Property Investing

Property investing varies from country to country.

Every country has different regulations and legislation’s, laws and taxes. There are however a few basics that we all can consider when it comes to property investing.

Property investing has been a consideration for most of us at some time. As new adults we all strive for the ownership of our own home. The wealthy investors would certainly give different lessons to that taught by most of our parents and teachers.

I listened to my parents, who were successful business people. They had purchased 9 properties by the time I had left high school. In my twenties my mother became a real estate saleswoman, so I thought she was certainly an expert.

They advised me to purchase and invest in my own home for security. They were just like Robert Kiyosaki’s story in ‘Rich Dad Poor Dad.’ (This is a book I would like to see promoted in schools, instead of some of the others I have seen my children study.)

Here in Australia, over the last few years, there has been a property market boom, and prices in the real estate sector have reached unbelievable highs. Many people have fallen victim to low deposit, low interest rate schemes and are now unable to meet their commitments.

Mortgagee in possession sales are increasing and the astute investor is able to cash in on these sales. Some look at this as unscrupulous, but the banks only need to recoup their money, and the investor is actually helping the home owner by buying it for more than the bank.

Purchasing rental properties gives you so many options while property investing. Not only do you free up your own money, by having your mortgage paid by someone else in the form of rent, but it gives you more leverage when it comes to investing in more properties.

“Education is what remains after one has forgotten what one has learned in school.”

Albert Einstein

Seven Stock Market Tips

Here are Seven Stock Market Tips.

Planning to go into stock market investment?

1. Understand the basics of economics.

The stock market follows the laws of economics, particularly the law of supply and demand. If there is a greater demand for the stocks of a particular company, the price of its stocks will go up accordingly. On the other hand, if there are more stocks available for selling (more sellers) than stock buyers, the unit price of that company’s stocks will go down.

2. Study your prospective companies.

Read up on the company’s profile: products, services, operations, and track record in the business. This is important to assess the company’s stability and capability to deliver its promises and meet its profit targets.

3. Choose companies that are more likely to stay.

With so many existing companies in the stock market, choosing becomes a big challenge for beginners. Government-owned companies and businesses are relatively stable, unless there is a political revolution in the horizon. Telecommunications and gasoline companies are also stable and profitable since the demand for these products and services is constant. Although IT companies are the fastest growing in the market today, be careful because there are so many of them that it checking on their profiles could be very taxing. Choose IT companies that have proven track records of profitability and stability of at least 10 years.

4. Always read and watch the news.

Dealing with the stock market is not a guessing game. Sound decisions and good intuition are results of constantly learning about the local and global political and economic happenings. Give particular attention to the industry where your company belongs. Even stable companies can suddenly go bankrupt or experience a big blow that can bring them down. Remember Enron?

5. Spread your investments.

Avoid investing in just one company. If all your stocks are concentrated to one company, the chance for loses is also greater. Spread them out so that earning investments can cushion those investments that earn less.

6. Do not rely solely on stock brokers.

Do your homework. Remember, the stock broker is “gambling” with your money.
When an investor does not understand how the stock market works, he/she becomes vulnerable to scrupulous brokers.

7. Do not be greedy.

Although stock market investment is all about profits, becoming greedy will make an investor lose his/her better senses. He/She might suddenly forget to check on economic rumors and decide right away to buy or sell thinking that he/she would make big profits by doing so.

Planet Wealth