Benefits of Buying a House

Benefits of Buying a House Buying a house is one of the smartest financial decisions a person can make. People have been reluctant to invest in a house for many reasons. Among the reasons are decreasing home values, high student debt, the volatile job market, and other reasons. This reluctance has caused a drop in homeownership, especially by the millennial generation. Many people rent because it is easier and seems cheaper. But, when considering likely resale value, and emotional benefits, the benefits of investing in a house are apparent. When renting a house or apartment from a landlord, the renter pays the landlord a monthly fee at the beginning of the month. When purchasing a house, the purchaser borrows money from the bank to pay for the house. The purchaser must pays back a monthly amount equal to a portion of the borrowed money plus interest associated with the borrowed money. Many people compare the price difference between rent and mortgage payments, and seeing that the monthly rent amount is less, decide to rent. Generally, rent payments are initially cheaper which is attractive. But, if you compare the total long-term financial differences between renting and paying a mortgage, youll likely see the opposite. Rent payments go to your landlord as pocket money. Mortgage payments are an investment to a likely appreciating asset. As a purchaser pays off a mortgage, the purchasers home equity increases. In other words, the purchaser is building his or her retirement account and not a landlords. When comparing rent payments versus mortgage payments, there are a number of variables to consider, including the characteristics of the properties, their location, their condition, and the potential of the properties to appreciate in value. Below is a table showing the average comparison between rent monthly payments and mortgage monthly payments, taking inflation into consideration. As you can see on the table, we are comparing the mortgage of a home that costs $160,000 to renting that home for $800 per month. Rent is cheaper throughout the first five years, which is what causes many people to decide to rent. But, due to inflation, rent becomes more expensive than mortgage would cost after those initial five years. Rent payments and mortgage payments for similar properties are only marginally different. The long-term aspects between the two, however, are significant. A renter is not encumbered with the longer-term responsibilities that accompany home ownership such as maintenance, upkeep, and the potential of having to sell the house before having the ability to relocate. On the other hand, while paying a mortgage, a purchaser is building equity in an asset. While paying rent, a renter is paying a fee to a landlord without any long-term financial benefit. Buying is a financially superior decision. Buying a house is an investment, meaning it is possible that an investor can lose money or make money depending on whether the asset depreciates or appreciates in value. A renter does not have the investment risk associated with owning a house. In the case of real estate, though, it is more likely that an investor will make money. For example, properties sold in cities like New York, DC, and Miami are good investments because those areas tend to attract professional people who plan to stay for a long period of time. Buying in an area like these, where the market is trending up increases net worth. In 2000, a house that cost $300,000 could sell for $500,000 in 2017, which means an investor who bought a house in 2000 and sold it in 2017 made $200,000 from the investment. The likely potential to realize appreciation on the investment in a house is a big benefit to the purchaser. People who invest in buying a house often benefit from more than just financial benefits. When buying a house, the purchaser can redesign and make alterations to the home. In other words, the purchaser can personalize their home in ways that a renter cannot. This gives a homeowner a sense of control that a renter doesnt have over their home. It results in homeowners having a higher satisfaction with life, a more positive mindset, and a home that suites the needs of the entire family that can be modified as needed. There is a sense of pride that comes along with buying a home. Most people who purchase a house plan to stay for a while. So when an investor buys a home, they are also investing in the local community. They are not simply buying a piece of real estate. They are buying a home in a neighborhood, surrounded by people who are all working together for the greater good to make it a fantastic place to settle down and call home. People who rent a house rather than buy a house are not likely to create these interpersonal relationships in the community to the same degree. The renter knows they may have to move when their lease is up and so may not be as invested in the community activities. These relationships create a reliable support system, which is emotionally healthier. Although renting and buying each have pros and cons, buying is a better long term investment. In most places, mortgage and rent payments are only marginally different. Paying a mortgage for a house and building equity in the house has long-term benefits, both financial and emotional, that renting does not provide. Although renters are not encumbered with many of the responsibilities of home ownership, investing in a home is a great long term investment. A purchaser has the potential upside of asset appreciation and emotional attachment. Assuming a purchaser can handle the responsibilities of home ownership, the long-term benefits of home ownership make purchasing a home a great investment.

Maquiladora Industry

In this paper I will discuss the history and practices of the Maquiladora industry. I will discuss its background, its problems, the benefits it offers to United States companies, and the impact the NAFTA has and will have on the industry. In addition, I will make a suggestion on a possible strategy the Maquiladoras can adopt in order to address the challenges brought on by the NAFTA, to ensure it remains a strong force in the future. Mexican agricultural workers had been granted temporary work visas allowing them to work in the United States† agricultural industries through a program called the Bracero Program until 1965 when this program was terminated. As a result of this termination, the unemployment rate had exceeded 70% in certain border cities. In May of 1965 the Border Industrialization Program was established as a replacement for the Bracero program. It was later renamed the Maquiladora Program. The program was established by the Mexican government to provide employment for Mexico†s rapidly growing population along its border with the United States. This program was utilized to keep Mexicans from entering the United States. The idea was that Mexican workers would be kept on the Mexican side of the border if they were given factory jobs on the Mexican side. The Maquiladora program also wanted to attract foreign manufacturing facilities, technology, and know-how by giving a permanent tax holiday to manufacturing companies that would set up â€Å"twin plants† on the Mexican side of the border. In the beginning of the program, all foreign-owned operations had to be located within a 20-kilometer strip along the US-Mexican border. Since 1972 they can be located anywhere in Mexico. In 1996 there were around 2,500 Maquiladoras – 35% of them were located in the interior states of Mexico. Last year there were over 3,000 and more and more of these operations are being located outside of the border regions. Each of Mexico†s 31 states has at least one Maquiladora. Maquiladoras, also referred to as â€Å"in bond† or â€Å"twin† plants, are allowed to temporarily import into Mexico (free of tax) machinery, equipment, replacement parts, raw materials, and just about anything that was used in the assembly or manufacture of semi-finished or finished products. Once assembled or manufactured, the Maquila products must be exported unless special permission is obtained to sell a limited amount of output in the Mexican market. When these products are imported back to the United States, import duties are levied on the foreign value-added only. If Maquila products stay in Mexico, the are subject to applicable Mexican duties. The largest issue surrounding the Maquiladora industry is the exploitation of cheap labor. The working conditions are often unsafe, workers are not compensated adequately for their labor, attempts to unionize are discouraged; and sexual discrimination and harassment are too common. The conditions in and outside the Maquiladoras are terrible. Workers perform tasks such as welding without protective masks, leather gloves, or goggles (in many instances) and industrial accidents and toxic exposures are common. This, along with malnutrition caused by low salaries, produce skin illnesses, cancer, irregularities in menstruation, abortions, tumors, intoxication and birth of undernourished or disabled babies. Of the employees, many are young girls and women ranging from the ages of 14 to 20. They work 6 days a week in 10-hour shifts. The average weekly salary for a Maquiladora worker is US$35 – $45 even though the average monthly rent for a house with public services such as running water and electricity is around $200 a month. For the most part, Maquiladoras are unorganized. In those that are organized, state-controlled unions represent the workers. Although some companies are unionized on paper, the unions, for the most part, function to reinforce management policies rather than for the benefit of workers. Then there are what are called â€Å"phantom† unions. These unions do not fight for the worker†s rights. The workers do not even know them and have never seen their union leaders. When a conflict arises in a factory, management informs the worker that their unions have accept these or those conditions. Not only are they not protected by existing unions, those that attempt to unionize and are often threatened or bribed by plant managers and the government. In many companies, discrimination against and harassment of the female employees is very common. Female job applicants are required to produce urine samples to be used for pregnancy test, while some have company doctors and nurses examine the applicants or ask confidential information concerning their contraceptive practices. This is done because pregnant women are refused employment. Sexual harassment is often the rule rather than the exception. Rapes occur frequently and few are reported because women fear being fired or blacklisted. Shame and humiliation also keep them quiet. In Mexico, men and women are equal before the law, but the law does not recognize discrimination as a problem to be solved. The Pollution Brought on by the Maquiladoras The increased pollution, accompanied by the dumping of tons of hazardous wastes, poses a serious health threat to the residents of Mexico as well as the resident of the bordering US states. There are several canals that are â€Å"black† with chemical wastes that have been measured at levels that greatly exceed permissible standards. One factory was caught dumping drums of paint, solvents, and shellac into a drain. In other areas there are abandoned lead smelters and air full of soot and dust from brick-making ovens and smoldering tire dumps. Main Advantages for the United States† Companies For the United States companies this was a great advantage since Maquiladoras operates at very low costs in places where the currency is weaker than the dollar–such as Mexico. The less a currency is worth, the more relative value the dollar has. Since Mexico†s peso is relatively week, companies can trade their dollars for pesos with which they pay workers and expenses. The products they manufacture, however, are sold for dollars, increasing their profits by huge margins whenever the local currency falls. They could enhance competitiveness, reduce their costs, and maintain quality by placing their labor-intensive operations in the less developed Mexico, benefiting from the lower wage rates there. For many US companies, manufacturing in Mexico has become necessary to battle overseas competition. Since many manufacturers are moving to â€Å"just-in-time† inventory systems, the quick delivery possible from Mexico†s border towns offers a substantial advantage over Asian alternatives. The NAFTA†s Impact on the Maquiladora Industry Traditionally, Maquiladoras offered foreign businesses several advantages over other forms of direct foreign investment. Since the signing of NAFTA, however, many of these advantages are either being phased-out or granted to all Mexican companies. The most significant advantages of operating as a Maquiladoras include: 100% foreign investment, operation without ownership of assets, tax sheltering of cost centers, and 100% duty-drawback or waivers for temporary imports. Furthermore, the NAFTA attempted to address the labor exploitation and environmental problems associated with the Maquiladora industry. One of the benefits of the Maquiladora program is 100% foreign investment of Mexican operations, which formerly was not allowed. However, Mexico†s Foreign Investment Law has changed through the years (most significantly in 1989 and 1994)-full investment is now allowed in most business ventures. Operation Without Ownership of Assets Another advantage that Maquiladoras have is that they can receive production materials and capital goods as loans from their parent and client companies. As a result, most Maquiladoras have little of no inventory of fixed assets, eliminating the need to pay the Mexican asset tax of 2% of all assets. In January 1995, the Mexican IRS reported that Maquiladoras would now have to factor the depreciation of â€Å"loaned† assets in price-transfer calculations, which is the first step toward phasing-out this advantage by 2001. When Maquiladoras are structured as cost center (providing manufacturing services for a foreign parent) the foreign corporation has traditionally paid the Mexican company for operating costs plus negligible profit. By doing this they avoid Mexico†s 34% corporate income tax, 10% mandatory profit sharing, and asset taxes. Now the Mexican IRS is changing the way Maquiladoras must declare assets. Over the next few years, Maquiladoras will be forced to raise their declared profit percentage to a rate that is comparable to that of two unrelated companies performing the same transaction at â€Å"arm†s length†. This is the type of transfer pricing procedure that is implemented by most trading blocks, like the EC. It will soon be effect throughout North America. 100% Duty-Drawback or Waivers for Temporary Imports Maquiladoras have always allowed Mexican companies 100% duty drawback or waivers in imported components that are exported as final goods. Since 1994, this has provided many Maquiladora programs a way to use non-NAFTA materials within products without the need to pay the corresponding duties over those materials when importing or exporting goods to other NAFTA nations. On January 1, 2001, Maquiladoras that manufacture goods for export to NAFTA partner countries will no longer be allowed to take the waiver. The waiver will still be available for goods that are going to non-NAFTA countries. In 1995 the NAFTA†s of Labor created the National Administrative Office (NAO) as well as the North American Agreement on Labor Cooperation (NAALC). Both were intended to stop labor abuses. The NOA was established to monitor labor complaints that NAFTA critic†s voice regarding unfair labor practices. The NAO can recommend â€Å"ministerial consultations† as well as imposed heavy sanctions against Mexico. Unfortunately, the side agreements proved useless. The NOA cannot force Maquiladoras to allow unions-the most they can do is recommend â€Å"ministerial consultations.† Sexual harassment and discrimination continues as well. The NAFTA has also created side agreements covering the environment. One of them is the North American Development Bank (NAD Bank). Its purpose was to finance wastewater treatment projects along the border in the poorer communities. However, the most important criteria that needed to be met in order to receive funds were meeting certain market considerations. With this program NAFTA â€Å"encouraged† growth without regard for the environment through its practice of placing market consideration above environmental protection. Another is the Commission for Economic Cooperation (CEC). The CEC was established to investigate governmental non-enforcement of environmental laws. Unfortunately it has no power to enforce ,they can only investigate-and they can†t even do that until Mexico collects the data on the pollution for them. Possible Strategy for the Maquiladora Industry As long as the Mexican currency is weaker than the US dollar I don†t think that the changes are going to dramatically effect the flow of US companies to the south. However, the Maquiladora industry cannot count on this for continued growth. By the year 2001 the Maquiladora industry as we know it now will have significantly changed when the phasing out is complete. Maquiladoras will no longer be â€Å"tax break† establishments; they will be just like other foreign investments. In order for them to fully compete in the near future they must become more efficient and leaner. The impact of globalization is forcing manufacturers to produce more rapidly and cheaply than ever before and to continuously improve. Because there will be no differentiation between the non-Maquiladora and Maquiladora industries I feel the inefficient producers will be wiped out. Therefor, Maquiladora employees will need better training, education, incentives as well improved working conditions and hi gher wages. Operations will also have to be streamlined in order to reap the benefits of economies of scale and scope. In addition, Mexicans as well as US citizens will start to demand more accountability from the Mexican government and the Maquiladora industry. They need to be more responsible for their actions. What will the U.S. corporations do when human rights activists and environmentalists start lobbying and protesting on their US sites? Do they want to risk losing their shareholders to this type of negative attention?

Modern Saas- Traditional Bahu

She stays with her parents and her brother in Iambi. She Is full of life, always smiling, always winning other people's hearts. She Is bananas, frank, calculi and mischievous. She Is the life of her friends circle and everyone loves her. She is a good looking girl, with long wavy hair and twinkling eyes which always have a tinge of mischief In them. She is pursuing her graduation In sociology and does extremely well In her studies. She participates In extracurricular activities, and especially loves to dance.She participates in various allege dance competitions. She is also extremely kind hearted and likes to help the poor in any way she can. Once Mains completes her studies, she starts working in a MONGO as a fund raiser. Whilst working for the MONGO, Mains visits big industrialists to raise money for various causes. One day, she has an appointment with Mashes Curran, a very big industrialist. When he meets Mains, he immediately takes a liking to this lovely girl who has a passion f or the betterment of the society, and donates generously. He also asks her about her parents and her family.Once Mains leaves, e starts thinking she will be the perfect wife for his son, Valhalla. He finds out more about Man's and then approaches her parents to Initiate the match, even though his wife Devil opposes the Idea. Valhalla and Man's meet a few times and decide that they Like each other and soon get married. Devil relents and gives her permission as everyone is, for the marriage including Behave. Once married Mains goes to live with Behave and his parents, Mashes and Devoid and Vassal's younger sister, Meta. Their house is very splendid and luxurious and Mains is taken aback by its grandeur.She however has a wonderful relationship with her father in law, Mashes who is a simple, down to earth industrialist and runs his business with honesty and sincerity. Behave works with his father and helps him in running the business. Devoid however, is an extremely status conscious wom an and is always worried about her and her family's zeta. She Is modern in her lifestyle but she is forever pre occupied with the fact, â€Å"eke log Kay exchange? † and this thought rules the choices she makes In life. Valhalla Is a good husband, loving, kind and attentive.He supports Man's when she ants to continue working after marriage, even though Devil Is strongly against the idea. Devoid and Mains are complete opposites and this sometimes causes friction in the house. Devoid is forever trying to control Mains, in terms of what she wears and how she behaves in front of friends and relatives. Devoid, feels that Mains does not know how to live up to the status of the family, as Mains was raised in a middle class family She keeps nitpicking Mains in whatever she does, may it be her choice of clothes or her friendly behavior.She wants Mains to quit her job as she does not eke the fact that, â€Å"Mains sable Jake beak managing hat. † According to her Mains should be a trophy wife and a perfect host to their friends and clients and should be the epitome of style and class. Mashes and Behave try and explain to Devil to go easy on Man's but Devil refuses to listen. She forever Interferes in everything Man's does. Man's Is a smart girl and knows there Is no point fighting and causing bitterness In relationships and handles and approaches these situations In a good natured and tactful manner.Behave is extremely supportive of her and helps her he way she wants by handling Devoid and dealing with her in her own manner. She does this by either being extra nice to her or giving her expensive gifts. This however is not a long term solution and Devoid too, is set in her ways. Mains soon finds out that she is pregnant. She is worried that Devoid will be an extremely interfering grandmother. Will that be the case? Will Mains be able to handle Devoid on a long term basis? If so, how will she do it? Will Behave always support Mains or will he side with his mo ther? Will Mains have a happy married life? Jane eke lye dislike†¦

Economic Relations Between China And China - 869 Words

The United States has proved to be a prominent influence around the world whether or not it may have positively affected other countries. In some cases, the dependency of one allows for the growth of the other such as the instance of China. Although China stands as one of the biggest communist countries, statistics have shown that â€Å"China is 175.6% dependent on the U.S.† (Chang). Although both divergent from the other, the United States’ bilateral relationship with China is essential and necessary for their success and diplomacy. Through an economic standpoint, â€Å"the U.S. approach to its economic relations with China has two main elements: integrating China into the global, rules-based economic and trading system and expanding U.S. exporters and investors access to the Chinese market† (U.S. Relations). The United States stands at a national deficit of approximately $19,231,466,800,000 and counting (U.S. National Debt). On the other hand, China suffers with a $5,385,184,290,350 national debt (NationalDebtClocks). To put things into perspective, from those 19 trillion, the US owes about 1.16 trillion to China (Wilson). The dependency is clearly there. Countries do not merely borrow money for the sack of borrowing money, rather from a place of necessity to attain what money may be able to offer its citizens. China benefits from having the US be in debt to them in more ways than one. For starters, all countries want its denizens to be employed because only then, could theyShow MoreRelatedEconomic Relations Between China And Ghana1485 Words   |  6 Pagesjust China giving loans to Ghana, they also have a very stable trading relationship. They have been trading since their economic ties first started and it has been pretty steady. Ghana, however, is not keeping up as quickly with China in the sense of export-import as the gap between the import of Chinese goods and Ghana’s export has widen over the years. 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