Property investment has always been considered an attractive option for many people in the UK who are seeking financial freedom. Even with the perceived stabilisation of the property market, property investors still consider the investment vehicle a viable one now that prices are declining and yields are going up.
The rationalisation for this is that the buy to let sector in particular is presently undergoing rising rents and shorter vacant periods – two factors that bring about lower voids compared to those of typical borrowers. Furthermore, by purchasing discounted property from distressed and motivated sellers, there is potential to earn instant profits from day one.
What buy to let offers property investors
Investing in property, particularly buy to let, offers financial benefits in the short, medium and long term. In the short to medium terms, property investment offers various tax efficiencies. For the medium term, property investors can benefit from increased rental income brought about by inflation and the rise in market rents. For the long-term horizon, property provides capital growth. Capital growth is the increase in value of your property portfolio over time. It refers to the money you make as the value of your property goes up in price.
Why buy to let remains popular
Here are the factors that contribute to a healthy demand for buy to let properties:
* Immigration. One of the reasons that buy to let has become a widespread investment vehicle is due to the rise in legal migration to the UK. A survey from Paragon Mortgages revealed that migration is adding to the UK’s population by 0.3% annually.
* Household shortage. According to the Department for Communities and Local Government, the UK needs more than 200,000 households a year to meet the housing demand. However many property experts say that there is a major shortage in housing supply.
* Social trends. The divorce rates in the UK have risen significantly: In 1980, there were 148,500 divorce cases in all of UK. In 2000, the figures climbed to almost 200,000, an increase of more than 30%. There has also been a considerable increase in the number of people who stay single by choice and enter marriage later in life.
What to consider before investing in property
* Where to buy: Property experts suggest that you look up historical data and consider the pattern of capital growth over the last 10-20 years. This will help you determine whether the location you are interested in buying property in is worth the money. Your main goal of investing should be to achieve long term capital growth.
* What to buy: When investing in property for the long term, you need to think about what type of property to buy. Some experts recommend apartments since these establishments have high initial returns and require low maintenance usually.
* When to buy: The time to buy property is as crucial as actually purchasing it. Considering that it is impossible to know when prices are going to hit rock bottom, some experts claim that the best time to buy is now.
For you to thrive in property investment, specifically buy to let, you should be able to find the balance between obtaining the best out of your property and effectively managing spending. It is similarly crucial for you to ensure appropriate rental cover and a suitable mortgage product. But most significantly you’ll be able to get the most out of your property if right from the start you have already earned profits from it – which is possible if you buy the property at a below market value price from a distressed seller.
January 8th, 2010
posted in Property Investment
1. Understand the Difference Between Owning Real Gold and Owning Gold Mining Shares
Owning gold stocks add more risk to your portfolio because you are exposed to the volatilities of the stock market. It is not really investing in the precious metals at all, more investing in the stock market. You don’t want to have to spend your time analyzing balance sheets and company performance statistics. Also your money would still be in just ‘paper’ and not a tangible asset. To avoid this first mistake, stay away from stocks. Buy physical bullion and store it in a secure vault to ensure peace of mind and security knowing you have full control of your asset.
2. Having No Plan
In Stephen Covey’s book ‘The Seven Habits of Highly Successful People’, he states ‘Begin with the end in mind’. Investing requires a solid plan. You should know what your goals are and invest in ways that will bring you closer to the desired outcome. If you fail to plan, you’re planning to fail.
3.Buying Numismatic Coins Instead of Bullion
Once you have made the decision to invest in gold, do not make the mistake of thinking that numismatic coins have the same value as gold bullion. Numismatic coins derive their value not just from their low gold content but also from the rarity and collectability of that particular coin. It is hard to evaluate the purity of such coins. To avoid this mistake and the risk of them containing high levels of copper and other non-precious metals, stay with standard gold bullion.
4. Buying From Multiple Dealers
Many new investors make the mistake of buying gold bullion from several different bullion dealers. It’s not only more difficult and time consuming to buy from different dealers, you will also pay many different markup prices. Avoid this mistake by buying in bulk from one dealer. This will limit the expenses and lower your overall costs, due to the better rate you will receive.
5. You Must Take Action
Many self-improvement coaches and gurus all talk about “taking massive action”. Taking action is probably the most important step in the whole process, but if it is so simple, why don’t we do it?
Fear- Fear is the single biggest obstacle holding people back. Anthony Robbins refers to it as:
F. False
E. Evidence
A. Appearing
R. Real
On the other hand fear is what also keeps us alive and away from danger. It is very important to be able to decipher between the two.
Being to late to buy is a big mistake many new investors make. You want to buy towards the start of the cycle, not the end.
January 8th, 2010
posted in Gold Investment
Buying solid gold is a cleaver way of investing and holding gold. Over the past six thousand years gold has been regarded as a form of money and store of wealth. The use of gold has far outshined the alternatives for a number of reasons including its scarcity, brilliance, softness and resistance to rust.
Since the end of the gold standard, gold has largely lost its role as a form of currency, but is still considered by many, including some of the world’s most important central banks, as a store of great wealth and a safe haven in times of calamity. Gold along with other precious metals are seen as unique assets in that they are real value and liquid specimens, unlike some other assets like property which is real but not liquid, or company shares which are liquid but not real, its only paper.
The unique and useful properties of gold, as well as its rarity and increasing demand, make it an attractive commodity investment. Gold is known as the “crisis commodity” because during periods of political, social, or financial disaster, the price of gold tends to rise in response to the same factors which cause other investments to fall.
And gold does preserve a special position in the market with many tax regimes. For example, in the UK the trading of gold is free from taxes.
When currencies have failed or economies collapsed, gold throughout history, has maintained its bargaining power. It is hardly possible that it will ever lose all its value, unlike stocks whose value can be wiped out in short order if one or more of the numerous risks associated with them turns badly.
Buying Bullion bars is initially the most cost effective entry into the physical gold market. They can be purchased in various weights from as low as one troy ounce and up. But be sure to buy from an established dealer that provides a written certificate of weight and gold content.
As gold is a soft metal it is safe for the bars to be sealed in clear plastic protector to prevent any accidental damage or wear causing a loss in weight or identification. Most investors are not fond of keeping their bars at home so annual storage and insurance costs must be taken into account.
Many will make their investment by opening an account on line with an authorized gold depository where purchases are kept in a secure vault and can be traded as easily as stocks. If the purpose of buying is to take physical possession of the gold, then renting a safety deposit box is an answer. Also do not forget to check out the tax implications in your jurisdiction before deciding on investing in bullion bars.
For gold bullion coins currently or recently minted, that are issued by various countries, there is a possibility of getting a simple entry into the ownership of gold. Typically bullion coins are priced according to their weight, with little or no premium above the gold price.They come in a range of sizes from as low as 1/20th of an ounce to one ounce. The prices fluctuate throughout the day in line with spot gold prices and expect to pay up to a 5% premium.
The coins are easy to purchase on line and can be shipped to your door by secure delivery. They are easier to store at home, can be traded at local coin dealers or online and as they age, may increase in value as they become of interest to collectors. There is less likelihood of any adverse tax problems associated with trading in bullion coins on a limited level as they are likely to be considered as a private transaction but to be safe check before purchasing. Not to be confused with commemorative or numismatic coins.
Collectors gold coins include pre 1933 government issues. These coins trade on a highly specialized market where the spot price of gold is not the only factor to consider. 1933 was the year when President Roosevelt made holding gold coins illegal and ordered all US citizens to return them to the US Treasury where they were melted into gold bullion bars, hence the rarity. Note that while it is an unlikely possibility that there would be another gold confiscation order issued by the US or any other major government it has happened before and could happen again.
If your goal is simply to capitalize on price movement, then bullion coins will serve your purposes. If you are interested in long-term asset preservation and you have additional concerns about capital or monetary controls, then you might want to include the lower premium variety of pre-1933 European and American gold coins in the mix. These have been treated by the U.S. government since the 1930s as historical items, and, as a result, afford the privacy-minded investor a greater degree of safety than gold bullion.
If you want to protect yourself against inflation, deflation, stock market weakness and potential currency problems, to hedge financial uncertainties, there is only one portfolio item that will serve you in all seasons and under most circumstances; gold coins and bullions.
Now is a great time to invest in gold. The price is expected to continue to rise, with no clear limit in sight. As a hedge against inflation, as a store of value, as a liquid asset, and as a stable core in a diversified portfolio, gold is unmatched.
January 7th, 2010
posted in Gold Investment
Any investment that one makes should be based on knowledge of the market they wish to invest in, and understanding how to efficiently invest in gold coins is no different. If you do not understand the market consulting with a professional is a good idea, but that can be very expensive. On the other hand there is a lot of information available on the Internet to help make the decision to invest in gold coins easier, however, one must be willing to spend some time doing the research.If you already have an investment portfolio, such as stocks, bonds, or anything else take that into consideration. Although, investing in gold is considered to be a very safe and stable investment one needs to know how much money, or percentage of their investment portfolio, they can realistically afford to pour into gold coins, and when is the best time to do so. And for those who are first time investors the should think about their assets, income, liability, etc. before investing because the economy is a bit unstable and you want to invest wisely.Buy from dealers or sellers that you have thoroughly research; unfortunately, as with anything in life, there are some unscrupulous dealers that do sell gold that is impure. Meaning, some sources are in the business of selling gold coins that may have been melted down, mixed with another form of metal, and re-minted or pressed. So, be aware of the fact that there are counterfeiters out there. Only by from reputable dealers that guarantee quality, such as the United States Mint, which is an excellent source. The US Mint also has what is known as gold coin buying programs that are worth learning about.The American Eagle Bullion gold coins, which are congressionally authorized, are convenient for investors because they add a little gold to ones portfolio in a cost effective way. The American Eagles were launched in 1986, and these gold, platinum, and silver coins have since become leaders in bullion coin investment products. Rare gold coins are sought after by collectors, and can be extremely valuable if auctioned off. But, once again to invest in these coins you need to understand what you are buying, and looking for in the specific coin. There is a lot of information, photos, and detailed history about collectible gold coins that is very educational. Understanding a coins grade, mint, and other markings is important when investing in rare gold collectible coins.There are American Eagle proof and uncirculated coins for collectors. The United States Mint produces these bullion coins for collectors. Every single American Eagle Gold Proof Coin is protected because it is sealed in a plastic capsule, and mounted in a presentation case. And because the proof coins are produced by the U.S. Mint every coin’s weight, content, and purity are guaranteed by the United States government. They are a safe investment because they can be bought directly from the US Mint. In addition, the American Eagle Uncirculated Coins were added in 2006 by the United States Mint, and collectors can by these gold coins from the US Mint.If you are going to invest in gold coins you should learn more about the American Buffalo gold coins which are the only 24 karat coins, that is .9999 fine, which were first minted in 2006. And the 2009 gold Buffaloes are expected become scarce because of their late release in the 2009 production year. The American Buffalo gold coins are considered a safe and great investment because their content and quality is guaranteed by the United States; 24-karat 99.99% pure gold, weighing in at one ounce, and that means that these coins will sell at gold market value at any given time. They are easier to store than gold bars, and transprotation is also much easier. Whether you choose to invest in rare gold coins, a variety of gold coins from different countries, the United States minted First Spouse Gold coins, or the American Buffalo gold coins, gold bullion coins make a great addition to ones investment portfolio. Knowing how to efficiently invest in gold coins requires knowledge, timing, and wise decisions. However, once you learn the market and find reputable sources to buy gold coins, having them as of your investment portfolio can be quite rewarding.
January 4th, 2010
posted in Gold Investment
The fear and hesitation that surrounded investment in overseas real estate till the recent past seem to be evaporating with sufficient confidence building measures by the world’s major property markets. Governments are becoming more accommodating towards international property investors and are making property ownership possible for them. Even the countries with the strictest property laws are having second thoughts and seem prepared to let the foreign investment pour in. Many of the world’s leading real estate markets have even launched mega projects dedicated for investment from overseas buyers.
Not very long ago, any type of real estate transaction be it buying, selling or renting, was a tedious and tiring task involving physical presence and lot of paper work. Thanks to today’s technology, most part of the labour involved in property ownership process has been removed. International property buyers can now search for their desired property through internet and even pay a virtual visit to the property right from the comfort of their home. There are hundreds of real estate websites available on the internet whose property listings are regularly updated. All the buyer needs to do is simply browse the relevant property listings and the right property is just a few clicks away.
Overseas Investment property gives the owner a double edged opportunity for profit making. After buying the property remotely, the owner can rent it out and enjoy handsome regular income while staying home. On the other hand, the value of property also keeps rising at the same time and its resale after a short holding period can bring very attractive profits to the owner. And more interestingly, a residential property can serve a great second home away from home for the investor. Overseas property investors are well aware of these lucrative benefits of investing in international real estate and for them; high rental yields and rapid capital appreciation are two of the most attractive features of this type of investment.
UAE, especially Dubai, ranks first among the most favorite global investment locations. Other major property investment hubs of the world include Brazil, Dominican Republic, Egypt, India, Italy, Morocco, Panama and Turkey. Property investment, whether it is residential or commercial, in any of the said locations can bring the investor multiple income-generating opportunities which are way better than any other investment. Even an old and shabby property purchased at low price can be resold at amazing rates after a bit of refurbishing.
January 4th, 2010
posted in Property Investment
THE LEGACY FUND LAUNCH – Providing Extremely Low Risk Investments and Consistent Annual Double Digit returns in Excess of 20 – 30 Years!
Cabal Capital Management, LLC announces the launch of the Legacy Fund, a Special Opportunity Fund which provides special alternative investment opportunities into extremely low risk, and very high financial return Advanced High Income Generation Projects through direct investments.
This fund which is not a private equity fund and is Sharia-Compliant, is unlike all other investment pool funds, hedge funds, etc. that exist today by offering investments that are focused on both strategic and tactical investment opportunities into Highly Advanced Income Generating Project(s) producing crucial and vital, very high demand commercially valued product(s) that are being sold directly into the largest “Major” Consumer, Industrial and Governmental Universal Demand Markets in the world. These investments allow risk adverse accredited investors the ability to participate in the revenues generated from these projects which allows for and achieves both capital growth and preservation, while providing the investor an extremely low risk opportunity with the benefit of dependable and sustainable alpha generation and the long term growth from these projects. These fully integrated projects have been designed to last 40 to 50 years or longer (similar to their predecessors) for their life cycles regardless of the global financial and credit markets.
This fund is well positioned to effectively tap into these markets to the benefits of its investors. The growth dynamics of the United States and Western Europe is based upon local, regional and domestic consumption of all the products these projects produce. This fund is targeting routine and consistent annual double digit returns (15 – 21%) to investors un-correlated to all securities, commodities, currencies and the credit markets themselves since there will not be any exposure to these markets. All project investments within this special investment vehicle have been specifically developed and designed to perform across various business cycles regardless of global economic conditions to include recessionary and depressionary environments as well.
Any tightening regulatory environment, the current global credit crisis, current stock market contractions and wild swings in the commodities markets does not and will not impact our ability to produce consistent annual double digit returns now or in the future for our investors since we will never have, need or rely on the credit markets to establish margin accounts or leveraged positions which most all hedge fund type investment vehicles require to operate. We do not require nor will we ever utilize prime services which the large investment banks provide (Bear Stearns, Lehman Brothers, Merrill Lynch, etc.). We do not rely on the stock, commodity or currency exchanges to generate income since we can not control any of the events occurring in those exchanges for our investors, thus we are totally un-correlated to all securities, commodities, currencies and credit markets.
In the case of Deflationary and Inflationary Markets, they will have no real effect on these projects and the products they produce. Coincidentally inflation will only increase the value of the products coming out of the projects. Deflationary markets will have very minimal impact on the products produced within these projects since these products are and always will be vital for any country to maintain a stable economy, thus they will always be in very high demand through out the world regardless of the global economic conditions.
Risk issues are always addressed through risk management and the review procedures for each and every investment made. Unlike most projects which have been developed, planned and master planned, every assumption for each project invested in has been tested, validated, verified and proven or it’s not incorporated into these project(s). Each and every project is also backed up by a detailed Input / Output Financial Cash Model which is a detailed Program / Project Financial Blueprint that shows the quarterly inter-relationships of investments, operational production revenues, operational expenses at all levels, taxes, imposts and fees, special circumstances events, and financial obligations during the life of the Program / Project.
Since energy production and consumption is the key element to any industrialized country, and with energy consumption increasing globally at an annual rate of 5 – 6 %, energy is and always will be vital to both the U.S. and Western European Economies. Allocating to Energy and Bio-Fuels production are two major key areas of involvement and investments within our seven pronged program investment strategies approach, which consists of the following options available to us: Energy: Oil & Gas (Example Project to follow), Bio Fuels: Algae Based Bio-Diesel and Jatropha Curcas {plant} direct fuel source. Algae Based Bio-Diesel is a direct fuel source currently available and ready for full scale production and delivery {This is Direct Fuel Source and is not a blend for gasoline or other fuel sources!} Algae Based Bio-Diesel Fuel production utilizes proprietary photo enhanced, micro nutrient enhanced, continuous flow, automated, sensor quality controlled, bio-chemical industrial processes and then are pressed, centrifuged, oils separated from water, water treated, cooked, cracked and treated all within a 12 hour cycle (Start to Finish) to complete one batch made ready for use in any diesel engine. Initially 270 Million Gallons per quarter to several Billion Gallons of bio-diesel per quarter will be produced depending upon the initial size of a project program. This Algae Based Bio-Diesel Fuel source has a Cetane Rating of 105 -117 compared to 80 – 85 Cetane Rating for #1 diesel fuel currently produced by all the major oil companies, which provides more power, better millage and performance while emitting 60 – 70% less emissions across the board vs. normal standard crude oil based diesel fuels. This Algae Based Bio-Diesel product emits no sulfur and or nitrogen into the atmosphere, Alternative Energy: Solar / Concentrated Solar Thermal Power Production, Wind and Electric Fuel Cell Systems, Natural Resources: Gold, Platinum and other Precious Metals Groups and Diamond Mining: Refining, Assaying, Separation using advanced physical technologies and Bullion production of Gold and Platinum as well as Processing, Cutting, Valuation Appraisals of Diamonds and other Precious Stones, Water: Proprietary Water Science / Technology to Produce Fresh Drinking Water to meet Agricultural, Industrial and Human Public Health needs in critically water short areas through Water production, bottling facilities and distribution. This can be accomplished with any available water supply {in ground water tables, above and below ground reservoirs with a high saline content normally not recommended for human consumption}, Sea Waters & Brackish Waters anywhere Globally, Hydroponics: Food Production: Fish Shrimp, Prawns, Fruits Vegetables utilizing USDA inspectors to garner Grade A Choice Status to include direct marketing into Major U.S.A. and International Consumer Demand Markets, and Special Opportunities: Aviation Fuels: JP-1 to JP-12 for Commercial and Military Applications from Algae Based Direct Fuel Sources as well as Advanced Hyper-Speed Information Technologies and other Advanced High Income Generation Project Opportunities as they become available.
It should be noted that traditional large project investments consist normally of only one income generation production element and typically requires three years at the earliest before the investors see any type of modest return on their investment. Our projects produce immediate results in the first year due to their very nature and global demand. These Exclusive World Class Projects which are available to us for investments have no less than 2, but normally include 5 or more Major Integrated Income Production Elements within each project. It should also be noted that each income producing element within these projects are so strong that they could stand on their own and support the entire project, which is why many of these elements are developed together to form an Advanced Integrated Income Generation Project depending upon the requirements and location of the program.
All of the projects that this special opportunity fund invests in involve Proprietary Advanced Technologies and Advanced Physical Science / Processes (not known to the great majority of Asset Manager Companies Staffs). Other types of investment pool managers, hedge funds, etc. do not know or even have access to these world class development engineering people and the technologies assets and projects that they develop, implement and manage. Currently we have in excess of $10 Billion Dollars worth of Advanced High Income Generation Projects available to us for investments.
These projects are developed, implemented and managed by Highly Reliable, Senior Internationally Experienced Technical Managers, Senior Science Managers and Senior Logistics / Project Security Management Staff. There are in excess of 300 Top Level Executive Technical Managers with over 30 years of Experience in each of their perspective Development Sectors available for all projects that our fund invests in. These projects are designed to insure extreme depth of expertise and experience management which is available to any project at any and every stage of the project program, regardless of location of the project anywhere globally.
This fund understands that most Investors, Sovereign Wealth Funds, Major International Banks, Hedge Funds, Fund of Funds, Private Equity Funds and others do not have the technical resources, capability, background and or understanding to evaluate, determine and differentiate between good and bad Large Advanced High Income Generation Projects, Project Developers, Project Implementation Capability and Management of Highly Integrated Multiple Income Steam Revenue Generation Projects.
This is the strength of the Asset Manager and where he excels; during the past several years he has been mentored, tutored and trained by some of the oldest and most highly respected, responsible, highly sought after and experienced Development Engineers who have planned, master planned, developed, managed, evaluated and trouble shot Economic Development Projects, Strong Multiple Stream Income Generation Projects, conducted Nation Building and Humanitarian Projects in over 65 countries during the past 40 years. The training he has received allows him to thoroughly review, comprehend and evaluate Project Development, Project Implementation, Logistics, Security and Management of these projects as well as the risk management associated with each potential investment. This process has provided him with the understanding, knowledge and insights of Project Development, Implementation, Logistics Operations and Infrastructure development of large income generation projects to determine unequivocally, which Highly Advanced Income Production Projects are viable and which ones are questionable investments at best.
A Special Note of consideration is that each investment will bring with it potential tax advantages not typically found with other types of investments. Depending on where the project(s) are located and how the project are legally structured and set up (Development Corporations, Development Authorities, etc. which are authorized by local, state or federal governments) could result in tremendous tax advantages, which each investors tax advisor will need to qualify and determine the best approach for each investors own tax liabilities depending upon their current tax status, situation and strategies.
The results of this Special Investment Vehicle fund are highly advantageous investment opportunities that by far exceed the majority of investment opportunities available to investors from a financial return as well as extremely low risk standpoint by investing in Outstanding Advanced High Income Generation Projects carried out by highly reliable and responsible individuals and organizations.
Face to face meetings are welcomed and encouraged in order to qualify, verify and validate these investment opportunities which stem from the Americana way of project development and implementation with the application of Science, Engineering, Logistics, Security and Management which dates back to over 200 Years during the American Expansion of the United States of America. Never before in the history of mankind has the shear number and sizes of these Consumer Universal Demand Markets been in place and more importantly, primed and ready to handle and accept these vital, crucial and very high demand, commercially valued products coming from these projects.
Headquartered in San Antonio, Texas, Cabal Capital Management, L.L.C. is managed by Kent Sullivan: www.cabalcapitalmanagement.com
January 1st, 2010
posted in Investment News
Australia is fortunate to have a housing market which is stable for foreign property investment. Its consistency is set to continue for years to come and low property prices are still an attraction in foreign property investment Australia and the prospects of strong growth are reassuring for the foreign property investment Australia.
There are still offers for foreign property investment Australia with good opportunity to benefit from its rising property values. There is one region that seems to be becoming more popular every year and that is the region of Melbourne in Foreign property investment Australia.
Foreign property investment Australia in cities will find that they not only have an investment with a real demand for rental properties, but also something more secure and easier to resell in the future. The obvious advantages in foreign property investment Australia are there to see established, cosmopolitan cities with advanced infrastructure, a buying process that is easy to manage. The Buyers need to get (once Foreign Investment Review Board approval is gained), and signs of strength in the economy.Foreign property investment Australia Off plan properties are available from developers in much the same way as in the UK and many other countries, though overseas buyers will have to pass muster with the Foreign Investment Review Board (FIRB). This legal necessity is usually resolved within 40 days, if you present the correct paperwork to back up the application in foreign property investment Australia.In Melbourne there are two distinct markets with the extremely popular bay area attracting higher levels of demand in foreign property investment Australia compared to outer suburbs. This is reflected in price growth, with areas of high demand in foreign property investment Australia experiencing greater price growth than outer suburbs.
January 1st, 2010
posted in Property Investment
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