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Important Investment Advice To Make The Best Return On Your Money

business-ideaThere are many reasons that people chose to invest their money. Some folks like the thrill of the game. Others enjoy knowing their cash is working hard for them.

But everyone that invests shares one common goal, that is increasing their wealth. Which begs the question how should you invest to ensure you maximize this? Read on to find out.

Bonds

First of all, let’s look at bonds. These are when you the investor lends money to either the government or a commercial company, who will then pay it back with interest. However, they are not the same a fixed rate saving bond. As this is basically a saving account that you hold over a certain length of time.

Bonds are lower risk than stocks and share, but they are still linked to the markets. That means the return you can make on them will vary depending on the interest rate.

Also when buying bonds, it’s a good idea to look not only at how much they cost but also the yield rate. This is the percentage of the original price you paid for them that you will get back each year that you hold the bond (that the company has your money). Obviously the higher the yield rate, the better the return.

Property

The next is you may wish to consider investing in is real estate. The property you chose to put your money in could be a mountain cabin, an urban apartment, or even a commercial property.

But before you part with you hard earned cash, you must know what you plan to do with the property you invest in. This is because it may be economically sound to buy property to let as a vacation home in some areas, but not others, and you need to make sure that you will get a decent return on your money.

Stocks and Shares

Stocks and shares are probably one of the most famous ways of investing money. However, whether they become profitable for you in the long term is related to many different and complex factors.
In simple terms, a stock is when you buy a small share in the company. This can be held on to or resold as you see fit. Of course, the price that you get when you resell depend on how well the company is doing, how good their reputation is, and how stable the market in which they are operating is.

As well as many other factors such as whether they have been part of a recent merger or hostile takeover.

Most people see stocks and share high risk, but many investors have proved that as long as you invest money that you can afford to do without for a long time, you can usually play the waiting game to your advantage and come out in profit.

The exception to this rule being penny stocks which are more high risk. Although this hasn’t stopped some people making a fortune in quick time by investing their money wisely in this area.

 

Is A Rural Property A Good Investment?

When you are buying a house, you need to be ruled by your heart as well as your head. It makes sense that you want your house to be a good financial investment. It is a huge purchase and will tie up a large part of your capital.perfect-property

It is perfectly reasonable that you want this very important asset to rise in value over the years. It is true that the property market can be volatile in some areas and it has seen some major fluctuations over the last couple of decades.

However, as a long-term investment, property is still a good place to put your money. If you look ahead a few decades, it is very likely to have increased in value.

What if your heart is telling you that a move to the country is best for you? If your physical and mental health would benefit from moving out of the rat race of inner city living, you may be looking at mountain homes for sale on websites right now and dreaming of that clear mountain air.

This may be good for your soul and your spirit but what will it do for your wallet?

Investing in a rural property

You don’t often see the huge price hikes in rural properties that you see in the inner city and suburban areas. There tends to be a ripple effect. Prices fall and rise in cities and it takes a while to filter through to the country. This can give you some more stability.

There are always people who want to live in the country so you will be able to sell your home should you want to. It just may take a little longer. You are also going to get more for your money.

You could get a big 4-bedroom family home with a large garden and lots of local amenities for the same price as a downtown penthouse apartment. It is up to you to choose which appeals to you more.

Can you afford to live in the country?

If you work in the city, a move to the country is going to impact you financially. If you give up your job, you may not be able to get such a highly paid position in a rural area.

Could you take your job with you? Is there any scope for you to work from home for a few days a week and then stay over in the city for a few days as well?

The other option is to commute daily and there are pitfalls associated with this. Obviously, there is the time that it will take. You also have to factor in the cost and the inconvenience. The weather can be harsh in some rural areas and there may be occasions when you simply cannot get to work.

Country properties are often spacious, beautiful and have stunning views. If you are into hiking and outdoor sports then it could be the perfect location for you to live. You just have to work out if your finances are in place.

 

What Does a Smart Property Investment Look Like?

So, you’re new to the property investing game. It’s an interesting time to be getting involved, but there is still money to be made. However, that’s only the case if you find a property that clearly presents itself as a smart investment option.real-estate-investment

There are plenty of duds out there. It’s your job to seek out the investment properties that offer you a clear opportunity to pull in the cash and make some money. Here are some of the things you will need to see in your investment property.

A Location with a Future

First of all, you need to think about the location of a property. There is no sense in buying a property in a location where the house prices are currently falling. They might keep falling, and if there are no reasons why that trend might turn around, you will end up losing money on your investment property.

That’s a real rookie error, and one that you need to be very careful not to make. The location of the real estate you buy should be set in stone for you before you even start browsing properties. That way, you can be sure that you’re buying in the right area at the right time.

Something Unique

There should be something unique about your property if you want it to attract buyers. This is a difficult one to balance, though. You don’t want it to be so unique that it turns a lot of people away.

But you don’t want it to be too conventional either. There should be some key features that make it stand out and enhance its appeal. If you can make that happen, selling the home at a profit should become a lot easier for you than it would otherwise be. So, keep your eyes peeled for a home that grabs you for whatever reason.

A Clear Target Buyer Jumps Out

You should have a clear idea in your mind of who is going to buy this property from you. It’s not always clear, but if your home has a clear reason to appeal to a certain type of person, selling it will be much easier.

For example, if a home is in an area with one of the region’s best schools at the end of the road, then it’s clearly going to appeal to parents with a young family. And there are many other examples of reasons why certain homes will be appealing to certain people, so try to keep this in mind.

Room for Improvement

There should always be room for improvement in the home that you invest in. If the home is already perfect then it won’t make a very good investment property. There should always be scope for you to make improvements and increase its value in some way.

If you can make that happen, you will be able to increase the home’s overall value and make sure that you make a clear profit on the home. Make sure you keep this in mind when searching.

 

 

Property Developer Strategies: The Sinking Market

Property development and real estate are fickle businesses. One minute, you can be on the top of the world and feel like nothing will ever bother you. Your business is booming, your portfolio looks fantastic, and you couldn’t be happier. Then the next day, everything is crashing around you.

There is an element of property developing that is always going to be dependent on a factor you can’t control: the economy. House prices are one of the biggest indicators of whether or not an economy is doing well. If they begin to sink, it suggests a lack of consumer confidence, meaning that storm clouds are gathering on the horizon.property

So when you are a property developer, there is an element of your business that is totally outside of your control. You are subject to the changing winds of a major economy, and there’s not much that you – personally – can do about it.

If you’re already trying your hand at property developing or are still at the point where you’re searching for new condos to pique your interest, then it’s worth having a plan in case the economy begins to show signs of strain. What do you do when prices are crashing but your entire business is built around making a profit off the sale of real estate?

Option One: You Wait It Out

The best property businesses have a contingency for this kind of scenario, in case of a delayed sale for any reason. It’s always a sensible way to structure your finances; if you plan for an immediate sale, then you are immediately vulnerable. It’s always wise to factor at least three months of extra expenses for running the house (such as the mortgage / taxation you may be liable for).

In the worst case scenario with the national economy however, you might find yourself waiting for a lot more than three months. Waiting this out is probably the wisest move, but that depends on you having the funds to do that. If you don’t, then it’s time to move on to…

Option Two: Sell and Run

Prices might be bad right now, but what if this is just the beginning of a downward slope? If the signs are bad, then it might be best to break your investment early and get out before things get even worse.

This might mean losing money, but what you need to figure is whether this move will stop you losing even more money in the future. If you suspect the blip is just a temporary problem, then this is an extreme course of action – but if the signs are that the economic problems are global, then it might be time to cash out.

Option Three: Proceed As Normal

Even when prices are down, people do still buy and sell houses. Any good property investments business will have a margin; obviously you want to make the most money as possible, but reducing your sale price (while still keeping a healthy profit margin) is something a well-structured business can survive.

 

 

4 Tips on How To Build a Buy-to-Let Property Portfolio

For some people, building up a buy-to-let property portfolio is their way of getting on the fast-track to success. But don’t be under any illusions that it is going to be easy. You will have to invest a great deal of time and money in making a success of things if you are planning to be an active investor.construction-process

Like any other kind of entrepreneurial enterprise, there will be a high degree of risk involved, but the rewards are there to be reaped if you manage to make a success of things. With this firmly in mind, let’s take a look at the most efficient ways of growing your property portfolio.

Start with a Single Good Investment

Getting off the ground is probably the most challenging part of building a property empire, so you need to make sure that your initial investment is a good one. The best advice that you can follow is to start small.

Even if you have the funds to invest in a more expensive property, you will learn a lot of lessons from your first place, so it makes sense that you don’t break the bank. Working with a firm like reo properties can set you off down the right path. It is a good idea to start local so you are able to easily reach your property whenever you choose.

Buy at the Right Time and Price

On a daily basis, residential properties are being sold for less than their market value. You need to make sure that your investment fits in nicely with this criteria. Be bold with you offers. As the old saying goes, if you don’t ask, you don’t get.

Try to choose the right time of year to make your investment as the property market goes through cycles. The boom times tend to be in a couple of months leading up to summer and those leading up to Christmas. Avoid these times and you will put yourself in a better position to strike a good deal.

Make Sure to Do Plenty of Research

It may seem crazy, but there are still plenty of first-time investors who head along to an auction, get a sudden rush of blood to the head and buy a property without having done adequate research. Though some will have success, your chances are much smaller if you don’t know what you are getting yourself into.

Think about how much work will need to do to the property and calculate what sort of investment you will need to put in. Analyze the area and who are likely to be your renters. You will put yourself in a much better position if you have done the appropriate research.

Treat Your Tenants Right

You need to make sure your tenants are happy and their experience of renting a property from you is a positive one. Deal with their concerns and any issues that may arise around the property as quickly as possible. Develop this good reputation at the rewards are there to be reaped.

Pass Go With Your Property Investments

 

Do you have what it takes to survive in the property investment industry? You might think you do and we’re sure you have at least one friend who has told you how easy it is but don’t be fooled. Investing in property is always a risky venture.

real estateHowever, the rewards might just make it a risk worth taking. It all depends whether you know how to thrive investing in property.

If you’re going to win this game, there are a few things you need to do.

 

Careful With Costs

One of the biggest mistakes that you can make when investing in property is to not take all the costs into consideration. A lot of people forget about some of the key costs and focus on the main ones instead. For instance, you might be aware that you’ll need at least five percent of the overall property value for the deposit.

However, you could be investing in an apartment. If that’s the case, you should consider whether you’ll be charged money per month by the owner of the building on top of the mortgage repayments.

Getting The Right Price

How much are you paying for the property? You need to be cautious of overspending on a property that isn’t worth the money. Make sure you get a full survey of a building before you buy and look at any issues that might need fixing. If they are going to be too expensive, you should back away from the investment. If you don’t, you could end up in a position where you’ve actually bought the property at a loss.

Choosing The Right Location

Where should you buy the property? If you’re going to be responsible for maintenance, you should be purchasing close to where you live. However, if you’re willing to hand the job of maintenance off to a company that you trust, you can buy anywhere.

If that’s the case, you should be looking for real estate in a stunning location. This will push the value of the property sky high and ensure that selling or letting, you make a lot of money.

Partner Up

Due to the high cost of property investments, it might be worth considering avoiding going solo. Instead, you can work with a partner to sell the property. Or perhaps buy a luxury real estate investment with a group of people. You will need to choose your team carefully, but by doing this, you can limit the costs and the potential risks while still ensuring massive profits are the end outcome.

Patience Is A Virtue

Finally, at some point during your property investment, you will feel like things aren’t going your way. Maybe, the property isn’t selling at the price you’ve chosen. Or perhaps, you’re not getting enough interest from renters.

The trick here is to be patient. Eventually, someone will come along who is interested in your property at the right price. Remember once you begin this investment, there’s no fast way to jump back out of it. You must commit and prepare yourself for the bumps on the road to success.

 

 

Selling Your Home? 5 Tips to Ensure You Get The Most Money Possible

houseIf you’ve invested in real estate with the intention of selling it on for a profit, then there’s a crucial detail you’ll need to factor into the process: that you need to actually sell your home for it to be a good investment.

And it’s not just a matter of getting the house off your hands; you want to sell it for the highest amount of money you can. If you’re preparing to sell a house, take a read of our five tips below.

Think Hard About the Asking Price

There’s a misconception that an asking price in your area is the be all and end all. It’s not. Just because a home on your street was worth one amount, it doesn’t mean you have to take that as a measure for what you should ask for your home.

House prices depend on a whole host of factors, such as location, the condition of the house, and even things like which direction the garden faces. All these combine to create a unique price. In any case, a house is only worth what someone is willing to pay – if you feel confident in your high asking price, stick with it.

Make the Front Sparkle

First impressions really do count when it comes to viewing homes. You can’t control the neighborhood, but you can control the front of your home. If the grass is messy and there are kid’s toys scattered everywhere, your home will not be making a good first impression. Take the time to ensure that the front of your home is spotless and you’ll be off to a good start.

Get Rid of Clutter

If someone is thinking about buying your home, they need to be able to see themselves living in it. That’ll be hard to do if they need to first mentally ignore all the clutter you have lying around your home. Each room should have as few material items as possible. Let them see the potential of the room, not your own strewn about sports equipment and papers.

The Listing

Don’t underestimate how important real estate listings are to determining whether a house sells or not. If your property description contains spelling and grammatical errors, your listing will look unprofessional. You’ll also need to ensure that the photographs of your property are of a professional standard.

If you need some a guide on what not to do, take a look at these terrible real estate photographs.  A video of your home and virtual tour are also great marketing tools.

When They’re There

When there is interest shown from potential buyers, you’ll want to make sure that the viewing goes as smooth as possible. And that means, essentially, getting things out of the way.

If you have children, pack them off to their grandparents for the afternoon, and send the dog with them too; nothing good can come from having a dog there, only bad! If you’re doing the viewing yourself, then show them around and then allow them to wander around by themselves. If they’re going to buy, they need to feel comfortable in the home.