SAMRO
Organisation: Cosmos Productions
Project: Theatre for Change Tour
Sponsor: Protea Hotels
Organisation: Africa Ignite
Project: Showcasing Kwa-Zulu Natal proud art, craft and heritage at the King Shaka International Airport
Sponsor: Airport Company South Africa Limited
Organisation: Aid to Artisans South Africa Trust (ATASA)
Project: South Africa Handcraft Exhibition featuring the women artists of the Ndebele
Sponsor: Nando’s Chickenland (Pty) Ltd
Organisation: Tshwane Leadership Foundation
Project: Feast of the Clowns
Sponsor: City Property Administration (Pty) Ltd.
Organisation: Ifa Lethu Foundation
Project: Home and Away – A return to the south
Sponsor: G&D Apparel
Organisation: Field Band Foundation
Project: Field Band Foundation
Sponsor: Ogilvy (Pty) Ltd Durban
Organisation: Johannesburg Art Gallery
Project : My Private Universe
Sponsor: Stokvel Cellular (Pty) Ltd.
Organisation: Baxter Theatre Centre
Project: Remix Dance Company: Loveaffair
Sponsor: Red Lake Trading 10 (Pty) Ltd
Organisation: Kearsney College
Project: Kearsney Choir Tour to World Olympics Game (July 2010) – Return upbeat Festival (August 2010)
Sponsor: The Jonsson Group (Pty) Ltd.
Organisation: University of Witwatersrand
Project: Drama for Life Progr amme
Sponsor: German Technical Co-operation (GTZ)
Organisation: Individual (Dr Fred Scott)
Project: Eleven Soccer and Art South Africa 2010 Project
Sponsor: Commerzbank South Africa
Organisation: Buntuzim Media Production
Project: Maboneng – Alex Multi Arts Experience
Sponsor: Santam Ltd
Small Business Grants For Women
If you've got an excellent business plan but you just don't have the finances to get it off the ground then you need to have to think about applying for some small business grants for women. But having a good thought is only part in the battle. Here are some factors you'll need to have to take into account when applying for small business grants for ladies.
Your credit history – The difference between applying for a grant and applying to borrow money is that you'll eventually need to pay the loan back – with interest – but you won't have to repay the grant. Even so, when applying for modest enterprise grants for ladies it's very best that you have a spotless credit rating. If you could have negative reports on your credit report take steps to clear them up before you start applying for grants.
Your business enterprise idea – You can find various kinds of grants – federal grants, local government grants and even grants from private enterprises or individuals. Each organization looks for something various in the enterprises they decide to award grants to. For example, the Federal government likes to grant funding for companies that will help your community including a medical center or arts center or childcare facility. You'll have far more success as qualifying for grants if you match your organization to the requirements in the provider.
Your organization strategy – No matter which kind you apply for you are going to need to submit a detailed company program. This must consist of the amount of dollars you have to have, what you intend to spend the cash on, how you expect that income to assist your organization, what form of return you assume to see on the investment. Including pie charts and graphs will make your presentation look far more expert. If you've never prepared a organization program before you might want to consult with a professional to ensure much better response on your applications.
Your application – It is perfectly acceptable for you personally to apply for additional than 1 kind of grant. But no matter how numerous you apply for your application has to be filled out in it is entirety. Again, if you're not familiar with, or comfortable with, this step in the course of action it may well be ideal in case you consult a specialist.
These small company grants for women are a wonderful opportunity to suit your needs to create your mark and burst via that glass ceiling. And that grant money is readily offered for anyone who wants to utilize. And that's generally the problem – too a lot of females aren't familiar with writing a company strategy or cleaning up their credit report.
But you DO know how to run a business and you DO know you have a fantastic idea. Do not let your unfamiliarity with the grant process stand in your way of owning your own business enterprise. Most grants that you simply apply for will be really specific about the details that they want. Answer all of their questions and get creative wherever possible to make your application stand out above the rest. You'll find hundreds of small business grants for women and there's one that's just appropriate for you!
Learn more about small business grants for women. Stop by Catherine Yeatts's site where you can find out all about women's business grants and what it can do for you.
Your credit history – The difference between applying for a grant and applying to borrow money is that you'll eventually need to pay the loan back – with interest – but you won't have to repay the grant. Even so, when applying for modest enterprise grants for ladies it's very best that you have a spotless credit rating. If you could have negative reports on your credit report take steps to clear them up before you start applying for grants.
Your business enterprise idea – You can find various kinds of grants – federal grants, local government grants and even grants from private enterprises or individuals. Each organization looks for something various in the enterprises they decide to award grants to. For example, the Federal government likes to grant funding for companies that will help your community including a medical center or arts center or childcare facility. You'll have far more success as qualifying for grants if you match your organization to the requirements in the provider.
Your organization strategy – No matter which kind you apply for you are going to need to submit a detailed company program. This must consist of the amount of dollars you have to have, what you intend to spend the cash on, how you expect that income to assist your organization, what form of return you assume to see on the investment. Including pie charts and graphs will make your presentation look far more expert. If you've never prepared a organization program before you might want to consult with a professional to ensure much better response on your applications.
Your application – It is perfectly acceptable for you personally to apply for additional than 1 kind of grant. But no matter how numerous you apply for your application has to be filled out in it is entirety. Again, if you're not familiar with, or comfortable with, this step in the course of action it may well be ideal in case you consult a specialist.
These small company grants for women are a wonderful opportunity to suit your needs to create your mark and burst via that glass ceiling. And that grant money is readily offered for anyone who wants to utilize. And that's generally the problem – too a lot of females aren't familiar with writing a company strategy or cleaning up their credit report.
But you DO know how to run a business and you DO know you have a fantastic idea. Do not let your unfamiliarity with the grant process stand in your way of owning your own business enterprise. Most grants that you simply apply for will be really specific about the details that they want. Answer all of their questions and get creative wherever possible to make your application stand out above the rest. You'll find hundreds of small business grants for women and there's one that's just appropriate for you!
Learn more about small business grants for women. Stop by Catherine Yeatts's site where you can find out all about women's business grants and what it can do for you.
Wednesday, 27 January 2010
The likelihood of venture finance becoming more available.
Interesting blog post from ROSALIND RESNICK a few weeks ago, talking about the likelihood of venture finance becoming more available.
Last week, as I was testing out the very latest business plan software technology, I got a call from a client of mine I hadn’t heard from in a while. Turns out, when he and his partner couldn’t raise money from investors to launch their business last year, they did what many intrepid entrepreneurs do. They went back to corporate America and got jobs, and used their own money to build the prototype they needed to prove that their concept was more than just a business plan and a dream.
Now that they’ve launched their product, signed up their first pilot customer and started generating revenue, is it time to start pitching venture capital firms again, they want to know. After all the bad news they’d read about VC funding last year, did the VC industry still have a pulse?
According to the quarterly MoneyTree report released last week by PricewaterhouseCoopers and the National Venture Capital Association, the answer may be “yes”–and not just for later-stage companies but for startups and early-stage ventures, too.
First, the bad news: Venture capital investment in 2009 declined to its lowest levels in more than in a decade, the report found. Last year, venture capitalists put $17.7 billion in 2,795 deals nationwide, the lowest level of dollar investment since 1997. This marked a 37 percent decline in dollars and a 30 percent decrease in deal volume from 2008.
Now, the good news: In the fourth quarter of 2009, VCs put $5 billion to work in 794 deals. But while funding declined 2 percent from the third quarter of 2009, the number of deals actually grew by 15 percent. The report also had good news for startups: While first-time financings fell to the lowest dollar and deal level since the report began tracking VC investing in 1995, the Q4 numbers showed increases in the number of first-time and early-stage deals completed.
Does this mean the ice is finally thawing?
“The venture capital industry had no choice but to slow the investment pace in 2009,” Mark Heesen, president of the National Venture Capital Association, said in a statement. “The weak exit environment resulting from an unstable public market combined with a challenged limited-partner base sent a strong message to the venture community to pull back the reins–and the VC’s listened. Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely back into those sectors that offered the most promise before the recession began–clean technology, life sciences and IT.”
With bank financing still tight for small businesses, the VC turnaround couldn’t come at a better time for cash-starved startups and early-stage companies. Seed-stage companies attracted 9 percent of dollars and 11 percent of deals in 2009 compared with 6 percent of dollars and 12 percent of deals in 2008, the report found. Early-stage investments saw double-digit increases in the fourth quarter, with $1.6 billion going into 277 deals, a 32 percent increase in dollars and 26 percent increase in deals from Q3.
Now, don’t get me wrong. Despite the fact that you may have used top of the range business plan software the create your business plan, startups and early-stage companies face long odds when it comes to raising venture capital–even in good times. Still, it’s exciting to see the river of VC money starting to flow again. It may be winter in the financial markets now, but you don’t need to be an economist to see that spring is right around the corner.
Last week, as I was testing out the very latest business plan software technology, I got a call from a client of mine I hadn’t heard from in a while. Turns out, when he and his partner couldn’t raise money from investors to launch their business last year, they did what many intrepid entrepreneurs do. They went back to corporate America and got jobs, and used their own money to build the prototype they needed to prove that their concept was more than just a business plan and a dream.
Now that they’ve launched their product, signed up their first pilot customer and started generating revenue, is it time to start pitching venture capital firms again, they want to know. After all the bad news they’d read about VC funding last year, did the VC industry still have a pulse?
According to the quarterly MoneyTree report released last week by PricewaterhouseCoopers and the National Venture Capital Association, the answer may be “yes”–and not just for later-stage companies but for startups and early-stage ventures, too.
First, the bad news: Venture capital investment in 2009 declined to its lowest levels in more than in a decade, the report found. Last year, venture capitalists put $17.7 billion in 2,795 deals nationwide, the lowest level of dollar investment since 1997. This marked a 37 percent decline in dollars and a 30 percent decrease in deal volume from 2008.
Now, the good news: In the fourth quarter of 2009, VCs put $5 billion to work in 794 deals. But while funding declined 2 percent from the third quarter of 2009, the number of deals actually grew by 15 percent. The report also had good news for startups: While first-time financings fell to the lowest dollar and deal level since the report began tracking VC investing in 1995, the Q4 numbers showed increases in the number of first-time and early-stage deals completed.
Does this mean the ice is finally thawing?
“The venture capital industry had no choice but to slow the investment pace in 2009,” Mark Heesen, president of the National Venture Capital Association, said in a statement. “The weak exit environment resulting from an unstable public market combined with a challenged limited-partner base sent a strong message to the venture community to pull back the reins–and the VC’s listened. Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely back into those sectors that offered the most promise before the recession began–clean technology, life sciences and IT.”
With bank financing still tight for small businesses, the VC turnaround couldn’t come at a better time for cash-starved startups and early-stage companies. Seed-stage companies attracted 9 percent of dollars and 11 percent of deals in 2009 compared with 6 percent of dollars and 12 percent of deals in 2008, the report found. Early-stage investments saw double-digit increases in the fourth quarter, with $1.6 billion going into 277 deals, a 32 percent increase in dollars and 26 percent increase in deals from Q3.
Now, don’t get me wrong. Despite the fact that you may have used top of the range business plan software the create your business plan, startups and early-stage companies face long odds when it comes to raising venture capital–even in good times. Still, it’s exciting to see the river of VC money starting to flow again. It may be winter in the financial markets now, but you don’t need to be an economist to see that spring is right around the corner.
Tuesday, 19 January 2010
Second Mortgage Vs. A Home Equity Loan
If you own your home and need a loan for whatever reason you have probably considered a second mortgage or a home equity loan to help you pay your bills, buy a new car, or pay for some other investment. However, you probably don't know whether a second mortgage is better or worse than a home equity loan for your particular situation. However, don't despair because there are some tips that will help you decide whether asecond mortgage or home equity loan is for you.
Second Mortgage Tip #1 One Time Expenses
A second mortgage is the preferred option if you have a one time big expense you need to cover. Examples of this include remodeling your kitchen, paying for a wedding, or buying a new car. In these instances asecond mortgage will probably work best for you; however this will depend on the equity in your home and your credit score.
Second Mortgage Tip #2 Recurring Expenses
If you are going to have recurring expenses then you might not want a second mortgage because a home equity loan will work out better for you. The second mortgage is best for large amounts of money at once while recurring expenses like tuition are better paid for with a home equity line of credit.
Second Mortgage Tip #3 Repayment
You will also need to consider your ability to repay and which option will suit you best. A second mortgage can be financed similarly to your first mortgage, while the home equity loan can be paid back more like a credit card. Consider your financial position and ability to make monthly payments before applying for either asecond mortgage or a home equity loan.
If you still don't know whether a second mortgage or home equity line of credit is for you, then talk with your lender and see what is recommended for your equity, credit, and ability to repay the loan.
Second Mortgage Tip #1 One Time Expenses
A second mortgage is the preferred option if you have a one time big expense you need to cover. Examples of this include remodeling your kitchen, paying for a wedding, or buying a new car. In these instances asecond mortgage will probably work best for you; however this will depend on the equity in your home and your credit score.
Second Mortgage Tip #2 Recurring Expenses
If you are going to have recurring expenses then you might not want a second mortgage because a home equity loan will work out better for you. The second mortgage is best for large amounts of money at once while recurring expenses like tuition are better paid for with a home equity line of credit.
Second Mortgage Tip #3 Repayment
You will also need to consider your ability to repay and which option will suit you best. A second mortgage can be financed similarly to your first mortgage, while the home equity loan can be paid back more like a credit card. Consider your financial position and ability to make monthly payments before applying for either asecond mortgage or a home equity loan.
If you still don't know whether a second mortgage or home equity line of credit is for you, then talk with your lender and see what is recommended for your equity, credit, and ability to repay the loan.
Guide To Homeowner Loans
A homeowner loan is a loan that is only available to people who own their own home. This type of loan is secured against your home and is also known as a Secured Loan. Because your home is used as the security against the loan, failure to keep up with your repayments may led to you losing your home.
The Advantages of a Homeowner Loan
Because your own home is used as the security in a homeowner loan you will be able to borrow a lot more money than you would be able to with a personal loan. Personal loans usually allow you to borrow up to 25,000 pounds whereas a homeowner loan can let you borrow a lot more than this.
Also as your own home is used as the security for a homeowner loan it means that lenders can often overlook some problems that you may have with your credit history or ability to get a loan from elsewhere. This means that people who are self-employed, have problems proving their income or have a bad credit rating may still be able to get a homeowner loan.
The Disadvantages of a Homeowner Loan
The biggest disadvantage of a homeowner loan is that your home is at risk if you do not keep up your repayments on the loan. Therefore you should think very carefully before using your home as security for a loan, and be honest with the lender from the start to ensure that you can realistically keep up with your repayments until the loan is paid off.
You need to think long-term when it comes to a homeowner loan as these can sometimes take some years to pay off depending on the amount you are borrowing and the company you are borrowing from. You need to be sure that you are financially stable for the foreseeable future and be prepared to deal with an unforeseen circumstances that may affect your ability to repay the loan.
If you are using your home as security for a homeowners loan then you need to consider if the purpose for the loan worth risking your home over? Finally, if thehomeowner loan is being used to consolidate existing debt, you need to make sure that you have made the necessary plans to ensure that all avenues of the existing debt are controlled to prevent a similar situation from arising again in the future.
The Advantages of a Homeowner Loan
Because your own home is used as the security in a homeowner loan you will be able to borrow a lot more money than you would be able to with a personal loan. Personal loans usually allow you to borrow up to 25,000 pounds whereas a homeowner loan can let you borrow a lot more than this.
Also as your own home is used as the security for a homeowner loan it means that lenders can often overlook some problems that you may have with your credit history or ability to get a loan from elsewhere. This means that people who are self-employed, have problems proving their income or have a bad credit rating may still be able to get a homeowner loan.
The Disadvantages of a Homeowner Loan
The biggest disadvantage of a homeowner loan is that your home is at risk if you do not keep up your repayments on the loan. Therefore you should think very carefully before using your home as security for a loan, and be honest with the lender from the start to ensure that you can realistically keep up with your repayments until the loan is paid off.
You need to think long-term when it comes to a homeowner loan as these can sometimes take some years to pay off depending on the amount you are borrowing and the company you are borrowing from. You need to be sure that you are financially stable for the foreseeable future and be prepared to deal with an unforeseen circumstances that may affect your ability to repay the loan.
If you are using your home as security for a homeowners loan then you need to consider if the purpose for the loan worth risking your home over? Finally, if thehomeowner loan is being used to consolidate existing debt, you need to make sure that you have made the necessary plans to ensure that all avenues of the existing debt are controlled to prevent a similar situation from arising again in the future.
125 Home Equity Loan
The real estate market slow down may be causing you some big problems. If you are like most home owners, you probably intended to stay in your home for a few years (average is five to seven years), then move onto a home that better fits your needs. But with a market slow down, it may be difficult to sell your home and move up. Have you ever heard of the125 home equity loan?
One option to consider is making improvements to your home or remodeling. But what do you do if you do not have the funds to remodel? Most remodeling projects require a lot more money than the average savings account. But you still have some options.
In this situation, lots of people turn to home equity loans. But even if you do not have a lot of equity in your home, you may be able to get enough money for your remodeling project. Instead of a traditional home equity loan, you could take a125 home equity loan, sometimes referred to as a 125% no equity loan.
Basically, this loan is available to home owners to allow and allows them to borrow up to 25% more than the worth of the home. If this loan sounds too good to be true, you should be aware that there are some restrictions to these loans and they vary from state to state.
These loans are available to home owners with excellent credit. Borrowers can take a loan up to $125,000, of which, no more than $50,000 is cashed out. The home owner must use the money to improve the home. The loan can either be used as a first or second mortgage.
If the loan is a first mortgage, there are some obvious tax benefits, but you should always check with a tax consultant before taking any tax deductions. One of the downsides of this loan is that when you do sell your home, you have to repay the loan, which could exceed the purchase price of your home. But fortunately, the improvements you make to your property should allow your home to appreciate in value, especially after the real estate market rebounds in the future.
Just because the real estate market is not moving in the direction you would hoped, there is no reason why you cannot have a home you will be comfortable in. Sometimes you simply have to change your plans and get creative.
There are almost as many options for mortgages as there are homes out there. Do not be afraid to ask for more information about the125 home equity loan, or get creative with mortgage solutions. With a little creativity, you can be in a home that is perfect for years to come.
One option to consider is making improvements to your home or remodeling. But what do you do if you do not have the funds to remodel? Most remodeling projects require a lot more money than the average savings account. But you still have some options.
In this situation, lots of people turn to home equity loans. But even if you do not have a lot of equity in your home, you may be able to get enough money for your remodeling project. Instead of a traditional home equity loan, you could take a125 home equity loan, sometimes referred to as a 125% no equity loan.
Basically, this loan is available to home owners to allow and allows them to borrow up to 25% more than the worth of the home. If this loan sounds too good to be true, you should be aware that there are some restrictions to these loans and they vary from state to state.
These loans are available to home owners with excellent credit. Borrowers can take a loan up to $125,000, of which, no more than $50,000 is cashed out. The home owner must use the money to improve the home. The loan can either be used as a first or second mortgage.
If the loan is a first mortgage, there are some obvious tax benefits, but you should always check with a tax consultant before taking any tax deductions. One of the downsides of this loan is that when you do sell your home, you have to repay the loan, which could exceed the purchase price of your home. But fortunately, the improvements you make to your property should allow your home to appreciate in value, especially after the real estate market rebounds in the future.
Just because the real estate market is not moving in the direction you would hoped, there is no reason why you cannot have a home you will be comfortable in. Sometimes you simply have to change your plans and get creative.
There are almost as many options for mortgages as there are homes out there. Do not be afraid to ask for more information about the125 home equity loan, or get creative with mortgage solutions. With a little creativity, you can be in a home that is perfect for years to come.
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