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Where To Invest in 2012

2012-01-10T15:40:00.001+07:00

By Dale Poyser

With the coming of the new year it is time to look back at what worked and what didn't work with your investments. With the high level of ups and downs in the global markets, here are your keys to success for 2012 if you are serious about wealth creation.

Look for low risk strategies.

First and foremost, steady does it in the game of building wealth. In certain markets, it is OK to swing for the fence on every try, but eventually this will catch up to you. In a volatile market that moves around a lot, a fast moving investment strategy can quickly go against you if you hold onto it too long.

Take the approach of a marathon runner and look to make returns on low risk strategies. Ideally look for strategies that will allow you to build wealth by generating passive income payments on a periodic basis. I look to make returns on my investments at least once a month. I currently target 10 - 15% per month in the stock market although I could easily make this 20% with some added risk. As I get older I'm all about low risk, conservative gains. You should do the same with your investments if you really want long term success.

The stock market has had a nice run up in the last year (2011) so my guess is that it may be due for a correction. You might still be able to do OK in the stock market if you go for stocks that have not had huge runs but pay big dividends and are profitable. For example McDonald's is a good stock and has been steadily rising ever since (over two years) I have been tracking it.

In the stock market, focus on stocks that are moving in tight price patterns. Look for stock charts that show steady trend lines. These will be the stocks that will be profitable for you in the long run. Stocks for profitable companies that move no more than 1 or 2 per day are the perfect for low risk investing strategies.

Making money online is very lucrative right now and very popular. You do have to do your research to make sure you don't get scammed but there are possibilities out there. Consider buying websites that already generate monthly income. In the world of wealth building, cash flow is king. Any investment that can add to your monthly income is an investment you want to look into.

Commodities - gold had a nice run but it is cooling off a little bit right now as the economy recovers. This gives you the opportunity to buy gold at bargain prices before it takes off again.

If you don't have the money to buy gold, consider buying some gold stocks and mining companies as they closely track the price movement and pattern of gold.

Dale Poyser has been investing for over a decade and has done meticulous research on how to build wealth. His primary focus is on strategies that can create low risk residual streams of income.

Not only does Dale personally practice the methods he writes about, he has also coached many others in these methods to show how easy it is to make money with passive residual streams of income. You can read more about Dale's strategies at http://bestresidualincomestrategies.com/

Article Source: http://EzineArticles.com/?expert=Dale_Poyser
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Investment Strategies: The Top Pitfalls to Avoid for Effective and Strategic Wealth Management

2009-08-13T07:24:00.000+07:00

Janet Giacoma
Developing and initiating efficient investment strategies enables you to create the lifestyle and security you desire for you and your family. By increasing your financial education and forging a path to strategic wealth management, you can quickly turn your financial life around and start living life.

However, there are several common pitfalls to investing that both men and women investors should avoid. Below I have listed a few of these pitfalls.

What To Avoid

Pitfall #1: Belief in the 1-size-for-all investment strategy

In other words, your investment strategies must be custom-fitted for you and your particular situation. You need to diversify appropriately for your needs and employ techniques for investing that compliment your abilities and preferences. The business or other investment that you choose should "fit" you. Your decision needs to compliment your "tolerance level", not your neighbors or even your advisors.

Pitfall #2: Risking without necessity

You are not required by any means to risk your investment capital unnecessarily. There are safe investment strategies to engage in - ones that are all but guaranteed to show you positive returns. If you are thinking like a lottery player, chances are that you will not prosper. Especially in today's market it's important to think things through.

Pitfall #3: Procrastination

You need to position yourself and then allow time for your investment strategy to pay off. Creating incomes streams and prospering from strategic wealth management techniques are not an overnight event. Get in early and then persistently work your investing plan to fruition. Don't be the one saying "coulda, shoulda, woulda" - follow your intuition after you've completed your due diligence.

Pitfall #4: Emotional or spontaneous investing

You should approach your investment strategies with logic, not emotion. Consider a given opportunity and establish its legitimacy. Then, when you decide to invest in the opportunity, give it your full attention and be consistent. Remain committed to your investment strategy for the long run. If it fails to produce after you have given your best efforts for a respectable time frame, then make a readjustment and move on.

When you have researched and decided on a particular investment strategy, then dedicate yourself to its development. If your financial education is limited, find a way to educate yourself. Do not rely solely on what others tell you. These should be viewed as recommendations, but YOU want to make the final decisions as it relates to your financial security. There are traditional investment vehicles, as well as those that are under most people's radar, or network opportunities. Look for alternatives and broaden your horizon.

Remember to take control of your destiny or someone else will!

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Janet Giacoma is a business coach, marketer, and online business owner who assists serious entrepreneurs in building a profitable online business with multiple income streams. To contact Janet visit: http://www.TheAbundantAlliance.com and http://www.TheAbundantAllianceBlog.com

Making Money in a Slow Real Estate Market

2009-08-12T07:23:00.000+07:00

Kevin Kiene
Supply & demand cut both ways, my fellow real estate junkies. Demand has plummeted, so what do we do? Swim against the tide and start buying, of course.

The Purchase Plan: Double Distress

Prices are down, but if you're a real estate investor worth your salt, you still want a killer bargain. So here's the game plan: where others see distress, you need to see dollars.

The purchase plan involves both distressed sellers and distressed properties. Let's consider the case of foreclosures for a moment; why does real estate sold through foreclosure auction sell for less? Because investors can't get inside to see what kind of shape it's in. But there is no question that buyers at foreclosure auctions, especially in today's market that's far oversaturated with them, will score a good deal, provided they know what kind of property they're buying.

So to take maximum advantage of a distressed seller sale by foreclosure, what safer method is there than to buy a property that you already know needs full renovation? There's a discount built into properties needing renovation, because of the hassle of renovating them. Those hassles, which you'll have to be adept at managing, include maintaining relationships with several of each of the following: hard money lenders (for quick settlements and renovation loans), small, local banks (they're far cheaper than hard money lenders and fill the same niche, but are pickier), licensed contractors, inexpensive handymen, and low-cost permanent lenders if your renovation loan is short-term. A distressed property in shambles, sold through a distressed sale, will effectively give you a double discount, which will in turn create maximum cash flow for the next stage: getting paid.

The Payout Plan: Deferred Gratification

We've already established that you have to go against the grain if you want to make money in a slow market like this one. With a depression in demand and an abundance of supply, you don't want to sell, so what do you do? You build your real estate empire, and watch money flow into your account every month as a landlord. When the market shifts in a few years, you'll be poised to sell all those distressed properties bought for a steal, and make a fortune.

There are some challenges involved in being a landlord, so be prepared. First, your money is not liquid; these investments, by their very nature, are long-term and you will have to wait for the market to turn before you can sell. Second, you'll need to be capitalized, both because your other money isn't available and because rental properties will always throw surprise expenses your way in the form of maintenance, repairs, vacancies, and lawsuits. As a final note, it is a wise and happy landlord who hires a property management firm to assume the headaches for them.

Remember the first thing you learned about money: buy low, sell high. The real estate market can and should be your ally, not your enemy; ride the highs and lows alike, and right now that means buying as cheaply as you can and holding the properties as a landlord. Good luck!

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Read more articles for landlords and real estate investors at EZ Landlord Forms, along with free real estate forms and real estate investing tips and resources.

Property Investors Get Bank Rate Boost

2009-08-11T07:21:00.000+07:00

Karl Hopkins

On Thursday 5th February 2009 the Bank of England brought the base rate down to an all-time low of just 1 per cent.

Landlords with interest only and tracker mortgage arrangements stand to benefit from the cut. And with some analysts predicted the bank rate may come down further, fixed rate loans are looking distinctly unattractive.

"While borrowers on tracker rates will welcome the rate cut, it is doubtful whether it will create the conditions to achieve significantly more new lending", said CML director general Michael Coogan.

"It will not be a surprise if banks and building societies try to prioritise savers in this very low interest rate environment. For borrowers who remain in employment, affordability is unlikely to be an issue at the moment.

"But, if the rate cut helps businesses, and therefore helps to keep people employed, this will at least help to cushion the impact of the recession on the housing and mortgage markets. In practice, rate cuts alone will not achieve this objective as they have become a more blunt instrument - they are only one of the tools being used to try to help the UK weather the recession."

For the Royal Institution of Chartered Surveyors, chief economist Simon Rubinsohn said the cut "may provide a small boost to the current weak levels of confidence in the economic outlook, but this decision urgently needs to be supported by other measures.

There is still a real need to stabilise the economy and increase the supply of mortgage finance to ensure an orderly housing market. The various measures announced by the government should go some way to achieving this providing they are introduced as quickly as possible."

Head of residential investment at Jones Lang LaSalle, James Thomas, said employment was now a key factor in determining homebuyer sentiment.

"Rising unemployment is stifling demand and we expect more house price falls in 2009. The main things to watch for in terms of stabilization in the market will be an unfreezing of the mortgage market and an improvement in the jobs market. Neither of these is likely any time soon. In the meantime, trading volumes will remain thin, though shrewd investors may be able to take advantage of current conditions and pick up bargains from distressed sellers."

* Leading repossessions specialists Moore Blatch has warned residential landlords that they risk becoming 'unmortgagable' if they declare themselves bankrupt in 2009.

The company says it is increasingly seeing repossessions that have been compounded by a cavalier attitude towards credit with the popular misconception that it can all be written off through bankruptcy or IVAs.

However, Moore Blatch explains that the mortgage market for bankrupts has changed significantly, and the pre-credit crunch environment, where those individuals who had been declared bankrupt could easily secure a sub-prime mortgage, has changed.

According to mortgage data provider, Trigold, in January 2007 there were fifty six thousand mortgages available for people who had been declared bankrupt - in the two years since, this has dropped by an alarming 2,557 per cent.

Moore Blatch envisages that finding a mortgage at a reasonable interest rate is likely to be difficult for up to a decade and is advising that bankruptcy should be the very last resort.

Paul Walshe, head of lending services at Moore Blatch, said: "Although bankruptcy does not automatically signal that you are unmortgageable, it does leave a very visible scar on your credit history.

"Up until the credit crunch it was possible to find lenders that would provide mortgages to bankruptees, and this led to a popular misconception that you could borrow and forget about paying it back with no long-term consequences."

Article Source:
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About the Author:
This and much more information for landlords, can be found at Residentiallandlord.co.uk. Other features include; document downloads including an assured shorthold tenancy agreement, buy to let mortgages and rates, landlords insurance suppliers, residential auctions and much more besides.

3 Ingenious Ways to Structure Your Multifamily Property Deal

2009-08-10T07:17:00.000+07:00

Lance Edwards
There are some very ingenious ways to get your multifamily property deals done. Three of the lesser known avenues for obtaining private funds are the wrap around mortgage, splitting off the property and the option. Here we will examine how each of these options work.

Wrap Around Mortgage: this is the scenario where you will take over someone else's note. Let's say that there is a house that you want to buy and it has a first mortgage on it. They are actually going to be the lender. You will pay the seller. Your note is written with them and their note wraps around the existing note.

For example, you buy the house for $100,000. They agree to no down payment. Their mortgage is $80,000. Your mortgage to them is for $100,000. They get payments based on $100,000 and the mortgage is wrapped around the $80,000 mortgage. Let's say their principle interest payment before was $800.

Your principle interest payment is $1,000. I'm paying them $1,000 and they have to pay $800 so they are making $200 per month in passive income because of the wrap around of their mortgage. A wrap around mortgage means that your loan is of a higher amount with different payment terms.

Splitting Off the Property: let's say you own a 10-unit apartment building that you bought on 3 1/2 acres. The building sits on one acre and the other 2 1/2 acres is raw land. You put it under contract and you have 60 days to close. You can then find a buyer for the land and get that under contract and have them bring the money at closing. You could use the money for the land to be the down payment on the apartment building and it is split right there at the table. You are splitting the property and pre-selling it before you go to closing.

Option: you can get an option on a property. You could lease with a lease option or you could do a joint venture turnaround. Another twist on this is that you will not be a 50/50 partner but instead will come in and improve the property. It is worth $900,000 today and you will drive it up to $1.2 million or above.

You will do that at no charge but you want the option to buy the property at $1.2 million. The owner is getting everything up to a $300,000 increase and you get everything above the $1.2 million. This is another form of a joint venture turnaround. You have the option rather than an equity partner.

Wrap around mortgages, splitting the property and options are just three more great ways to structure a multifamily property deal. The more you look at putting together a multifamily property deal, the more you realize that the options that are available to you allow you great flexibility.

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Lance Edwards is living proof of his mantra that you don't have to "graduate" from single family to multifamily - you can start with multifamily; using none of your own money and not dealing with tenants and toilets. For FREE information, visit http://www.ApartmentWealthMachine.com.

Tips for Selling Your Home

2009-08-09T07:12:00.000+07:00

john mce

Whatever the housing market is doing, there are a number of tips that will always help your house appeal to potential buyers. These are ways to make your home appeal to the greatest number of potential buyers.

First impressions

Your house needs to look great from the very first impression; curb appeal is critical! Make the front of your house look as good as it can. Plant flowers, trim bushes, weed, pick up leaves, repaint your front door, clean or replace house numbers, park your old car somewhere else.

The front of your house is a good place to spend a little extra time and money. If it looks good, it may even attract passersby.

De-Clutter

Potential buyers need to imagine themselves living in your house. You need to show a blank canvas, in which they can picture their own belongings. Estate agents can tell you stories of potential buyers rejecting a house because they didn't like the DVD collection! Buying a home is an emotional decision; you want potential buyers to make an emotional connection with your home by being able to "see" themselves in it.

Put away everything you don't use on a daily basis. Pack up ornaments, photos and posters in kids' bedrooms. Large pieces of furniture should go into storage; this will make rooms feel much bigger. In the hallway, clear away coats and shoes. In the bathroom, hide all your toiletries. In the kitchen, clear the worktops of appliances, jars and tins and replace any ragged tea towels or grubby bins.

Watch out for over-stuffed wardrobes - yes, people do look in them to check the amount of storage space - so clear them out.

Clean, clean, clean

Your home must sparkle and smell clean! Getting professional cleaners in can be money well-spent. Have the carpets, curtains, sofa covers and oven cleaned. Make sure your windows are clean inside and out. Pay special attention to the kitchen and bathrooms, which need to be inviting and hygienic. Buy a new toilet seat and some fresh white towels. Clean grubby fingerprints from light switches and doors. Make mirrors sparkle. Add a strategically placed plant or two, or some fresh flowers.

Fix it

Go around the house room by room and make a checklist of all those little jobs which need doing. Fix dripping taps, repair peeling wallpaper, touch up paint chips. If you can't stretch to re-tiling in the bathroom, re-grouting should bring it up like new. A couple of new kitchen doors can really smarten up a tired-looking kitchen.

Leaving these little jobs undone will give the wrong message to potential buyers - that you haven't looked after your house.

Freshen Up

A fresh coat of neutral paint, new tiling or lino, and will transform rooms. Neutral colours may be a little boring to live with, but buyers really do find it easier to imagine themselves living a home where they can't object to your colour scheme; they find it easier to imagine brightening it up, than toning it down!

You can add some character back with a few bright accessories. A new shower curtain in the bathroom, some new cushions in the sitting room, some bright bedlinen on the beds - all these can add a little spark, without detracting from the feeling of light and space.

If you have too many different floor coverings, it can make any area seem smaller. If you can't stretch to replacing all your flooring, close the doors on the other rooms until showing each room in turn.

Pets

Leave pets with a neighbor, and thoroughly clean up any cat hair in particular, as many people are allergic to animal hair. Your beloved pooch may make viewers nervous, or leave a distinctive aroma which won't appeal to the buyers.

The best side

Most properties have good and bad points to them. Don't point out the bad side, or even comment on it. Remember, buyers will only buy what they perceive your house to be worth. If your house is presented at its best, then people will want to live there.

Article Source:
http://www.bestmanagementarticles.com
http://property-management.bestmanagementarticles.com
About the Author:
The Maidenhead Advertiser has been faithfully serving the local community since 1869, featuring the most comprehensive News, Sport and Classified Adverts for the community.

4 Components Needed to Create Wealth Through Real Estate Investments

2009-08-08T07:15:00.002+07:00

Lance Edwards

It is probably pretty safe to say that everyone is looking to create wealth. Real estate investing is an excellent venue through which you can create massive wealth. There are four components in real estate investing that you need to accomplish this goal. These components are specialized knowledge, marketing, systems and mindset.

Specialized knowledge encompasses all of the techniques needed to acquire multifamily properties. In addition, it is also the knowledge that you need to operate multifamily properties, analyze multifamily properties and most importantly, how to find multifamily properties.

Marketing in real estate involves three different areas that you need to be aware of. Marketing means marketing to find deals, marketing to find private money and marketing to find tenants for your property. Of course, you can use a property manager to find tenants for your property, but you still need to be cognizant of the fact that this is an area that requires marketing.

Marketing is extremely important in real estate. If you are not attending to your marketing, then you do not have a business. If your phone is not ringing, then all you have is a hobby and not a business.

Systems are what you will put in place so that you will ultimately have other people working at your business for you. You want to have systems in place where others are doing your marketing, property management and bookkeeping. You do not truly have a business unless there are documented systems.

Your definitive goal is have your business serve you. A business is an asset that throws off income forever without you and your direct involvement.

Mindset is the fourth and probably the most critical component of real estate investing. None of the items above can happen unless you take action. Taking action comes down to having the right mindset, and overcoming the limiting beliefs that your subconscious places upon you.

You cannot separate mindset from your real estate investing because you ARE the business and your mindset will determine the direction your business takes. The strength of your business is a function of the strength of your mindset.

Creating wealth through real estate investments is very real and it is up to you to take the initiative and take the necessary steps. You can use parts of these four components, or you can use individual components and make money, even good money, but if you want to have wealth, you will need to have all four components in place.

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Lance Edwards is living proof of his mantra that you don't have to "graduate" from single family to multifamily - you can start with multifamily; using none of your own money and not dealing with tenants and toilets. For FREE information, visit http://www.ApartmentWealthMachine.com.

Five Years in Review: The Minneapolis Real Estate Market

2009-08-07T07:10:00.000+07:00

Kevin Curtis

Poised on top of the real estate mountain in 2003, it's hard to imagine so much change in the Minneapolis real estate market in the last five years. While the bubble has certainly burst and it's no longer a seller's market, key elements like long-term value of Minneapolis real estate as an investment and the quality of life available to residents has not changed. Even after five years of change, the world of Minneapolis real estate is still a great place to buy a home for you and your family.

2003 was a banner year for the housing market across the United States. In Minnesota, 39,440 people were gainfully employed in the real estate and rental industries with a combined annual payroll exceeding $1,237,000,000. Clearly, real estate was lucrative for sales professionals involved in the booming market. Sellers benefited from bidding wars over their homes. Houses could not be built fast enough to meet the exceptional demand for homes in the market.

Over the next two years, the strength of the economy and the housing market caused lenders to start granting adjustable rate mortgages and larger mortgages than people could actually afford. Lending practices got very loose as bankers were caught up in the housing market frenzy. Add the risky business of real estate speculation to the equation and it soon became clear that some of the growth in the housing market was built on shaky ground.

Builders and lenders wanted to continue the exponential growth of years past, and by 2006, it was clear that far too many new homes were sitting on the market unsold. New home building slowed to a stop by 2007, and because builders could not get new homes sold, the value of homes across the country started to drop. Analysts called it price adjustment for the over inflated selling prices of years past, but homeowners simply saw it as less value in their investments.

Once the dust settled in 2008, however, homeowners realized that although their homes had lost a bit of value, their homes were still solid investments. Compared with the performance of stocks and 401Ks, home equity was a solid place to put hard earned money for those willing to keep homes until the economy began to pick up speed.

While the past five years in Minneapolis real estate have been filled with drama, one thing a smart investor realizes: current prices in the housing market make this the ideal time to buy. Houses and condos that were once out of reach financially are now less expensive and ready to be purchased. In addition, the influx of one-time homeowners that now want to rent homes instead of paying over-inflated and financially dangerous mortgages makes this the ideal time to venture into rental property ownership. Rentals are a great way to invest and make money in the current economy.

The future is anyone's guess, but one thing is certain: Minneapolis real estate is one of the best ways to invest in your future. Over the long haul, it's sure to pay off; thanks to the strength and bright future of the city's schools, commerce and the entrepreneurial spirit of its residents.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
Kevin Curtis is a licensed agent with RE/MAX Advantage Plus. He is The Minnesota Real Estate Team's 2007 Agent of the Year. Kevin and his team provide great service and ongoing insights into the Minnesota Real Estate market at

How to Find Professional Agents for Rentals?

2009-08-06T07:08:00.000+07:00

Nate Rodnay

After planning to move to a new place for rent, it's time to think of engaging any rental agent in the apartment search. The difficult step of moving with the help of any rental agent is to find a professional agent. It is easier with the help of a checklist to find a professional rental agent.

Services provided
Check if the rental agent belongs to any apartment finding services firms. Often, rental agents who are part of any specialist apartment locator services firms are licensed, highly motivated, customer centric, and with good coordination skills. You can receive many other services related to moving to a new place. They facilitate you to find the right and suitable apartment and help to move without a hassle.

Experience
Experience is the key for professionalism. Finding a right and suitable apartment needs experienced and knowledgeable rental agent. It is necessary to enquire about rental agent's experience in finding apartments, in your specific required locality. A rental agent with adequate experience can guide you correctly in the process of finding a suitable apartment and in moving.

Familiar with Renal Laws
Check if the rental agent is familiar with the rental housing laws. A professional rental agent will provide the required legal information that can help you in singing a flawless agreement with the landlord or at least guide you to a right source so that you can get some legal aid.

Testimonials and Recommendations
Ask rental agents for the testimonials given by their customers. Check for the validity of the testimonials by calling or visiting their customers if possible. Search online for any negative feedback given in websites like forums about the rental agent. Enquire with your friends and family for a rental agent with whom they had a good experience.

Specialist in the Region
It is better to find geo specific rental agent rather than finding agent who deals with a large set of regions. Often, agents who focus on specific region are specialized, provide more information, and help to make the best choice.

Once you find a good rental agent, leave the task of finding a suitable apartment to him and take a back seat. The rental agent can help you out in finding a suitable apartment and in moving into it without any hassle.

Article Source:
http://www.bestmanagementarticles.com
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About the Author:
Austinapartmentsnow is a free apartment locating service and relocation company providing professional help and information regarding apartment Austin. Our talented real estate professionals work closely as a team to ensure a thoughtful apartment selections that fits your needs and budgets. Begin your Austin apartment search today!

7 Reasons Why You Should Buy a Luxury Investment Property

2009-08-05T07:06:00.000+07:00

Volker Weiss
Investment properties are typically looked at as either flips or rentals at the lower end of the financial spectrum. An investor will buy something relatively inexpensively, fix it up and then sell it if the market is right, or rent it out. However, the luxury rental market can be quite lucrative and is often overlooked by many investors. A luxury property can be worth its weight in gold if bought at the right price and in the right location. So, if you're contemplating investing in real estate, or expanding your existing real estate portfolio shouldn't you consider buying a luxury home or condominium?

Luxury holds different meanings for different buyers. It may translate into a home with its own stretch of beach. Or a top-of-the-line condo along the fairway of one of the best golf courses in the world. Perhaps your idea of luxury is a secluded retreat where you can get away from it all. Obviously, there is no set definition for luxury to each and every investor, but there is certainly a difference in terms of location, price and features.

In any given area, the luxury properties will be on the high end of the sales price range. In some small town in the middle of North America a luxury home with all the bells and whistles may cost $400,000. But head on over to the Wailea area on the island of Maui where condominiums are easily found in the million dollar range and luxury properties, especially single family homes, will be well above that million dollar mark.

Of course, it's exciting to purchase a luxury home as an investment property. Doesn't everyone want to add high end homes to their real estate portfolio? But there are more explanations why buying a luxury investment property is a smart move, other than just the "feel good" aspect. Here are seven reasons why a luxury real estate purchase can work in your favor:

1 - Right now is the perfect time for an investor to buy! Real estate is a cyclical industry. Prices go up and prices go down. The market gets hot and properties are selling left and right. And then the market cools. That's just the nature of real estate. And currently, prices are extremely favorable to buyers. Not only are prices reasonable, but many sellers are very motivated and are pricing their homes to sell!

2 - Luxury real estate is a great long-term investment...it does not depreciate to the extent that other markets may. Yes, the market is favorable to buyers at this moment, but over the long run, you won't see the ugly drop in your investment. Meaning, you won't see your property depreciate by 50% or worse. Luxury properties tend to hold their value fairly well.

3 - Luxury properties are flexible! You can purchase it as your upscale getaway and then turn around and rent it out to travelers by the week or by the month. You can even rent it out annually until you plan to retire to your luxury property paradise. But the flexibility is there. Many investors are able to make it work financially buy renting luxury property out on short-term agreements with travelers or locals and then still take advantage of the property themselves.

4 - Luxury rentals are typically treated better by tenants. The reality of renting a property out is that people may not treat the property as you would. However, when you are renting out higher end properties you attract those who will care for the property.

5 - You can see a higher rate of return on a luxury investment property because you can rent it out at a higher rate. A property in a coveted location can demand a higher monthly payment from tenants.

6 - Luxury property is typically quite secure and can bring with it peace of mind. Gated homes or gated communities are the norm for luxury real estate. Depending on the community, there may even be a dedicated security force. Increased security is a great bonus in terms of protecting your investment and keeping you and your tenants comfortable, knowing that extra level of security is in place.

7 - If you own a business or network with other business executives, a luxury rental makes a great reward for business well done, or as a getaway for a business retreat. It can also be used as a perk for exceptional clients.

Imagine everything you could do with a luxury real estate investment! A wonderful place you can call your second home, in a paradise of your choosing. A relaxing getaway and a lifelong investment rolled into one!

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
Volker Weiss - Maui Realtor(R/S) specialist focusing on Wailea Condos. Make your vacation last forever, check out Maui Real Estate. For immediate help call VW directly at 888.572.6888

Property Finder Services Increase

2009-08-04T07:05:00.000+07:00

Ashley Lawrence

The UK has a unique system that operates when it comes to buying property. Most buyers and sellers go through an estate agent to find the property that they want. However, what many property buyers may not realise is that the estate agent, in essence, acts for the seller not for the buyer. This situation is changing however with the steady rise of property search agents, commonly known as property finders.

Property Finders are people who operate solely on behalf of the buyer, taking your requirements and doing the leg work to find the property that best meets the buyers needs. Property finders are especially useful for people who wish to buy property in a different town, city or country than that of where they currently live.

Property search agents can help take some of the stress out of buying a property and for people interested in finding investment property, those who want to build the property portfolio can greatly benefit from the services of an investment property finder.

Choosing a property finder, means that you are engaging someone to source investment property from your own selection criteria. They can provide you with extensive local knowledge and can carry out negotiations on your behalf should you choose to authorise it.

The ease with which a buyer can purchase a property using the services of a property finder is magnified in a market where the buyer is unaware of the defining factors within a specific area. It is prudent to hire the services of an experienced property finder whether you are building a portfolio of investment properties, buying your own home or moving to a different country or city.

Typically a property search agent will charge between 1-3 % of the property value as a fee for their services. In some cases you may need to pay an up front retainer in order to engage an investment property finder. This up-front retainer, is usually fully refundable. If the property finder service that you are thinking of engaging does not offer a fully refundable retainer, then I would seriously suggest you look for another service provider.

Let's be clear. The retainer is a good faith payment that the provider asks for, so that they may know that you are serious about your property finding requirements. Think about it, if you were to engage someone to search high and low for a suitable property according to your requirements, and they do that only to have you say you were not really looking seriously, they would have done a lot of work for nothing, for a client that is not serious. Charging a retainer, allows a property finder service to weed out those who are serious from those who are not. Some services who work in the higher or commercial property markets, may require larger retainers.

Whether you are looking for residential property or investment property, engaging the services of a property finder can save you time and money. Working with a professional who has the knowledge of the local market, estate agents and who knows what will work according to your requirements, and who has solely your interests at heart is in out opinion, the progressive way to purchase UK investment property, especially in the current uncertain market.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
Ashley Lawrence writes about investment property and offers property finder services to buyers who want to buy investment property in the UK via their website

A Guide to Buying New Flats in the UK

2009-08-03T07:02:00.000+07:00

Anna Stenning

The trouble with the financial market today is that people generally do not know what to do with their money, especially those who have not yet found the chance to place their foot on the property market. Many young people in their early to mid twenties are only to hesitant to make this move, because they feel putting their eggs in one basket may put them at a much higher risk of losing it all! Though it may seem that some of us are approaching this fact in trepidation, there is some light that sheds through the dark tunnel of the unknown future.

There comes a point in one's life whereby they have a sudden panic attack about their current financial situation and how to go sealing a secure future for themselves. Where can they start? What are the options for buying a new house or new flat in the UK? Are they eligible for a mortgage even if they have a bad credit history? There is no one word easy answer to these questions, however, the key thing to this conundrum is research and keeping a watchful eye on the market.

Banks and loans agents are tightening up the belts on lending out money, because of the current credit crunch. However, those who are looking to buy a property soon should consider the following. Before taking out a mortgage, consider how much of a deposit you can put down on the property before taking up the first offer you get. The larger the sum of money towards the deposit, the greater the chances are in you securing a mortgage.

For new flats in the UK, you may be eligible for some new deals. The newly built flats come with offers that could include shared buy, interest only buy, no deposit scheme or discounted deposit scheme with a shared buying option and much more. The trick is to jump on those offers as early as possible, because plenty of other people will be moving fast towards them. Sometimes only a selected few will be made eligible for this scheme. The criteria for a candidate are usually targeted towards those on a specific salary or have certain amount of money to put down as a deposit.

The shared buy for most new flats UK schemes entail the buyer owning a certain percentage of the property (usually between 30 to 45 percent), paying a monthly mortgage amount as well as a small amount towards property rent. This is good for people looking to get their first steps onto the property ladder and having some time to allow the property value to grow. These kinds of schemes would suit single people or young couples looking to get a head start, before moving on to become the sole owners of their own house or flat.

The new flats are generally built at the highest quality, containing electric central heating, mod-con kitchenware, power showers and neutrally designed decor. The attraction for the flat lies in the prices, the location and the general set up. Where some people prefer to buy a place which they can work on by renovating over a period, others prefer to buy something that requires minimal maintenance and effort. These flats come equipped with all of the latest designs and technology, making it easier and resistant over time.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
Anna Stenning is planning to take a leap towards going through the new flats UK scheme in order to get a firm foot on the property ladder.

Dubai Real Estate Business and New Strata Law

2009-08-02T06:59:00.001+07:00

anthony church
Strata title is a type of real estate ownership where some parts of building (called lots) are owned by the individuals, while the remaining portions (called common areas) are owned and managed by all individuals jointly through owner's association. This type of ownership usually exists in case of apartment buildings, also known as flats in sub-continent. This is termed as “condominiums” in US and most parts of Canada. Residential units are owned by individuals and common area including stairs, parking, gardens, lifts, roofs, etc are used by all residents jointly.

Call for Strata Law:

The need for strata law arises out of the fact that these types of buildings often have disputes going around over issues like parking, keeping pets that disturb other owners, privacy, alteration or maintenance of common area, etc. Though Strata law cannot stop these disputes altogether, it can surely help in solving them before these quarrels can ruin the environment and peace of residence. Australia was the first one to come up with laws addressing the Strata title issues. Several regions like South Africa, Indonesia, and Singapore then followed with implementing their own set of Strata laws. Such legislations were long anticipated in Dubai where huge sky scrappers and tall buildings containing a big number of apartments and offices are becoming a norm now.

Dubai's Strata Title Law:

The Dubai Strata title law, signed by the ruler of Dubai, requires the proper division of property according to Strata plan. This strata plan, along with a drawing which marks out the boundaries of lots, entitlement of these lots and other required documents should be registered with the registrar. The law covers almost all areas, from major one like common property, easements, buying and selling of such real estate to comparatively smaller ones like membership of corporate body and keeping pets.

Possible consequences:

Like every new law, Dubai strata law has been greeted with a mix response from its stake holders. However, experts believe that as soon as people get familiar to this law, it will be having a positive effect on growth of real estate as well as facilities management market in Dubai. This law provides detailed yet uncomplicated description of rights & obligations for lot owners, making Dubai real estate more appealing for the investors from all over the world. In short, Strata law is a good attempt by Dubai government, which shows their commitment in making Dubai real estate industry a better and hassle free investment option.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Dropshippers & Dropshipping Propduct Suppliers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing and trading industries.

Dubai New Tenant Law, A Brief Introduction

2009-08-01T06:57:00.000+07:00

anthony church
According to a survey conducted by Statistics Center of Dubai in 2006, about 85% of Dubai population was made of expatriates. Majority of them lives in rental units. That leaves them solely on landlord's mercy. Rising rents have long been the biggest worry for these expatriates, with rents getting doubled and tripled in no time. This relation between tenants and landlords became more tensed with issues like landlords vehemently asking tenants to vacate house without any prior notice. Dubai Government first reacted by putting rental caps and now a new law signed by His Highness Sheikh Mohamad bin Rashid Al Maktoum on 26th November 2007 has been introduced. Read on to see what kind of changes it will make.

Tenant's Point of View:

Tenants are relieved in many ways by this particular law. For instance

• Addressing the issue of abnormal raise in rents, this law prevents any increase or amendment made in tenancy contract for first two years.

• Decided rent will include the usage of utilities like car parking or swimming pools. Landlord must provide the property in sound quality.

• Article 16 of this law puts the responsibility of property maintenance on landlord. But very next article states that landlord shall not make any change which will affect the tenant benefit in any way.

• The landlord cannot force tenants to leave before the expiry of contract with exceptions like tenants failing to pay rent value or if tenant starts using the property for some immoral purpose, etc.

• If the reason disclosed for eviction is possible collapse of property, because of its poor condition, landlord must provide a technical report confirmed by Dubai Municipality.

• Another noteworthy clause of this law is that if landlord restores the property for his/her own use on expiry of contract, he/she cannot rent the property to anyone else for one year. If it happens, the tenants can take legal action against him.

• Tenants should keep in mind that only those contracts are valid which are in written form and registered with RERA.

Landlord's Perspective:

• Landlords will be restricted to decided rent at the time of contract for two years. Keeping this in mind they can decide a reasonable rent, taking into account factors like inflation rate and time value of money.

• After two years, rent can be modified. If both parties cannot settle on revised amount, this dispute will be forwarded to judicial committee, who will then decide the amount of rent.

• This law is not valid for hotel establishments and any accommodation provided to employees from their companies.

• The landlords are entitled to receive rent value on agreed dates.

• Tenants cannot make any changes to property without landlord's consent.

• All taxes due to Government will be paid by tenants.

This new law would definitely keep a check on alarmingly increasing tenant problems. However there are some flaws, which will be dealt with, in near future hopefully.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Pages UK Dropshippers & Wholesalers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing.

Dubai Real Estate Investment - Investor's Concerns

2009-07-31T06:55:00.000+07:00

anthony church
In terms of real estate business, Dubai in itself is a hot selling brand. With Government taking keen interest in execution and completion of so many amazing projects, and the last decade showing a constant growth, Dubai economic future looks bright. Investing in Dubai property is becoming every investor's dream, although some raise questions on issues like high demand vs. low supply and infrastructure problems. Let's have a look at what's positive and what's not with investing in Dubai real estate.

High Demand:

One thing is for sure, Dubai properties are in demand. Investors from all over the world are flocking to Dubai, to get a share in huge profits. Since non-residents of Dubai have been allowed to buy the property in Dubai, Dubai is flooded with interested investors. Everybody seems excited and exuberant about on going development plans. It will take some time before these jaw dropping constructions can be matched at some other place of the world.

Lower Prices - Higher Value:

Rapid increase in property prices has created the impression that real estate prices are high in Dubai, which is completely wrong. One has to consider the rates of equally deluxe apartments and offices in other main cities of the world. Comparison will reveal the true picture. Dubai property is still under valued if we take into amount these factors. Dubai is going through an economic boost and with properties prices hiking quickly; the perfect time to invest is now.

Tax Free Zones:

Dubai government has offered so many incentives to attract investment, tax free zones are one of them. Free zones like Jebel Ali free zone, Dubai international financial centre, Airport free zone and Maritime city, presents great opportunity for investors. Dubai offers unsurpassed tax incentives in the world for businesses. More and more companies from all over the world are setting up their business in these free zones.

Tourism:

Dubai is a dreamland for tourists. It has everything, from mysterious deserts to exhilarating beaches, marvelous hotels and resorts. Approximately 6.5 million tourists will be visiting Dubai annually by 2011. World's biggest arts & entertainment events are held here, making it even more attractive.

Political Situation:

Dubai enjoys political stability and steadiness which is rare in most parts of the world. Since its establishment, Dubai has never been under political chaos, riots or disturbance. Policies are not shuffled and you can invest with the sense of certainty which you will hardly find anywhere else.

Crime:

It's hard to believe but crime rate is almost zero in this part of the world. With no reports of robbery or theft going around, Dubai is a safe place to live. In today's world, this kind of peaceful place appeals everyone desperate to live a life, free from anxiety.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Suppliers Dropshippers & Dropshipping Wholesalers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing and trading industries.

Dubai Rotating Skyscraper, Innovation at its best

2009-07-30T06:53:00.000+07:00

anthony church
Given the number of stunning, almost miraculous constructions going on in Dubai, it's hard to single out one which outdoes others in its novelty, magnificence and uniqueness.
Talking of uniqueness? What about the first digital building of the world? What about a mega structure building being assembled at factory? How would you like some apartment with the ability to make whole deck rotate on touch of your finger? It's big, it's stunning, and it's spectacular. It's the first wind powered rotating sky scrapper of the world.

With the names like Infinity Design, LERA, Bosch Rexroth and Viega associated to the project, Dynamic Constructions is set to begin the work on this rotating sky scraper in Dubai very soon.

Construction:

Construction work will be completed simultaneously, while putting up the center of the building on-site, floors will be manufactured at a factory, before being carried to the location where they will be elevated and positioned with concrete center. This advance method will prove to be both time saving and cost effective. According to Dynamic Constructions, only 90 workers will be needed on-site. Compare this to more then 2000 workers normally required to build this kind of structures, and you will know the difference. Building the center and floors separately, but at the same time will result in a lot more swift completion of the project.

Rotation:

This is what makes this skyscraper truly phenomenal. Each deck of this Dubai skyscraper can rotate independently, giving the skyscraper a new shape and a new dimension every moment, making the building a visual treat. These floors will be remote controlled with residents having the option to decide on the speed and direction of their liking. What's more? Top five floors would be controlled through voice activated remote controls.

Wind Powered:

Wind energy is the power generated by wind through wind turbines. This process is clean and it doesn't produce any type of air pollution. Dubai rotating skyscraper will have wind turbines placed within its structure. These turbines are capable of generating more energy then what is needed for expected energy consumption of skyscraper. Thus providing loads of energy back into Dubai energy grid.

Another Rotating Skyscraper:

Lots of people are confusing this wind powered rotating skyscraper designed by David Fisher with another building designed by Glenn Howells Architects. That tower will actually rotate on its base and it comes no way near to the grandeur of David Fisher's rotating skyscraper.

Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Pages UK Dropshippers & Wholesalers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing and trading industries.

Ethically and Ecologically Responsible Investing

2009-07-29T06:51:00.000+07:00

Wilfrid Baptiste

If you're interested in investing, but are reluctant to fund companies whose practices you disagree with (either on moral, ethical, or environmental grounds), it's probably worth pointing out to you that you have options. And those options are related to the concept of Socially Responsible Investing, or SRI.

Portfolio managers that are involved in SRI (also known as green portfolio managers) tend to direct the funds that they're managing toward competitive public companies that are meeting a certain number of conditions that have been previously set and depend largely on the particular firm's ideals. Most of the time, the criteria include companies that are building a more bio-sustainable human economic infrastructure based on renewable energy, energy efficiency, organic foods and products, recycling, and technologies that have a minimal impact on the environment.

Companies that have met those standards and have earned the "socially responsible" tag have already attracted over $2 trillion in funding from investors. On the international scene, socially responsible investing (SRI) is growing at the healthy clip of more than 10% per year. If you take a look at most SRI portfolio managers and the strategies they use, you'll see that they put in place screens that eliminate publicly-traded companies that produce "bad things", which are products and/or services that are deemed undesirable (alcohol, tobacco, weapons, pornography, and pollution). SRI portfolio managers also use other screens that check for a company's record on human rights, women's rights, worker rights, animal rights, and so on.

Thankfully, out of the myriads of companies out there, there are some that can meet a socially responsible investor's desire for healthy financial returns, while at the same time protecting the environment and building an environmentally sustainable economic infrastructure. For example, renewable energy is one of the sectors growing at a torrid pace right now. While its rate of growth is hovering around 25% per year in the U.S., it is even greater in the European Union and parts of Asia.

Of course, socially responsible investing carries its own sets of risks. Buying shares in individual green companies (or even in green funds) is probably riskier than investing in an index fund for example. The reason is that, by definition, SRI excludes some sectors, and in turn that affects your portfolio's diversification. The flip side of the coin is that where there is risk, there is usually greater opportunity for return. Your best bet is to look for "no load" green funds, which are funds that don't carry a sales charge. Also, if you're considering investing into a fund that claims to go the SRI route, it's a good idea to actually take a look into its holdings to see whether they walk the walk or whether their claims of social responsibility are nothing more than a hollow sales pitch. In short, in order to succeed as a socially responsible investor, you need to make informed decisions, seek diversification, and keep your costs low.

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
I maintain a personal finance blog where I talk about socially responsible investing and how to become a millionaire, among other topics

Should You Invest in Annuities?

2009-07-28T06:48:00.000+07:00

D.J Raymond
Perhaps you have heard the phrase, more month left at the end of the money.It means simply you have more expenses than you have money to pay them at the end of the month. Now apply that same thought to your retirement years. You may have a goal to retire at 59 years old. Assuming you are reasonably healthy, you might live to be 75. However, what if your retirement income runs out before the end of your life?

Unfortunately, this is a real issue retires or soon to be retirees face each day. This reason alone forces many people to work longer than they has planned and what should be your glory years turn out to be working overtime. Is there a solution?

The simple solution would be to retire with enough money so it would not be a concern. With todays economy and the constant threat of inflation, how do you know when enough is enough? Consider immediate annuities to protect your assets and provide a steady income for your retirement years.

What is an Immediate Annuity?
The basic definition is a contract between you and an insurance company that guarantees a rate of return for your investment. You pay a one-time premium and receive payouts based on a pre-determined interest rate and your own life expectancy. Essentially the larger your payment the larger your monthly income. You cannot outlive the benefits of your payout and your payout is guaranteed.

How to Buy an Immediate Annuity?
The most obvious factor for most people is obtaining the highest interest rate available, but there are other important factors to consider. Other tax deferred for example variable annuities are backed by stock market investments. Conversely fixed annuities are issued by and secured by the insurance company where the purchase is made. The priority in you selection should be the credit worthiness of the company itself. Researching the various insurance companies and their credit ratings can help you make a wise selection when shopping for an immediate annuity.

Is an Annuity Right For You?
Ultimately, financial decisions should be made by the individuals investing money. There are a number of retirement instruments to choose from. Certainly there are more than enough agents promoting retirement products. Fixed annuities provide security and stability in a time when the economy is uncertain at best. Research annuities and you will be able to make an informed decision based on your own evaluations. Investing in annuities just might work for you

Investing for retirement offers many options. Todays economy makes the decisions very difficult. If you are looking for stability and guaranteed income, consider immediate annuities. Security and stability make fixed annuities a wise choice

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
DJ Raymond is an accomplished developer and author. To learn more about Best Annuity Rates visit Investing In Annuities for more articles and information.

What Is Your Emotional Intelligence Quotient?

2009-07-27T06:31:00.000+07:00

Daniel Goleman, author of the book “Emotional Intelligence,” says, "If your emotional abilities aren't in hand...you are not going to get very far."

Your emotional intelligence is measured by your emotional quotient.

EMOTIONAL QUOTIENT

Where IQ measures your general intelligence, emotional quotient measures your level of emotional intelligence. In a sense, it's an emotional inventory. Emotional quotient is the ability to sense, understand, and effectively apply the power of your emotions to build relationship compatibility. It can show you how to improve performance, personally and professionally. EQ also helps you gain awareness and control of your emotions in the workplace.

If you know your EQ, you can better understand how your emotions affect your choices and decisions. A high EQ can help you improve decision making by using your head, not just your heart.

There are five areas of emotional quotient, which fall under two categories - Intrapersonal and Interpersonal.

INTRAPERSONAL EMOTIONAL QUOTIENT - Self-Awareness, Self-Regulation, and Motivation

Self-Awareness - the ability to recognize and understand your moods, emotions, and drives, as well as their effect on others. Take an emotional test by rating yourself in these areas of Self-Awareness:

I rely on my intuition to assist me in my decision-making.

I can name my greatest strengths.

I am usually aware of the way I am feeling.

Self-Regulation - the ability to control or redirect disruptive impulses and moods and the ability to suspend judgment and think before acting. Take an emotional test by rating yourself in these areas of Self-Regulation:

I am calm even in tense situations.

I rarely make impulsive decisions.

I am willing to forego immediate gratification when on a budget.

Motivation - a passion to work for reasons that go beyond money or status, and the ability to pursue goals with energy and persistence. Take an emotional test by rating yourself in these areas of Motivation:

I seek out innovative ways of getting the job done.

I would continue to work if I won the lottery.

When I know what I want, I go after it.

Your Intrapersonal Emotional Quotient is the ability to understand and form an accurate concept of yourself, and be able to use that concept to operate effectively in life.

INTERPERSONAL EMOTIONAL QUOTIENT - Empathy and Social Skills

Empathy - the ability to understand the emotional makeup of other people. Take an emotional test by rating yourself in these areas of Empathy:

I can sense someone's true feelings based on their body language.

The emotional tone of an interaction is easy to decipher.

I would make a great therapist.

Social Skills - a proficiency in managing relationships and building networks. Take an emotional test by rating yourself in these areas of Social Skills:

I find it easy to establish common ground with somebody I have just met.

I have a wide circle of acquaintances.

I constantly look for opportunities to build relationships.

Your Interpersonal Emotional Quotient is the ability to understand other people and relate effectively to them; to understand what motivates others, how they work, and how to work cooperatively with them. Improving your EQ score is how to improve social skills.

Having a high emotional quotient can help you build strong relationships, reduce stress, and motivate yourself to get what you want.

In business, a high emotional quotient is how to improve performance. It can help you be more productive, improve decision making, and become a superior performer. You will be, as author Glenn Sheppard says, "the employee your company can't live without."

Daniel Goleman further says, "When I went on to write my next book, 'Working with Emotional Intelligence,' I wanted to make a business case that the best performers were those people strong in these skills."

Article Source:
http://www.bestmanagementarticles.com
http://business-intelligence.bestmanagementarticles.com
About the Author:
You can fill out an emotional questionnaire and get a free emotional intelligence test from The Estes Group. Annette Estes is a Certified Professional Behavioral and Values Analyst, coach, consultant, trainer, professional speaker, and author of the award-winning book, Why Can't You See it My Way? Resolving Values Conflicts at Work and Home

6 Tips for Beginning HYIP Investors

2009-07-26T06:42:00.000+07:00

Chris Sandberg
Beginner investing can be very difficult and since folly here can cost you a great deal, it's nice to have a little hard earned experience handed to you to help you along your way. And since this information is free, if you review and apply the following guidelines I lay before you, it may just be the best investment you ever make.

HYIP's or High Yield Investment Programs are one of the latest internet investment schemes that are gaining a lot of global attention not only for the return on investment that they promise to give, but also because of the number of individuals who are losing there wallets by placing there trust in such programs.

HYIP's by nature are known to have a higher percentage of investment risk, but also a dramatically larger percentage of yield. In the last few years they have become more known as "ponzi schemes".

Ponzi schemes typically involve promises of abnormally high returns to investors in a short period of time. The first investors enrolled into the program are the first to profit and do so by the funds invested by subsequent investors. Eventually the whole scheme collapses or falls in on itself leaving the majority of its investor's deficient the principal amount they invested.

The online community has produced several forums and monitors to help protect investors who choose to pursue this high risk form of investing. You can quickly check the current status of a desired program and read comments or reviews to. You can also be notified on a day by day basis as to whether or not the program is still paying out to its investors.

Some hard earned practical tips and guidelines for beginner investing are as follows;

1. The number one rule to HYIP investing is to only invest in what you can afford to loose. The chances of you loosing your investment are very likely if you don't carefully follow the following steps.

2. Diversify! We have all heard this before. Do not put all your eggs into one basket. If you are hoping to invest five thousand dollars than you might want to consider investing $1000 into five different programs or $500 into ten different programs. Don't loose it all in one place.

3. When looking for High Yield investment programs, make sure there is legitimate contact information on the website allowing you to contact the program's administrator if you have any questions after investing. You would be shocked to know that a large percentage of investors don't even have a method of contact other than an email address.

You should always test the email address to validate that it is an active address as well as to test the response time of there customer service.

If there is a phone number present, test it as well and make sure that it is an active line. Do you get a live person on the phone when you call?, or is it always a message box telling you they will contact you back? This can be a strong indicator of a small basement ran scam trying to take your money. Scammers know that many will check for a phone number but not call it until their promised returns don't show up in their account.

Don't be so foolish, due diligence will save you more money than anything else in the arena of HYIP investing.

4. Check the life of the HYIP of interest. How long has it been around? Here you don't want to invest into a program that is to new as it has yet to be proven. You also don't want to invest in one that is to old as it may be about to crash considering most HYIP last less that a year's period of time.

5. Percentage of return should also be considered as well as the old adage "If it's too good to be true than it usually is". The smallest promised gains in the HYIP world return about 1% daily, which gives you a higher yield than just about anything else you could invest in. The key here is not to get greedy. The higher the promised yield the greater the risk.

6. Lastly, don't let emotion get in the way. Study your interests, define a plan and stick to it. Emotional investing will get you no where!

If you're a beginner on investing in HYIP's, these tips should help you greatly as they are all hard lessons to learn by yourself. Do yourself a favor, employ the tips above, dramatically reduce your risk and lastly of course, make some money!

Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Chris is a writer for http://getrichinvesting.com, where he gives tips investing in rental property.

Penny Stock Investing and Trading

2009-07-25T00:50:00.000+07:00

By: Ron Kaye

If you ask anyone in the finance world what they think about investing or trading penny stocks, the answer that you will probably get will be: "Don't do it. You will lose your money since 90% of penny stock companies are scams. penny stock companies just want to sell shares and are not interested in developing their businesses." The truth is that investing or trading penny stocks is a very risky business. So here is the most important tip about penny stocks: Invest only money that you can afford to lose.

If penny stocks are so risky then, why do people invest in or trade them?
The answer is because you can make a lot of money in a short time if you know what you are doing.

If you are still reading and have decided that you want to trade penny stocks, you need the right tools and good advice to help you survive and even win some money.

Step # 1 - Finding the Right Penny Stock to Buy

To discover the right one stock, you will have to do some investigation, or Due Diligence. There are a lot of websites that will help you with your DD and you can find a list of useful ones at www.stocks-reporter.com.

The following points will guide you in learning important information about a company in which you are interested in investing:

1. Share structure: AS (Shares Authorized) and OS (Outstanding Stock and Float)
2. Transfer agent transparency
3. SEC filing
4. Financial track record
5. Competitive position in its industry
6. Business model
7. Earnings power
8. Valuation or the potential value of the company.

For example, when looking into share structure what you want to see is that there is no dilution. A good sign is when the company has maximized the OS and is close to AS. Watching Level 2 will also give you good indication if there is any dilution from the company. A good strategy is to follow insiders who know the company better than anyone else.

Step # 2 - Deciding When to Buy

After finding the penny stock that you plan to buy, you have to find your entry point and how to execute it the right way. Following the trading in that particular stock for a few days together with chart analyzing will give you a lot of valuable information. At this point it is highly recommended for anyone to learn some basic chart reading or at least let others analyze the chart for you. You can ask for help on many of the popular message boards that discuss stock trading and chart analyzing. An important tip about how to execute the trade in a penny stock is: Be very patient and always try to buy at the BID price.

Step # 3 - When to Sell or The Exit Strategy

The exit strategy is something very personal to different traders or investors.
It is very important to implement your strategy immediately after executing the buy order. In most cases, a good idea would be to set a sell order of 50% of your position at around 20%-30% PPS spike. Another 10%-20% rise of PPS and then sell another 50% of your current position and let the rest ride for a while. In general, your exit strategy should be very flexible and change with news, momentum, and volume. 90% of the time, though, you should sell at the ASK so it won't affect the run.

TIP: Remember always to take profits.

Happy Trading

Author Bio
Ron Kaye is an editor for Stock Investing and Trading Reports, sharing information on undervalued penny stocks and small caps stocks via email alerts articles and Stock investing discussion Forum.

Article Source: http://www.articlegeek.com/

Good Retirement Investing Advice & Strategy-Tips to Rebuild Retirement Savings

2009-07-24T00:46:00.000+07:00

by ROCCO BEATRICE

Retirement Blues: From Pension Plan to 401k Plan-Sound Retirement Investing Advice

We are all still feeling the impact of the financial crisis from 2008. The pension crisis has been brought to the attention of Congress. When President Bush was leaving office, one of his final actions was the signing of an act called the Worker, Retiree, and employer Recovery Act of 2008. This act was designed to decrease the number of employers who were reducing the pension benefits offered by the company. The bill included provisions that includes aid for single-employer pension plans, temporary penalty suspensions for anyone who was aged 70 1/2 or older who did not make required distributions from their 401k plans or IRA plans and relief for multi-employer plans. The act was a huge relief for retirees who were not making distributions. The original penalty of up to 50% was suspended.

Even though this act did offer some relief, it did not stop companies from eliminating pension plans that were once offered to the employees. Most employers have made the shift to offer a 401k plan instead of a traditional pension package. Unfortunately, the financial crisis hit hard, and it affected 401k plans and accounts, decreasing the portfolio value of the plans. This loss in retirement savings has been devastating for many individuals. They were already battling with the loss of value on their homes and losing jobs, and now they are faced with a reduced retirement savings account. The combination of all three creates a difficult situation to manage. Despite the major losses, there is additional relief ahead. There are ways to rebuild your lost retirement savings.

Tips to Rescue and Regain Retirement Savings

The first, and most important, thing to do is avoid cashing out on your 401k retirement plan. Terminating a 401k plan would require you to work longer and will cause you to have reduced income when you do finally retire. Even if you choose to stop contributing, do not cash out your IRA or 401(k). The second thing to do is to rebalance your current assets and maybe even think about what's better, a 401k or Roth IRA. Many employers will offer a quarterly or semi-quarterly rebalancing program. During this time, you can change your investments. If you have one investment that had a high return, you may want to invest more money into it for the next quarter. Make sure you do not place all your eggs in one basket. Be sure to maintain a balanced portfolio. You don’t want all of your money ties up in one investment. If that investment plummets, you will lose all of your savings. The third tip is to remember that saving for retirement takes time. Keep in mind that when investing in 401k plans, the more you invest when the market is low, the faster you will recover the losses.

Even though the current financial situation is disheartening, remember that the market will rebound. It is best to keep contributing if you can afford to do so. When the market does rebound, you will quickly make up for any losses you have incurred over the past two years. While it may not seem a positive thing, this crisis could be the best time for anyone under 40 to begin building wealth for retirement. Now is the best time to invest. You will reap the benefits hugely when the market rebounds.

But we need to learn from our mistakes and take a slightly different approach. Take a look at a Roth on RoidsTM which goes up with the stock market, but never goes down with it.

Best IRA Rescue provides services on your IRA investments and traditional IRA and will help you reduce your inherited and beneficiary independent retirement account taxes in your estate assets. Roth on ROIDS is your advanced Roth IRA retirement planning strategy and one of the best IRA tax-savings strategies with benefits of a guaranteed death benefit, guaranteed principal, tax-free growth, and tax-free distributions from policy loans. Contact us if you have any questions on your IRA retirement planning. Roth IRA-Best IRA Retirement Investing Advice Strategy Boston, MA: 71 Commercial Street #150 Boston, MA 02109 California: 543 Victoria Ste. J, Costa Mesa, CA 92627 toll-free: 888-93ULTRA (888-938-5872) tel: +1.508.429.0011 fax: +1.508.429.3034

Income Investing: Selecting the Right Stuff

2009-07-23T00:44:00.000+07:00

By: Steve Selengut

When is 3 percent better than 6 percent? Yeah, we all know the answer, but only until the prices of the securities we already own begin to fall. Then, logic and mathematical acumen disappear and we become susceptible to all kinds of special cures for the periodic onset of higher interest rates. We'll be told to sit in cash until rates stop rising, or to sell the securities we own now, before they lose even more of their precious Market Value. Other gurus will suggest the purchase of shorter-term bonds or CDs (ugh) to stem the tide of the perceived erosion in portfolio values. There are two important things that your mother never told you about Income Investing: (1) Higher Interest Rates are good for investors, even better than lower rates, and (2) Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult.

Higher Interest Rates are the result of the Government's efforts to slow a growing economy in hopes of preventing an appearance of the three headed inflation monster. A quick glance over your shoulder might remind you of recent times when the government was trying to heal the wounds of a misguided Wall Street attack on traditional investment principles by lowering interest rates. The strategy worked, the economy rebounded, and Wall Street is trying to scramble back to where it was nearly six years ago. Think about the impact of changing interest rates on your Income Securities during the past five years. Bonds and Preferred Stocks; Government and Municipal Securities; they all moved higher in Market Value. Sure you felt wealthier, but the increase in your Annual Spendable Income got smaller and smaller. Your total income could well have decreased during the period as higher interest rate holdings were called away (at face value), and reinvestments were made at lower yields!

How many of you have mental bruises from the realization that you could have taken profits during the downward trajectory of the cycle, on the very securities that you now lament over. The nerve; falling below the price you paid for them years ago. But the income on these turncoats is the same as it was in 2004, when their prices were ten or twenty percent higher. This is the work of Mother Nature's financial twin sister. It's like acorns, snowfalls, and crocuses. You need to dress properly for seasonal changes and invest properly for cyclical changes. Remember the days of Bearer Bonds? There was never a whisper about Market Value erosian. Was it the IRS or Institutional Wall Street that took them away?

Higher rates are good for investors, particularly when retirement is a factor in your investment decisions. The more you receive for your reinvestment dollars, the more likely it is that you won't need a second job to maintain your standard of living. I know of no retail entity, from grocery store to cruise line that will accept the Market Value of your portfolio as payment for goods or services. Income pays the bills, more is always better than less, and only increased income levels can protect you from inflation! So, you say, how does a person take advantage of the cyclical nature of interest rates to garner the best possible income on investment quality securities? You might also ask why Wall Street makes such a fuss about the dismal bond market and offers more of their patented Sell Low, Buy High advisories, but that should be fairly obvious. An unhappy investor is Wall Streets best customer.

Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult, but it does require a change in focus from the statement bottom line... and the use of a few security types that you may not be 100% comfortable with. I'm going to assume that you are familiar with these investments, each of which could be considered (from time to time) for a spot in the well diversified Income Portion of your Asset Allocation: (1) The traditional individual Municipal and Corporate Bonds, Treasuries, Government Agency Securities, and Preferred Stocks. (2) The eyebrow raising Unit Trust varietals, Closed End Funds, Royalty Trusts, and REITs. [Purposely excluded: CDs and Money Funds, which are not investments by definition; CMOs and Zeros, mutations developed by some sicko MBAs; and Open End Mutual Funds, which just can't work because they are really "managed by the mob"... i.e., investors.] The market rules that apply to all of these are fairly predictable, but the ability to create a safer, higher yielding, and flexible portfolio varies considerably within the security types. For example, most people who invest in Individual bonds wind up with a laundry list of odd lot positions, with short durations and low yields, designed for the benefit of that smiling guy in the big corner office. There is a better way, but you have to focus on income and be willing to trade occasionally.

The larger the portfolio, the more likely it is that you will be able to buy round lots of a diversified group of bonds, preferred stocks, etc. But regardless of size, individual securities of all kinds have liquidity problems, higher risk levels than are necessary, and lower yields spaced out over inconvenient time periods. Of the traditional types listed above, only preferred stock holdings are easily added to during upward interest rate movements, and cheap to take profits on when rates fall. The downside on all of these is their callability, in best-yield-first order. Wall Street loves these securities because they command the highest possible trading costs... costs that need not be disclosed to the consumer, particularly at issue. Unit Trusts are traditional securities set to music, a tune that generally assures the investor of a higher yield than is possible through personal portfolio creation. There are several additional advantages: instant diversification, quality, and monthly cash flow that may include principal (better in rising rate markets, ya follow?), and insulation from year-end swap scams. Unfortunately, the Unit Trusts are not managed, so there are few capital gains distributions to smile about, and once all of the securities are redeemed, the party is over. Trading opportunities, the very heart and soul of successful Portfolio Management, are practically non-existent.

What if you could own common stock in companies that manage the traditional Income Securities and other recognized income producers like real estate, energy production, mortgages, etc.? Closed End Funds (CEFs), REITs, and Royalty Trusts demand your attention... and don't let the idea of "leverage" spook you. AAA + insured corporate bonds, and Utility Preferred Stocks are "leverage". The sacred 30-year Treasury Bond is "leverage". Most corporations, all governments (and most private citizens) use leverage. Without leverage, most people would be commuting to work on bicycles. Every CEF can be researched as part of your selection process to determine how much leverage is involved, and the benefits... you're not going to be happy when you realize what you've been talked out of! CEFs, and the other Investment Company securities mentioned, are managed by professionals who are not taking their direction form that mob (also mentioned earlier). They provide you the opportunity to have a properly structured portfolio with a significantly higher yield, even after the management fees that are inside.

Certainly, a REIT or Royalty Trust is more risky than a CEF comprised of Preferred Stocks or Corporate Bonds, but here you have a way to participate in the widest variety of fixed and variable income alternatives in a much more manageable form. When prices rise, profit taking is routine in a liquid market; when prices fall, you can add to your position, increasing your yield and reducing your cost basis at the same time. Now don't start to salivate about the prospect of throwing all your money into Real Estate and/or Gas and Oil Pipelines. Diversify properly as you would with any other investments, and make sure that your living expenses (actual or projected) are taken care of by the less risky CEFs in the portfolio. In bond CEFs, you can get un-leveraged portfolios, state specific and/or insured Municipal portfolios, etc. Monthly income (frequently augmented by capital gains distributions) at a level that is most often significantly better than your broker can obtain for you. I told you you'd be angry!

Another feature of Investment Company shares (and please stay away from gimmicky, passively managed, or indexed types) is somewhat surprising and difficult to explain. The price you pay for the shares frequently represents a discount from the market value of the securities contained in the managed portfolio. So instead of buying a diversified group of illiquid individual securities at a premium, you are reaping the benefit of a portfolio of (quite possibly the same) securities at a discount. Additionally, and unlike regular Mutual Funds that can issue as many shares as they like without your approval, CEFs will give you the first shot at any additional shares they intend to distribute to investors.

Stop, put down the phone. Move into these securities calmly, without taking unnecessary losses on good quality holdings, and never buy a new issue. I meant to say: absolutely never buy a new issue, for all of the usual reasons. As with individual securities, there are reasons for unusually high or low yields, like too much risk or poor management. No matter how well managed a junk bond portfolio is, it's still just junk. So do a little research and spread your dollars around the many management companies that are out there. If your advisor tells you that all of this is risky, ill-advised foolishness... well, that's Wall Street, and the baby needs shoes.

The final article in this Income Investing trilogy will be on managing the Income Portfolio using the Working Capital Model.

Author Bio
Steve Selengut
www.sancoservices.com
Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

Article Source: http://www.ArticleGeek.com - Free Website Content

Investing in the Stock Market for the Individual Investor

2009-07-22T00:38:00.001+07:00

By: Harry Hooper

Foreword

Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.

If you are considering investing in the stock market it is very important that you understand how the markets work. All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.

The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company. If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.

When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.

People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst. They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.

Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market

Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.

By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.

A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.

Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?

A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.

Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.

The company raises money through the primary market. This is the Initial Public Offering (IPO). Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.

Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy. Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.
Bull Market - Bear Market

Anyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?

A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit. Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.

In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.

Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight. An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices. Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
Brokers

Traditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection. They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip Stocks

Large well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors. Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks

Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.

The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.
Income Stocks

Income Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.
Value Stocks

Sometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at. These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.
Defensive Stocks

Defensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.
Market Timing

One of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools. We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.

One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.

One example of market timing signals are those available from www.stock4today.com.
Risks

There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it. Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.

Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.

One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock. If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.

One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".

As investors we need to find our "Risk Tolerance". Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.
Benefits

The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!

The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers. No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.
Day Trading

Day Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price. It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.

Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.

Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.

There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.

Author Bio
Harry Hooper has over 30 years experience in portfolio management. He is the senior stock tracker for http://www.stock4today.com.

Article Source: http://www.ArticleGeek.com - Free Website Content

Are safe investments possible?

2009-06-30T11:30:00.003+07:00

by: David Humeniuk

That was the response I received from the first client I spoke with a few days after opening our doors for business. The husband and wife were questioning my sanity because I was suggesting that the time was right to be investing in a product that is secured by real estate. Yes, I have heard of investment companies being in trouble and note almost daily the number of published articles in newspapers, magazines and on the internet that are painting a picture of doom and gloom. As a matter of fact the Calgary Herald has just printed an article with the following headline in bold print: “Commercial Real Estate Suffers $1-Billion Drop.” Based on the headline anyone thinking of investing in commercial real estate would be putting their investment funds back under their mattress. The article was about how commercial real estate sales had decreased from 2008. What it failed to mention was that in 2008 and years preceding the number of sales were inflated because Calgary was the “ho!

ttest market for commercial real estate in North America.” That market is returning to normal which is a good thing. One should not always take media hype at face value. If you analyze and complete due diligence before you invest you will be making informed decisions based on fact and that will provide you with lucrative ways to increase your net worth even in these embattled times. So my answer to the, are you nuts, question is a definite NO!

“What Should We Look For?”

The investment promoter should be willing to give you their legal documents so that you can read and understand them yourselves, or with the assistance of legal and/or accounting advice. When an offer is made they should provide you with access to the due diligence that they complete. That should include current appraisals, engineer’s reports, environmental studies, a review of the leases and title searches to ensure that there are no undisclosed liens or problems. You will want to be assured that your funds are held in a trust account and that some form of audit is completed on the account. After you have invested you will want to know on at least a quarterly basis, if not more frequently, how the building you have invested in is performing.

Some investment companies still try to entice investors with projected returns that cannot be substantiated. The only return that is real is the cash flow. Therefore, you should note the following:

1) Who are the tenants and when do their leases expire?

2) Is there a good mix of tenants or does one tenant occupy the majority of the leasable space?

3) What is the basic rent they are paying and how does that compare to market rents?

4) What are the operating costs and is the amount collected from the tenants sufficient to cover all operating expenditures?

5) Who will actually own the property and how will your interests be protected?

6) Is there a mortgage on the property?

7) What is the amount being mortgaged? What is the rate? Are there prepayment penalties? What is the lenders receptivity to renewals and refinances?

If you have done your homework and you are satisfied that the company promoting the investment has done theirs real estate can be a safe short, medium or long term investment.

“Is There One Investment Product that I Should Consider?”

Syndications of commercial real estate have been around for a long time. The newest syndication product in the market is the private mutual fund trust secured by real estate. Some companies offer this product with debt while others provide a debt free property as security.

“Why Invest in Debt-Free Real Estate?”

1) Income is based on lease payments for a contracted period of time and amount from long term tenants with strong covenants.

2) Your capital is protected and will be there when it is needed.

3) Your return is steady and is not based on predictions or gimmicks.

4) Income and profit are maximized by not having to pay a mortgage.

a) Being mortgage free reduces risk of loss.

b) Real estate consistently stays ahead of inflation.

c) Real estate avoids stock market volatility.

5) It provides a dependable, secure income for retirement, a rainy day or a child’s education.

6) This type of investment is ideal for registered products like RRSPs, RESPs, Liras and RRIFs. It also is an excellent way to maximize the tax free returns in your tax free savings account.

7) Purchasing real estate with cash often allows for a better purchase price as a quick closing puts cash in the vendors pocket in much shorter period of time than if mortgage financing was required. From the vendor’s point of view this is a positive and often leads to a reduced purchase price. This, in turn, means that the potential for an increased capital gain at the time the investors sell the property is greater.

Summary

Investing in products secured by commercial real estate is still a safe and sound way to provide a positive source of growth in your investment portfolio. The key to investing in the right product is to ask the right questions and to make sure that you are comfortable with the company promoting the investment. Syndication is a popular way for everyone to invest in real estate as groups of investors provide the funds for a purchase that would normally only be available to wealthy individuals. The newest form of syndication is the private mutual fund trust. Debt free real estate provides the safest and best security for investors.

Investment For Your Best Future

2009-06-30T11:10:00.004+07:00

by: Don Burnham

What comes in to your mind when you mention the word investing? Do you think of putting your money in insurance, mutual funds, the stock market or even high-yield investments? Does it make you think you need to learn how to invest in stocks or real estate?

The word invest is defined by Webster as 1 : to commit (money) in order to earn a financial return 2 : to make use of (anything) for future benefits or advantages.

Some people think about financial investing only when they are about to retire and they have nothing for retirement, or when they are about to die and they haven’t left anything for their children.

Others shudder when they hear the word “invest,” claiming that they have no money to invest or they feel that is too complicated a subject to even think about, and they are sure they will suffer financial loss.

Many people invest heavily in health supplements, personal trainers and beauticians to make themselves live longer, healthier lives or even to look younger. Just look at the advertising budget for beauty aids and even plastic surgeons!

All these are legitimate concerns when it comes to investing, but I am talking about the most important investment a person can make in his lifetime…

Invest in Yourself. The most important and No.1 rule is “Invest in Yourself” – if you don’t, who else will?

Your parents will invest in your education only until you leave college. and that does not teach you important lessons about financial education.

Think about this: would you depend on colleges or universities to teach you how to make money? Most colleges only teach you skills so you can earn money working for other people. How about business school? Honestly, if business lecturers are such experts at business, why are they still lecturing there instead of making a fortune in business ventures?

Would your boss teach you how to succeed in business so that one day, you will be in his position? You, and only you, have to be proactive enough to take that responsibility. No, he knows that the easiest way for him to make money is to keep you where you are.

You see, when you invest in yourself, it means taking on the importance of educating yourself. Education not in the academic or technical sense, though those are necessary skills to be developed in life. But your education doesn’t stop at college.

For most working adults, their education enters retardation stage as soon as they leave college. They stop learning and therefore they stop growing. They only grow sideways from eating too much pizzas or take-out during their busy lunch breaks.

We know that IQ is important, right? But why aren’t the most intelligent people in the world the richest people in the world? There are many accountants and financial planners rushing to their cars every evening trying to beat the after work traffic congestions! They are not rich! They may be well off, but they are not rich!

How about EQ or Emotional quotient? Do working hard, having a great attitude and a positive mindset solve our financial situation? These are important when running a business, but let me illustrate:

If you are driving from Miami to New York using the wrong road map, you won’t get to your destination no matter how fast you drive your car (working hard)! You can work harder, but you would only get to the wrong destination faster! You may have the best attitude in the world or the most positive mindset, but you still won’t get to New York (although the journey wouldn’t bother you since you are feeling positive about it)

You must FIRST invest in your Financial IQ. Having good a financial IQ is not about saving tons of money or dumping it into mutual funds based on some free financial advice. That is less than beginner investing. It is developing a healthy relationship with money and building a wealth of assets that will generate money for you in the future.

What does it take to develop your financial IQ? Delayed gratification is one of the most important aspects to developing your financial IQ.

Take this as a hypothetical example. Would you rather pay for, a pint of milk or a cow? If you buy milk, it is consumed and it is over. You will have to buy milk over and over again when it is finished. Even if the milk costs less than a cow, in the long run, you will still be buying milk again and again.

Now, if a cow were to cost 50 times more than milk, you might pay through the nose when you purchase the cow. But after consuming 50 pints worth of milk from the cow, you would break even on your investment and save more money in the future. In fact, the cow might give birth to 2 or more calves and you could sell one of them for profit!

Get the idea? EVERYONE is capable of creating wealth. When you take a beat up old car and give it an overhaul, paint it with a new coat of paint, and change a few more parts to make it start running again, you could sell that car for more money than when it was just a beat up old car. You would have created wealth in the process!

How about a farm? If you turn a farm into a country home getaway resort, wouldn’t the value of the farm land increase many times?

It is the same principle for chefs, computer programmers and craftsmen. The sum of the whole is greater than the parts. We are all capable of creating wealth even out of thin air and that is the first step to getting our creative juices flowing.

The value of anything is defined by supply and demand. You don’t need to be an economics major to understand this. Money is just an idea. The true measurement of money is not the cents or dollars it represents. It is the value that money can be exchanged for.

If you have developed a product that people want, would they pay more to you than to some one else? Would you apply your skills in creating good assets if you knew that people would see the value in you, that the asset is you plus the asset?

The bottom line is this: Invest in assets that bring long term value. Anything that brings you more income is an asset. Don’t invest too much in liabilities like cars or boats. That’s not investing, that’s spending.

Even houses are not considered assets until they are fully paid off (If you lost your job tomorrow and you can’t pay for your house, is your house an asset or liability?)

Are you willing to step out of your comfort zone and pay the price for financial education or ignore the signs of the times and expect your boss (who may fire you) the government and the bank to take care of you financially for the rest of your life, living below your potential, and never taking risks to better your family’s future? You are the only one who can answer that.

About Dunia-Market

2009-01-06T14:28:00.002+07:00

Dunia-Market is a blog about all things on the market. Where is the market includes a wide definition. Along with the flow of information and technology developed rapidly, the market at this time and be a place that can be done for the transaction between the seller and the buyer and the third in which the broker is an online market. Where is the market is very large network, covering the whole world. With this blog, please Dunia-Market can inform everything about the market.

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Dunia-Market