Interest rates – Will They Rise? And What That Means For You

Investing newsletters can help you find stocks to invest in.It appears that the major economies around the world are arriving – albeit at different paces – at a turning point. After years of cautious talk about possible recovery, the clamoring from the markets for a raise in interest rates will surely soon lead to some action.

But what does this actually mean for those of us who aren’t active investors?

Most people are aware of the primary impact of a rise in interest rates:  tracker mortgage, credit card and loan repayments will quickly increase, as well as the cost of new borrowing. So if you’re thinking of borrowing for a house, car or anything else it might be better to act sooner rather than later (and go for the fixed rate option).

So, bad news for anyone owing money. There is a silver lining, though: just as interest rates on your mortgage will go up, so it will on your savings. As you can imagine, that encourages most people to save their money instead of spending it, which is exactly what the government are hoping for. Keeping spending in check slows down the economy so that they can keep it in control.

Finally, if you want to use your well-timed loan or burgeoning savings account to buy yourself a holiday, you might find that an interest rate rise has the welcome surprise effect of making your foreign currency cheaper. That’s because high interest rates attract investors, which in turn makes local currency stronger. Learn spread betting with IG.

If, for instance, the Bank of England raises interest rates then British banks are suddenly more attractive to investors everywhere, and the pound becomes worth more in comparison to other currencies. That effect is slightly negated if all major economies raise their interest rates at the same time though.

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The Danger Of Buying A Home In A New Neighborhood

The Danger Of Buying A Home In A New Neighborhood

New Home Under ConstructionBuying a home in a new subdivision can be exciting. You’re often the first person to live in your home, and it likely will have many of the latest features and amenities. But there’s a danger too — one I know only too well.

In 2009, my wife and I bought a new home in a new neighborhood. Today, with the developer still building more houses in the subdivision, we’re finding that we can’t easily sell it — at least, not without losing $20,000 or more in equity.

We’ve learned the hard way that it’s incredibly tough to compete with the developer who built your house, especially when the firm is still building more models nearby.

Here are a few things that you should consider before you make such a purchase.

Are Homes Are Still Being Built?

In my neighborhood, the same builder who sold to us is developing all 80 of the remaining available lots. So why would anyone purchase my home when he or she could buy a brand new one? What do I have to offer that the builder does not? Two new homes for sale have identical floor plans to mine.

This means I’ll have to lower my price considerably to attract potential buyers. Beyond that, I’ll likely have to pay closing costs, upgrade amenities, offer a home warranty, or agree to some combination of these things to entice a buyer to purchase a 5-year-old home instead of a new one.

I could try to lure buyers with upgrades like granite countertops or incredible landscaping, but there is also a danger in having the most expensive house in the neighborhood. It’s often impossible to recoup your costs for those types of upgrades in today’s real estate market. I’d have to take a loss on most of them. So, even if I sold the home for close the price I bought it for, I’d still be losing money.

Do You Even Have the Right to Sell?

You may be shocked to learn that, even though you own it, you might not have the legal right to sell your home in a new subdivision for several years. Many homebuilders are adding clauses to contracts that force you to wait — similar to an employer’s non-compete clause

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How To Prepare Your Diamonds For Sale

Prepare Your Diamonds For SaleWhenever you’re selling a big ticket item, it’s usually a good idea to put in a little prep work before you show it to prospective buyers. There are ways that you can prepare your diamonds for sale. In the same way that you might repaint a house or clean out a car before selling it, there are some steps you can take before you sell your diamond.

These three steps can help a buyer see the full value of your diamond and hopefully will help you get a better offer:

1) Gather Documentation – Many people don’t realize that documentation might help get them a higher price for their diamond. Even though it doesn’t change the intrinsic value of the diamond itself, it can help make sure that buyers are aware of the diamond’s size and quality.

Documents that can help support your sale include appraisals, original receipts, and certifications from gemological laboratories. At the very least they will help the process go faster and smoother – and they might get you a little extra cash too!

2) Clean the Ring – You’d be amazed how much a difference a quick cleaning can make when trying to sell a diamond. Diamonds can get pretty dirty just from hand soap, lotion, and other effects of everyday wear. You don’t want a buyer confusing a smudge or dirt with an imperfection in the diamond itself. Giving it a quick clean can make its quality more readily apparent to a prospective buyer.

At the very least, purchase some over-the-counter jewelry cleaner and give it a quick rub with a soft brush or cloth. Or you can go one step further by bringing it to a jeweler and having them give it a professional clean with ultrasonic baths and steam cleaners. Most buyers will want to see how well a diamond shines, so cleaning it could really help you.

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