If you are interested in international property investment we are going to look at a great destination here which has been voted one of the best property investments in the world, with average forecast growth of nearly 300% over the next 10 years and the country is Slovenia. Here we will look at why Slovenia property investment is hot.
Slovenia is a country that is attracting both European and North American real estate investors and interest is at an all time high.
Slovenia Location
Many people have not heard of Slovenia but it is a small recent member of the European Community and has the highest GDP of any new member and is situated right at the heart of Europe bordering: Austria, Hungary, Croatia and Italy.
Recent membership of the EU has seen billions of dollars invested in the country from the European community and private investors.
The Result?
Disposable incomes are higher than ever before, this has led to an increased demand for high quality housing and demand is simply out stripping supply.
For example, property in Ljubljana (the capital) has been increasing by30% in many areas – but the growth is not just restricted to the capital. The second city of Maribor and the coastal resort of Piran have also seen strong rises.
Future prospects
The future prospects for growth in Slovenia property prices are good, not only does the country have a solid growth internally, it is actively promoting its tourist industry and this means a huge influx on people wanting high quality accommodation to rent and looking for holiday homes.
Slovenia is a small, beautiful country and has much to enjoy.
It is a country of soaring mountain peaks, dense alpine forests, valleys dotted with vineyards, mighty rivers and even a small unspoilt section of Adriatic coastline.
Skiing is popular and property located in or close to these resorts are popular choices – great areas to buy in are:
Around the towns of Bled, Bohinj, Maribor and Kranjska Gora. Other areas set to rise in popularity are, the towns around the beautiful Soca Valley and the coastal region around Piran.
Property is still keenly priced, with good upside potential and you can not only benefit from great capital gains but also solid rental incomes and there are Slovenia properties to suit every budget.
Buying is straightforward and the local laws are designed to protect both buyers and sellers and you can arrange local finance for the property which is secured on the property in Slovenia, not your principle place of residence.
There are plenty of Slovenia estate agents to help you find your investment property and many cater specifically for international investors.
So, if you are interested in international property investment, consider Slovenia and you may be glad you did.
March 16th, 2010
posted in Property Investment
Cyprus is considered a very good choice to consider when you are thinking about purchasing Cyprus property. Cyprus property investment can have a beneficial impact on your income and why not on your mood too? Cyprus is a safe place that can offer you many pleasant moments and please your eyes with its fascinating nature and the blue color of the Mediterranean Sea. It’s a small island of joy for your soul. When you spend your money on something you first think about your decision very carefully. Of course, that is aside from simple purchases you do everyday in the supermarket.
Think carefully before making an investment in a big and expensive purchase. When investing the money in a property you should know very well where every dollar goes, because fraud in real estate market is not unheard of. So first of all, even on such a nice island as Cyprus, you should know how to deal with the land sharks. If you are choosing a destination for your investment and your choice falls on Cyprus, then you should consider how your Cyprus property investment will be successful.
Cyprus is well-known for its mild Mediterranean climate and its hospitality, for its beautiful nature and for historical monuments. This island has a very rich cultural heritage and you can see a diversity of traditions very enrooted and respected by the local people. Cyprus’s culture is a blend of Greek and Turkish culture, with some Egyptian “tunes” and Arabian mystery.
First of all, when you want to buy a property on Cyprus, you should think about what your purpose is for buying it. The purposes can be different. You might want to buy a house or an apartment for living there in the summer or for spending most of the year there, or for renting it, or a combination. That is why the location of your Cyprus property is very important. If you plan to rent your property then you should choose a location close to the tourist centers, the places which are close to many modes of public transportation.
If you want to see your property as a place where you can rest and have a comfortable place for your vacations, then you should decide the location of your Cyprus property based on your feelings and preferences.
There are good opportunities for Cyprus property investment in the highlands. There you can admire the broad and narrow roads, the beautiful green mountains and the warm wind. You can also choose a house at the seaside. Frankly speaking, Cyprus property offers you a variety of choices where you can always find that which suits you the best.
Cyprus may be a small island but you will always find an open store, a nice small café or restaurant there to buy what you need and spend time eating the traditional served dishes, enjoying the beauty around you. So even if your property is situated far from the main cities and tourist destinations, you will have all the comfort the island can offer to you.
The prices of Cyprus property depend on their location, on the area and on the accessibility to the big cultural centers. The numbers can seem high at first sight, but you should not think it is not impossible to lower it. The prices are always high when you receive the proposal, because even the realtors know that the investor will bring down the price. You can also have a look at some other property situated in that region. You should compare prices; you should estimate the value of the house you want to buy, looking at its real market price.
Cyprus is a good destination for investments and its possibilities in this field are very large. When buying Cyprus property you should consider that you will spend more than its settled cost. You should consider the fees for the lawyers and for the realtors, for the changing of the paper work and some additional fees.
March 16th, 2010
posted in Property Investment
Gold has a dual personality. It is a “store of value” and it’s an industrial commodity used mainly in jewelry but also in dentistry and electronics. The industrial use of gold declines whenever the price rises. The gold price, at least in the short run, is a barometer of world anxiety. Bad news for humanity is good news for gold and the opposite holds true. An outbreak of peace and goodwill on this planet would cause a crash in the gold price. Aside from the flow of political anxiety, the major determinant of the gold price is inflation- more specifically, the extent to which inflation prompts a flight from paper money ( and investments such as bonds).
Gold performs the best when inflationary expectations are rising but interest rates are not yet in the stratosphere. Extremely high interest rates tend to depress gold because borrowing costs then become a deterrent to speculators who buy gold futures on margin. Moreover, gold, which produces no income, becomes less attractive to some investors when the yields on money-market securities are exceptionally high.
Since the inflation rate is strongly influenced by increases in energy costs, there exists a correlation between the price of golf and the cost or a barrel of oil.
The conventional wisdom is that most investors should consider putting 5 percent of their assets into gold and 15 percent or more when inflation looks particularly threatening. In addition to being a hedge against high inflation, gold investments usually hold up or rise in price when there is a big slump in the stock market; they are, in effect, a form of “disaster insurance.
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March 14th, 2010
posted in Gold Investment
Many new reports have publicized that the financial markets can go no lower. Crude oil prices are at an all time low, the housing slump and economic slowdown are over, and the future looks so bright, or is it? These reports recommend that now is the time to liquidate your gold bullion. But don’t be fooled, take off those rose-colored glasses, because now is definitely not the time to sell!
Before you decide to trade your gold for depreciating dollars, look at these important facts why you should be doing more gold investing. While retail sales have risen slightly, these sales include gasoline; which is selling well because the prices have dropped. Jobless claims continue to rise and many companies continue to announce new layoffs. Financial markets are still volatile. Even after the government has bailed out some of the largest banks, these same banks continue to need more money to operate.
The housing market has not yet reached bottom and people defaulting on their mortgages continues to rise. Inflation is going up and has risen more in the last six months than it has since 1991. The federal government will not raise interest rates to deal with inflation. The Fed has never raised rates while the country is in a recession. Tension is high all around the world. The gold price continues to drop as the global tension increases.
So what should you do? Think about this question. What has survived war, inflation, deflation, recessions, and depressions? That’s right, precious metals. What has not? Paper money has come and gone. Confederate money from the Civil War is no longer any good, but the gold that backed it still is. Gold is a long-term stable investment that history has shown to be the right choice for dealing with many types of crisis that are around right now. Throw away the rose-colored glasses and realize that the best recommendation is to NOT sell gold but to buy it!
March 13th, 2010
posted in Gold Investment
A Guaranteed Investment Certificate, or GIC is a type of Canadian investment in which the rate of return is guaranteed over a fixed period of time. Guaranteed Investment Certificates are relatively low-risk investments, and thus yield smaller returns than that of stocks, bonds and mutual funds. GIC’s are typically offered by banks or trust companies. These safe and secure Canadian investments earn interest at a fixed rate, variable rate, or based on a market-based index. Many Canadians view Guaranteed Investment Certificates an excellent choice for an investment portfolio that requires a measure of safety.
How do Guaranteed Investment Certificates Work?
With GIC’s, you will invest an amount of money (determined by you) for a period of time that is determined by the specific type of Guaranteed Investment Certificate that you choose. Typically these periods of time vary greatly and can tend to range anywhere from 1 day to 10 years. GIC’s with longer terms will earn more interest than short term ones. When your Guaranteed Investment Certificate reaches the end of its term (otherwise known as ‘maturity,’) you will be able to access not only your initial investment, but the earned interest as well.
Some Canadian Guaranteed Investment Certificates require that the amount of money you invest initially remain ‘locked in’ for a minimum period of time (30 days for example). Other GIC’s will allow you to access your money before the investment matures. There are even Guaranteed Investment Certificates that allow you to add to your initial investment amount by making weekly, biweekly or monthly contributions.
Redeemable vs. Non-redeemable
Guaranteed Investment Certificates can be redeemable or non-redeemable. As aforementioned, there are some GIC’s which allow you to access your cash during the term. This is referred to as ‘redeemable.’ With a redeemable investment, you will be able to withdraw your cash before maturity. Some redeemable GIC’s specify that you will earn less interest if you cash out prior to maturity.
Non-redeemable Guaranteed Investment Certificates do not allow withdrawals before the maturity date. Non-redeemable GIC’s may offer higher interest rates than redeemable ones.
Interest
Guaranteed Investment Certificates in Canada can be offer either fixed or variable interest rates.
Fixed Rate GIC’s
With a fixed rate GIC, your investment will earn interest at a set rate. That is, the interest that your investment earns will be consistent throughout the term of the investment. The benefit of fixed rate GIC’s is that you can predict exactly how much your investment will be worth on the maturity date.
Variable Rate GIC’s
Variable rate Guaranteed Investment Certificates are either linked to the Canadian prime interest rate or to stock-market performance. With interest-rate linked GIC, you are guaranteed that your money will grow, but you will not know at which rate until maturity. With market-linked GIC’s, you can earn more interest if the stock market does well, but your initial investment will be protected either way.
Benefits of GIC’s
The most important benefit offered by this type of investment is safety and security. Your initial investment will be protected. With fixed-rate GIC’s you can also enjoy guaranteed growth and an easy way to project value at maturity. GIC’s are also known to offer excellent interest rates. Finally, GIC’s are typically pretty flexible investments. You can enjoy flexibility in length of term as well as how often you receive payments.
If you live in Canada and are interested in investing your money in a safe instrument, a Guaranteed Investment Certificate may be right for you. To find out more about what is available in your area, visit your local bank.
March 13th, 2010
posted in Investment News
This is a matter of timing and now is the time to make money with gold. You should only invest when enough of the essential factors are lined up as they are right now. When not enough of the essential factors are there, gold is a lousy investment, as it was 22 years ago. Now that all the factors are lined up, they will remain that way for years. In all probability, during the first few years of this golden bull market, you will eventually make money in the metals, no matter when you bought them or how much you paid for them. Any investment in gold at almost any price will eventually pay off. Although the long-term prospects are terrific, the metals can be silent for years at a time like those nearly two decades between the end of the last bull market in 1980 and the beginning of the current one.After finally giving up on the metals in the 1980′s, we have watched gold go sideways and down for many years. As it was not the right time for the metals, we made our money in carefully selected stocks, bonds and real estate for more than two decades while keeping an eye out for today’s conditions.So what conditions are favorable to gold investment?Money-creation that is monetary inflation must be in an uptrend. That is the case right now, and has been for years, even during the 22-year metals bear market. So far, so bad, but alone, it is not enough to cause a gold bull market.The dollar is losing exchange value against foreign currencies. This is so essential that when the dollar entered its last decline it finally prompted me to turn more bullish as I was doing my investments in gold. Without a weakening dollar on the exchange markets, any moves in the metals will be temporary. Now we not only have that, but we have moved beyond it, into the next currency phase which is: the metals are rising against all currencies, which is immensely bullish.War or the prospect of war. The war on terror and the war in Iraq are beginning to meet this condition to quite an extent, although the battles have been contained mostly to the Middle East. War breaking out elsewhere in the world : a terrorist, biological or bacteriological attack, or Iranian fanaticism triggering a nuclear war – would meet this requirement. War is a wild card because it triggers inflation due to wartime spending and national and international fear. It is basically unpredictable.Not all of the conditions have to be met at the same time, but the first two conditions listed are essential.Fortunately, the timing is right, and even if the bull is not on his four legs, the decision when to invest in the metals is now evident and will be for some years. Just do it, and you’ll benefit from gold’s safety and security.
March 13th, 2010
posted in Gold Investment
I recently read that 8/10 millionaires made their millions through real estate. Whether this statistic is entirely true or not, I dont know. However, what I do know is that A LOT of people have made their millions from property. In fact, I would even go so far as saying that more millionaires are created from investing in property than any other industry.
If you are interested in obtaining a good passive income, then I would definitely recommend you consider property as one of your strategies for wealth creation.
But be warned, property investing is not a short term get rich quick scheme. Done properly and with guidance, you will gain:
-Amazing capital growth your portfolio will increase by 100,000 pounds a year.
-Great cash flow: you will obtain an amazing monthly passive income.
-A legacy to pass down to future generations.
If you are seriously considering property investment as a career choice, please note that you need to look at it as more than just a hobby. In other words, you need be put some effort in for it to work. If you do only look at property as a hobby, you will only ever achieve hobby profits. Your dreams of earning millions from property will remain just that – dreams!
Property investment, like any business, is a serious business and you need to start investing with the right attitude. Working just one day a week on this business is simply not enough especially when youre starting out. Ive known a lot of people who have started investing in property only to fail miserably purely because they expected too much in too short a time.
So how do you become a serious property investor? Simple.
As a minimum, you need the following three traits to succeed
1.Knowledge
This can be obtained from mentors, books and seminars. To do well in any business, you dont just need specialised knowledge but will also need to develop yourself personally.
I would encourage you to attend personal development events to help you to move forward quickly.
2.Personal Motivation
You need to be motivated to do well any aspect of your life. A lot of people fail because they give up too soon! They try one or two techniques recommended to them, find they dont work and decide property investment doesnt work!
Model yourself on a successful property investor that you know. Keep going and dont give up.
3.A Team
To do well in property investment by your self is almost impossible. All successful property investors that I know have built a team of clever people around them. You need to do this also.
As a minimum you need access to good solicitors, accountants, financiers, builders, other property investors and finders. Become a prolific networker, show people that you are a doer and expect results in your business and allow like minded people to join you in helping you to grow your business.
March 13th, 2010
posted in Property Investment
Bill Gates probably doesn’t invest in mutual funds (funds), maybe because most of his money is tied up in Microsoft stock. Warren Buffet made his billions by managing investments, so he does not need their help, either. But, if you have money to invest and don’t really know how to invest and manage an investment portfolio, you should consider investing in mutual funds. Millions of average investors do.
Keep in mind that mutual funds are designed for folks who want professional investment management at a moderate cost. These are not short-term investments, but rather are for people with longer-term investment horizons. Once you have cash reserves in the bank for short term needs like emergencies, you are ready to invest.
Should you invest in mutual funds? If one or more of the following apply to you, you probably should.
If you want to accumulate a nest egg for retirement, give these investment packages consideration. For example, if you have a typical 401k plan at work, most of the investment options available to you are mutual funds.
If you decide to open a traditional IRA or Roth IRA, consider going with a major mutual fund family. This will give you a wide array of investment options, from safe and conservative to aggressive and growth oriented.
If you want to start slow and learn how to invest as you go, you should invest in mutual funds. For example, you can set things up so that $100 a month automatically flows from your checking account to a couple of mutual funds within a fund family.
If you want to invest in stocks and/or bonds, but don’t know how to invest in them, join the crowd and do it the sensible and easy way with funds.
If you have a lump sum of money to invest from a retirement plan, a CD that matured or from an inheritance, look no further. For example, if you leave your job where you had money in a 401k, you can move it and avoid taxes and penalties with a direct rollover to a mutual fund family.
If you are retired and want to earn a higher return with relative safety, try bond funds in addition to money market funds. When you want to receive a monthly income, they will send you the amount you specify.
If you want an investment in real estate, oil & gas, or gold the easy way, invest in mutual funds and let them deal with the details.
It doesn’t matter if you are young or old, rich or of modest means, conservative or aggressive as an investor. You need an investment portfolio that contains a variety of investment types. Unless you really know how to invest and can manage your own stocks, bonds, and money market securities…you should invest in mutual funds.
Finally, if you don’t know much about investing…you’re probably a red-blooded American. As a financial planner I worked with folks from all walks of life. Few knew how to invest on their own, so I often recommended mutual funds.
March 12th, 2010
posted in Investment News
Recently, I met the owner of a well-known precious metals web site and I popped this question to him: “What do you think about investing in silver?” His reply was both profound and accurate. “David,” he said, “The smart money is moving into gold, but the SMARTEST money is moving into silver!”Investing in silver is a great way to make money, especially if you are looking to secure your future or your retirement. But of course, just like any type of investing, there are no guarantees. You need to know what you are doing and what the silver market is all about before you can get too involved. This is the only way to make sure that you give yourself every possible advantage to benefit from silver investing. That’s the ONE and ONLY reason that I am here today. I want to share with you some tips that will give you direction when you start investing in silver so you can make the most money possible.7 Getting Started in Silver Investing Tips That Will Make You More Money1. Take a close look at the market before you decide that silver investing is right for you. Investing is silver is different than investing in stocks and bonds. 2. Educate yourself. If you are not sure how investing in silver works, touch base with a professional who can help you with the buying and selling process. 3. Complete effective online research. Be careful of the information you find. There’s so much information online about silver investing, but a lot of it is misinformation. You want to learn from experts who are in the trenches tracking the silver market and making investments every day. For example, the information that you will find on http://www.silver-investor.com is based on my experiences and knowledge from following the silver market daily for more than thirty years. 4. Get familiar with the many different ways that you can invest in silver. You can invest in silver mining companies, silver ETFs, silver futures, silver bullion and silver coins. The sure-fire way to invest in silver without the worry is to invest in bullion or coins. This is the place to start– real metal for your future. You don’t have to pay for a mining company’s energy costs. And you don’t have to buy 1000 to 5000 ounces in a futures contract that carries too much risk for a beginning silver investor.5. If you are looking to invest in silver coins and silver bars then you need to know this trick — Find sellers who are actually selling as near the spot price of silver as possible (spot plus a reasonable fee). A general rule is that the more silver you are buying the less percentage of fees you should be expected to pay. When buying coins to invest in their silver content be certain you are not buying coins for their numismatic value (the value to a collector of rare coins).6. Before you invest in silver, make sure you calculate how much you can invest between your IRA rollover funds, cash on hand and other assets that you wish to turn into silver. Be sure to keep your emergency fund mostly in cash for unforeseen expenses. You don’t want to bite off (invest) more than you can chew (afford).7. Stay on top of the market. There are times to buy. And, there are times to sell. Yes, at some point, it may be better to sell some or perhaps even all of your silver holdings for currency, depending on the bull market and your personal investment goals. But the only way you know when to buy or sell is if you have current silver market investing information at your fingertips.Here’s a Bonus Silver Investing Tip For You…Get started now. The time to invest in silver is today! What are you waiting for?Put my tips into action and start investing in silver right away.
March 10th, 2010
posted in Investment News
Dubai- “PEARL OF THE GULF” – is one of the most forward thinking and open places in the entire Middle East. Dubai Investment property sector hugely encourages foreign investors and immigrants. With its lavish developments and sounds ready for anyone to indulge them in, Dubai investment property is certainly looking out for provides a vibrant cosmopolitan environment that fosters growth and appalling capital gains.
The current population of Dubai is 1.5 million (2007) and tourism figures is 5 million. There is no corporate tax; no income tax; no capital gains tax; no foreign exchange controls, trade barriers or quotas; and no restriction on capital repatriation. Consequently it is estimated that by 2012, the population will grow to 12 million and the number of tourists visiting Dubai will be in excess of 5 million. Modest predictions for capital growth are 15% per annum, but we have seen value appreciations in excess of this. Residential yields are coming in at 15% per year also, while commercial rental income is in excess of 20%. So underlying data is sound enough to produce high returns from property investment in Dubai which is safe place for investment; having a good trend of capital gains at the time.
Dubai looks set to increase in both financial clout and influence in coming years, and the forward-thinking nature of the emirate is testament to the success it has. With many specific free zones already set up for Dubai property investment Dubai Internet City and Dubai Media City, Emirates Hill, Sports City, for example, and more planned, things are certainly looking up. Many major worldwide companies have headquarters in the emirate, including Microsoft and IBM, this alone should convince anyone that the region has some solid economic ground to stand on. Dubai property investment is big business in the region, and prices are currently surprisingly low. Now is the time to invest in property in Dubai and those that can afford it really should look into it, Dubai is essentially a purpose-built playground for the rich, and home to the fastest growing city in the world.
More and more people are adding Dubai investment properties to their property portfolios and historically these purchases have provided excellent returns for many people in many countries. This interest in Dubai property investment has been partly fuelled in recent years by capital growth, high residential yield, excess in commercial rental income, and the increasing scope and affordability of international travel. Just invest and then sit back and watch the value of your investment grow!
March 10th, 2010
posted in Property Investment
If you have been looking for a way to enhance your gold investment, the US Government has authorized the creation of a new one-ounce $50 gold coin. The new gold bullion coin will be added to the list of gold bullion coins already being produced by the US Mint.
The new fine gold Indian Head Buffalo coin will be sold in a protective capsule to provide the maximum protection available for a .9999 fine gold coin. This capsule will be different from the protection provided for proof coins. Another change to the system is that the Indian Head Buffalo coin will be individually protected. Previous protection has been to put twenty coins in a tube and seal them.
The American Gold Eagle is currently the best selling gold bullion coin but the new Indian Head Buffalo coin is a purer coin. The Eagle is 22-karat and the Buffalo coin will be 24-karat. The Canadian Maple Leaf is currently the world’s best selling pure gold coin. The Mint is hoping to capture more of the pure gold market.
In 2001, the US Mint produced the Indian Head Buffalo $1 silver coin and it was very popular. The Mint hopes the new Buffalo fine gold coin will do as well. No limit has been placed on the production of the new Buffalo coin and the US Mint hopes it will become a choice of gold collectors around the world.
As gold prices continue to rise and more investors from China and other Asian countries continue to look for fine gold coins to invest in, fine gold looks to be a stable investment that no one should ignore. Gold coin investors are excited about the new issue and the US Mint is hopeful that it will be able to secure more of the foreign gold market share.
March 10th, 2010
posted in Gold Investment
Gold has been a solid and secure mean of investment for millennia. The power to purchase anything, anywhere in the world is an invaluable benefit of owning gold. It maintains its value through times of economic downturn, and is essentially wear-less over time when compared to other forms of currency (namely paper). Since the beginning of society gold has been a powerful trading tool that fascinates its holders. Majestic, innocent, and unique; Gold will forever be marked as a diverse investment.
Among the most reliable forms of gold investments are gold bars and gold bullions. These chunks of solid gold vary in size and purity, ranging from 10oz. .995 gold bullion bars to .9999 kilo bars. Refiners will mark their gold bars and bullion with levels of purity and weight. Also available are various coins usually in fractions of 1, 0.5, 0.25, and 0.1 Troy ounces. 31.104 grams is equivalent to one troy ounce.
When it comes time to sell your gold back into the market, it works just as any money market would. With prices willing to be paid actively marked on exchange charts that can be found with the click of a mouse. A pro of invest in gold is that it maintains near full value when being exchanged between governments or when it’s taken outside of the country it was issued.
Another logical option would be keeping your money in gold. An alternative to banking and a sound, secure way of doing it. Just as gold will always be in demand, so will your ability to cash in your stock. Since the trading price of gold varies, you can pick and choose the right time to sell gold. A benefit of this is the fact you don’t have to rely on businesses (banks) to store your wealth. A Con however, is safely storing your gold.
The price of gold as of today is about $950 U.S. dollars/Toz., a strong selling point for the precious metal.
March 9th, 2010
posted in Gold Investment
Over the years property investment has been seen by many as an attractive venture. This has in the main been due to its high income yield and the fact that it performs well during periods of stable economic growth. With the last 15 years providing an extremely stable economy, many people interested in property investment in the UK are holding back due to fears that they could lose money should this period of economic stability end. Below we look at reasons why despite the risks, property investment could be the right way forward for you.
Property Investment for the Long-Term.
Generally speaking property investment gives you access to two main benefits: capital growth and tax advantages. Capital growth is the money you will make as the value of your property increases. Experts claim that property investment which is undertaken with a long term viewpoint is unlikely to lose money regardless of any changes in economic circumstances due to capital growth. This is because if you look at the long term history of property prices they have overall continued to increase. The house that you bought will have cost more than the same sized house that your parents bought thirty years ago. This means that as long you are never in absolute need to sell the property you can choose to sell the property at the right time to make you the most amount of profit.
Property Investment Portfolio.
One way to make property investment an even more secure type of investment would be to buy several properties in a range of countries. This would mean that even if the property market was struggling in the UK you would be able to get your financial security from the property you have elsewhere. If you are concerned about the costs involved in doing this then it is worth considering buying a property in a country which falls under the up and coming category. This would include countries which have recently entered the EU or are set to enter the EU. The property prices in these countries are as such that purchase of the property is certainly worthwhile.
If you are interested in finding out more about some of the benefits property investment can bring then it is always advisable to get in contact with a specialist who will be able to give you impartial advice.
March 8th, 2010
posted in Property Investment
The financial crisis facing the world today continues to grow. More companies are going bankrupt, banks are failing, real estate values are dropping, and the government has to take over failing financial institutions. All of these events are beginning to concern the US government. The country’s ability to maintain national defense is being examined.
One natural resource that has maintained its value for thousands of years is gold. As the number of financial institutions that fail rises, people are investing in gold. Gold is a long-term investment that has proven reliable for a great number of years. The US Government is considering plans to begin stockpiling gold reserves to help stabilize the value of the dollar.
Secretary of the Treasury is concerned that the current economic crisis will rival the problems that the Great Depression caused. Congress has been warned that the crisis will not go away quickly without government intervention. Economists are warning this could be the worst financial crisis the world has ever known.
Consumers continue to lose faith in the financial markets and many are exploring other options such as putting their savings into gold assets. Investors are pulling their money in droves and looking for investments that have little or no risk. Treasuries and gold are two assets that have not been affected by the selling panic. Gold bullion and coins have increased in value for the last two years.
Defensive Assets are important to the country’s ability to maintain its defense. The US has increased the amount of precious metals that are being maintained for the Defensive Asset. Although it includes metals such as silver, platinum, and palladium, gold has outperformed the rest. The other metals prices are more tied to industrial productions.
The US Government is buying gold and this too will increase the value if gold. Gold investing is certainly a great idea for investing in these troubling economic times. The US plans to keep increasing the Defensive Assets to ensure the country can protect its shores.
March 6th, 2010
posted in Gold Investment
Different sources define value investing differently. Some say value investing is the investment philosophy that favors the purchase of stocks that are currently selling at low price-to-book ratios and have high dividend yields. Others say value investing is all about buying stocks with low P/E ratios. You will even sometimes hear that value investing has more to do with the balance sheet than the income statement.
In his 1992 letter to Berkshire Hathaway shareholders, Warren Buffet wrote:
“We think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value – in the hope that it can soon be sold for a still-higher price – should be labeled speculation (which is neither illegal, immoral nor – in our view – financially fattening).”
“Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.” Buffett’s definition of “investing” is the best definition of value investing there is. Value investing is purchasing a stock for less than its calculated value.
Tenets of Value Investing
1) Each share of stock is an ownership interest in the underlying business. A stock is not simply a piece of paper that can be sold at a higher price on some future date. Stocks represent more than just the right to receive future cash distributions from the business. Economically, each share is an undivided interest in all corporate assets (both tangible and intangible) – and ought to be valued as such.
2) A stock has an intrinsic value. A stock’s intrinsic value is derived from the economic value of the underlying business.
3) The stock market is inefficient. Value investors do not subscribe to the Efficient Market Hypothesis. They believe shares frequently trade hands at prices above or below their intrinsic values. Occasionally, the difference between the market price of a share and the intrinsic value of that share is wide enough to permit profitable investments. Benjamin Graham, the father of value investing, explained the stock market’s inefficiency by employing a metaphor. His Mr. Market metaphor is still referenced by value investors today:
“Imagine that in some private business you own a small share that cost you $1,000. One of your partners, named Mr. Market, is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or sell you an additional interest on that basis. Sometimes his idea of value appears plausible and justified by business developments and prospects as you know them. Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly.”
4) Investing is most intelligent when it is most businesslike. This is a quote from Benjamin Graham’s “The Intelligent Investor”. Warren Buffett believes it is the single most important investing lesson he was ever taught. Investors ought to treat investing with the seriousness and studiousness they treat their chosen profession. An investor should treat the shares he buys and sells as a shopkeeper would treat the merchandise he deals in. He must not make commitments where his knowledge of the “merchandise” is inadequate. Furthermore, he must not engage in any investment operation unless “a reliable calculation shows that it has a fair chance to yield a reasonable profit”.
5) A true investment requires a margin of safety. A margin of safety may be provided by a firm’s working capital position, past earnings performance, land assets, economic goodwill, or (most commonly) a combination of some or all of the above. The margin of safety is manifested in the difference between the quoted price and the intrinsic value of the business. It absorbs all the damage caused by the investor’s inevitable miscalculations. For this reason, the margin of safety must be as wide as we humans are stupid (which is to say it ought to be a veritable chasm). Buying dollar bills for ninety-five cents only works if you know what you’re doing; buying dollar bills for forty-five cents is likely to prove profitable even for mere mortals like us.
What Value Investing Is Not
Value investing is purchasing a stock for less than its calculated value. Surprisingly, this fact alone separates value investing from most other investment philosophies.
True (long-term) growth investors such as Phil Fisher focus solely on the value of the business. They do not concern themselves with the price paid, because they only wish to buy shares in businesses that are truly extraordinary. They believe that the phenomenal growth such businesses will experience over a great many years will allow them to benefit from the wonders of compounding. If the business’ value compounds fast enough, and the stock is held long enough, even a seemingly lofty price will eventually be justified.
Some so-called value investors do consider relative prices. They make decisions based on how the market is valuing other public companies in the same industry and how the market is valuing each dollar of earnings present in all businesses. In other words, they may choose to purchase a stock simply because it appears cheap relative to its peers, or because it is trading at a lower P/E ratio than the general market, even though the P/E ratio may not appear particularly low in absolute or historical terms. Should such an approach be called value investing? I don’t think so. It may be a perfectly valid investment philosophy, but it is a different investment philosophy.
Value investing requires the calculation of an intrinsic value that is independent of the market price. Techniques that are supported solely (or primarily) on an empirical basis are not part of value investing. The tenets set out by Graham and expanded by others (such as Warren Buffett) form the foundation of a logical edifice.
Although there may be empirical support for techniques within value investing, Graham founded a school of thought that is highly logical. Correct reasoning is stressed over verifiable hypotheses; and causal relationships are stressed over correlative relationships. Value investing may be quantitative; but, it is arithmetically quantitative.
There is a clear (and pervasive) distinction between quantitative fields of study that employ calculus and quantitative fields of study that remain purely arithmetical. Value investing treats security analysis as a purely arithmetical field of study. Graham and Buffett were both known for having stronger natural mathematical abilities than most security analysts, and yet both men stated that the use of higher math in security analysis was a mistake. True value investing requires no more than basic math skills.
Contrarian investing is sometimes thought of as a value investing sect. In practice, those who call themselves value investors and those who call themselves contrarian investors tend to buy very similar stocks.
Let’s consider the case of David Dreman, author of “The Contrarian Investor”. David Dreman is known as a contrarian investor. In his case, it is an appropriate label, because of his keen interest in behavioral finance. However, in most cases, the line separating the value investor from the contrarian investor is fuzzy at best. Dreman’s contrarian investing strategies are derived from three measures: price to earnings, price to cash flow, and price to book value. These same measures are closely associated with value investing and especially so-called Graham and Dodd investing (a form of value investing named for Benjamin Graham and David Dodd, the co-authors of “Security Analysis”).
Conclusions
Ultimately, value investing can only be defined as paying less for a stock than its calculated value, where the method used to calculate the value of the stock is truly independent of the stock market. Where the intrinsic value is calculated using an analysis of discounted future cash flows or of asset values, the resulting intrinsic value estimate is independent of the stock market. But, a strategy that is based on simply buying stocks that trade at low price-to-earnings, price-to-book, and price-to-cash flow multiples relative to other stocks is not value investing. Of course, these very strategies have proven quite effective in the past, and will likely continue to work well in the future.
The magic formula devised by Joel Greenblatt is an example of one such effective technique that will often result in portfolios that resemble those constructed by true value investors. However, Joel Greenblatt’s magic formula does not attempt to calculate the value of the stocks purchased.
So, while the magic formula may be effective, it isn’t true value investing. Joel Greenblatt is himself a value investor, because he does calculate the intrinsic value of the stocks he buys. Greenblatt wrote “The Little Book That Beats The Market” for an audience of investors that lacked either the ability or the inclination to value businesses.
You can not be a value investor unless you are willing to calculate business values. To be a value investor, you don’t have to value the business precisely – but, you do have to value the business.
March 6th, 2010
posted in Investment News
At Key Universal, we conduct a painstaking examination of each development we offer, from the financial status of the backer to the reputation of the builders, whether it’s a UK or overseas property investment. Our thoroughness has earned us a well-deserved reputation as a hands-on overseas property investment company; a reputation that we are justifiably proud of and will always seek to maintain. This reputation has also stood us in good stead when it comes to achieving ‘buying power’ and gives us the ability to negotiate very favourable terms on behalf of our clients.Although we are based in the UK and deal with many developments in this country, we are also an overseas property investment company, specialising in international property investment.Our team of professionals is constantly reviewing any regions that might be prime locations for overseas property investment, thoroughly checking the demographic, economics and local property markets of each country we consider to have potential.International property investment can take many forms, from prime-located plots of land to stunning off-plan apartments; we have also added a Major Acquisitions section to our website, which gives details of overseas property investment developments that are certain to pull premium revenue.We also offer opportunities for investors who wish to achieve the developer’s profit by investing in developments at ground-level stages. Using this program, we can ensure that land titles and properties can remain in the individual names of a group of investors who buy exclusive land and achieve planning application. Browse our website for more details of our services or contact us now to talk to one of our investment advisors.
March 6th, 2010
posted in Property Investment
I had always been one to invest at least 25% of my income for the future. I had learned this lesson from my dad. During recent times, while many of my friends were complaining about how bad things were, I was doing okay. I had always made it a policy to hedge part of my investments with precious gold bullion.
I had begun to invest in gold when I was still in college after hearing how my grandfather had been able to provide for his family during the Great Depression. When paper money became as worthless as toilet paper, my grandfather was able to keep food on the table because of his gold investments. While even gold prices were affected, they were still high enough so that he could provide for the family until the depression ended.
I decided to do the same as my grandfather and father and kept money in gold for my family’s protection. I did not advertise that I was not in as bad a shape as most of my friends because I didn’t want them to get upset or think I was flaunting my financial choices. One friend in particular was about to lose his home and I decided to intervene.
I sold some of my gold and lent him the money to stop foreclosure on his home. When he asked me how I could help him, I explained what I had done by investing in gold. He was so thankful and he immediately began to do the same as I had. He purchased a small amount of gold and set aside money so he could continue to do so.
Today, he has more than paid me back and I am gratified to see that he is well on his way to becoming financially stable through his stable investment in gold.
March 4th, 2010
posted in Gold Investment
The definition of an investment club is simple: a group of people who share an interest in the stock market pooling their resources into one large investment. Defining how an investment club works is more complicated.
In most cases the investment club will be registered as a partnership and the members of the club will make decisions together on what stocks they consider to be a good investment risk.
The majority of the time the investment decisions will be made after some research has been done regarding the stock that is under consideration. This will be discussed at length further in this book.
An important feature of an investment club is that the members are there to have fun as they invest their money and learn about the stock market. Making a profit isn’t the only goal of the club and members are encouraged to have fun as they invest their money.
An investment club isn’t for those people who are looking for a fast way to make some easy money. People who want a quick turn around are discouraged from joining an investment group and investing on their own.
A main feature of the investment group is to start to learn how to invest your money and to invest for a long term rather than a short one.
There are several things that you should keep in mind if you are thinking about starting an investment club or have in interest in joining one that already exists.
Make sure that you understand all the reasons why you should start an investment group and the requirements needed to be successful as a group. The following is a list of important ideas and information that you should consider before starting your club:
Starting your own investment club will be a pleasurable, and perhaps profitable, way to spend time with other people that share the same investment passion that you do.
You’ll be able to learn about the stock market in a safe and secure environment with other people that understand your fascination with the stock market.
March 3rd, 2010
posted in Investment News
Overseas property investment can be the road to riches or the road to ruin depending on how you invest.
If you follow the 4 tips below you will be able to enjoy the minority of big winners in overseas property investment so here they are.
1. Buy the trend
This is perhaps the biggest error made by newcomers to overseas property investment.
They don’t want to buy an established market they want to buy the new property “hot spot”
Why?
Because it’s cheaper and they think the rewards are higher. The downside of course is the risk is high to and most new property “hot spots” never take off and the investor is left with losses and a property he can’t sell.
Buy a trend in motion i.e. where investors are already investing and making money.
The reason for this is:
You have missed the start of the move and maybe some profit, but that doesn’t mean there is more to come and more importantly the downside risk is less.
Property trends last decades or longer and once their in motion they suck more money in ensuring higher prices.
Consider a favourite of US investors Cost Rica:
A property purchased 15 years ago near the popular resort of Jaco for $30,000, is worth as much as $750,000 today!
Is this move over?
Consider this and decide:
Beach front property is still up to 70% less than in the USA AND with demand for ocean view strong growth will continue.
This type of market not only offers great rewards but l0w risk, also as it’s popular you can pick up extra rental income as a bonus.
So 30 -100% profit is available without the risk investing in emerging markets.
Most investors want big gains but also want low risk and that’s what an established market gives you.
2. Location
Whatever market you buy in you need to get a good location. For example in Costa Rica you would look for the expanding resorts rather than the established ones to maximize your risk reward.
3. Look at the law
Many people invest in countries and have no idea of the law and find out later that they don’t have the same rights as residents or that their property can be seized by the government etc
Don’t take the risk. Only do overseas property investment in countries that offer you protection and get a local attorney if you can’t speak the language, its money well spent.
4. Make up your own mind
Don’t fall for sales hype like huge profits in a new emerging market – If it looks to good to be true it probably is.
With overseas property investment stick with established trends that look likely to continue.
Make sure that you pick locations carefully near expanding areas to maximize risk reward and get a good attorney; it’s a small price to pay and stick to countries where the law gives you the same rights as residents.
It’s all about risk reward
Of course you can be a pioneer and go for a killing in a new emerging market, but keep in mind many pioneers got rich, but most got the arrows!
You don’t need to be clever to make 30 – 100% annual gains in overseas property investment, you can do it by following the above and more importantly with low risk,
March 3rd, 2010
posted in Property Investment
Would you join a safe stock market investment club where you met regularly with friends to have a good time, learn something, and hopefully make some money? If you said yes to that statement, you might want to consider joining, or starting your own, investment club.
An investment club is simply a group of people who share an interest in the stock market pooling their resources into one large investment. Investment clubs are long-term commitments. They are a wonderful way to get to know the stock market, have a good time, and, over time, make some money. But making money should not be the primary reason to join an investment club – since investing is always, even in a shared setting, a risky venture.
Generally, an investment club has between 10 and 40 members, though many seem to settle around 16 as a good number. Decisions on investing are made democratically, either in a one person, one vote fashion; or with weighted votes, where each person`s voting strength is determined by the amount they have invested in the safe stock market investment club. Safe Stock Market Investment Clubs can be partnerships, or corporations, though partnerships are more common. They can meet monthly, or twice monthly. They set up different committees, they research stocks in different ways, they each have their own investment goals.
Investment clubs are as individual as the investors that make them up. What they have in common is a desire to get to know the ins and outs of the stock market. To come together with like-minded people to realize more from your investment capital, over the long-term, and to enjoy yourself while you are doing it.
Enjoyment is a key part of an investment club. If you`re not having fun while you are participating in the safe stock market investment club, it`s probably not the safe stock market investment club for you. And it should go without saying that if you are looking to make a quick profit, an investment club is not the place to be.
Unfortunately, it`s often difficult to join an established investment club. Many of them have been operating for years, even decades, with the same members and they aren`t likely to grow. Which leaves many hopeful club members with the option of starting their own safe stock market investment club. This is a great option, but it should be considered carefully. Make sure that you fully understand what needs to happen for your safe stock market investment club to be successful, and be sure you are starting for the right reasons. Here are a few points you might want to consider:
.
Are you being realistic?
If you`re starting an investment club to make a large profit in the stock market, you`ll likely become very disappointed. The goal of an investment club is to learn more about the stock market, and to have fun. If you have dreams of becoming rich you`ll be starting the safe stock market investment club for the wrong reasons. Remember, joining an investment club means joining for a long period of time.
Are you willing to be an amateur?
Starting an investment club won`t make you an expert in the stock market overnight. In fact, an investment club is ideal for a group of amateurs who want to learn about how the stock market works and what it can do for them. An investment club is a safe environment in which you can invest without the worry of losing a large amount of your hard earned dollars when something unexpected happens.
You can start with a little.
Don`t think that you need a lot of money to start an investment club. You can set a minimal fee for each month`s contribution that will fit into your budget. You can determine what that minimum monthly contribution should be when you have your first meeting of the investment club.
There is strength in numbers.
On your own you may not have enough money to invest in the stock market in a way that will let you realize a reasonable profit. However, when you combine your investment dollars with the dollars of others in the safe stock market investment club you`ll have a significant amount of money to invest in the stocks that you think may be successful. Keep in mind that just as there is strength in numbers there is also a shared sense of security when you`re not investing alone.
Do you like democracy?
One thing that you should keep in mind is that your voice will be part of the larger group and you may not always get your way. If you`re unable to sit back when you`ve been outvoted on a favourite stock, and let another investment choice be made, then an investment club might not be for you.
Can you be satisfied with a learning experience?
You should be prepared to never realize a profit from the stock market. One of the key parts of an investment club is the benefit of studying the stock market with other people with the same interests as yourself. If you never make a penny you should still be happy with your participation as part of an investment group.
Investment clubs are great ways to get to know the stock market in a safe, supportive, and fun environment. Starting your own investment club will make sure that you have a safe stock market investment club that will closely reflect your interests, though there will be compromises in any group setting. Friends, fun, a chance to study something you are keenly interested in, and a chance to make money. An investment club can be the best of all worlds.
March 2nd, 2010
posted in Investment News
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