Property Investment: Being a Good Manager

Property investment is still a growing market. Now you’ve decided to join that market and you need money to help you with your investment. There are a number of methods of investment property finance but investment property loans tend to be the most popular.
You’ll find plenty of ideas ata good forum on how people survive in the property market and what might be the best way to go about investment property financing and then how to look after your investment.
Some people already have money of their own to invest in property and therefore don’t need to bother with investment property finance, but unless you’ve got a pocket full of money to spare it is highly likely that you will end up borrowing money. The property investment forum has lots of good advice about borrowing money. These are people who are in the property investment business and know what they are talking about.
Most investment property financing acts like a mortgage which allows you to buy a property when you don’t have the immediate funds to cover it. You need to be sure that the interest rate on your investment property financing is not so high that after you’ve developed a property and sold it on you don’t make a profit. On the other hand investment property finance does bring other benefits with it, e.g. tax benefits. So you’ve bought your property and you have decided that you are going to go for the rental market. This means that you need to research whatever property management involves. Again the property investment forum could come in handy here, there is lots of good advice on property management and how to do it properly.
Good property management is more than just maintaining the building and making sure that tenants have adequate facilities and easy access. Successful property management involves choosing your tenants wisely. The property forum makes clear the problematic nature of being a landlord and there is lots of advice about how to choose your tenants and how to treat them. If you are going to do well at property management then you should be careful about how you choose your tenants. Always ask for references you need some idea of the type of person to whom you are letting the property if you don’t want it damaged beyond repair. Try to get to know your tenants and comply with their requests within reason. These are all things that will help you in the property management business. As a property manager you want good reliable tenants, you want your tenants to pay their rent when it is due and to treat your property with respect. Investment property management is not for the faint hearted but if you don’t mind some hard work and are prepared to put time into looking after your property then you could find success in the property development business.

FOREX Investment Strategies That Work

Are you an investor looking to make some money in a new way? Have you previously been investing in the stock market and are you now thinking of switching to the foreign exchange? There is a big difference between investing in the stock market and investing in foreign exchange. The strategies used are much different and many people are afraid of FOREX. They think it is too risky or too complicated.
But what if there was a method that took a lot of the risk out and made it easier, even if you have never traded before to succeed in the foreign exchange? Wouldn't you want to know these strategies?
We have a FOREX investment strategy that can do just that! The first thing you need to know is that they don’t try to teach you how to trade in foreign currency. Instead you receive proprietary software that is used to teach you how to set up a trading account at the brokerage that you choose. This account then buys and sells all your investments for you.
FOREX is perfect for the careful investor that is interested in earning as much yield as possible along with preserving principle and earnings. The investment strategies used by FOREX include achieving this balance. They do it by using two different currency pairs that move in complete opposite directions for trading. This is a great strategy because when one pair is going down and experiencing loses the other pair is normally going up because they are opposites.
There is data that can be supplied that supports this strategy. For instance, if you were to view a chart of the past year, you would see that when comparing the two currency pairs it is almost like looking in a mirror. This proves that the strategy used works. This is why the FOREX investments strategies work so well; when you trade two pairs that move in opposite directions you dramatically reduce your risks. Any loses that you receive from one is partially offset by what you are gaining from the other pair. There is no type of stock market option that can offer you this type of strategy.
The FOREX investment strategies really do work and they are so simple to learn because you are not trying to learn everything there is about investing. Therefore, it only takes an hour or two to learn how to set up the accounts and then a few minutes throughout the week to monitor the account. With this amount of little effort it is possible for you receive more of an increase in a month than many mutual funds and banks do in a whole year.
When I first started researching the Forex I learned that it would take months to learn and studying charts and graphs and a lot of money to get started. Something that a full time job would not allow me to do.
Then a good friend of mine introduced me to a forex investment strategy. He told me how easy it was to learn and how it required no formal training and that I could be up and running in less than 3 hours. He also told me that he was earning monthly what banks and mutual funds were earning yearly.
You can only imagine my skepticism. So I started doing some research on the company and the proprietary software they were using. I took a leap of faith and opened up a demo account, and to my surprise everything that they claimed was true. I can honestly say that I'm earning more a month than my mutual funds and my bank are earning a year. This company does truly care about people and that is rare in this industry. I opened up my Live account on April 10, 2007 and I'm doing very well.

Real Estate Investment Tips

Published statistics from the National Association of Realtors suggests the upper Midwest, namely Detroit, Cleveland, and Indianapolis, have seen property values drop by 3-7% during 2006.
This is a perfect example of how location is the key determinant of real estate values. While the entire nation is in somewhat of a slump relative to real estate valuations, the industrialized areas of the Midwest continue to lead the nation in property value losses. In contrast, the Pacific Northwest, which includes cities like Salem, Oregon and Spokane, Washington have seen property valuations increase nearly 20% during 2006. Again, location is key.
Despite the apparent doom and gloom of the market, real estate investors continue to flock to income producing properties as an investment vehicle. But the old adage, "let the buyer beware" is as true today as ever. Industry analysts suggest individual investors can still make their fortune in the real estate market, but they must be aware of market niches, the use of financial leverage, and the growth potential of their local markets. Bankrate.com also warns buyers to conduct due diligence prior to making a commitment to a specific property. Due diligence implies the buyer has thoroughly researched local market values, conducted comparative property analyses, obtained professional appraisals, and considered their use of the property relevant to resale value, rental income, and maintenance or repair costs. Bankrate also suggests one of the surest routes to failure in the real estate business is entering the game with a "get-rich-quick" mentality.
Real estate is a slow business. It lacks the liquidity of the stock market and prominent data regarding national averages is generally useless to local markets. With that in mind, investors must become masters of their local market, and invest with a long-term outlook. The next year may hold a lot of promise for buyers as foreclosures and interest rate fluctuations shake up the market. However, to avoid becoming a victim of sales slumps and potentially exorbitant mortgage fees, investors are well advised to enter the fray with cash reserves sufficient to see them through a six to nine month holding period.
Real estate investing is not for the faint of heart. However, for those willing to study the market and refuse to become over extended with other people's problems (white elephants), the real estate market continues to hold enormous advantages to the investor. On a final note, remember: inspect a ton of properties, make a handful of offers, and purchase one or two that meet all of your criteria for price, financing, cash flow, appreciation potential, location, and resale value.
Phillip Collinsworth is the author of several books available on Amazon. He hosts a website offering free information on wealth building, and finding income opportunities through Internet marketing.

Winning Investment Strategies

There has been a lot written about winning property investment strategies. After many years of investing I’m convinced that there are only two strategies that a property investor should employ.
These strategies are basic, but fundamental to your investment selection.
When evaluating any investment property you should ensure that it clearly meets one or the other criteria. In doing this you will ensure that you have a clear focus and investment rationale.
My winning strategies
The two winning strategies relate to the types of property you are investing in and the relationship between capital growth and income.
We are all aware that you derive a return form property investment in two ways.
Firstly, through capital appreciation and secondly from rental income.
Property investment is practically unique amongst investment products in that it is part funded by borrowing; in other words you employ loan capital to effect your investment. Traditionally property investors have utilised rental income generated from rent to repay their debt leaving them with an income and a property asset at the end of the loan.
My two winning strategies are derived from successfully focusing on the source of your potential returns: capital growth or through the maximisation of income & in order to repay your debt.
The danger is that you try and do both and in so doing lose your investment focus thereby failing to maximise your potential returns on either count. Therefore, when considering your investment you should first ask yourself; do I want to invest in either a:
* TROPHY ASSET or
* CASH COW
TROPHY ASSETS
A ‘trophy asset’ is a term used by many property investors to describe those properties that everybody wants to get their hands on. Examples of these would be the Oxford Street premises of Selfridges or the Lloyds of London building in central London. They are both iconic buildings, widely recognised and in prime locations, which means that what ever happens to the economy or the property investment market there will always be strong demand for them.
What’s this got to do with buying a residential investment property?
You are right; the term ‘trophy asset’ is normally associated with commercial property. However, the principles can be directly applied to residential investing.
All we are saying when describing a property as a ‘trophy asset’ is that it is in a prime location and that it is a building of a unique character, both potential features of residential property.
If you think of where you live in the country, there will be an area, a street even which everybody aspires to live in. There might even be one house that shines out above the others. These are all ‘trophy assets’.
The nature of property is that each parcel of land is unique. The very spot you are currently standing on cannot be replicated because part of its uniqueness is its location. Applying this principle to property means that there are only so many trophy houses, streets and areas. The supply of these is largely fixed.
Demand is however constantly growing as people aspire to live in the best areas. The result is that over the long-term these area and places will always appreciate more in value than houses in less desirable areas. Evidence of this is all over.
Look at London where prices in Kensington and Chelsea have rocketed 20-25% in a year whilst those in less affluent areas have risen at a much more pedestrian rate. Ok I know what you are thinking, this is London it’s different here because of billionaire Russians and city bonuses.
However, I bet you that the same is probably true in your local town or city. Think of the nice village, the posh part of town. I bet if you studied the figures they would show that despite other areas going up in value, these areas will have gone up by more and faster.
Just looking at my home town in Nottingham using www.upmystreet.co.uk to compare average prices in ‘posh’ West Bridgford with lowly Bulwell over an 11 year period. Whilst prices in Bulwell have risen by a respectable 3 times in West Bridgford they have shot up by over 3.5 times.
Simply put, at the end of the 11 years for ever £100 invested in property in Bulwell the same amount invested in property in West Bridgford would be worth £117.
It’s all about demand and supply and whilst demand keeps rising supply is largely fixed. Therefore if you want to maximise your long-term capital growth, buy a trophy asset. Tips on buying a trophy asset are:
* Find the best areas in your locality; they will have the best schools, the nicest parks the most affluent inhabitants.
* Always buy an older property with as much character as you can but don’t worry if there are no or few period interior features. These can always be replaced or added to.
* Remember your yields will be low. This is because capital values are likely to be high. Try to maximise incomes where possible by buying smaller units which tend to generate more rent per sq metre.
* Because your aim is capital growth and your income is less you will probably have to use an interest only mortgage and a loan to value of less than the maximum of 85% to enable you to meet the payments from your rent.
CASH COWS
The two big downsides with ‘trophy assets’ are one, they are expensive. Not everybody will be able to afford them and because of limited supply they are not always that available. The second is that they are potentially high risk, in the short to medium term.
This is because if there is a slump in the housing market, because you are relying on capital appreciation, the source of your potential returns will be wiped out. In the long-term though ‘trophy assets’ recover faster and more strongly but this may be of little compensation if you are nursing a large capital loss for several years.
Therefore, for most investors a ‘cash cow’ is more accessible and less risky. With these investments your primary focus is income generation. It is all about an investment that will maximise your income in relation to its cost and produce the most reliable income stream.
It’s no good having a place that produces a good yield when let but is empty for long stretches of time. What you want is an investment that consistently brings in rent so that you can pay down your loan. This is the primary difference between this type of investment and that of the ‘trophy asset’. Because you are not relying on the capital appreciation of the asset, you are less exposed to the risk of a market down turn. All you are banking on is that the value of the property does not fall and after the loan is repaid the asset still has a capital value; which can either be realised through its sale or that you decide to take your returns as rental income.
How to buy a ‘cash cow’
* For cash cows it is the yield that is most important. Look to buy properties with the highest yield and ‘rentability’.
* Use either a repayment loan or one with some sort of repayment vehicle. Remember your primarily goal is to repay the loan.
* Refurbishment projects often provide ideal ‘cash cows’ being cheaper and generating relatively high yields and being very ‘letable’ once the project is complete.
Investment scenarios
These two strategies should give you a basis for your investment decision making. Before you make an investment make sure that you are clear on what you want either a ‘trophy asset’ or ‘cash cow’.
For those people that are looking to buy an investment that will supplement their pension income, then a ‘cash cow’ is ideal.
If a ‘lump sum’ is your objective or an asset to pass on to your children then a ‘trophy asset’ could well fit the bill.
Remember, either way you should always be clear on your investment priorities before you start thinking about your property selection.
http://www.propertyhawk.co.uk
Any comments on this article or any other issues raised send them to the editor@propertyhawk.co.uk
Chris Horne (39) a qualified town planner and surveyor as well as being the author of the ‘Landlords Bible’ has been involved in all aspects of property from working as a planner in a local authority dealing with planning applications to being a consultant in the oldest surveying practice Drivers Jonas in the West End of London. In this role he advised Westminster City Council on the future development of the country’s largest retail areas such as Oxford Street and Covent Garden. He has worked as a Development Manager for the national regeneration agency English Partnerships being involved in the midlands in some of the UK’S biggest regeneration projects. He has also been a property investor and developer since 1990 and has built up and maintained his own property portfolio since that time. It was his experience at trying to manage his expanding property portfolio whilst maintaining a demanding professional life, which convinced him that there was a need for a new kind of management tool for busy property investors.