South Korea’s Economy

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According to the Bank of Korea, despite months of tension on the Korean Peninsula,South Korea’s economy recorded a small but significant quarter-on-quarter (QonQ)GDP rise of 0.9% for the first 3 months of the year. The reports made it clear that this is the highest quarterly growth in two years.

To new president Park Geun-hye, this news has come as a elief. During his first two months in the office was not easy in fact has been difficult due to South Korea’s troublesome northern neighbor off-putting from the economic hold back causing problems the country.

The country’s its reliance on exports is one the South Korea’s main economic weaknesses. Regardless of the actuality that exports raise a little in the initial three months of 2013 exports are composed of about a third of the country’s GDP so ongoing issues in the EU, the U.S., and China persist to discourage future forecasts.

And since “Abenomics” began to be implemented Japanese Yen collapse in the value, making it another worry for South Korean exporters. Yen has touched the 1USD:100Yen mark more than once from highs of 1USD:78Yen in the autumn. A lot of the top Korean export brands, for example Hyundai and Samsung, compete directly with Japanese brands in the world.

Without a doubt, Hyundai’s first quarter bottom line fell 15 percent year-on-year in results announced last April..

The net profit of 2.1 trillion Won (US$1.9 billion) was somewhat liable on the relative strength of Seoul’s currency, together with the wearisome union activity at home throughout the period.

Thus there are still worries that pressure in future months concerning growth in the South Korean economy. After 6 months of holding steady little spending at home as well as with the hesitant viewpoint abroad and a moderately strong Won makes much ammunition to those who are calling on the Bank of Korea to slash interest rates again.

This newest GDP figure endows with some support for the Bank’s. Governor Choongsoo Kim has stayed firm despite the growing calls for action on rates. He highlighted the weak Yen as a concern and, according to Bloomberg, suggested that “financial support” would be provided to vulnerable exporters rather than a tit-for-tat devaluation.

Undeniably, according to some South Korea’s low consumption as due to the consequence of very high levels of personal or individual debt grounds to drag on household spending. Given these situation, then an interest rate cut may make that problem worse by tolerating even additional debt to be accumulate. With that kind of move, it would provide a short term increase to falling consumption, but merely at the cost of longer term pain.

With these thoughts, the most recent GDP growth data will make available an extra piece of ammunition for individuals on the “hold” side of the monetary policy debate. This is above all true given that President Park announced a US$15 billion budget stimulus package early April of this year.

Stress on New Housing to Raise Awareness by HIA

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At this point in time interest rates on home loans records are at its lowest. Aside from this there is one more issue Australia's housing market is facing and that the Housing Industry Association (HIA) is now hoping to have addressed.

The HIA is gearing up to kick off its 'Housing Australians' campaign today, April 30, 2013. They aspire to convey to the national agenda the concerns encountered by the construction industry in Australia. The company emphasized a number of problems that the HIA asserts is at the back of the industry's high levels of stress, for instance the unequal levels of taxation, mounting rates of unaffordability, and the present high level of job losses in the sector.

"Access to affordable housing is one of the biggest challenges facing the Australian community," said HIA managing director Shane Goodwin.

According to the HIA, Australia will build 25,000 less homes this year than it did a decade ago and that building construction has contracted every month for the last 34 months. The severe drop in new housing is forcing the closure of many manufacturing and small businesses and consequently a number of layoffs. Australia needs 1.3 million new homes built by 2020 but large costs stand in the way. The HIA claims around 40 percent the cost is taxes, levies, fees and charges, it added.

"Government can't ignore housing any longer. They need to act more constructively, cooperatively and determinedly to meet the housing needs of Australians and their families," said Mr Goodwin.

The only way that families can lessen the expenses of a new home is to assure that they have the lowest potential interest rates on their home loan, giving them the possible to blow thousands of dollars off their repayments.

No Doc Home Loans Pros and Cons

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It sometimes can be very stressful to purchase a new home. And what makes it more difficult is the process that comes along with it more especially if you lack the required documentation to get a traditional home loan. Those who can not provide tax returns or mortgage finance statements like self employed individuals, work on a freelance or contract basis are often at a loss when it comes to providing ample proof that they are in fact credit-worthy when it comes to their incomes.

Ask yourself; is a no doc home loan right for me? Before anything else, you must weigh in the pros and cons of the action.

Lenders identify with your financial state. If it is different does not indicate that you should be reprimand or deprived of the chance to buy or refinance a home loan. This results to no doc home loans; this was intended to help those who are regarded as non- traditional income earners. But this comes with certain costs.
As stated earlier, no doc loans do not require that you prove income contrasting to traditional natures of home loans like fixed rate and low rate basic loans. Nevertheless, it is still demand that you can actuality pay back your home loan in a procedure that is referred to as self certification.


The Pros of a no doc loan:
Convenience - proviso that you agree to disburse the additional money allied with no doc loans in turn to speed up the home buying procedure then no doc home loans can facilitate your needs.
Less paperwork - Purchasing a home obliges much of forms and applications, a lot of which affects your income and debts. By no doc loans you can remove many of those forms.
Variety of loan options - Nearly all lenders recommend a range of no doc loan types to select from that consists of fixed rate and variable loans, which is significant to borrowers who will already be paying significantly more than those who have a traditional loan.

The Cons of a no doc loan:
 They may require a much higher deposit - For the reason that borrowers who want a low doc loan are professed as a higher risk, you may be asked to forfeit a substantial sum of money down. This can be a huge amount of money to come up with, chiefly if your income changes.

The interest rate will be slightly higher than traditional loans - over again, given that no doc home loans are perceived as riskier; the existing interest rate will be more than that of traditional loans. This is an essential feature to keep in mind seeing as those who normally pick no doc loans have wobbly income.
May be subject to fees - a number of home loans lenders fix additional fees to their no doc loans; these charges can be for applications and other processing fees. Not considering the reckoning after the fees, this is yet another extra expenditure for no doc borrowers.

Home Loan Numbers Boost Because Of Low Interest Rates

As investors and home owners are taking advantage of low interest rates, Australia’s housing sector is in the uncertain stages of a upturn.

The first monthly ascend since September last year is only the number of home loans taken out in February rose 2 per cent.

That’s in spite of the percentage of loans granted to first home buyers falling to its lowest point in nine years.

The lowest level since June 2004 is the 14.4 per cent were first home buyers of those who took out home loans in February.

The rise in approvals was a sign low interest rates were providing a boost for the housing sector said St George senior economist Jo Heffernan.

“We are expecting to see some further pick up from here, but we would need to see a few more months’ data to confirm a pick-up was underway,” she said.

According to property research firm RP Data Home prices rose 2.8 per cent in the March quarter while building approvals for new homes rose 3.1 per cent in February, says the Australian Bureau of Statistics.

Housing is one of numerous underperforming divisions the Reserve Bank of Australia is including on to progress during 2013 to facilitate counterbalance a projected hold up in mining investment.

The RBA reduce the cash rate 1.25 percentage points in 2012, conveying it to its present low level of three per cent.

But at the same time as builders welcomed February’s enhancement in home loans, they said more desired to be done to motivate growth in housing construction.

“The concern is today’s figure could be another in the volatile series of rises and falls witnessed over the past year,” Master Builders Australia chief economist Peter Jones said.

“The Reserve Bank must continue to act by cutting interest rates and ensuring

a sustained building industry recovery can take place and boost the non-mining economy,” Mr Jones said.

Investors were driving the nascent recovery in the sector said CommSec chief

economist Craig James.

But he said the continued fall in first home buyers was concerning.

Since October the percentage of loans taken out by first home buyers has been falling when New South Wales and Queensland discontinued providing out first home owner grants to people buying established properties.

“Perhaps the state governments need to rethink about the way that the incentives are provided so they can provide some assistance to the market,” Mr James said.

Bu Ms Heffernan expects first home owner numbers to improve as 2013 rolls on.

“It (the weakness) has continued longer than we would have expected following those state government changes,” she said.

“But at some point you would expect to see that turn.”

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Why buy second grade when you can buy new: Benefits of buying new

There’s nothing quite like the feeling of something new, they say however does that imply anything when buying a new home?

There will always be that particular rush that you can feel when buying something new, whether it be new clothes, a new car or even a new house.

This is exactly why it isn’t a surprise and can easily be understood why purchasing a newly constructed home or investment property is a trendy buying pick for many Australians.

Buying new requires fewer upfront costs; this is just one of the most titillating features of buying new.

Several unanticipated costs, such as maintenance fees or repair bills, for instance, can immediately consume into the money you intend to put aside by purchasing an existing dwelling.

What is more, and basically the very apparent reason to buy something new is, newly built properties traditionally carry a warranty of several years so if it happens to run into problems with your new purchase, the warranty can save you.

A new home can without doubt be an intelligent pick if you are in the market for an investment property.

Contemporary building standards can mean a greener, more sustainable investment aside from the new look and design that will certainly appeal to potential tenants.

In addition take into account that new utilities and appliances, for example bathroom, kitchens and heating can be a massive draw card for tenants and should be measured when you come to bargain the weekly lease.

Lastly, don’t neglect the depreciation and taxation benefits allied with buying an investment property over and above the government incentives that can go along with purchasing a new home to live in.

Benefits are most of the time at their peak when a property is brand new.

But you must take note that new and older properties mutually have their pros and cons and whether a new asset is right for you is eventually down to your precise state of affairs. If unsure, seeking for professional advice would be an excellent subsequently decison.

If a new property does fit your financial and investment strategy, though, the benefits should be considerable.

Tread with caution: There is much compensation to buying a new property compare to an existing dwelling, but remember that regarding all property-related decisions, vigilance is necessary.

To lessen risks, think about the following prior to making a purchase:

•Capital growth is NOT guaranteed, whether you purchase a new or an older property.

•Research is essential. Be absolutely certain to do your homework on the property market and purchase in an area that is more likely to offer growth potential.

•Know with whom you’re dealing. Unfortunately, there are several stories of

developers who go bust during a development or turn out not to be professional operators. Take note of the developer’s history and speak to family and friends regarding developers they have used in the past.

Loan Fraud Connected To Drug Houses

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Police allege, a scoundrel home loan broker get hold of more than $17 million of fraudulent loans for clients, several of whom utilized the money to purchase marijuana grow houses.

Studies and investigations are ongoing into Kieu Thi Thanh Huynh, who has permitted more than $100 million in loans in the precedent seven years, and her clients. The 43-year-old Kim Huynh has been accused with 93 counts of getting hold of financial benefit by dishonesty or decemption, constructing phony documents and exploiting counterfeit documents.

An additional 30 people were charged with one count all of taking financial advantage by deception, creating counterfeit documents and using false documents as fraction of the police operation code named Squid.

Persons charged are of Vietnamese origin and array from youngest as 21 to 68 years old. They were under arrest between February 25 and March 8.

On May 24, the alleged scammers have been bailed to appear at the Melbourne

Magistrates Court for a committal mention.

A police spokeswoman said there may be more arrests.

”Inquiries are continuing in relation to a number of associates who investigators allege also purchased homes using false documents and gained financial advantage by deception.”

On February 25 police carried out five search warrants at three houses in St Albans, Sunshine and Sunshine North, seizing computers, financial documents, phones and jewelry.

Grow houses purchased with loans purportedly attained by Ms Huynh were exposed at some stage in Operation Taxa, which has concluded in millions of dollars value of marijuana and possessions being detained from dozens of houses, mostly in Melbourne’s north-west.

Police will charge loan documents associated to Ms Huynh were found in some of the houses.

All are involved in the investigation such as officers from the Criminal Proceeds Squad and E-Crime Squad, along with forensic accountants,.

Grow houses raided during Operation Taxa had mostly been linked to Vietnamese crime families, who were increasingly buying houses in new residential estates in Melbourne’s outer suburbs as opposed to renting them, Fairfax Media reported last year.

The trend had shown the increased financial clout of marijuana traffickers, police said at the time.

Head of the Criminal Proceeds Squad Detective Senior Sergeant Andrew Kerr said the squad had seized $25.2 million worth of property linked to marijuana in 2012, an increase of about $700,000 compared with the previous year.

He said the squad had detected that a significant amount of money was being sent overseas by those involved in the marijuana trade in Victoria. ”This is money that is being sent overseas by people that would appear to have no legitimate sources of income in Australia.

”A lot of these people are on Centrelink benefits, yet somehow managed to send

significant amounts of money overseas. How is that happening? And why is that happening?”

This kind of frauds that should be taken more seriously not only it is a fraud itself but it stepped a notch as they have been doing marijuana and who knows some other drugs.

Fraud prevention is clearly need to be improved.

Fraud Prevention Against Mortgage

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The distraught state of the national housing market, combined with high unemployment, has shaped a lush environment for deceitful fraudsters looking for a chance to take advantage of frantic homeowners. Several homeowners who go with loan modification or foreclosure “rescue” companies for assistance in the end discover that they have been scammed. An up-and-coming inclination in latest months engages mortgage aid relief scams. These scams intent homeowners by means of promising to save them from foreclosure, or maybe get them a reverse mortgage or at least lower their

mortgage payments. This is all in exchange for an advance or monthly fee. But as expected many of these homeowners never get the relief they have been promised.

These scams utilize a range of effortless strategies to spot their financially-distressed sufferers. Various scammers trace troubled borrowers from published foreclosure notices or other publicly-available sources. But others anticipate on mass-marketing modus operandi such as flyers, radio, television and Internet advertising to entice in distressed borrowers. Still others misleadingly propose an association with a government agency to hastily get the conviction of unsuspecting victims.

The Consumer Protection Branch in the Justice Department’s Civil Division is

committed to prosecuting these criminals and bringing justice to their victims because this fraud is so subtle, and looks for victims on folks who are at their most defenseless point. But persons are really number one as potential victims in the fight in opposition to mortgage fraud. Fraud prevention and scam watch id their goal. You can protect yourself from mortgage fraud by keeping the following fraud prevention tips in mind:

If their promises seem too good to be true, they usually are. Be cautious of those that get in touch with you by means of advertising such as flyers, radio/television or the Internet with guaranteeing to adjust the conditions of your mortgage.

Be apprehensive of loan alteration services that necessitate signing a contract or paying an up-front or monthly fee. Advance fees are normally forbidden by law. Loan counseling and modification services are usually offered free from your lender and/or a Department of Housing and Urban Development (HUD) counseling center. Contact toll-free 24 hour hotline to immediately speak to an expert advisor.

In no way you should convey title of your property, do mortgage payments to someone with no less than your lender, or discontinue making mortgage payments in general .These are definite habits to put your financial investment at risk.

Cautiously examine the names, seals, logos and representations completed by

mortgage rescue companies. They may perhaps be intentionally intended to trick borrowers into not doubting a connection with a government agency exists. The point of this is to swindle borrowers into thinking they are at liberty to the advantage of a government program rather than consigning to a loan that is an obligation to be repaid.

A government agency will by no means necessitate advance fees, or pledge a precise outcome.

Most scammers doing reverse mortgage loans are in reality want to drop off other financial products on borrowers. Be alert to keep away from brokers that would like you to get hold of a loan in order to purchase other products such as long-term care insurance, annuities, or other investments.