Post Tagged with: "investment"

A Look into Real Estate as an Investment

September 19, 2018 at 9:33 am Comments are Disabled

a couple in a meeting with a real estate agentHousing is one of the three basic needs of all human beings; therefore, putting one’s finances into real estate at the right time and the right place is beneficial.

Plus, one of its most unique characteristics is its long-term capital growth, notes First National Mills & Gibbon. The property continues to grow in value due to the finite nature of land hence considered a path to wealth creation.

Type of Investment

A majority of property investments are to initiate cash flow. As an investor, consider the available rental properties in Hawera when looking for viable properties to invest in. It provides some guarantee of higher returns in comparison to other areas.

Alternatively, you can buy property for capital gains. The intention is to wait for the value of the property to rise and sell it at a later date for a profit.

Financing

Property investment is capital-intensive, and not everyone is capable of buying one house (or more) in one transaction. Hence it is imperative that one considers their financial options.

You should approach your bank and seek advice on what form of mortgage plan you can take out without necessarily putting yourself at risk of financial ruin.

Planning

Before entry into the sector, you should have a plan in hand that sets out what you intend to achieve. Without one, it would be very easy to get overwhelmed by minimal milestones.

Diversification

Once one achieves a sense of financial growth, it becomes necessary for them to consider spreading their wealth within the sector and, therefore, limit their exposure to market factors. This ensures continuity of investment.

For decades, the real estate sector has been an effective channel for wealth creation and the generation of cash flows. To achieve that, it requires a lot of commitment to studying and understanding different markets and possible trends.

Do turnkey rentals interest you? Here’s how you start before investing

May 29, 2018 at 7:28 pm Comments are Disabled

hand giving out house keyTurnkey properties have recently become popular for those wanting to invest in the real estate market. These properties are easier to rent out as specialized real estate firms already rehab them before getting listed in the market. With little information on how to get started in turnkey rentals, good preparation and sound decision-making are essential in reaping the rewards from this new trend. And some tips below should help.

Assess your funds

A turnkey property is still a real estate investment that requires an ample amount of money plus careful investment planning. The ease of having to find a tenant is inviting, but the money you must put in has to match such helpful feature. Turnkey properties are renovated, so, the value added increases the property’s price.

Identify profitability

Extensive upgrades of turnkey properties are expensive on the part of a provider. Hence, such properties may have rental rates that could be prohibitive to potential tenants. Ensure profitability. If the money you will put in will not realistically be recouped given the demand, it is not worthy to invest.

Check the property

Once you decided to invest, check the property. The turnkey property is a major investment so you must know what you are buying. Seeing the property and getting to know the place where it is built will give you an idea of the property’s long-run marketability.

Talk to the property manager or provider

The turnkey provider decides on the property’s upgrades and vetting tenants. It is important as an investor that you trust your provider. How do they retain tenants or manage upgrades? Talking to the provider about their management style is like knowing where your investment will go.

Study the ownership arrangement

The ownership arrangement, of course, is critical in your decision. Companies would sell the property directly, but others form a limited liability corporation and ask the investor to become a partner. If you do not want to be too involved with repairs, for example, be simple with the arrangement choice.

Gold: Give it a New Shape, But Do Not Give It Away

January 30, 2017 at 9:54 am Comments are Disabled

gold bar
Heirlooms that have been passed down from your great-great-grandmother down to your mother and now to you is done so because of its sentimental value. But aside from the memories, those gold jewellery set is entrusted to you because of its continuously increasing value. Something that not all people are aware of.

High value of gold

Most people know that gold is valuable. But not most people know why.

In the height of Brexit, the price of gold once again increased as the demand for the valuable metal increases. Gold is considered a “security blanket”, something people can always pull out and sell during tough times. This is the reason people who have money to spare, businessmen and even countries like South Korea and Thailand have hugely invested in gold.

The value of gold is affected by the movement of the economy, political events (i.e. Brexit, Trump triumph) and demands of different countries (i.e. continuous increase in demand of China). While people in the business know the value of gold, thus the demand, ordinary people see it as a luxury and is using the metal as a safety blanket literally. This is something you should avoid as much as possible.

Do not sell your gold

Do not sell those heirlooms for cash as you would definitely get way less that the price for your jewellery, especially if you are like the majority of the population who does not truly understand the gold market.

Instead, give those pieces new life and shape. Casting jewellery, especially those of high values like gold more common than you think. Cast them to your liking to be able to match today’s latest trend or shape them into something you can eventually pass down to your children.

It would not hurt to keep your gold pieces with you as long as possible, especially now that you know the real value of those pieces you tucked away for so long.