Tag Archive | "Investing"

Tips & tricks to investing in property

Tips & tricks to investing in property

Property investment has a lot of potential benefits, and it can help you build up a substantial wealth, in time of course. However, property investing has some risks, and no one can gurantee that everything will go ok and that the money will build up.

Less risky than shares, property investment attracts many people and has two major benefits : the tax advantages from negative gearing and the capital growth.
Negative gearing in property investment means buying with money that came from a loan that has the annual ‘rent’ less than the loan interest and the expenses paid for the property’s maintenance together. Doing this brings benefits from taxes and the most important thing is the interest of your mortgage.
Capital growth represents the money made from the value of your properties. This is not guaranteed, because you have no guarantees that the value of a property will raise.

If you plan on starting to do some property investing you don’t have to start by investing in a place where you also live in. You can for example buy an apartment that you can then rent out. Furthermore, property investment that’s done in a place which you are not going to occupy takes some of the stress and emotion of what and where to buy.
One of the first things you must consider after you’ve decided do perform a property investment is where to buy. It is recommended that you try to buy in a growing area that provides everything a tenant is looking for: shops, transportation and leisure.
Another useful tip if you plan on renting is to choose an apartment instead of a house because they are easier to maintain and a great part of the expenses are shared with the others.

A risk in property investment is that the value of the property you bought may decrease, and you may be forced to sell the property quickly, so consider this when buying and try to pick an area where you know you can always sell the property with no efforts.

And the last advice about buying and renting a property is that before doing the property investment you can ask a little about the history of tenancy in the area, if there are many tenants, if there are periods when the apartments aren’t occupied.

After doing the property investment in a property that will be rented you can pay your ‘rent’ for the loan from the bank, if you got one, and when the ‘rent’ is finished you will no longer be negatively geared, but positively geared. This way you’ve made your property investment pay for itself. Not being negatively geared anymore makes you lose the tax advantages, but you should still be able to make profit.
If you want to get into property investment but you feel that you don’t have the time to manage and take care of everything, you can hire a property manager that will take care of the property management for you. The fee for such a thing is somewhere around 5% of the profits, but it has many advantages, you save a lot of time and you will benefit from the experience and knowledge property managers have in this domain. These people deal with rentals and tenants daily so they know a lot about this.
Another thing you need to do is trying to keep up with all the changes that occur in property investment and property investing taxation laws.

These are the basic things you should know about property investing, if you want to start investing into property

Posted in Investment PropertiesComments (0)

Trading Tips For Successful Forex Investing

Trading Tips For Successful Forex Investing

If every investor out there suddenly started to profit, then the markets would completely shut down. Somebody has to lose money for other people to make money, and that’s what’s so dangerous about a market like Forex. However, if you check out these tips and tactics, you can end up on the right side of the fence.

Do not put all of your funds into one line. Divide your capital into a certain number of equal parts and distribute it that way. If you have 50 shares and you end up losing one, that is only 2% of your total capital. Put it all in one line, lose, and all your money will be gone.

Make sure you use the Forex market for your analysis and not the news. Just because good news is coming out about a country does not mean that the currency news is good. So do not let lots of good news about a countries political standing or economy influence your decisions on holding its currency.

If you are a first time investor using Forex a good advice that can be offered is to not invest blindly. Many first timers just pick a current without reason and watch it. Do some research first then pick a currency to watch. Your wallet will thank you for it later.

Understanding each individual currency is critical to trading the Forex market. The Japanese Yen is dependent on the fortunes of the Japanese stock market, the Nikkei index, and also the real estate market in Japan. These are not independent activities, they all tie into the price of the currency and the trading of the Yen.

Making too many trades on the forex market can drain your bank account and your energy. Focus on the trades you really want to make as part of your overall plan. Often, the less you trade, the more profit you end up making.

Have a formal system of operations in your home office to keep things organized, running on schedule and allowing you to focus on your forex trades. Try to do the same things in the same order every day, so you are less likely to forget a step and end up in trouble later.

A lack of experience with forex often results in taking risks. Inexperienced people get very excited with an initial winning streak. It is vital to use self-discipline if you start losing. Stop after 3 losses in a row and stay away for a couple of days. Think about and evaluate your past decisions and possibly use some demo trading to get back on track.

If you are new to the trading world, one of the things you must do is to study the market. You should also practice what you are doing by using a mini account. When you are trading, remember that the lower the risk you are taking, the higher your chances of making money.

Using the right information, such as the tips in this article, will ensure that you’re never one of the marketplace losers. You won’t have to worry about other people taking advantage of you, as long as you’re willing to apply the tips you learned here. You might not become an expert overnight, but you won’t become one of the losers, either.

Posted in Real Estate InvestingComments (0)

The Risks and Rewards of Investing in Foreclosures

The Risks and Rewards of Investing in Foreclosures

There are many different things to invest in these days. One investment route which individuals take is with regard to foreclosures. Foreclosures occur when the current homeowner of a property fails to pay their monthly mortgage and the property is repossessed by the lender. There are various risks and rewards which go along with investments of this type and some of these will be discussed below.

Advantages and Disadvantages to Buying Pre-Foreclosure Properties

One type of property sale which relates to foreclosures is the pre-foreclosure sale. A pre-foreclosure sale occurs when the lender allows the homeowner with past due mortgage payments to sell the home on their own and pay back the lender what they can from the sale of the home. The lender often agrees to this so that they do not have to get involved with possessing then reselling the home and the homeowner likes this option because it prevents foreclosure. The investor also benefits from this type of sale as well.

Some advantages to purchasing an investment property via pre-foreclosure sale include discounted price, speedy purchase and wonderful profit opportunities. As for the disadvantages, the investor who buys property by way of a pre-foreclosure sale may find that the homeowner is hard to contact and/or unwilling to sell, the research is cumbersome and there are other potential buyers who wish to purchase the property.

For those who wish to purchase property via a pre-foreclosure sale, they should do their independent research, approach the homeowner in a courteous manner and ensure that they make an offer that will not cause them to lose money in the end. By doing so, the investor may find that buying a house by pre-foreclosure sale will work to their advantage.

Advantages and Disadvantages to Buying at a Foreclosure Auction

Another way to purchase foreclosure property is through a foreclosure auction. Auctions of this type are usually held at the local courthouse of the county where the property is located within. This is a common way for foreclosed properties to be sold and this too has its pros and cons.

The main advantage to purchasing property at a foreclosure auction is the reasonable price for which one can bid on a property. Although there will be other bidders, the resulting price is usually one that is quite attractive. Another advantage relates to the profit which the purchaser will see when they resell the home. Since the home was won at a reasonable amount, when the highest bidder goes to resell the property they will most likely see a good profit margin from that sale.

With regard to the disadvantages, purchasing a home at a foreclosure auction has a few which are tied in with it. The first disadvantage to buying a home this way relates to the inability to inspect the property. As auction homes are usually sold as is, the bidder who wishes to adequately inspect the home beforehand will be unlikely to do so. Another disadvantage to purchasing a home via auction is that the purchase price and deposit is due via cash or cashier’s check in many instances which may be difficult for many investors to obtain on short notice.

Advantages and Disadvantages to Buying Real Estate Owned (REO) Properties

One last type of property purchase which relates to foreclosures is real estate owned properties, or REOs. An REO is when the property returns to the exclusive hands of the lender and then needs to be sold from that point. The lender is looking to sell their newly acquired property as soon as possible since they do not want to be in charge of the property and its necessary maintenance. The lender will then look for potential buyers of the property.

Some advantages to buying an REO are that they usually have good title, property taxes will be up to date and repairs may have been made to the property by the lender to ready it for sale. As for the disadvantages, those who purchase REOs may find that the savings which they see by purchasing an REO are not as great as they could be and therefore, the profits may not be as great as well.

Conclusion

When purchasing property in any of the previously mentioned ways there are a few things to keep in mind when doing so. It is extremely important to do independent research with regard to the properties and purchase methods, ensure necessary funds for purchase and inspect the property whenever possible. This will help to ensure that the buying process goes as smoothly as possible.

Posted in Real Estate InvestingComments (0)

Investing In Bonds Versus Forex

Investing In Bonds Versus Forex

Investing in bonds and the savings bank is safe as we will see. But if you are adventurous you can make a great deal from Forex.

The article is written primarily for the smaller investor who needs high yield, the man who has between, let us say, ,000 and 0,000. If the ,000 investor secures a return on his money not of 3%, or 0 per year, but 12% 0 per year his benefit will be material, not nominal.

If the 0,000 investor receives not ,000 but ,000 the difference is great enough to mean complete financial independence.

While theoretically the large investor, the one with ,000,000 and up, does not need to consider such investments, because his ,000,000 in the savings bank yields him ,000 a year, or his investment in tax free bonds at 4% yields him ,000 a year not subject to income tax, strangely enough this is the type of investor who invests the most heavily in the types of opportunities examined in this book. Some of the very largest aggregations of capital in the world do little other than invest in mortgages at discounts, foreign loans, real estate syndications and investment partnerships.

Strange as it may seem, the person least satisfied with a low yield is often the very wealthy person. If such people invest in the opportunities examined in this book, these opportunities deserve at least a quick survey by the smaller investor. There may very well be a good reason behind the saying that the rich get richer and the poor get poorer. The rich may know how to invest more intelligently with more information available to them.

In a stable economy we might consider high rate investments as desirable but not necessary. But we are not in a stable economy. We are in an economy in which every year our fund of savings is worth less. Dollars in themselves mean little. They have meaning only insofar as they can purchase goods and services. Let us see how this purchasing power of the dollar fared since the end of the war.

With 1947-1949 equal to 100%, consumer prices rose to 102.8% in 1950. If we consider that at this point in history 1950 we have 2 in the savings bank at 3% interest we can get a strikingly clear idea of savings in a period of inflation.
By 1960 in 10 years consumer prices had risen to 126.5%.

Now if the 2 in the bank in 1950 drew 3% interest, after a hypothetical tax of 33%, the owner of the 2 savings account would find by 1960 his account had grown to 2. His interest didn’t even enable him to keep up with inflation. He was actually poorer in 1960 than he was in 1950.

If a person were in the 50% tax bracket 4% compounded annually would amount to the same thing. He would have 2 in 1960, the same amount that the person in the 33% bracket would have with his return of 3%.

Although Forex is much more risky you stand to gain a lot more, but remember that
You should not risk more than you can afford to lose.

Posted in Real Estate InvestingComments (0)

Tax Benefits Available through Investing in Rental Property

Tax Benefits Available through Investing in Rental Property

Much of the country recently has experienced a weakening in the local real estate market. If that is the case in your local area, now may be an excellent time to make the decision to invest in rental property. Investment real estate provides exceptional tax benefits which can a good deal, a great deal. If you already own a home you may be quite familiar with many of the tax benefits offered by owning rental property. For example, by using a mortgage to purchase rental property you very well may be able to write off your interest payments on your taxes.

In addition, you can tape into tax benefits which you may not already be aware of. Many rental property owners find that they can deduct a great many of the expenses incurred in the maintenance of the property. This includes such as items are repairs, utilities and insurance as well as much more. In the event you make the decision to hire a rental agent or a property manager, you will also have the benefit of writing off any fees paid for those services as well.

Depreciation deductions can also frequently be written off. In fact, depreciation is frequently one of the best tools available to owners of rental property due to the fact that it provides you with the opportunity to essentially write off the largest expense associated with owning and operating rental property-the price for the property itself excluding the land. It should be noted that depreciation does take place over a period of time. For residential rental property the time schedule is
27 ½ years while commercial property is depreciated over a period of 39 years. This means that if you paid 0,000 for a rental property (less the value of the land), the annual depreciation would be approximately ,000.

You can also frequently include property improvements in your cost basis and depreciate them over time as well. Repairs can typically be deducted during the year in which they occurred. Not sure whether something classifies as an improvement or repair? Keep in mind that improvements will add to the property’s value and prolong the life of the property while a repair is intended to keep the property in good condition. It is also important to remember; however, that landlords are not able to assign a value to their own labor and then deduct the cost of it.

Many landlords are also able to deduct the cost of travel, whether it is driving or flying. In the event the travel is not local, you also have the advantage of being able to deduct such costs as hotel bills, airfare and part of the costs of meals.

If you choose to operate a home office in order to manage your rental property, you may also be able to deduct specific expenses such as part of your homeowner’s insurance, utilities and home mortgage interest. In order to qualify for this tax benefit, the space assigned as your home office must serve as the primary place of business where you handle matters regarding the operation of your rental property. In essence, the home office area must be used exclusively for business and not for any other purpose. You do not necessarily have to assign an entire room as your home office; however, as long as you can assign a part of the room that is definable as your home office.

PPPPP

Word Count 578

Posted in Real Estate InvestingComments (0)

Foreclosure Home Investing

Foreclosure Home Investing

Many people have set their sights upon foreclosure home investing because it is so very profitable. There are hundreds of people in every state that buy foreclosed homes and sell them for profits. This has been proven as a great way for anybody to make money in the real estate industry. If this sounds like something that is interesting, you are in luck. The best part about it is that anyone, given enough capital, can take a shot at this kind of investing.

Its easy to get starting in foreclosure home investing. The first step that you must take before getting started is obvious; you will need to determine what you can afford. By setting your budget, you will ensure yourself of staying within your limits and never over extending your means. The best thing to do is only look at properties that are within your budget. This will go along way in making sure that you do not get enticed by a property that you cannot afford.

After you have set your budget, you will want to determine that areas are appropriate for foreclosure home investing. In other words, if you live in the city, you may not want to buy a home that is two hours away and in the middle of a farm land. But on the other hand, you may be looking for a change of pace and decide that the best situation for you is to find a property that is not like the other ones that you own. There are no hard and fast rules for where you should buy foreclosed properties. It all comes down to personal preference, and what you think will fit in best with your current situation.

One of the most important things you can do is find homes in the area that you are targeting. There are three common ways that you can do this. First off, many people begin by searching the newspapers. This is only natural because people believe that this is the best place to get free information. There is another group of people that prefer to call the lender directly on the phone to obtain property listings. Again, this is free and you can get a lot of listings at once. Finally, there are hundreds of online services that you can join that will be able to supply you with foreclosed properties in your area. Even if you pay a small monthly fee to use the service, imagine the savings you will have by being able to hand pick the very best homes that interest you.

Posted in Real Estate InvestingComments (0)

4 Advantages Of Mutual Fund Investing

4 Advantages Of Mutual Fund Investing

Mutual funds have grown in popularity over the last few years to the point where it’s harder to find an investor who is not using mutual funds than one who is. The popularity of mutual funds is no surprise when you consider that they are one of the easiest investments to use and require very little knowledge of the financial markets. There are 4 main advantages that mutual funds offer every investor, as you will learn in this article.

The first advantage of mutual fund investing it that mutual funds offer professional management of your investment dollars. Mutual funds are run by fund managers, who are essentially watching over your investment daily. There is almost no other place where you get that kind of investment management without paying huge management fees.

The second advantage of mutual fund investing is that mutual funds are extremely liquid. Any investor can sell his shares in a mutual fund any day that the stock market is open. Compare that to investing in real estate, CDs or even stocks that have low trading volume which can takes weeks to months to liquidate your stake. The liquidity of mutual funds gives any investor the ability to get out of the investment quickly if needed.

The third advantage of mutual funds is the diversification that they offer. Mutual funds invest in tens or even hundreds of different stocks, bonds or money markets. Trying to duplicate this type of diversification in your own portfolio would result in very high trading fees, not to mention huge headaches from tying to monitor hundreds of stock positions. This leads us into the fourth advantage of mutual funds, lower fees.

Mutual funds have very low fees due to their ability to take advantage of economies of scale. Since mutual funds are pooling the investment dollars of so many investors they can buy stocks in larger quantities which leads to lower fees for mutual funds investors. Numerous mutual funds have fees that are under 2 or 3%.

Mutual funds are growing at a feverish pace as more and more investors put their money in them. But considering the great advantages that mutual funds offer the average investor all the way up to guy with the multi-million dollar portfolio, it’s really no surprise.

Posted in Real Estate InvestingComments (0)

Investing in Bulgarian Property – The Fast Track to Huge Capital Gains

Investing in Bulgarian Property – The Fast Track to Huge Capital Gains

There are amazing profits to be made in the Bulgarian property market. Careful research can even uncover properties that offer instant equity and guaranteed returns.

Bulgaria is currently the EU investment hotspot. The prospect of capital gains of 30% per annum, and the cheapest property in Europe is attracting investors from across the globe.

Millions of euros are being spent each and every month by investors eager to cash in and this is set to continue unabated, with the prospect of full EU accession in 2007. Entry into the European Community always prompts massive price increases, with 100% capital gains in a single year, quite commonplace.

All property types in Bulgaria offer incredible value for money and are experiencing good capital gains across the board. However, with careful research, unbelievable opportunities are to be found in this booming market.

The sheer volume of properties can offer a bewildering choice and in any region or resort the asking price of the properties on sale can vary massively. It is vital to accurately gauge the market value of each particular area.

In the off plan market especially, developers will launch their new projects with introductory discounts to stimulate sales. Properties are available with discounts of up to 20%.

The property for sale in Bulgaria is primarily designed for the holiday trade and corporate letting market. Forward thinking developers, have already begun to sign agreements with major holiday companies and corporations for letting the properties they are building. The income generated is then passed to the purchaser, as a further inducement to stimulate sales.

There are currently deals available which will offer anything between 2% to 15% as a guaranteed rental.

Bulgaria offers the best investment opportunity around today. The low cost of entry, consistent prices rises and the expected capital gains surge from EU accession next year, provide an irresistible mix for the property novice and seasoned investor alike.

investmentpropertybg.com/”>www.investmentpropertybg.com offer a free service to locate either resale or off plan properties, with prices that range from under £10,000. With offices both in the UK and Bulgaria they have a wealth of local knowledge and a massive portfolio to choose from.

Posted in Investment PropertiesComments (0)

Investing in Forex

Investing in Forex

Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It’s very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.

A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit.

Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor’s time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It’s easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.

I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.

Sincerely,
Joe Clinton.

Posted in Real Estate InvestingComments (0)

Discover Money Market Investing For Increasing Your Wealth

Discover Money Market Investing For Increasing Your Wealth

With today’s economic conditions, many people are looking for different ways to invest their money. If you have always been a stock market person, chances are you are checking out other ideas. If you have always thought about real estate, you might be contemplating taking advantage of the low prices and foreclosures. If you are looking for different options, you might want to consider money market investing, as it has some advantages.

What exactly is money market investing? Money market investing is using your funds in short-term debt investments. Money market funds are categorized according to the type of debt they purchase; government money market funds, or money funds, invest in US government securities; corporate, or nongovernment money funds, invest in businesses; tax-free money market investing involves money funds that invest in municipal interests.

Unlike a money market account, which is really just a bank savings account that tends to yield a higher interest rate than a typical savings plan. It has limitations placed on it, which are essentially limitations on the number of transactions – withdrawals — you can make. Because they are really just modified bank accounts, they fall under the FDIC protection. Money market funds carry no such protection. They are not FDIC-insured. Risk is limited, however, by the SEC regulation that requires that the average maturity of funds in a money market fund to mature in ninety or fewer days.

Because the term is so short for money market investing, the percent yield quote is usually identified as a seven-day yield rather than the typical annual percentage yield (APY). The advantages of money market investing include:

• They are short term.
• They are considered relatively safe.
• They typically offer the possibility of higher returns than a CD.
• They may offer tax advantages if you purchase tax-free funds.
• They are accessible to smaller, less-experienced investors.
• They can provide ease of accessibility if necessary.
• They can serve as temporary holding places for money while you consider other investment options.
• They are readily available by brokers, at mutual fund companies, and at some banks.

The risks associated with money market investing include:
• The possibility of losing money exists even though it is less than other forms of investing.
• The lack of insurance from the FDIC or any other government agency.
• The variable nature of the rates. Your rate can go up or down from month to month.
• The longer you invest in money market funds, the more that inflation can eat away at your profits, since long term returns are less than long term returns on investments that carry greater risk.

If you are interested in moving your investment money to a relatively safe environment that has a bit better rate than a savings account, you may want to consider short term money market investing. Consult your investment professional for so good advice for our particular situation and goals.

Posted in Real Estate InvestingComments (0)

Powered by Yahoo! Answers