Posts Tagged ‘Investing’

Investing in Emerging Markets

The idea of purchasing an investment property in an emerging market is very attractive to many who are beginning to create an investment portfolio.  As the prices of the properties are inevitably lower than those in an established market, lower potential financial loss will result from any associated risks.

An emerging market is essentially one that has recently opened up to attract foreign buyers, bringing increased income through foreign direct investment to the country. This investment also assists with developing and establishing a tourist market, which may not have previously existed on a wide ranging scale.

Changes in governments are usually one of the main steps the emerging country has taken to better develop itself towards higher world standards. As an example, over recent years countries in Eastern Europe presented great opportunities for investors, as the countries began to open their doors to foreign investment. Better standards of living were generated, along with increased tourism, improvements in infrastructure and many other beneficial factors.

The East European countries received a great deal of interest from foreign buyers due to the close proximity, low cost of flights, and bargain property prices. After several of these countries were granted access into the EU, the cost of housing dramatically increased, making an instant and impressive capital gain for investors who entered these markets early.

It is not only first time buyers who benefit from emerging markets, although they have been found to be a great way to begin building a property portfolio. Many established investors also see the great potential in these markets and look into multiple purchases, creating a multiplied gain potential.

Many people have benefitted from the high potential gains associated with investing in international property, greatly assisting with increasing interest in the market from potential clients. Various governments have looked at ways financial investments from around the world can assist with generating greater benefits to their countries.

Research into the country of interest is essential to understand how that particular market works and whether it really is of interest to the potential buyer. Various factors come into consideration for the type of investment it will present. The type of government and the government’s integration into encouraging foreign investment is highly important, as an encouraging government can save a great amount of potential problems in the future. The tourist market is also an important actor, as the tourists assist in bringing increased interest to the country along with clients for buy-to-let investors.

Access to the country is also a good indication, especially if the country is easy to reach or actively working on increasing its ports of entry. This helps to create a greater chance of the country increasing its tourism potential, along with assisting investors with future exit strategies and increasing potential capital gains. The seasons when tourists visit will also determine how long the rental market is active, especially important when purchasing a buy-to-let property within a tourist region.

Being in contact with a good investment company will assist with any confusion about regions of interest and a better understanding the potentials of each particular market. The investment company will have done a great deal of ground work to establish whether the market is an interesting one for their clients and the reasons why. These companies will be able to further assist with clearing any doubts, or to lead clients into a direction better suited to their particular requirements.

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Top Tips For Property Investing

The Buy to Let market has been very lucrative for myself and many other people for the past few years. It has been quoted by the London Stock Exchange as being the best investment in the last ten years. As a nation of home lovers many of us feel more comfortable investing in brick and mortar. Most of us at some point have purchased a property and therefore have some experience.

The complexity of buy to let investment is far simpler than investing in the stock market. All investments carry some degree of risk and my top tips have been tried and tested by myself, by experience of building my portfolio and working in the property industry for 25 years. Buy to let investment offers great returns even in today’s market for those that can wait for the medium and long term. Property prices have doubled every seven to ten years.

KNOW YOUR MARKET.

It is vital to your own success to research your market. – Current house prices in that area – The realistic market rent – What type of property you intend to buy and for which tenants – Reasons for investing in that area..

Good School Catchment Area Good commuter Links Regeneration Area
Do Your figures Once you decide what sector you would like to buy into i.e New build, apartment, house etc., do your research into the rental yield. Most buy to let lenders require 125% rental cover of the mortgage repayments and hence your target area can be further fine tuned to look for those properties which fit this criteria. The usual loan to value a buy to let lender will lend is 85% and hence you will have to put 15% deposit in. There are many no deposit schemes available which I cover in my Two Day Property School.

Furthermore you will have to consider what is affordable should your property be empty for two months per year plus any maintenance costs, buildings insurance and managing agents costs. I always advise to have a lump sum set aside during void periods. Assume two months void period per year and £600 maintenance per year.

Controlling Your Emotions
When I invested for the first time I was shaking with anticipation… and yep I was really shaking… I had butterflies in my stomach for days just thinking about it. Nobody can explain the emotional excitement and fear. That excitement has since proved to be well founded…in fact, results have been even better than I could have ever hoped for in the beginning. It’s something I hope you’ll experience too in what promises to be an immensely exciting journey for you , and one which I’m sure you’re absolutely bursting to start. A property portfolio is built over time and those who plan well, will really reap the rewards. Carefully do your research and math’s prior to committing! Do not follow what others say as it is your decision. Your confidence will increase over time as your experience grows.

The Buying Process
Sorting out your mortgage can be quite daunting. There are hundreds of mortgage products available and dependent on your strategy you will be able to decide which one suits you best. A good mortgage broker will be able to source the best product on the market for you and manage your case through to completion.

Solicitors
Once you have agreed the deal you need to know what is going on at every stage of the process and who you can contact. You need to employ a solicitor to perform the legal necessities such as searches and contractual work.

Always clarify the fees beforehand so you know your initial outlay and instruct solicitors
After you have received your mortgage offer just in case the lender refuses you. Depending on whether you buy a stock property or new build, you need to know a time frame. With new build properties you will be required by the builder to exchange within 28 days. Check that they are able to complete this, some are not used to acting quickly!

Should You Manage The Letting Process?
You can source the tenant and manage it yourself. I would recommend if it is your first property investment to a specialist let and manage it for you. Approach a Rental Agency who specialise in lettings only Agree the fees Get complete breakdown of terms and conditions You can add your special conditions You will need full British gas cover Learn and record everything about your first let When you decide you know enough to rent and manage it yourself, you can take it over. This is far cheaper and you will save at least 10%. Managing your own property will give you an insight into the types of problems such as, boiler break down or leaks. Ask yourself …Do you have the time to manage it. I very rarely see my tenants. I used to manage it myself, but decided it was more tax efficient and less stressful to let a letting agent do it for me. My portfolio is run as a business. I invest to give me a Better Lifestyle, More Time and More Money.

Property Tax
You can claim many expenses and it is vital to keep a record of your receipts and expenses during your property ownership. It is important to plan your tax strategy with a chartered tax advisor. Legal A Landlord gas safety certificate is required every year to ensure all gas appliances are in good working order. A CORGI registered installer will perform the annual safety check and issue you a certificate.

You must keep all the safety checks and issue the tenant with a copy. You must also ensure that the electrical appliances and systems such as, toasters, washing machines, kettles, cookers and immersion heater are safe to use. If you decide to rent fully furnished you are also legally responsible for furniture and fittings you supply. These must meet the Furnishing and Furniture Fire and Safety regulations 1988. All new and secondhand furniture must meet these standards, unless it was made before 1950. Keep Your Investment In Order Invest in a file management system from the outset. You can buy an off the shelf package.

Why Property Investing Makes Sense

Article by Sam Khalil

You only have to look at the track record of direct property investment over the last 30 years to realise that investing in property makes sense. It certainly makes sense to anyone looking to establish a comfortable lifestyle in retirement because with a properly managed property accumulation strategy, excellent returns can be generated in a reasonable amount of time.

Of course, there are other avenues of investment including the stock market, futures trading and dealing in the currency market, but property still remains the darling of Australian investment with many younger workers following in their parents footsteps by purchasing investment properties at the earliest opportunity.

What is not completely understood however is the need for thorough research & professional advice before embarking on a property investment strategy. It is not as easy as it may first seem and you certainly need to do your homework to make sure you avoid the pitfalls that many unwary investors have encountered over the years. Only by using the professional services of an property accumulation company can you be assured of receiving the best possible resource to make the best possible decisions.

Advice you should pursue includes taxation information, cash flow analyses, loan product information and specific property analysis that makes choosing a property that much easier.

When comparing property with other investment vehicles there are some clear advantages. Here are a few:

* Stability and simplicity. Compared with the complexities & volatility of the stock market, futures trading and dealing in currencies, investing in property is relatively straightforward. Although you still need specialist professional advice once you have set up an appropriate strategy you rest with the peace of mind that comes with a stable investment over a long-term. * Safe environment. We all know that the stock market can offer spectacular returns for savvy investors, but we are also aware of the horror stories that attached to spectacular losses that can occur in the blink of an eye. Property on the other hand has always had the element of stability that the stock market does not share and to this reason many professional investors always include an element of property in their portfolio. * Other People’s money. One of the major principles of wealth creation is to use other people’s money, and the property market is probably the easiest method to take advantage of this. Banks have built the major part of their business around home lending and it is a relatively simple matter to obtain a bank loan to buy an investment property. The fact that banks lend far more for property investing than share investing tells you a lot. * Less emotional. No one can deny the heady experiences that trading in the sharemarket brings with it, but there are also the headaches and dizzy experiences brought about when spectacular falls occur. Once the property portfolio has been established there is little emotion to be had apart from waiting for values to rise and compounding your return on investment.

All in all, property investment is a sound strategy for establishing a path to wealth in retirement as well as leaving something for your family for their future.

Investing on a Belize Real Estate Vacation Home Now

Article by Real Estate Belize

Timing is everything. And when it comes to investing on a Belize Real Estate home, now is the most intelligent time to invest on that property you’ve always wanted.

The global economy may be a bit weak recently, but the economy of Belize is rather stable with its currency pegged to the US dollars on a ratio of 2:1. Also, properties in Belize come in astonishingly affordable prices and even have the highest appreciation rate in Central America. You’re sure to get the best value for your money here.

They say that planning ahead and preparing for the future is the best thing one can do to himself, and the same is true here. You can enjoy your vacation home now once you have purchased it, and have the convenience of visiting the country whenever you want to. No more calling hotels to make reservations, and there’s no need to worry about the extra cost if you feel like taking grandma and grandpa for the holidays. Having a vacation home here means you don’t have to worry about food—you can always cook your own meals, making it less costly than eating out.

Belize is not called a tax haven for no reason. Capital gains tax and inheritance tax are non-existent in this country, which is very good news for investors in the country. Better yet, the transaction process and system here is very fast and effective since they have adapted the way the British do their things. Being colonized by the British nation obviously has something to do with it. You can easily own a piece of property without limitations or pre-qualifications, and since English is the main language used in the country, you won’t have any problems communicating around.

Investing on real estate now means you can avoid the sudden surge of prices in the future. It also means you can enjoy your vacation home as soon as you purchase it.

Vacation homes vary, and with so many options to choose from like waterfront mansions, a ranch home in the fields, a home overlooking the ocean or somewhere near the mountain, it may be a tad bit difficult to decide where you want your home located. The real estate sales in the country have increased in the past few years since expatriates and retirees have chosen Belize Real Estate to be their new home.

The homes that you should really look at are located in the Stann Creek District where the community of Sanctuary Belize is found. The homes are simply the best you can find in the country and is worth every penny. Built by the best developers across the land and also renowned worldwide, the homes you will find here are something you would be happy to own. Developers make sure the homes they will construct match your taste and needs and also have it located to where you want it to—near the beach or mountain or in the midst of the forest.

Investing on a home here now also means having your home built sooner. Go ahead and check out your options now!

How To Succeed In Real Estate Investing By Improving Focus And Target Market

Most real estate investors waste time and effort chasing deals in all market area and losing focus in a target market.  some people think you can buy and sell houses nationwide without ever seeing those properties.

 this article allows you to focus on what works best for maximum profits.

When I started investing, my very first deal was almost one and a half hours away.   In my inexperience, I just sent out letters without regard to geographical location.   The Dallas Fort Worth metroplex is big so I figured that was a good target market.

 I had to physically show the house to other real estate investors who wanted to buy it as a wholesale deal.  It was not vacated yet, so I could not give them the lockbox code.

 I spent about 40 hours on the road or at the house, sometimes more than once a day.   Yes, I was relieved when it was over!

 You will always find good deals right where you live.  Competition is never a problem; there are enough to go around.

 You will be surprised how many deal you can find around you if you target a particular market.
 I rarely drive more than 20 minutes away unless the deal is too good.

 Choose  an area where you have little stress in travelling and where you can comfortably manage a deal from start to finish.  It does not matter what your exit strategy is.

Just target a specific farm area that you are comfortable with and stick to it.   Once you are used to it and all your systems are in place, you can expand further.

What about virtual real estate investing?
Sometimes you may think it’s possible and even convenient to buy properties you have not seen.   Especially so if you work with other real estate investors and buy nationwide.

Personally I do not buy properties I have not seen and would not recommend this to anyone.  Stick with the simple deals you can handle and grow with the times as you gain more experience in real estate investing.

 Also important is to focus on the types of properties you buy – wholesale deals, rentals, lease to own, subject-tos,  etc.  This helps you decide the price range and the best neighborhoods that have your kind of properties.

 Your marketing method needs to be well targeted both on the internet and direct mail such as letters, post cards, etc.  Whichever method you use, it is important to have a real estate investing website that tells your story and runs your business.

 This way, your real estate investing business will succeed more by spending less time money and effort to close more deals.

In order to run a success real estate investing business, it is necessary to automate most aspects of your business, increase efficiency so you spend less time, money and effort while closing more deals. A lot of real estate investors have achieved this with database driven real estate investing web sites that also automate most tasks of real estate investing.

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Top 10 Reasons Why You Should Self-Direct Your Retirement Instead Of Investing In Mutual Funds

There are thousands of so called financial advisors that tell you that you should invest in mutual funds, money market accounts, stocks, bonds and life insurance policies and diversify your retirement portfolio.  This is some of the worst financial advice you can get and the general public has been duped by the large investment companies like Fidelity, Charles Schwab, and the large banks for years.  These so called financial advisors that work for these big companies have very limited to no training and are not incentivized in the right ways.  They make so much money off of trading fees and annual fees that you can never get ahead even if they could outpace inflation in the first place with their investments.  Well you do not have to put up with this theft anymore.  There are retirement vehicles and custodians out there just like the Fidelities and Charles Schwab’s that enable you to self direct your retirement into almost any investment options you want and control your own financial future instead of handing it off to one of these so called financial advisors.  What is a self-directed retirement account?  It’s an account just like what you would have in Fidelity or a similar company but you can invest it in pretty much whatever you want instead of being limited to what the Fidelities of the world allow you to invest in, that they make the most fees on. So you can open an IRA, 401k, Roth IRA and HSA (Health Savings Account) that you can actually make decisions with and invest with.   Here are the top 10 reasons you should self direct your own retirement instead of giving it to one of these large companies that basically steal your money in fees.

(1)    Self-directing your retirement account is the only way to protect your own retirement.  If you do not take control of your own retirement investing and educate yourself on alternative investment options you will lose purchasing power and your retirement accounts will probably lose another 30% – 40% like we just saw with some of the major economic problems we are seeing.  Massive inflation is looming so you have to invest in assets that produce a higher return.

(2)    Self-directed custodians typically have fee structures that do not completely deplete your returns like the traditional IRA and retirement companies.  Typically you have much smaller transaction fees, much smaller annual fees and you can find ways to cut down on fees even more as a percentage of your retirement account.  You want to keep the interest and returns you make, not pay them back in fees which can significantly hinder your retirement’s growth.

(3)    You can build your retirement a 1000% faster by self directing your retirement than not.  If you are investing in traditional investments like mutual funds and stocks you are only going to make the long term historical average of those investments at best depending upon the economic stability of the market.  The long term historical averages are close to 8% – 10%.  With inflation historically at 3% – 3.5% and even higher inflation expected that is not a high enough return.  By investing in alternative investment options like real estate you can make 15%+ returns on your money without even using leverage.  You can even leverage real estate (get a loan for real estate) inside your own retirement account increasing your returns to 20% plus.  Now that is power especially when you can do it safely with the right risk mitigation techniques in place. 

(4)    By self directing your own retirement account you can actually actively control your investments.  When investing the traditional way you have absolutely no control and have a significant amount of risk when investing in mutual funds and stocks.  You are at the mercy of what the market does.  When you self direct your own retirement you can control the assets inside your account.  You can structure the investments so that no matter what the market does you are making residual cash flow inside your account so you do not have to worry about market fluctuations.  You also have the power to increase the value of the assets inside our account.  Also, if you buy discounted real estate inside your IRA not only can you then go sell for a huge profit but you are building your retirement account tax free.

(5)    Tax free investing is one of the largest benefits of investing in a self directed IRA.  Can you imagine buying a rental property worth 0,000 for ,000, renting it out for ,000 per month, having all of the income going back to your retirement account tax free and then when you go to sell the property for 0,000 the ,000 in profit is tax free also.  No capital gains taxes and no taxation on the rental income.  This can compound the growth of your retirement accounts at an amazing pace.

(6)    Building an annuity inside your retirement account is crucial to your retirement plan.  For example, if you need ,000 a month to live on during retirement and are able to make a conservative 10% on your money inside your account you need 0,000 in your retirement account in order to retire and NEVER deplete your principal.  If you leverage your investments and make 15% on your money inside your retirement account you only need 0,000 in your retirement accounts.  So unlike what most financial planners will tell you, you don’t need ,000,000 dollars inside your retirement account to retire.  Now keep in mind if your expenses are ,000 per month, you want to be making ,500 per month passively so that you can continue to build your income and protect yourself from the loss of purchasing power due to inflation.

(7)    Current tax planning and saving on current taxes is a huge advantage for self directed investments.  If you invest in an IRA your current contribution limit is ,000 and ,000 for a 401k.  This can bring a big tax advantage because the contribution directly decreases your taxable income dollar for dollar.  If you setup a solo (k) plan or pension plan you can contribute close to 0,000 per year and reduce your taxable income by 0,000!  This is unreal.  You are saving ,000 per year by doing this if you are in a 35% tax bracket.  Tax rates are rising because the government and states are broke so it’s even more crucial to plan for taxes.  You can then go take that 0,000, invest in passive cash flow investment property right and have the income making you 15% plus on your money.  With both combined you just made ,000 (,000 tax savings + ,000 interest) on your 0,000 that year.  Now if that is not going to get you to your goals I don’t know what will.

(8)    Self directed investing increases your education and ability to protect yourself instead of relying on someone else for your retirement.  By self directing your retirement you are now taking control of your own retirement.  With that comes the need for you to educate yourself on additional investment options and the risks and rewards of those options.  This education is going to be key to your future financial success and stability.  The more you educate yourself the more stable you will be because as economic changes happened you will be in a better position to protect yourself and adjust your retirement portfolio according to those changes. 

(9)    Additional investment options are needed in order to secure your future.  There are so many investments that produce additional returns.  You can still invest in stocks, bonds, mutual funds like traditional companies allow you to invest in but you can also invest in real estate, promissory notes secured by real estate, tax liens, businesses, syndicated and structured investments and much, much more.  Your options are limitless. 

(10)Your piece of mind knowing that you have been able to structure yourself to protect against economic fluctuations is HUGE.  Now you can rest easy knowing that you have educated yourself correctly, have invested in vehicles that can give you higher returns, and have the power to control your own financial destiny is the best benefit you can ask for.  Most people have little to no financial knowledge and that is why most people are broke.  The more you educate yourself the more successful you will be. 

There are many companies out there that can help you self direct your retirement account and many companies out there that can help you structure your self-directed IRA into multiple cash flow streams.  Learn from those companies and push yourself to take action on your own financial future instead of relying on so called financial advisors to do it for you, but are failing at an alarming pace.