Category Archives: Investments

Investing in the troubled property

Buying a troubled property is going to be the next big thing in the realty market. Two of the most popular type of such troubled property includes the Foreclosures and The Real estate owned houses.

Profits in such investments are not overnight. Investing in troubled or distressed properties is for investors who can hold on to the property for long periods of time or for those who are into realty flipping strategies. In order to be successful in this type on investing you must locate a property where the mortgage can be covered by the rental income from the same property. Such cash flow arrangements can be achieved by renting out for long term to families or short term lending of the property for vacation rentals and tourists or individuals in transit or companies who would like to own guest houses for their visiting executives.

A little know trade secret is to purchase properties from big time real investors who are into the sale and purchase of bank portfolios. Portfolio purchases are generally are priced lower than the combined market value of all the properties in the portfolio. This helps you in securing a good lower than market value asset from the main purchaser since he has nothing to lose. It’s a kind of win – win situation for both of you.

There is no doubt that money can be made by investing in such troubled properties. But there is no quick and easy solution. Market suggests holding onto the property for a period of around 8-12 years in order to triple or quadruple your profits.

What are fast cycle investments?

Fast cycle investment is the fast turnaround, quick buck method of investing. A fast cycle investment profits from speediness of proceeds which adds high-momentum to the investment maturity.

An investor puts in money on something that can fetch a quick profit, perhaps in a weekly investment or so. These are times of economic slowdown. Recession is rearing its ugly head.

For these times, a fast cycle investment in gold and silver becomes even more profitable. A currency slump largely means increase in price of non-liquid assets. Gold and silver climb the commodity graph. At any rate, they do not fall. So you will either make profit or you will remain neutral.

It’s an easy mode of operation. Buy gold and silver and look to sell them when the prices are at a premium. Knowledge about potential buyable point is important. Also important is trading through both the centralized and decentralized exchanges.

Online Loans How Useful Are They (Part 3)

Online loans offer you a chance to repair your credit rankings. Normally, when you apply for a loan at your local banker, he will check your credit ranking. If the credit ranking is poor, he will never approve your application for the loan. But owing to the competition among the moneylenders on the internet, you can make good use of the different schemes available with them.

Log on to the internet and check the moneylenders’ websites. You will find a scheme for each purpose. You can see that you can avail a loan even if you carry a bad credit. If you want to repair your credit score, you may take a small loan from these lenders.

After taking the loan, make sure you pay the monthly installments on time. Once the loan is repaid successfully, you can see your credit ranking climbing up. If you repeat this few times, you can clear off the bad credit mark from your credit rankings. Of course, you will have to pay some interest. But remember, everything comes at a cost. This method is better than bribing the authorities of credit ranking entities.

Select the investment for you

You might find it difficult to make a selection between a diversified and concentrated portfolio when selecting the category of fund you are looking for.

A diversified port folio will help you to have your investment spread across various segments and sectors of the market. Even if one or more of the stocks are not performing well, your portfolio will not be affected too badly on the whole. So this will be better for those who are looking for steady benefits.

You will lose a large portion of your portfolio when you are facing a market down time in a concentrated portfolio.

Invest in stocks wisely

You might have heard about stock markets and the chances of success through those markets in an easy manner. Handling stocks and stock markets is not an easy task that can be performed easily. You should understand the concept of stock and the stock market in its right manner to have profit from it.

Learn to time the stock market well before making transactions with it. Try to make investments for a long period so that you will be able to make good returns out of it. Select the stock that you require for investments and only sell the stock when it is in great demand.

The benefits of off shore banking

Indulging in offshore banking is a matter that must be discussed with your financial advisors and if possible also with your lawyer. The degree of consultation would depend upon the individual circumstances and the primary reasons for getting into offshore banking transactions.

Advantages of offshore banking

There are many advantages of having offshore accounts. Many offshore banks offer similar services to that of your domestic banking services. Apart from your regular savings and/or current accounts you might also been give an international debit/credit card for withdrawal of funds. Some banks also offer mortgage loans from your offshore account.

Since regulations in offshore banking are different from domestic banks, the interest rate on your borrowings is also much more competitive than say in United States. Due to lower overheads and intense competition to secure business for the offshore banks are also able to offer better deposit rates.

Company benefits from offshore banking.

Many of the large US based organizations are taking advantage of the benefits associated with off shore banking. Companies are accorded equal rights to privacy as any other individual account holder. On the second hand these companies are also able to finance their operations at a better and competitive rate than they would have been able to do so had they kept sacrosanct domestic banking.

One of the great features on offshore banking is the privacy and anonymity associated with it. This feature may not necessarily help in reducing your tax commitments, but it does help in guarding the investment privacies and shelter your financials from being investigated by the competitors.

QROPS is the another advantage of offshore banking where you can transfer your pension funds and manage your funds more freely.

Take time researching your needs and do consult your financial advisors before taking the plunge.

The basis of dividend payouts

When we treat dividend policy as strictly a financing decision, the payment of cash dividends is a passive residual. The percentage of earnings paid out as dividends will fluctuate from period to period in keeping with fluctuations in the amount of acceptable investment opportunities available to the firm.

If these opportunities are abound, the percentage of earnings paid out is likely going to be zero. On the other hand of the spectrum, if the firm is unable to find profitable investment opportunities, dividends paid out will be 100 percent of total earnings. For situation falling between the two ends of this spectrum the dividend payout ratio will be a fraction between zero and one.

Beating the market: Real estate investments

Investment in property is one of the most sought after tools in today financial market place. No other finance and investment tool offers the stability, simplicity and an excellent return as the real estate investment does. And if that investment is in a promising, emerging economy like that South Africa, it adds glitter to the gold. A very distinctive combination of highly developed infrastructure by the first world, availability of minerals and a strong intuitive entrepreneurial streak makes the South Africa Property listings an irresistible venue for investment.

What does this prominent emerging economy hold for the investors?

With 24% of world diamonds and 69% of platinum reserves along with a host of other minerals, the country promises to attract hordes of investments in times to come. With all these happening in the continent it is all but natural for more and more industrialization to take place over there.

Buying property expressly for investment purposes removes the emotional attachment to the property and thus it is looked purely as a vehicle of investment. You can let up your property on rent or on lease to the business companies. Utilizing the services of online portals you can lap up properties like opportunities online. Headings like real estate home for sale by owner should grab your attention. These new world online real estate companies have effectively blurted the geographical boundaries. They tie up at the local level with the property owners and developers and flash any property opportunity sale at their portals. Information on all available property is available on you mouse clicks along with graphical images. A lot of commercial property and South Africa Houses on sale can be found on these online portals. Tailor made customized solutions can be requested. That makes all your homework easy. The investment decision making is the only crucial aspect that must be executed by you. And all this technology is benefiting for both the sellers and the buyers. Once you have the property, your leasing, renting out or decisions on investment are also taken care of. Or simply if you already own your property there, just list them with these guys and analyze the bids. In other words, a business-to-customer and a business-to-business model in efficiently in place for the investors needs.

Do remember that there are many factors to be taken into considerations while planning for your real estate property investments and the capital growth projections do get influenced by a mix of local, national and international factors. Be prudent while investing.

The safe avenues for parking cash for the risk averse investors

Holding onto cash reserves beyond a limit is criminal. It is such a waste of time value of money that I cannot help it but call it criminal. The objective for holding cash is something that should be clearly defined and put in black and white on your financial planner. The point up to which the cash shall be held and the amount of reserves must also be pre decided and planned for better financial control.

There would be times when you might be have sudden unexpected cash inflows and you might start wondering what to do with it except for stuffing it into your cash coffers.

Here’s a list of probable financial avenues where you can stash your cash for different periods of time with lower degrees of financial risk:

Traditional Saving account

You can drive to you local bank and put up your cash in their safe custody (your savings account with the bank). Such saving accounts carry a negligible risk and the rate of interest that you would earn out of them would also be low.

But be sure to check if they are above the inflation rate so that your money grows effectively. The real rate must be high. Some sites like the dailybanker.com can help you out in such matters. The cash can be parked for as long as you want. There are no minimum or maximum numbers of days.

Certificate of Deposit

Another financial instrument for parking your money temporarily is the by a commercial bank. It comes with a pre decided lock in period and cash cannot be withdrawn or availed till the maturity of the instrument. A certificate of deposit carries a maturity date and a fixed rate of interest. It can be issued in any denominations – however the minimum benchmark is around $5000 for most of the banks.

The greater is the principal amount, the higher would be the interest rate. The same logic is for the time period. The greater the time period the higher is the interest rate. This is because of the risk-return relationship. The certificate of deposits is generally insured by the Federal finance agencies.

Money market instruments

The rates of interest are lower than that of savings account or the certificate of deposits. The deposits into the money market accounts are invested into treasury bills, certificates of deposit and other safe and secured financial instruments. The money market account at dailybanker.com operates similarly to that of a mutual fund where funds can be parked and withdrawn at will. However many of the financial institutions have some kind of limitation with respect to withdrawal of funds from the money marker accounts; like limiting the number of transactions per month or having a cap on the percentile withdrawal per week or a combination of both or some other techniques.