Month: December 2015

10 Top Property Investment Tips

Well, it may be a great idea if you read our property investment tips first! This market can be confusing, but I’m going to help you by providing you with some valuable advice.

Tip #1: One of the most important things is to find the right property. That’s right. It may sound obvious, but you would be surprised at how many people don’t take the time to do this…and then suffer the consequences later when you can’t rent it out!

Two-bedroom flats in the city are a good buy-to-let choice because they can be shared by more than one person. However, a three-bedroom terraced house is a great buy-to-let choice because it will often bring you the highest return on your investment in an area filled with students!

Tip #2: Always remember that you are buying buy-to-let property as an investment, NOT as your personal home. This means you shouldn’t look for a home just because you would like to own it yourself or start decorating it in your own personal style. Make your decision a business, rather than personal one so you can maximise your investment returns!

Tip #3: Make sure yourbuy-to-let property is located near a good transportation system! Renters usually place high importance on being able to access motorways or public transportation.

Are you ready for the next of my property investment tips?

Tip #4: Hire a mortgage broker who can help you find the right mortgage. I know how hard it can be to find the best investment option out of all the available buy-to-let mortgage deals so find a professional to help!

Tip #5: Remember to factor in costs such as legal fees, stamp duty, ongoing mortgage costs and decorating expenses. This will help you to establish a realistic budget. Too many investors forget about these expenses, and they don’t put money aside to pay for ongoing repairs and maintenance.

Are you getting the hang of this yet? The buy-to-let market isn’t as hard as it looks…

Tip #6: Hire a professional letting agent who can help you take care of all the important details. This individual can manage the property, collect the rent and vet and select suitable tenants. Just remember that a full management service may eat up as much as 17.5% of your annual rent!

Tip #7: Don’t forget to purchase proper insurance for your buy-to-let property. If you decide to rent out your previous residence, you’ll have to buy new insurance because your existing ones won’t be valid.

Here are a few more of my property investment tips…

Tip #8: Find out your legal obligations. For example, landlords must consider fire, safety and health issues and hire authorised professionals to perform annual gas checks.

Tip #9: Consult with a tax expert or accountant to determine what taxes you must pay. You will have to pay tax on any rental income received from your investment property, but you may also have to pay Capital Gains Tax. This depends on the length of time you have owned the property and your current tax status.

Just one more of my property investment tips to go…

Tip #10: Last but not least, don’t enter the buy-to-let investment market planning on making a ton of money quickly. There are many upfront costs and property values tend to rise over time. If you plan on remaining in the market for 5 to 10 years, you’ll usually make a lot more money!

 

Simple Mutual Fund Investing Tips

As we have all seen over the past few years, Wall Street has been a bit of a roller coaster ride. Traditionally, there have been longer term financial considerations for your money. Here are some mutual funds investing tips.

There are many areas for you to concern yourself with when it comes to your money. If you have a great deal of liquid finances, then stocks may be a fine place for you to invest. However, if you have a long term plan and we all should, then mutual funds are a safer and ultimately a stronger place to invest your money. But, just like everything else, there are good ones and bad ones, aggressive ones and conservative ones, so be sure to work with an agent to assure that you are getting the best return for your investment.

For long term investments, mutual funds will likely give you a strong return. Initial costs are a consideration, so be aware. The longer the term of your fund, the less the initial or upfront charge will be. The more conservative funds that you choose and hold for the longer term, your return will be better and managing costs will be easier. If you are a first time investor, or have limited money available for your investments, you obviously want as much of it as possible working for you.

One of the biggest challenges that first time investors have is called fund watching. You have committed money to your future and you watch your account everyday to see how much money you are making. This is a huge mistake for a variety of reasons. First of all, mutual funds always move slower. In other words, your $1000 may only be $1005 after the first month or two. This is certainly no cause for alarm. This is the place that you are looking for long term improvement. Secondly, mutual funds are generally not just one company stock. This is a group of companies that your fund manager has seen perform and can and should always show you the history of the fund. This way you can calculate what you money should look like in 10-20 years from now, which is when you will need it. Feel free to take a glance at your account every once in awhile to see that your money is working for you.

It is also recommended that you consistently add to your funds. Make it simple. Have a deduction program set up with your company payroll to deposit a preset amount into your funds. Your returns will always be better than any savings account at the bank and it many cases your return will be as high as ten to fifteen percent per year. If you have some extra money to invest, check your account, see which funds are doing the best and add money to them. It will grow and you will have more money when it is time for you to use it.

When choosing a company or a fund manager, it is your right to ask for his or her successes. They will have many charts and yearly reports on a variety of funds available. Do not get caught in trying to do their job for them. A good fund manager is someone that can show you success with funds for several years. It is not a good idea to invest in funds that are new or ones that have a bad track record. It is also smart to diversify your investments. In other words, have funds covering several areas of industry. During the time you own the funds, it is likely that each industry will have ups and downs, but overall mutual funds are a great way to plan for your future and if started early, will have you financially set for your retirement.

5 Important Real Estate Investment Tips

Real estate investing means purchase, ownership, management or rental/sale of real estate for profit. Many people find it difficult to invest. It requires a lot of cash. Are you interested in becoming a real estate investor? To become a successful investor you should be determined and flexible. There are a few tips that will help the prospective buyer to become a successful investor.

A investor should decide whether his investment goals are long term or short term. As the investor keeps paying the mortgage amount, his dues becomes less and his equity in the property increases which adds to the overall net worth. If an investor does a real estate investment for short term he can earn a decent profit. For example: If you have purchased a property for nearly $50,000 which needs some repair work to be done which costs nearly $10,000 and the selling costs total $5,000. Then the total cost would be $65,000. You sell the property for $85,000 after 6 months of purchase. You may have gained a net profit of nearly $20,000.

Good location also plays an important part while investing in a property. When you plan to buy or rent a property, the first thing that comes to mind is this is a place where someone is going to live. You can improve the property but can’t move the location. Try to choose a property in busy towns or cities rather than choosing in a country. There are more people in towns so there will be more demand for your property.

If you find foreclosure property or HUD repossessions then you get a good amount of profit from the property. If you want to find good places for bargains, take a look at local newspapers, courthouses and real estate investor websites that will enlist all types of properties. Before selecting a property, check whether the surrounding areas are well maintained. If the neighborhood is run down or there are many boarded up houses, it may not be a good bargain after all.

Take time to study the property. Take your time to become familiar with the property. Do a thorough analysis of the real estate before telling “yes”. If you find certain complications in the property then it would be better to say “no”.

Sharpen your negotiation skills. Find out terms that are used by agents and sellers. This will help you in knowing what the other person is telling and not get confused. An investor should have negotiation skills.

Secrets For Real Estate Investing Tips

Real estate investing is not as simple as you may think. In fact investing is a more time-consuming process. It requires finding the right property, managing the investment property properly and keeping good financial records. You can be successful as a investor only if have the time and interest to find good properties and keep track of your properties. You need to know some real estate investing tips in order to be safe and profitable.

Try to build a proper real estate network. If you have decided to try investments, then it is better to build the right team of people around you. This team may include investment professionals comprising an agent, a mortgage broker, a lawyer, an appraiser and an accountant. But ensure to choose only professionally experienced and talented investment professionals to guide you.

Get idea from close people who have investment experience. You can get suggestions from people who are close to you, such as your friends, colleagues, neighbors and relatives, who have real estate investment experience. Get an idea about their investment experience, from legal issues to tenant issues.

Pay attention to the market and do your own research. Try to research yourself to know the value of a property. You can also search Real estate investor websites with MLS listings to get an idea about the properties nearer to your area.

Make sure to accurately evaluate your property’s cash flow. Perform a cash flow analysis including your monthly revenues and expenses. Calculate your mortgage payments, insurance amounts and utility expenses. Allot some amount for repairs and maintenance. Get an idea of the sales price, construction cost and rental rates of properties in your locality. Based on the cash flow analysis, you can plan your investments.

Negotiate openly if you have decided to buy a real estate property. This may help to avoid wasting time in investment properties that are not within your budget. Try to find potentially-profitable properties and openly negotiate the best deals.

Be a safe investor. Ensure to make your real estate only after considering essential factors and deciding your investment strategy. Get suggestions and guidance from experienced and talented investment professionals or from Real estate investor websites before making a real estate investment. Only then you can make a safe investment.

Ensure to attract good tenants for your property. Avoid choosing problematic tenants in order to avoid unnecessary problems in future. Perform background check and credit check of the tenant applicants. Select only potential tenant whose background and credit checks give positive result. Once you have selected a tenant, ensure to clearly explain the lease terms to them, and make certain to obtain a sufficient security deposit. If your tenant is really good, ensure to make them happy by all means.