There might not have been more millionaires than those who believe in the policy of “buy cheap and sell dear.” This is especially true in the case of property where a substantial amount of capital gains can be realized when the value of the property or real estate appreciates over time. Property can be implied to mean both movable and immovable property (generally referred to as real estate property or realty). While movable property, also called chattels, such as money, securities and goods can be moved from one place to the other, immovable property such as land and the objects permanently attached to it such as buildings constitute immovable property. There also exists another property called intellectual property which refers to the right over artistic creations or inventions. Immovable properties have the essential characteristic that only the title to the property changes by virtue of the transfer whereas the physical location of it does not change. Property investment is usually referred to as real estate investment or investment in immovable properties or assets. Property or real estate investment is currently booming in the country. The investment in property essentially depends on the risks associated with it, that is to say, even if the venture succeeds when the future stream of income will accrue to the investor and the alternative investment opportunities.
Real estate investment can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale. Investment in property is treated as a long term gain and investment professionals argue that 5%-20% of investment portfolio should be directed towards property or real estate. As a surge in the realty market, online real investment opportunities have also emerged since the last decade. Property investment in India has especially picked up in the last decade and the low price on property in Romania presents a tempting option for intrepid investors willing to take on the risks associated with dealing in property. Property investment is also a lucrative option for investors in Poland and there also have been news about an investment boom in many Latin American countries like Brazil. The Malaysian government, in view of the rise of FDI flows into the country and high GDP growth rates, has announced that capital gains taxes on property deals will be scrapped.
Europe seems to be new destination of rise in property investments with Slovakia, Slovenia and the Baltic states experiencing a rapid rise in property investments. Slovakia was nominated by the World Bank in 2004 for having the fastest improving investment climate. That property investment is commensurate with the growth prospects of the economy can be seen with China, Thailand and Vietnam becoming hotspots of investment in the current years. The German economy is slated to grow at 2.5% annually which will make it one of the leading property investment sites by 2008. Lastly, property investment from the Caribbean islands of St. Lucia and Grenada to plush sea-facing palaces in Dubai is expected to pick up in the coming years with property rates falling and the rising economic growth making it a favorite place for foreigners to invest. With the rise in property investment in the event of falling property prices in many countries of the world, online property investment opportunities have also emerged.
8 Kasım 2007 Perşembe
Property Investment
Real Estate Investment
Real Estate Investment is now treated as a major case of capital budgeting by using state-of-the-art investment analysis which incorporates the future stream of income it may generate and the associated risk adjustments. It has been the highlight of the investment literature since the 1970’s when investment theorists extended techniques such as probability, time value of money and utility into its analysis. Real estate is basically defined as immovable property such as land and everything permanently attached to it like buildings. Real property as opposed to personal or movable property is characterized by the right to transfer the title to the land whereas title to personal property can be retained. The investment in real estate essentially depends on the risks associated with it, that is to say, even if the venture succeeds when the future stream of income will accrue to the investor and the alternative investment opportunities. Real estate investment can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale. Notable, in this context is the gains reaped by real estate speculators who trade in real estate futures (by buying and selling purchase options).
Common examples of real estate investment are individuals owning multiple pieces of real estates one of which is his primary residence and others are occupied by tenants from where the rental income accrues. Real estate investment is also associated with appreciation in the value of property thereby having the potential for capital gains. Tax implications differ for real estate investment and residential real estates. Real estate investment is long term in nature and investment professionals routinely maintain that ones investment portfolio should have at least 5%-20% invested in real estate. A Real Estate Investment Trust (REIT) is a corporation or body investing in real estate that has the property to reduce or eliminate corporate income taxes. In return, REIT’s are required to distribute 90% of their income among the investors. These incomes are often taxable. REIT’s provide a similar function as does Mutual Funds provide for stocks in the share market. The key statistics to study about the REIT’s are the NAV (Net Asset Value) and AFFO (Adjusted Funds From Operation). The Indian Government is yet to introduce REIT’s in the country. The government and the SEBI (Securities and Exchange Board of India) are planning to bring in legislations for the smooth functioning of the real estate market in India. with Initial Public Offers (IPO’s) streaming in from various listed real estate companies, it will be the best time to have an REIT which can help capture the current boom in the real estate market. REIT’s provide the opportunity to reap the benefits due to interests in the securitized real estate market. The best benefit that can accrue is the fast and easy liquidation of investments in the real estate market which can be observed in Japan which one of the few economies of Asia along with Hong Kong, Singapore, Malaysia and Taiwan to have REIT legislation in place. J-REIT securities are listed on the Tokyo Stock Exchange and most of the participants are domestic and foreign conglomerates. The legislation for laying out rules for REITs in UK was enacted by the Finance Act of 2006.they have to distribute 95% of their income and have to be publicly listed on a stock exchange which has been recognized by the FSA (Financial Services Authority). In the USA, the REIT’s are required to pay little or no federal income tax but are subject to legislations put forth by the Internal Revenue Code of 1986 whereby they have to distribute 90% of their taxable income in the form of dividends to its shareholders. Increasing demand for REIT stocks will push up the stock prices and entail growth from internal sources which is evidenced by the figures of 2005 where the combined assets of 200 publicly traded REIT companies totaled $500 billion. Various online real estate investment sites have also emerged in the last decade as fallout of the surge in realty business.
Investment Strategy
A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Formation of business strategy largely dependent upon the factors such as long-term goals and risk on the investment. As the return on investment is not always clear, so the investors prepare the strategy so as to face the ongoing challenges in investment. A balanced investment strategy is generally required in the process of investment, which possesses long time period and some risk tolerance. In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An efficient strategy can be obtained from portfolio theory, which shows good estimates on risk and return. Investment Strategy is usually considered to be more of a branch of finance than economics. It is defined as set of rules, a definite behavior or procedure guiding an investor to choose his investment portfolio. For example, investing in mutual funds has recently emerged as a very favorable investment strategy. An investment strategy is centered on a risk-return tradeoff for a potential investor. High return investment instruments such as real estate and mutual funds usually have more risks associated with it than low return-low risk investment opportunities. Return on investment can be calculated on past or current investment or on the estimated return on future investment. Symbolically, it can be expressed as: Vf/Vi -1 where Vf denotes final investment value and Vi is the initial investment value. (“f” and “i” should be noted as subscripts)
Return on investment (ROI) is profitable when Vf/Vi-1>0 and the investment is deemed to be unprofitable when the value of final investment is less than that of the initial investment. ROI is calculated to be 1 or 100% when the value of the final investment is twice the value of the initial investment. Types of investment strategies can be defined as follows: A passive investment strategy attempted to minimize transaction costs. An active investment strategy guide used to maximize returns based on moves such as proper market timing. This usually mean, “buying in the lows and selling in the highs” or buying investment instruments when they are cheap and selling them off when their price appreciates. This strategy, however, is not very beneficial for small time investors. Small time investors can adopt the buy and hold investment strategy to invest in equities, which although volatile in nature, give favorable long run returns. Investing in equity markets for small time investors is associated with the investors holding on for very long periods. In the case of real estate, the holding period extends the lifespan of the mortgage. Notably, in case of this strategy, indexing or buying a small proportion of all the shares in market index or a mutual fund is a purely passive variant of the above strategy. The strategy of value investing, a classic investment strategy propagated by Benjamin Graham simply concentrates on the strategy that an investor buys shares of a company as if he was buying off the whole company without paying any attention to the stock market scenario or any exterior conditions such as the political climate. At the end of the day, if he can buy the stock at less than that its actual future worth to the buyer, the person is said to have discovered a “value investment.” Investment strategies can also denote the investment strategies a national or federal government should follow to bring about economic growth in a country. This can only be achieved by domestic investment as well as significant FDI (Foreign Direct Investment) flows to particular sectors of countries, especially the less developed ones of Asia and Africa. In case of India, infrastructural problems, excessive government intervention, rigid labor laws and corruption are stifling the flow of FDI in the critical sectors. Less developed countries such as those in the Asia- Pacific region and Africa can bring about much needed development in these economies.An investment strategy in mutual funds is probably the best bet for a profitable investment. Mutual funds is defined as a pool of money supplied by different investors and in turn used by the mutual fund company to invest in various assets such as stocks and bonds. However, a detailed research has to be conducted for choosing the mutual fund companies and only those should be considered which have a professional investment manger. This will ensure that the funds get channeled towards the right investments. This also applies for investing in stock markets where a decision to invest should follow a through research about the past and current trends of the stock prices and their Net Asset Values (NAV). Analyses from market researchers about the predicted future trends should also be considered otherwise gains from capital appreciation; capital gain distribution (in case of mutual funds) and dividends might not be realized. Lastly, investment strategies leading to green investments or investments in renewable sources of energy will be the next big thing in the investment spectrum.
Investment Strategy
A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Formation of business strategy largely dependent upon the factors such as long-term goals and risk on the investment. As the return on investment is not always clear, so the investors prepare the strategy so as to face the ongoing challenges in investment. A balanced investment strategy is generally required in the process of investment, which possesses long time period and some risk tolerance. In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An efficient strategy can be obtained from portfolio theory, which shows good estimates on risk and return. Investment Strategy is usually considered to be more of a branch of finance than economics. It is defined as set of rules, a definite behavior or procedure guiding an investor to choose his investment portfolio. For example, investing in mutual funds has recently emerged as a very favorable investment strategy. An investment strategy is centered on a risk-return tradeoff for a potential investor. High return investment instruments such as real estate and mutual funds usually have more risks associated with it than low return-low risk investment opportunities. Return on investment can be calculated on past or current investment or on the estimated return on future investment. Symbolically, it can be expressed as: Vf/Vi -1 where Vf denotes final investment value and Vi is the initial investment value. (“f” and “i” should be noted as subscripts)
Return on investment (ROI) is profitable when Vf/Vi-1>0 and the investment is deemed to be unprofitable when the value of final investment is less than that of the initial investment. ROI is calculated to be 1 or 100% when the value of the final investment is twice the value of the initial investment. Types of investment strategies can be defined as follows: A passive investment strategy attempted to minimize transaction costs. An active investment strategy guide used to maximize returns based on moves such as proper market timing. This usually mean, “buying in the lows and selling in the highs” or buying investment instruments when they are cheap and selling them off when their price appreciates. This strategy, however, is not very beneficial for small time investors. Small time investors can adopt the buy and hold investment strategy to invest in equities, which although volatile in nature, give favorable long run returns. Investing in equity markets for small time investors is associated with the investors holding on for very long periods. In the case of real estate, the holding period extends the lifespan of the mortgage. Notably, in case of this strategy, indexing or buying a small proportion of all the shares in market index or a mutual fund is a purely passive variant of the above strategy. The strategy of value investing, a classic investment strategy propagated by Benjamin Graham simply concentrates on the strategy that an investor buys shares of a company as if he was buying off the whole company without paying any attention to the stock market scenario or any exterior conditions such as the political climate. At the end of the day, if he can buy the stock at less than that its actual future worth to the buyer, the person is said to have discovered a “value investment.” Investment strategies can also denote the investment strategies a national or federal government should follow to bring about economic growth in a country. This can only be achieved by domestic investment as well as significant FDI (Foreign Direct Investment) flows to particular sectors of countries, especially the less developed ones of Asia and Africa. In case of India, infrastructural problems, excessive government intervention, rigid labor laws and corruption are stifling the flow of FDI in the critical sectors. Less developed countries such as those in the Asia- Pacific region and Africa can bring about much needed development in these economies.An investment strategy in mutual funds is probably the best bet for a profitable investment. Mutual funds is defined as a pool of money supplied by different investors and in turn used by the mutual fund company to invest in various assets such as stocks and bonds. However, a detailed research has to be conducted for choosing the mutual fund companies and only those should be considered which have a professional investment manger. This will ensure that the funds get channeled towards the right investments. This also applies for investing in stock markets where a decision to invest should follow a through research about the past and current trends of the stock prices and their Net Asset Values (NAV). Analyses from market researchers about the predicted future trends should also be considered otherwise gains from capital appreciation; capital gain distribution (in case of mutual funds) and dividends might not be realized. Lastly, investment strategies leading to green investments or investments in renewable sources of energy will be the next big thing in the investment spectrum.
US States Economies
The United States is one of the largest and most technologically developed countries in the world. The Gross Domestic Product of the country in terms of purchasing power parity of the country has reached at $12.36 trillion (2005 est.). Here in these states economic profiles of United States section we have covered the performance of the individual state economies in the national economy as a whole. There is an extensive coverage on the demography and social indicators, business and economy, natural resources, exports and imports, tourist places, schools, colleges and universities of all the states of United States.
Alabama Economy
Alaska Economy
Arizona Economy
Arkansas Economy
California Economy
Colorado Economy
Connecticut Economy
Delaware Economy
Florida Economy
Georgia Economy
Hawaii Economy
Iowa Economy
Idaho Economy
Indiana Economy
Kansas Economy
Kentucky Economy
Louisiana Economy
Maine Economy
Massachusetts Economy
Montana Economy
Nebraska Economy
Nevada Economy
New Hampshire Economy
New Jersey Economy
New Mexico Economy
New York Economy
North Dakota Economy
North Carolina Economy
Ohio Economy
Oklahoma Economy
Pennsylvania Economy
Rhode Islands Economy
South Dakota Economy
South Carolina Economy
Texas Economy
Tennessee Economy
Utah Economy
Vermont Economy
Top Mortgage Companies
Mortgage Company
The term “mortgage” is often used in the same breath as a “mortgage loan.” A mortgage company can be defined as a company specializing in offering mortgage services such as free mortgage quotes, calculators and guides and unmatched customer services such as instant approval of mortgage loan applications. Mortgage is technically defined as a method of using personal or real property as a security for paying off a debt. A mortgage is generally secured against a commercial or residential property where the initial cost of the property is quite hard to bear. In this context, a mortgage loan is a loan obtained for acquiring a plot or residence. Mortgage loans are generally lower priced than other loans as value of the property reduces the risk for the loan provider. In other words, a mortgage loan is secured against the property intended to be bought on the part by the borrower. Mortgage properties usually entail certain restrictions on the use or disposal of the property such as paying any outstanding debt before selling the property. Investing in mortgage properties through loans has become the accepted practice in the developed countries such as the USA and UK. It is also the trend in India where you can avail of a high risk loan by securing your property thereby also getting lower interest rates.Mortgage loans are structured as long term loans based on the formulae of time value of money. The loan amortization period or the rate of mortgages can be reduced by availing of mortgage refinancing options offered by all leading mortgage companies. Mortgage companies can offer both FRM (Fixed Rate Mortgage) and ARM (Adjusted Rate Mortgage) schemes to borrowers. While ARM means that the mortgage rates will not remain the same over the tenure of the loan, interest rates will usually remain stable in case of FRM. Besides, there are several mortgage companies offering loans which entail a bullet payment or a lump sum payment on the amount of the loan otherwise offering reasonable interest rates. Mortgage companies offer the best quality of customer services such as refinancing at a lower mortgage rate, getting a new home mortgage or a home equity loan or second mortgage. As previously mentioned mortgage companies offer a mortgage refinance calculator, which can calculate the refinance rate that you can avail depending on your past refinance circumstances, the property you want to buy and whether it has a good possibility of appreciating in value over time, its location and above all, your credit rating. Mortgage companies do not want to offer high risk borrowers loans even if they exhibit sufficient liquidity in recent times. The key features of mortgage companies can thus be summarized as debt consolidation service, home equity loans, latest mortgage quotes, real estate lending, new home loans and mortgage refinancing. Most importantly, free online loan application facilities giving instant approval can boost the popularity of the mortgage company a great deal. Some of the best known mortgage companies around the world including India are: Countrywide Financial CorporationAmeriquest Mortgage CompanyAvis Mortgage, Inc.CTX Mortgage CompanyICICI Lombard
