Consider These 5 Points Before You Take A Renovation Loan

Renovation is a part of every household story after a good 5 -7 years spent in the original set up. So, when the time comes to give your home a facelift, you need to make immaculate planning and processing. If it's just about making a few tweaks here and there, cashing it shouldn’t be a big deal. However, major upgrades such as remodeling your kitchen or renovating your interiors will take a toll on your finances which is where you consider taking a renovation loan.

Here are a few points that you should note so that you don’t end up being financially hurt.

Avoid Going For The Maximum Loan

When going for a renovationloan Singapore banks can offer the highest loans on lucrative interest rates. The average amount often quoted by contractors would be somewhere around $30,000 plus. Before agreeing for the same, ask your contractor what can be done in less than that, say around $15,000 to $20,000 and you may be surprised as that could suffice your needs. Also, tighten your budget as much as possible and consider paying it sooner so that it doesn’t affect your existing loans, if any.

Consider Your Purpose

There could be many reasons as to why you are renovating your property: to prolong its livability, upgrade or fix a particular property to sell it out or put up for rent. In case of renting or selling purpose, you will spend logically and not a penny more. However, if you are doing it for personal reasons, chances are most likely that you might end up doing emotional spending which could exceed your original budget. In this case, sticking to your limit should be your top priority by listing out all the pricings beforehand with sufficient cash back up. A mix of both cash and loan should help you carry the load with ease.

Independent Properly Value

Try to know the independent valuation of your property. This will help you get a good idea of the value of other surrounding properties in your neighborhood. This way, you could protect yourself from overcapitalizing your assets and work out on your spending amount accordingly. You need to ensure you are not overdoing it as your unnecessary upgrades could price the house out of its neighborhood.

Make Renovations On Areas With Higher Returns

The statistics may vary from area to area, however, certain sections of the house such as the kitchen and the bathroom will definitely yield higher returns than the rest, almost adding 70 to 80 percent value to the current price. So, consider upgrading them before focusing on other interiors.

Go For Flat Rates

Always go for loans which offer flat tax rates. This would give you a predictable financial status at all times. And if your contractor agrees, split the amount into three cheques so that you can pay him as the work progress and go easy on yourself. Plus, this will protect you from possible scams. For that, an additional $10 on each cheque is worth it.

A wise option would be to go for credit cooperatives like TCC in Singapore. They offer reno loans at competitive rates with flat 4% interest rate. They also offer other services like telephone banking & internet banking and common good funds. You can go through their website for the details.

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Some Basic Info about Saving and Corporate Banking Services in Singapore

When banking was started in the world, it had proven to be a boon for the people. With the help of banking services, you can keep your hard earned money secured or can run your business without any glitch. The banking system also allows a nation to run the possible cashless economy. The cashless economy is the source to avoid crimes up to a great extent.

There are a number of corporations, which are offering the banking services in Singapore. Besides, the corporate banking services Singapore are also offered by these firms.  

Let us have a look at some of the services, which are helpful in managing the finances of the individuals.

Keeping More and More Money in Bank: It will not be a good decision to keep the cash at home. First, there is the risk of stealing or robbery. On the other hand, it is not a good option to give cash for the large amount.

Making Payment through Cheque: As mentioned above, it is not possible to make all the payments via cash. The cheque is the traditional method, which can be used in place of cash. You can sign the cheque in the limit of your bank account.

  

Making Payment through Debit Card: The debit card is another option today, which can be used for making payment without cash. This is the way of instant payment and it can be used online also. 

Payment via Net Banking: The net banking is another option that can be used for several online payments. This method is being offered by every bank or corporation, which claims to be offering the best saving bank account Singapore. You are just needed to be logged in to your account. Today, the bank customers get the complete kit along with opening their account, which also includes the debit cards.

Interests in Saving Accounts: Time to time, the bank or other corporations offering banking services also provide the interests to the account holders.

Apart from this, you may need the corporate account if you are running some business unit. That corporate account may include the accounts in the name of individuals or in the name of organizations. The corporate accounts are many times known as the current accounts. These current accounts are necessary if the businesses have the big dealings. The interests are not provided on these types of accounts as they are meant for the business purposes.

Apart from the above said ones, there are a number of other services also, which are offered by the banks and other financial institutions. The loans are offered to the individuals for different purposes. Personal loans, business loans, car loans, home loans, payday loans and there are some other types of debts that can be availed. The debt consolidation loan is also getting very popular these days with the help of which you can get rid of many loans by taking one borrowing from one institution. Credit Card is one more excellent facility by these organizations.

It is hoped that the banking services will be proved to be one of most useful types for you business needs.  

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A Customer’s Guide To Credit Cooperatives In Singapore

Looking to join a credit cooperative organisation but confused as to which one? In every financial institution Singapore, you will find distinctive set of rules regarding membership eligibility, profits, dividend shares, liabilities and so on.

Before you join a cooperative, you should know how it is exactly going to serve you, you need to identify your motive behind your membership and be well aware of their rules and procedures and what kind of benefits will you be receiving as a member and how far are they extendable.

Credit Co-operative- Nature And Functions

A credit cooperative is a member owned  financial credit union or co-operative, that is democratically controlled by its members and operates for the purpose of promoting thrift, offering credit at competitive rates and other financial services to its members.

In Singapore, these organisations are never referred to as credit unions, but as co-operatives . There are various types of cooperatives in Singapore. And all of them do not offer same kind of services, for example you shouldn’t be expecting loan and deposit services in every cooperative. Co-operatives are exclusive in nature and allows only individuals to be members of a particular demographic they intend to serve. Some cooperatives allow membership to employees from specific organisations.

Cooperatives are considered to be an interesting alternative for banking institutions  as they offer loans and deposit to their members at the most competitive rates in the current market. their interest rates are extremely competitive compared to personal loans offered by commercial banks.

Co-operatives vs Commercial Banks

When you settle on what to do with your savings, you should never just look at the interest rates to choose the best deal.  First, ask yourself what is the underlying goal behind the money in your account before you decide straight away on the product that best suits your needs.

For example, if a cooperative offers 3% bonus savings annually, then you will have to sign up for “save as you earn” account and commit to a minimum of 2 years of monthly contributions. Such contributions means early withdrawal of your money won’t give you the promised interest or bonus. This might not serve you well if you are looking for an emergency fund withdrawal.

On the contrary, if you plan to build up a retirement home without taking any major risk, the same might be a suitable plan to consider.

If you wish to subscribe for a super saver account Singapore cooperatives have that option too. You will have to subscribe for their original savings account to open a super saver one.

Find The Right Cooperative

If your demographics match, TCC Credit Cooperative is  probably one of the oldest and most reliable cooperatives to sign up for in Singapore with abundant services at affordable interest rates like personal loans, education loans, renovation loans with minimum interest rates especially on education loan for all year round in 2016 at 2.2% flat rate per annum.

The profits earned by the cooperative are distributed to the members in the form of annual dividends. They also cater  to Common Good Funds, an interesting  investment for their members. That includes funeral grant, hospitalisation grant, baby bonus, marriage grant, annual scholarship, loyal membership awards and many more. No administrative charges are applied for subscription to their accounts.

TCC is probably one of the first credit cooperatives to offer fully functional internet banking services in Singapore. To know more and avail their services, you can log in to their website.

Hope this helps.

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