The Importance Of Insurance:Benefits Of Insurance

Most people in Pakistan are averse to insuring their property due to the premium involved.
Despite their aversion there are 59 insurance companies operating only in Pakistan, of which 51 provide general insurance- insuring other then life- while the other sight deal specifically with life insurance.
In developed countries all properties and assets are insured for their actual value against any possible damages or loss due to unforeseen circumstances. In Pakistan, most property transactions are undervalued to save on tax, which when it comes to buying insurance means that the property cannot be insured for its actual market value.
For property insurance cover to be beneficial it is importance that the following points are kept in mind.

1) It is vital that the insurance policy cover the actual value of property rather then an understated value. For this to happen it is essential that all property documents contain the actual value of the property.
2) Understand clearly what the sum insured (the amount of money insured) means. Usually this sum covers the property's value at the time of insuring or the cost of replacing it if it is destroyed.
3) Make sure that the premium, which is based on the sum insured and the risk of damage occurring to the property, is paid on time (monthly/quarterly/yearly) so that the policy does not lapse. Most insurance companies will not entertain any claim if premium payments are not up to date.
The events of December 28, 2009 in Karachi are a stark reminder of what can happen and how easy it is to lose one's source of income as the traders and shopkeepers of Bolton Market, Paper Market, Kutchi Gali( Medicine Market) and Light House sadly did. According to the claims made by various traders associations, about 8,000 to 10,000 shop and warehouses were set ablaze and 30,000 to 32,000 people who lost their source of income. Goods worth billions of rupees ranging from plastic products to grocery products, toys, arms and ammunition, electric items, cloth and medicines were destroyed.
Unfortunately none of the shopkeepers in these markets were insured. This gives food for thought that majority of the people here in Pakistan, who shy away from the idea of insurance cover.

Lack Of Affordabale housing Units

As many as 700,000 people are added to the population every year, but only 300,000 housing units are constructed leaving a shortfall of 400,000.
About 40% of this population belongs to the middle and lower-middle class segments who dispose of monthly incomes ranging between 6000 and 12,000 rupees; in other words they can only afford to buy housing units costing between 200,000 and 500,000 rupees.
According to the world bank, loans to buy property are difficult to obtain and are usually given to the upper income groups, leaving other segments with no mean of buying property. As a result most are forced to acquire land through illegal means and hence the mushrooming of Katchi Abdai's in Pakistan's major cities. Karachi alone has 600 to 800 illegal settlements sheltering about 7.6 million people our of the city's total population of 18 million people.
Sindh has 1,300 Katchi Abadi's covering 24,300acres of government-owned land and 1,700 acres of private land.
A possible solution lies in lowering the mark up rates offered by banks on long term loans thereby making the monthly repayment installments for mortgaged finance equivalent to the monthly rents of houses and apartments paid by tenants. In this way millions of people living in rented premises could at least have the opportunity to buy their own house or apartment, without having to pay exorbitant sums of money at one go.

Tremendous Growth In E-Banking Witnessed

E-banking has grown tremendously in recent years and considerable improvement in the e-banking infrastructure and activities during last fiscal years 2010-2011 is a continuation of recent trends.
According to the State Bank Of Pakistan(SBP) the quarterly number of electronic transactions reached 53.4million by fourth quarter of last fiscal year , almost doubling in the last three years.
This clearly reflects the increasing use of e-banking services in the payment system infrastructure. This is an encouraging development as e-banking facilities provide a viable solution for expanding the outreach of financial services to remote areas. The composition of electronic transactions indicated that ATM based transactions account for over 50.0 percent of total electronic transactions, and that the share of these transactions is gradually increasing over time.
This rise in attributable to both the increasing number of ATM cardholders and the number of financial services offered through ATM's. Real time Online Banking Transactions are the second largest component of electronic transactions, with a share of 30.9 percent in FY10.
SBP revealed that transactions at POS terminals/machines account for nearly 8.0 percent of total electronic transactions, while transactions through internet, mobile banking and call centers, constitute only 2.2 percent of financial transactions.

I-9 Industrial Area: Steel Mills In Pakistan

Sector I-9 is one of the few sectors in Islamabad that is not purely residential. It has an industrial aspect in the shape of sub-sector I-9/3, most of the Steel Mills In Pakistan are situated there, the sector is also knows as Industrial Area I-9.
Boundaries are: Islamabad Dry port, Sector H-9(north), sector I-9/4 and I-9/1 residential areas, I-9 Markaz(south) sector I-8, 9th Avenue(east) and Sector I-10(west).
Industrial Area I-9 is known for its 'go downs'; some of the major national and multinational companies have their storage facilities located there. These companies include those dealing in electronics, heavy machinery, oil, and pharmaceuticals. Other bushiness come in the form of rice mills and steel mills.
The proximity of residential areas means that the Capital Development Authority imposes strict guidelines on industry owners with respect to environment protection. The roads and streets are especially wide so as to accommodate heavy traffic. The area is easily accessible through the major link roads, such as the Kashmir Highway, Islamabad Expressway and the IJP road. These roads also provide easy access to the Motorway.
Storage space can be bought and rented. Although sizes range from 1,111 to 5,555 square yards the most commonly available sizes are 2,700 and 3,300 square yards.

Prices:

• 2,700 square yards: 45 to 65 million rupees.
• 3,300 square yards: 55 to 75 million rupees.

Rentals are calculated on the basis of total covered area. The rental value ranges between 22 to 25 rupees per square foot.

The Property Ombudsman: About Ombudsman

The office of the Ombudsman came into existence by the President's Order No. 1 in 1983 and began functioning in August that year. The headquarters are located in Islamabad and there are regional offices in Dera Ismail Khan, Faisalabad, Karachi, Lahore, Multan, Peshawar, Quetta and Sukkur.

Working at both Federal and Provincial level, the function of the Ombudsman is to provide relief to citizens who have complaints against government functionaries and departments involved in malpractices. Currently, there is no "property Ombudsman" in Pakistan. to add transparency to the real estate sector, there is an urgent need that the four professional governments appoint a property ombudsman in order to provide low cost and speedy justice to people with grievances.
The Principle Duties Of A Property Ombudsman Will Be To:
1) Investigate complaints against buyers/sellers, landlords/tenants, estate agents/builders and developers, determine the facts and announce judgment after hearing the grievances of the parties in dispute.
2) Issue instructions for the payment of compensation to the complaints.
3) Help improve the functioning of the real estate sector by highlighting shortcoming related to the way documentation is handled.
4) Suggest measures to the government aimed at enhancing transparency in the way real estate transactions are conducted, as well as new laws aimed at eliminating illegal practices prevalent in the sector.

The New Real Estate Investment Trust Rules

Real Estate Investment trust (REIT) is a form of security listed on the stock exchange. They allow people to invest in major real estate projects. It was in 2008 that the Securities and Exchange Commission of Pakistan (SECP)issues regulations that enabled the formation of Real Estate Investment Trusts. in 2010, the SECP has issued modifications to those regulations to conform to the current market situation.
The new modifications include the following:
1) The minimum funding that has to be generated through a Real Estate Investment Trust has been reduced from five to two billion rupees.
2) the capital investment requirement from a Real Estate Investment Trust management Company (RMC) has been reduced from 500 to 200 million rupees.
3) A REIT may now develop and rent out a property ; earlier only development for sale purposes was permitted.
4) The RMC may now charge fees on a quarterly rather then an annual basis. The fees are based on the one percent of profit  the REIT earns from the sale of a project, or two percent from the REIT rental yield.
5) A single REIT may manage a single property by developing it for sale or renting it, or a mix of both.
These modifications have been made in order to offer flexibility and encourage small investors to form RMC's and launch Real Estate Investment Trusts, thereby making real estate investment a viable option. The first REIT is anticipated to become operational in 2011.

The Rise And Fall Of Dubai Property Market: Abu Dhabi Property Market

Prior to 199 the right to purchase property in Dubai was restricted to the citizens of Arab states that made up the Gulf Cooperation Council (GCC). However, in 1999 when new residential and commercial projects was launched, the Dubai Government decided to open selected projects to foreign investment.
The policy makers were of the view that this measure would open doors to international property investors from France, Spain, the UK and US. They were right; and people from all over the world, including Pakistan, invested in the Dubai Property Market.
The peak period started in 2002 and saw Pakistanis invest more then US$10bn. According to the data available, 3290 property unites were booked by UAE nationals, 3243 by British nationals, 2510 by Pakistani nationals and 2450 by Indian nationals.
The third quarter of 2008 saw the Dubai market slump to unprecedented levels. This was due to a number of reasons including surplus supply, the hike in property prices, negative population growth, lack of mortgage facilities, defaulting buyers and the cancellation of many building projects by builders. By the end of 2008, foreign investors had disappeared from the Dubai market due to the global economic crunch.
Ever since, the glut in residential and commercial property has compelled owners to slash prices by more then 50%. Yet this too has failed to lure investors back, as they are anticipating a further decline in Dubai property prices in 2011.
TO make matters worse, the Dubai Government recently announced the imposition of a five percent tax on residential units and a 10% property tax on commercial units. This is in addition to the one percent transfer fee based on the selling price that is payable by the seller and purchaser of the Dubai property. Such taxation measures are bound to reduce the number of transactions taking place.
Stay in touch for the second part of the feature.

Buying And Selling Property: How To Sell Property In Reasonable Price:Tips On Selling Property

As the world wide slump in the real estate market continues, a definite trend in consumer behaviors has emerged which has seen more people interested in selling property rather then buying property.

In Pakistan, the stagnation in the market has considerable drop in both the purchase and the selling of property for a variety of reason including:
- The wide gap between the prices demanded by sellers and what buyers are willing to pay.
- The higher collector rates announced in the current budget.
In such a scenario, the question is what should people who wish to sell their property and do still obtain a reasonable price?
Property owners have two options:
1) Hold on to the property until the market picks up, which may be a few more years.
2) Sell the property immediately based on the higher offer made by a legitimate buyer.
One of the drawbacks of adopting the first option is the uncertainty attached to when better times will come and more importantly the fact that prices are unlikely to rise significantly any time in the future for sellers to make sizable profits.
The Second option on the other hand provides the opportunity for seller to not only sell their property at reasonable rates but to further invest the money earned from such sales in low prices property currently available in the market. The point is that in these slow times there are always some desperate property sellers willing to sell their property at bargain price and changing rates from seller to buyer is much easier to do now then under normal market conditions.

What Techniques Should A Credit Analyist Use For Consumer And Small Business Lending

There are some techniques which a credit analyst should use to assess the consumer(individual) and small business lending. Individual consumer loans are scored like mortgages, often without the borrower ever meeting the loan officer. Unlike the mortgage loans for which the focus is on property, however, non mortgage consumer loans focus on the individuals ability to repay. Thus credit scoring models for such loans would put more weight on personal characteristics such as annual gross income, the Total Debt Service score, and so on.
Small Business are more complicated for a credit analyst, because the FI is frequently asked to assume the credit risk of an individual whose business cash flows require considerable analysis, often with incomplete accounting information available to the credit analyst. The pay off for this analysis is also small, by definition, because loan principal amounts are usually small. A $50,000 loan with a 3% interest spread over the cost of funds provide only $1500 of gross revenues before loan loss provisions, monitoring costs, and allocation of overheads. This low profitability has cause many Financial Institution to built small business scoring model. These models often combined computer bases financial analysis of borrower financial statements with behavioral analysis of the owner of the small business.

What Is Corporate Finance:Corporate Financing:Corporate Finance Solutions

1.  Corporate Finance:

                 Corporate Finance is an area of Finance which deals with corporate level. For Instance when company deals with their financial issues specially when they are seeking to minimize financial risk in order to improve their performance that is known as Corporate Finance.
It actually deals with the financial ratios and other financial issues of corporate level. Companies always wants the solutions of their financial issues. Such like Tax, risk and other issues related with capital budgeting. Here i will discuss the solutions of Corporate Finance. I will explain briefly here that how we can try from the heavy tax by doing some change in leverage and owners equity. But before talking about the solutions of Corporate Finance we need to know that what type of issues can be raised at corporate level, Further more we will see that how these issues can put impact on the performance of companies. The first issue is of Tax. No company wants to pay a big amount as a tax they just want to minimize their tax by adopting different techniques.
How To Minimize The Tax:
                  Every company always try to minimize the tax. Tax is basically depend upon the value of the company and in the value of company Both Debt and Equity is included. Higher the value higher will be the tax amount impose on the company. The Companies who are without leverage always have to pay greater amount of tax as compared to those companies who contains leverage. So Debt occurs as a Tax Shield for the companies which contains Debt. So If any company want to minimize the burden of tax they should not be Debt free and should must take some Debt from the Financial institutions.
        Second problem is about the Risk. As for capital budgeting heavy investment is involved, as we are dealing with fixed assets so we always try to minimize the risk.
How to Minimize The Risk:
              For Minimization of Risk companies should forecast the situation and they should analyze the Risk that how they can minimize the risk regarding with their purchase of fixed assets. Moreover they should forecast the profit which can be given by that capital budgeting. They should never focus on the large profit from their heavy investment instead of this they should focus on on small risk, As we all know that higher the profit higher would be risk.
   Third Issue which could be raise for the companies is actually of Time Value Of Money(TVM). I am expecting that everyone who is reading this article would be familiar about the time value of money. So the solution of this problem is this that companies should not leave their cash in the idle form they must have to invest their canst in some financial instruments such like T bills and Bonds etc, They can buys the shares of other companies also. This is the only solution to overcome the problem of time value of money.
  These are the few problems which frequently faced by the companies, and the corporate level. Related with that i have discuss solutions of corporate finance as well. I think this article would be helpful for those who are beginners or who have little bit practical information about the problems of Corporate Finance.

Pakistan's First Floating Hotel And Mall: Karachi pakistan Hotel

Rumor has it that Pakistan's first five star floating hotel and mall, designed by internationally reputed architectures and promoted by local developers, will be built and completed by 2010 at a total cost of six billion Rupees.
This gigantic commercial "complex", will be located on a ship(330feet long and 110 feet wide) towering five storeys high and will be encored offshore near sea view, DHA V and VI, in Karachi Pakistan. It will be built by the Karachi shipyard and Engineering works. The floating hotel and mall will be operated by a hotel management firm. The ships will have shops, restaurants and play areas fro children.
The mall is said to have a security plan that will comply with the International ship and port security code (ISPS). The ISPS code stipulates various minimum regulations, such as the installation of a ship security alert system, CCTV to monitor sensitive areas, restricted access to these areas and fire prevention measures.
There will be 110 shops on board the ship ranging in size from 100 to 1,000 sq feet. Although the prices of the shop have not been made public, a couple of interesting details have emerged regarding the financial aspect of the project. To begin with, buyers will deposit money into as escrow account rather then paying it directly to the developers. However, there investment will be fully insured by a reputed insurance agency in case developers default on any aspect of this project, the first floating hotel and mall in Karachi Pakistan.
Although there will be no restrictions on buying and selling, investors wishing to sell their space will have to pay a one percent transfer fee to the developers. The transfer fee will be based on the prevalent selling price.

Building PR In Real Estate:Real Estate Pakistan

Most real estate agencies lose business due to one basic reason: they do not bother to call clients, once the deal is completed. Nor do they maintain a database of those clients with whom deals could not be completed and a result lose out on an opportunity to maintain goodwill in the market. The fact of the matter is that real estate agencies are more earned inclined to earn revenues rather then build credibility and do not bother to allocate a separate budget properly put together a list of clientele.
Here are few tips that can make real estate agencies more effective in building PR:
1) Develop a comprehensive website of a real estate agency describing the areas of expertise.
2) Send E-mails to prospective clients, describing the salient features of the properties from inventory list.
3) participate in events and program that can give maximum exposure to your real estate agency.
4) Develop a working relationship with people who have authority and can take decision to buy, sell or rent properties. Be proactive and send them relevant news and articles from time to time.
5) Publish articles online to your position your agency as a leader in the field.
6) Find out what kind of properties your target audience is searching for on the internet.
7) Conduct real estate seminars to spread information among property buyers and sellers. If the seminar become popular, invite the local media to attend for print and electronic coverage.
PR can strengthen your real estate marketing program with credibility and targeted exposure for the fraction of the cost of traditional advertising, but it requires patience and persistent. Remember that although real estate PR takes time and effort, the results end up in financial gains.

The Pre-purchase House Survey: Buying A House: Check List For First Time Home Buyer

Buying a house is one of the most important decisions will make, and as a buyer you need to check many aspects of a property before making your final decisions, including location, look, and finish.
Once a decision is made many home buyers take a long time negotiating the deal with the seller and then vetting the property's title documents. Although this is important, what most home buyers forget to do is hire the services of a professional building surveyor.
There is little sense in spending million of rupees buying a house and then discovering that the house needs another investment of few million to make necessary repaid to put the house in order moving in. It is far better to be aware of any potential repairs before the house is purchased, and this is where a professional building surveyor can be of great help. When a surveyor is hire they will evaluate:
1) The Foundation.
2) The drainage system.
3) Floors, stairs, interior walls and ceiling.
4) Windows, doors, ventilation.
5) Electricity wiring.
6) Cooling and Heating system.
Having a pre-purchase building survey carried out by a reliable building surveyor during the buying process can save millions of rupees on matters that can be put right by the seller or builder before the property is sold.
Remember, Buying a house is not an easy task and it is wiser not to make the biggest purchase your most costly mistake.

The Guest House Option In Pakistan:Guest House Karachi:Guest House Islamabad

Guest Houses have always been popular places to stay for people traveling in northern Pakistan. However, security concerns have now made guest houses desirable option for foreign and domestic businessmen and tourists, traveling throughout Pakistan, especially to cities such as Abbott abad, Faisalabad, Islamabad, Karachi, Lahore and Multan among others. Guest Houses, as the same name suggests, are large homes that have been converted into small, low profile hotels; they are usually located in residential areas, are inconspicuous and generally more secure then high profit hotels.
Safe, comfortable and equipped with modern amenities, most guest houses include 24-hour room service, laundry and ironing services, cable TV Wi-Fi connectivity and business center facilities such as computers, internet, fax, photocopy and scanning.
Room mates are applied in US dollars and vary from city to city; payments can be made through cash, cheque or credit card in local currency. Reservations in Guest houses can also be made online in which case advanced payment is required.
Here is a closer look at per night stay including breakfast:
Guest House Abbottabad: Single- 30$; double- 41$.
Guest House Faisalabad: Single- 35$; double- 40$.
Guest House Islamabad: single- 45$; double- 50$.
Guest House Karachi: single- 54$; double- 58$.
Guest House Lahore: single- 29$; double 33$.
Guest House Multan: single- 40$; double- 45$.
Groups that require multiple rooms at one time are able to negotiate discounted daily room rates.

Rent A Wedding Home Or Wedding Venues In The Major Cities Of Pakistan

The wedding season is here and with it come streams of family, friends and out guests from out of town. If you need to accommodate your friends and don't have room at home, there are houses available for short term leases (per day,weekly,monthly or for three months). In some cases you can event rent just the lawn- for a day or two. These houses are usually fully furnished and come equipped with utilities, household and electronic appliances, crockery and linen.
Although rents at the discretion of landlord below are a general guideline of the current rental rates and areas:

In Karachi: Wedding Homes and Wedding Venues can be rented in Clifton and Defense at the following rates:
Per Event: Lawn only-80,000-150,000Rs; Per Day: Entire Wedding Home- 150,000-200,000Rs.

Per Month: 1,000 sq yards-250,000-400,000Rs; 2,000 sq yards:300,000-600,000Rs.

In Lahore: one to eight Kanals(500 to 4,000 sq yards) wedding homes can be rented in Defense, cantonment and Gulberg at the following rates:

Per Event: Lawn only- 100,000-150,000Rs.
Per Day: Entire Wedding Homes 150,000-200,000Rs.
Per Month: 1,000 sq yards 150,000-300,000Rs; 2,000 sq yards:200,000-500,000Rs.

In Islamabad: 1,000 to 2,000 sq yard wedding homes can be rented in sectors E-11, F-6, F-7, F-10 and F-11 at the following rates:

Per Event: Lawn Only 100,000-200,000Rs.
Per Day: Entire Wedding Home 150,000-300,000Rs.
Per Month: 1,000 sq yards 200,000-300,000Rs; 2,000 sq yards: 250,000-600,000Rs.
Payment of utility bills is the tenant's responsibility and there is a separate charge for generators. Most well-known estate agents usually have a list of Wedding Homes and Wedding Venues that are available on short term leases.

Residentail Rising In Real Estate Pakistan

Image via WikipediaWhen the budget was announced this year, there was a good news and bad news for prospective property buyer in Sindh.
The good news was that Capital Value Tax(CVT) was reduced from 4% to 2%(However, from now on, CVT will be collected by provincial government, instead of the federal government when a property is purchased).
The bad news was that the provincial government increased the property rates in Sindh's valuation table, which translated into a substantial increase in property prices.
They valuation table divides area into different categories and assign rates based on size and location; rates apply to both plots and residential/commercial/industrial property.
Here is a look at two of the top residential categories:

Category A-1 includes some of the Karachi's most upmarket areas such as Bath Island, Clifton, DHA phases 1,11,V and phase V extension, as well Muhammad Ali Housing society and Sindhi Muslim Cooperative Housing Society.
In these areas rates for both empty and built up residential plots increased by 307.4%.

- Rates for empty plots increased by 11,205Rs per square yard(from 3.645 to 14,850Rs).

- Rates for built up plots increased by 17,430Rs per square yard(from 5,760 to 23100Rs).

Category I includes Abdullah Haroon Road, Burns Road, DHA phases IV, VI and VII, GUlshan-e-Iqbal Block 17, I.I Chudrigar Road, M.A Jinnah Road, North Nazimabad, and Queens Road.
In these areas rates for both empty and built up residential plots increased by 239.5%.
- Rates for empty plots increased by 6790Rs per square yard.

- Rates for built up plots increased by 8.370Rs per square yard.

How TO Set Your Bedget: Personal Finance Tips

Buying Poperty Guide For Foreigners in Pakistan:Sale Property Guide:Commercial Property Guide:Property Tax Guide

Foreigners working and living in Pakistan can buy or rent properties; however, the Government requires them to complete certain legal formalities with the board of investment and the Trade Development Authority of Pakistan. Foreigners intending to rent to buy property also have to submit the following documents to the Home Department.
1) A letter of employment from the company in which they are working  at(e.g embassy/consulate/multinational) that mentions the nature of their residency, as well as the period of intended stay, along with the company's physical address in Pakistan.
2) A complete copy of foreigner's passport with a valid visa and six recent photographs.
Additionally, the following are also required by the Home Department.
3) The landlord/ property owner and the real estate agent are both required to submit a copy of their CNIC for record keeping.
4) The landlord/property owner is required to provide proof of ownership(e.g, certified copy of registered lease document of the property, a map, drawing and approval site plan) that has been attested by a Nottery public.
According to the current law , the property can only be occupied by the person, whose name is on the contract. If the occupant of the property changes, a new contract or deed should be drawn up, and the name of the new contract should be communicated to the respected Home Department within a day.
In case of violation of the procedures, the following actions can be taken by the Government:
1) Thorough scrutiny of the premises by the police.
2) Cancellation of visa and prosecution before the deportation of the foreigner.
3) The building's owner will not allow to rent or sell the property for next five years.
4) Investigation and prosecution of the real estate agency owner as well as the estate agent under the prevailing law.

Is Anyone Following Rent Laws In Pakistan?

Concluding a rental agreement is part of the routine for a real estate agent. Unfortunately, there are many agents who despite having several years of experience conduct these deals in a manner that not only leaves both landlords and tenants dissatisfied, but also violates local rental laws.
Most tenants would like rental agreement s to be made for at least 12 months although there is no law limiting the maximum number of years of an agreement. However, the law requires all rental agreements of 12 or more months to be registered with the Area Registrar and the fixation of revenue stamps on the rental agreement. These fees are paid by the tenant.
In order to save on stamp duty and registration fee, both the landlord and the tenant sign an agreement for 11 months. The reality is that most tenants do not move from the premises in such a short periods it involves expenses and payment such as brokerage/service charges to an estate agent, as well as the cost of packing and moving.
This means that the landlord, tenants and estate agents who brokers the deal, all are equally responsible for evading government taxes which is a criminal offense.
The estate agent should ideally inform both the landlord and the tenant that the rental agreement should be signed for the actual term of tenancy; this will save both parties from incurring unnecessary expenses after 11 months. More importantly, this will prevent both parties, from breaking the law, which, at the end of the day, results in financial losers for the provincial government.

How Tenants Can Safe Guard Their Investment: Some Helpful Points For Tenants To Safe Their Investment

In most cases, tenants lease properties that are in a moderately decent condition. Then there are those tenants who lease properties from landlords for properties that requires extensive renovation. Such properties are rented on an "as is and where is basis", with a tenant usually getting a long term lease ranging from five to 10 years and beyond. Tenants usually rent out such properties because they feel that the landlords will rent them the property at a considerably lower rate, due to state of the property.
After the tenants/lease agreement is signed, the tenants renovates the property at his/her own expense, which in some case runs into million of dollars.
All is well till the tenant and landlord meet near the expiry of the initial tenancy/Lease agreement. It is usually this time that landlords conveniently forget the condition in which the property was rented out and usually demand a higher rent then the prevailing market rate to the tenant who has already spent a lot of money in renovating the property in question.
The thinking from the landlord's point of view is that the tenant will rather pay the higher rent then forgo the millions investing in renovated the premises. The question at this point is: How can Tenants safeguard their investment?

Here Are Some Useful Tips For Tenants:

1) Take photographs and make the video of the property before singing the first term of tenancy.Lease Agreement, so that there is the proof of the condition in which the property was handed over to the tenant.
2) Always put an upper cap on the rent for the renewed term in the initial lease, so that in case of renewal of tenancy/lease agreement, the landlord cannot demand an exorbitant rent.
3) The pay off period of the cost of renovations must also be mentioned in the tenancy/lease agreement to ensure that the landlord asks for a fair rent when renewing the agreement for the second term.
When negotiating, landlord should realize that if the current tenant doesn't renew the agreement, and vacates the premises, it will extremely difficult for them to rent the same property to another tenant at a similar rate.

How To Resolve The Issue Of Inherited Property

 When property owner do not transfer the the Title of property to their legal heirs(blood relative) while they are alive, or fail to leave a "will" stating who the ownership will pass to, problem arise for legal heirs when they try to claim the property after the property owner's death.
Currently, in order to inherit the property legally, heirs have to obtain a letter of Administration(in case a person dead after making a will;this letter establishes the right of the executor to execute the will) or a succession certificate (in case the person has died intestate- leaving no legal will); both documents are issued by the relevant court of law. However these legal procedures are rarely enforced, and as a result legal heirs usually face a variety of problems which include:

1)Possession Of Property:

Legal heirs who are not living in the property, or do not have physical possession of it, are unable to claim the property as their own.

2)Sale Of Inherited Property:

Legal heirs are unable to agree on the sale value of a property, as each legal heir might consult a different estate agent in order to obtain the maximum price.

3)Distribution Of Appropriate Shares:

If the inherited property is sold in the open market,it is seldom that each legal heir receives his/her due shares.
To avoid such difficulties, now legislation is needed which should require legal heir(s) in possession of the property to submit the list of names of the remaining legal heir(s)- within 90 days of the death of the property owner. He/she should also be required to file an application in the relevant court of law to obtain a letter of Administration or Succession certificate, as the case may be.
If this is not done, it should be considered a willful default and illegal possession by those legal heirs who are in the possession of inherited property with the intention of neither settling the matter with nor giving due share to other legal heirs; the government should also set a side penalty for such acts.
This will not resolve the issue of inherited properties within a specific time period, but will also save legal heirs from stress, aggravation, a sense of deprivation, and injustice. Once enforced this procedure will also discourage legal heirs from taking take the law in their own hands to settle property disputes.

How To sell Your Property Online: E-Marketing Property: E-Marketing Of Real Estate And Product Property

Changing life cycle trends and access to the internet have changed the waves properties are marketed.  Today prospective buyers and tenants need no longer visit countless properties in order to draw up a short list and make an offer. Instead the property owner, can e-mail the digital photographs and dimensions of a particular property to the state agent. For newer properties computer-Aided Design (CAD) drawings can also be sent.
Here are tips on the kind of information that should be e-mailed to real estates agents:

Residential:

1) Scan of the floor plan and the frontage and depth of the house.
2) Expose the front elevation, the lawn,the car porch and servant quarters.
3) Include dimensions of all bedrooms, attached bathrooms and TV lounge(s).
4) Photos of the neighborhood.

Commercial:

1) The facade of the building.
2) Photographs of the showroom, shop or the complete office space.
3) If a furniture premise, photographs the fixtures, fittings and furniture.
4) Include the floor plan which should mention the gross and net covered areas.

Industrial:

1) The floor plan and technical drawings of the industry, highlighting information such as distance between pillars, height of roof, details of concealed writing, etc.
2) Photographs of the front, back and side road of the property.
3) Photographs of the office blocks, sheds and machinery.

After receiving the information, the estate agent will store the specification of the property on his/her computer will show the details to the prospective buyer.tenant on the monitor.
The seller will only be contacted if the property has been short listed, saving all concerned precious time.

Soccer World Cup Win Can Boost The Netherlands Economy

If Holland wins Sundays world cup final, the Netherlands economy could be boosted by up to 3.8 billion euros as the Dutch spends more when they are on high, economists says.
Economist predict that's a Dutch victory in soccer wold cup final will add .5 per cent of the gross domestic product to the economy over the next year. If Netherlands will wins on Sunday evening that will be good for Dutch self-confidence, which is good for consumer confidence.
Charles Kalshoven, chief economist for Duct Bank ING, said euphoric moments have proved in the past prompted the Dutch to loosen their pursue settings. :It is a psychological effect. We also see it when the weather is good. When it is a long rainy winter, consumer confidence is lower." Kalshoven however was more cautious about the windfall in case of a world cup victory, forecasting as additional 700 million euros in consumer spending to the end of this year a rise of .25 per cent.
The amounted to a boost of 0.1 per cent to the economy, he said, about 600 million euros : as some of the benefit will leak abroad". When the feels-good factors kicks in we can expect that people ill make some of those large purchases that they have been postponing.
Bloemer said victory would improve the Netherlands economy, generally contributing to long term consumer and investor confidence.

Interest In Art As Investment: Experts Opinion About Art Investment

 Unlike the West, interest in art as investment is at a nascent stage in Pakistan. Answering questions on investment basics, three galleries directors in Karachi, Sameera Raja of Canvas, Riffat Alvi of VM and Seemah Niaz of Unicorn voice their opinions about consumer attitudes and art awareness levels.

 Is Art Investment On the Rise Now?

Sameera Raja: Art investment has taken a nose dive since the recession. Personally, I feel this is positive, as earlier all kinds of works being acquired as investment with no understanding of their quality or caliber of the artist. the buyer now has become more disconcerting and capable of shifting chaff from grain.

Riffat Alvi: Art investment  is a seller market these days, old buyers are cashing in on previous investments and most new buyers are buying with the intention of gaining rapid returns.

What Advice Would You Give To First Time Investors?

Sameera Raja: I have always maintained that your acquisition should foremost be based on personal liking. You have to live with the works; if you do not love it, do not buy it.

Seemah Niaz: Buy good contemporary art that appeals to you. It will automatically enhance in value.

Do Buyers Invest Primarily In The Reputation And Ranking Of An Artist, Or The Aesthetic Value Of An Art Piece?


Sameerah raja: People buy art for both reason aesthetic and social, while some buy it for investment purposes as well. There are very few collectors in Pakistan, though the term is used very often and loosely to encompass all buyers. Each of these patrons acquires art for his/her reasons, which i felt are self explanatory.

Riffat Alvi: It is the aesthetics of the art object that impact or the buyers at first sight.

Seemah Niaz: Mainly for the reputation, unfortunately.

How To Do Personal Financial Management:Importance Of personal financial Management

Personal Finance is a new term which is getting popularity now a days. In Personal Finance Banking, Career and Work, Family, Insurance, Loans, Retirements and Real Estate are included.
Actually life is really became so tough, and no one has surety of safe future for that everyone is trying to invest in a very good place where he can get vast number of opportunities in the future and where he will be able to get maximum output in the future. For this reason the term Personal Finance getting fame around the globe and its importance is increasing.
I cannot describe and elaborate the Personal Finance in only one article but i will try to write more about Personal Finance and its importance.

How To Get Ridd Off Bad Debt,Bad Debt Expenses And Bad Debt Loan

In this article i will discuss about debt, that what is this and how it creates problem for us and how to get rid off this. Debt is actually a loan which we take from Bank or from any finance provider. We take actually to run our businesses or take to expand our operations. Now a days bad debt is becoming problem for a common man, who take debt to get the facilities of life such as car and Home etc.
Save Yourself From Bad Debt:
              If you want to save yourself from bad debt then first thing which you must have to do is always take debt according to your need. Do not take more debt then you need, also see whether the interest amount is easy for you to pay off or not.
Secondly you should be careful about the pay off installment on time. You should not late your installment and pay your all installment on time. Consequently you will be credible and whenever you need some loan in future everyone will lend you easily.
So these are some brief tips about to not get bad debt, you should follow these and to sake of yourself from bad debt.

Why We Better Save Money And Why We Invest MOney

Few days back i just earned 200$ from affiliate marketing. I thought i should save 100$ for future and should spend rest of money for my necessities. One of my friend was with me at that time, he just asked why are you saving money? What you have to do? I just replied him i am saving money so that after sometime i would have a good amount of money and then i can buy a good car also i can pay my university fee from that saving of money. My friend asked what is your university fee right now?  I told him; he said that this university fee will be increase by the end of you semester due to Inflation and other factors, but you are saving money according to today university fee, so you should better invest your money somewhere so that by the end of your semester you will get exactly that amount which is equal to you future university fee. That was a simple formula and i got that, so i decided to invest my all savings somewhere.
We people use to save money in our daily lives without understand that if we keep our money in the idle form that would not be beneficial for us in the future. Because as we all know that value of money is increasing as time pass. We are not discussing the factors behind the increment of value of money, but we are trying to tackle that increasing value of money. I think we should better put our savings in a saving account instead of putting our savings in the current account, because in the saving accounts of bank, you will get some extra benefit on your savings and that will be off course same as you saving for any future purpose.

Euro Currency cannot die says European Commissioner Chief:Strong Europe Economy

Euro cannot die says European commissioner chief:

European commissioner head Jose manuel Barroso denied that Europe was doomed, saying it was one of the strongest currencies in the world.when asked whether common European currency might not survive because of the economic disparities between the various euro zone countries, Barroso replied, :I do not share that analysis."
"The Euro is one of the strongest currencies in the world and ranked second as a global currency,"he said, adding, "We have a lower debt level then the United States or Japan" While admitting that certain euro zone countries has problems, Barroso added, "It is in the interests of all members of the zone and the countries which do not belong to it that the euro should be strong and credible."
He stressed the "determination of European Leaders to do everything necessary to maintains the euro stability, " pointing to a decision taken on Thursday at a Brussels Summit to publish the results of test of European bank's capacity to stand up to the economic crisis. European leaders has shown themselves capable of adopting measures "not only to strengthen pact but also to make progress on budgetary reform.

UAE Is Among The Top Nations In The Global Competitiveness: World Economic Forum

UAE Among The Top Nations In The Global Competitiveness:World Economic Forum:

The UAE is among the top nations in the global competitiveness report for 2009 to 2010 published by the World Economic Forum.

The yearly report evaluates competitiveness along nine parameters:

Institutions, Infrastructure, Macro economy Health And Primary Education, Higher Education And Training, Market Efficiency, Technological Readiness, Business Sophistication And Innovation.

His Highness Shaikh Muhammad Bin Rashid Al Maktoum, Vice President And Prime Minister of UAE and ruler of Dubai, on Monday praised the progress made by UAE international and said it should serve as incentive for greater accomplishment in the future.
he stressed the importance of following up on global competitiveness reports and book a place for UAE among the best countries by 2021.

Corporate Finance: Tips For Corporate Finance And Corporate Finance Solution

As per my observation there are many economic and financial problems facing by different companies and it is looking quit difficult for them to handle with these problem. They have to hire financial adviser relating with all these issues whereas i think these are not such problems which one need to bear such huge expenses. Here are some useful Tips about corporate Finance, Problems regarding Corporate Finance and solutions of corporate finance.

Corporate Finance:

                  Corporate finance deals with all the matters and issues rellated won the corporate level. All such issues of companies and those issues which are related with high management level, and use for decision making that is actually coporate finance. Simply we can say that finance at corporate level is call Corporate Finance.

Important Aspects Of Corporate Finance:

                      There are manyaspects of corporate finance, but here i will discuss only the issues and the matters whic are important aspects of corporate finance, and can be useful in some manner. Further more we will discuss here about the decision making on assets and other relevant issues.
Debt is an important aspect which we use in corporate level. This is actually a cheaper sourceof financing, if anyone needed some amount for its expansion program or for anyother thing that debt is the best source of financing, but it should be upto the certain point, beyond that point it will be harmful for the value of company.

Solution Corporate Finance:

                    If we talk about the corporate finance problems and there solutions, then the major problem bear by the majority companies is actually the mixing of equity and debt. I would like to suggest here that debt is the cheaper source so one should always prefer debt on equity. But it should must be for the certain point.
This is the best solution of corporate finance which i can give about the corporate finance problems and

Setting Investment In Global Market

Investment opportunities for an investor are always wide and have a number of varieties that where to invest, how to invest and when to invest. Everyone has open and equal choice to invest anywhere in the world. Investor has equal right to invest where he is foreseeing good return on his investment.

Investment In Global Market:

                Investment In Global Market is actually a term in which investment has open choice to invest anywhere in the world. Suppose if an investment has investment in any low economy rate (e.g; Pakistan)and now he wants to go any other market where he is expecting high return regarding on his investment, he will go in high economic market (e.g Japan) in getting good return, so this is about setting investment in Global Market.


Benefits:

Many benefits are there regarding this, one will have benefit of high return on his investment,also he will get capital gain and there will be no political instability and or such like these risks there. So there are many benefits available for an investors to invest openly anywhere.

Factors To Invest Globally:

                There are many factors which an investor has to see while investing globally. He will definitely see some opportunities where he want to go, and from then he will select the best market.
Factors like Political Stability, Economic stability, Regulator Framework, Investment Opportunities and Tax Regime so these are some characteristics and some essential points which investor has to observe while putting his investment in global market.

Investment Trends And Phases Of Human Life Cycle System

Life Cycle System is actually the trends or behavior of majority of Humans towards investment. It tells us that how we people normally spend our lives by spending,investing and saving money. Through this Life Cycle System we can come to know that when we Humans in our lives normally spend, when we start investing for the future, and when we get the desire outcomes means return on our investment. It is actually a tool which divide Humans life in three phases according to their behavior towards utilizing of money in through out their life.

1)Accumulation Phase:

                 The first phase of our life is Accumulation Phase. In this phase we do the following things:
a) Individuals in early to middle years of their working carries are in Accumulation Phase.
b) Net Income is small and debt for car loan may be heavy. For instance if one is willing to buy a car, but in this phase his net worth would be less according to the price of car which he is not able to pay right now in this phase.
c) They are willing to pay make high risk investment in the hopes of above average returns. For Instance, in this phase one is not much careful about that where he is doing investment, he just want high return, and as we all knows that high return demands high risk.
d) Funds Invested In this phase will reap high financial benefits during later phases.

2)Consolidation Phase:

           The Second phase is the consolidation phase, in this phase the net worth on income of one is high and his expenses are comparatively low. This Phase has following characteristics:
a) Consolidation Phase lie on midpoint of individual career. In this phase outstanding debts are paid off. Further more, in this phase the income of individual is high as compared to his expenses, so that he is able to pay off all his outstanding liabilities.
b) Earnings exceed expenses, so excess funds are utilized to buy assets.
c) Individuals are concerned about capital preservation's, and do not take much risk. Moreover. individuals are much careful about investing somewhere, he/she invest in such place where not much risk is present.
d) Here in this phase individuals will buy assets for the future, he get increase in capital gain, but he cannot take much risk regarding his investment.

3)Spending Phase:

                This is the Third phase of Life Cycle System. In this phase individuals have to spend, as there expenses are increased as compared to their earnings. This phase has following properties:
a) This phase begin when an individual retires.
b) Expenses are met from Prior Investment.
c) Investments in different aspects have mature and provide funds to utilize in this phase. For Instance, if one has done investment in the real Estate, then in this phase his investment would be mature and now in this phase he will start getting return on his investment, which he had done in the Consolidation Phase.

                  Well this is all about the Life Cycle System, and we have divide the Human life in three phases. Though no one is sure about these phases, as these could not be apply on whole Humans, but majority ones has same behavior.