Wednesday, 18 May 2011

Real Property, Shares or FOREX: Which is the best form of investment?


Looking at these investments, you will agree with me that, various people from different walks of life, at one time or the other have earned good incomes, dividends or profits by investing in real estate, shares or forex while at other times, made devastating losses on these investment packages, But before I let you know my opinion on the above topic, I will like to briefly explain the concepts of investment, real property, shares and Forex.

Now, What is investment?
Investment simply is the giving up or sacrificing of a capital sum in return for an income or benefit to be received periodically or in the future. Investment can be classified into two namely: Real and Financial. Real investment are those made in real assets like buildings, furniture, cars, etc. while, Financial investments are made in financial or “paper” asset like, fixed interest securities( government securities, local government stock, debentures).
Having discussed on what investment entails, now lets touch on others.

What is Real Property?
This can be called Real Estate or landed property, which is the combination of land and any permanent structure or man-made structures on the land. With respect to investments in properties, I have done justice to that in my previous blog post.

What is Share?
Am sure you are not new to this word with respect to investment. Well, a share is a unit of a company’s capital that is owned and entitles its holder to dividend. Shares are broadly divided into two namely: Preference and Ordinary shares.
Preference shares generate fixed rate of interest to their holders whereas ordinary shares are shares that bear the highest risk and its holders collect dividend only after preference and debenture holders (i.e. creditors to the company) have been duly settled. This is why some companies at the end of a financial year don’t declare dividends for its shareholders due to little or no profit realized after deducting necessary expenses and taxes.

What is FOREX?
Forex which could also be referred to as FX or Forex trading is simply the act of buying and selling of foreign currencies. The currencies mostly traded are US Dollars, GB Pounds, Canadian Dollars, Euro, Japanese Yen etc. What they usually do is to buy a currency at a low price and trade it when it’s price rise to make profits.
Forex trading is either done offline through the bureau de change or online by forex trader. To be to understand the system of trading successfully online, I learnt, it requires at least 6 months of intense monitored training and the rule of investment (the higher the risk, the higher the yield and vice versa) is so pronounced in Forex but unfortunately, a little few earn good income while the majority ‘get rich quick’ investors lose huge amount in this trading business due to lack of exposure. And that’s the major reason Forex trading sites warn prospective investors of high risks involved in the business.

Having explained what investment, real property, shares and Forex is all about, I will like to announce that I will take Real Property as the best form of investment.
Why Real Property?
I prefer real property due to the points below:
-          It is a good instrument for collateral security to obtain loan from the financial institution
-          It satisfies basic human need i.e. it provide shelter.
-          Real estate investment is the only type of investment that attracts prestige.
It is usually felt that owing a house adds an extra dimension to the owner which cannot be quantified in monetary terms.
-          It is the most durable kind of investment one can think of since real estate can exit for a long period, then the investment is also long term in nature.
-          In terms of inflation and risk, real property investment is less prone to inflation and risks unlike shares and Forex trading. Bad economic situation can make a share valued at N5 suddenly fall to 90k. A typical example was the Global economic meltdown which made company shares fell ridiculously to the extent that holders could not sell them.
The only risk faced by property investment is natural disaster like fire, water, earthquake and this can be checkmated by taking appropriate insurance cover.
-          The Last is that, the most successful shareholders and Forex traders still spend a huge part of their incomes on real properties to make more money and/or showcase their class or social status. 
  

REAL ESTATE INVESTMENT PROPERTIES


Investment is the commitment of resources made in the hope of realizing benefits that are expected to occur over a reasonably long period of time in the future.
Real Estate on the other hand, is an inheritable estate and could be land, buildings, streams, trees, minerals and other features (structures) fixed permanent in place on the land. In discussing investment in real estate, we are mainly concerned about landed property.

PRINCIPAL TYPES OF INVESTMENT PROPERTIES
a)      Commercial Properties- these are properties and used for various commercial purposes. They include:
-          Office,
-          hotels,
-          Tourism and entertainment industry,
-           Shops and stores-supermarkets, hypermarkets, enclosed shopping centres, etc.
-          Warehouse,
-          parking lots, petrol filling stations and service garages, public markets and stalls
-          Purpose- built conference centres.
-          Sea-side resorts and entertainment centres.
-          Restaurants and snack bars.
-          Inns

b)       Residential Properties
-          Private homes,
-          mansions,
-          housing estates,
-          apartment flats,
-           block of flats, duplex houses, semi- duplex houses, detached houses, semi-detached houses, bungalows

c)       Industrial Investments
-          Factories (manufacturing),
-           Storage (warehouses),
-          Cottage industries,
-           Light industries, heavy industries, Service industries

d)      Agricultural Investments
-          Public farms, private farms, poultries, fish pond farm, plantations



e)      Recreational Investments
-          Gymnasium,
-          Parks and Gardens,
-           Stadia,
-          Games Reserves,
-          Tennis and Squash courts,
-          polo fields

f)        Public Property Investments
-          Government offices,
-          University and Instituitions of learning,
-          legistlative building
-          Governement state houses,
-          hospitals,
-          public companies and parastatal
-          Houses of Parliament,
-           roads and bridges, burial grounds

g)       Religious Property Investments
-          Churches,
-           Mosques,
-           Crimatoriums

Tuesday, 10 May 2011

Easy Way To Market A Property


If you are the seller, you surely want to sell the house the easy and quick way. It is much convenient as you will not need to invest much time and effort. But you have to realize that with our real estate market nowadays, you will surely need to face the challenges that will test your patience. You have to realize that despite this, you can still sell the house quick and easy if you just know what is the right  thing to do. Easy and quick ways to sell the house will surely help you attain your goal of a nice profit from the sales. Thus, you have to do your best and follow the tips mentioned here.

PREPARE IT WELL
One thing that you need to do is to prepare the house well as you sell it. In preparing the house, one thing that you need to remember is that you will need to impress the buyer of the house. Keep the house in good state all the time by making sure everything is repaired. You have to keep it clean, spacious and organize. Take all those clutter and organize the furniture to create more space. Upgrade the house if needed by buying new appliances and painting the walls with a new color. In doing this, you are making sure that the buyer will have a good impression of the house that you are selling.

PRICE RANGE
The price of the house is one of the factors that a buyer looks into. Thus, it is very important that you keep it reasonable as always. Do not over price as it will be obvious for sure. What you need to do is to set the price range before selling it or making a deal. The buyer will surely try to trim down the price. As expected, you have to set the range so that you can give in to that request at least. This is a good strategy to convince him to buy the house.

MARKET WELL
You have to point out the good aspects of the house so that those who will see it will be convinced to buy it. Create some flyers and posters to be able to target a big market. The internet is also a helpful too to market the house. This way, you need not to spend a lot of time and effort to market the house.
It is very important that you are guided as you are selling the house. It is not that easy indeed. But there are some ways to make things work well for you. The tips will guide you on how to sell the house in the quickest time possible so keep them in mind all the time.



Successful Tips On Buying Properties For Sale


When it comes to finding the right kind of homes for sale, it's often the case where first-time buyers in particular may struggle due to common mistakes, expectations and so forth. However, while there may be quite a few options out there to choose from, sometimes narrowing down your search for the most part and doing so ahead of time can help matters, as well as when it comes to others steps that you can take as well.
One important thing to potentially take into consideration is really figuring out how much you can afford. More often than not, people fall into the trap of using whatever loan they may qualify for to its entirety, when they may not always be able to afford it once all is said in done. Therefore, it's good to really think about what you can afford and to set yourself a reasonable budget, not to mention added expenses that with occur with owning a new residence.

It's not uncommon for people to forget about other payments or cost that they may have to tend to, even aside from just their mortgage payment. Therefore, many suggest setting yourself a budget based on whatever rent you may be paying currently, bills included. If you have a mortgage goal set, try to add this difference into your expenses in order to see how well you manage month-to-month. Some people will even put what's saved toward their new residence.
It's also ideal to really get a feel for what will be reasonable mortgage-wise and when in regards to the space that you'll be needing; among other key elements as well. This is because many people are often prone to looking at places outside of their budget, but which might be appealing to where they can outshine places that they can actually afford in the scheme of things, making reality harder to contend with.

In order to figure out what will be best for you and to narrow down your initial search, sometimes it's good to write up a list of things you'll need, would like to have, or don't wish to see. Space is also important, as well as whether or not you're wanting something that's detached or if you're looking for something that's fairly easy to keep up on and maintain.
Things that might be good to think about having on your list, whether if you need them or may wish to avoid them should generally start with the basics. For example, try to think about how many bedrooms you need, if you're OK living wall-to-wall with neighbors, if you need a back yard or one that's fenced and so forth. If you prefer on-site laundry or other amenities, then these are good to think about as well.
It's also good to keep in mind that if you're on a strict budget that some things may need to be done without in order to get something that will suit your needs as a whole, all while being something that you can afford. Many people have high expectations as a first-time buyer, often wanting the best neighborhoods and so forth. Therefore, it will be key to figure out what you're priorities are.

In the end, it can often be beneficial to also speak with a real estate agent once you have an idea for what you need or happen to be looking for when in regards to homes for sale in your area. Oftentimes, they'll have the insight for what's out there and may suit what you're looking for, not to mention finding something that you can afford in the long run.