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The Modern Investments

April 5th, 2017 Posted in learning about money, millionaire mindset, Money Tips, Property Investment
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Since the global crash in 2008, the wealthy have been looking for new places to invest their money. Banks seemed like a safe option but for the super rich, they became a worry zone, this was because most banks would only guarantee the safety of set limits of cash. So if you had 500k sitting in the bank and the bank went bust, you would only get 75k of your money back.

Ok, so most of us aren’t sitting around with half a million dollars in the bank. However, that doesn’t mean we can’t draw some inspiration from the High Net Worth Individuals (HNWI) and invest some of our money into the trends they are setting.

Property is always a good place to stash your cash. Firstly you have a tangible asset, something that might lose money but will, at some point make money. You are far more likely to break even over a few decades than end up with a loss. So this could be seen as a safer bet than your bank. The interest rate on savings at most banks is rubbish. Investing money in property and renting it out could see you making a far better return than you were in your savings account. There are two safe options for investing into a property. One is to find any new houses for sale, especially ones which are being built in areas that aren’t currently fashionable. If you find out information about any potential projects in this neighborhood, you may see that house prices will go up. Eg, if there is a new school or business applying for application. This could push up home prices. The other option is to go old. Look for the worst house on the best street, invest a little time and money into doing it up, then sell it.

Another great alternative investment has been the classic car market. You need to stay ahead of the game here, making smart purchases before the rest of the world cotton on. For making smart purchases before the rest of the world cotton on. For example, the BMW Z3 is a cute little car which is set to be a future classic. You can pick one up for a few thousand dollars, in fact, you can find them for under 1000 dollars, you can then invest a little time and love into restoring it, and in 5 years time, you could have a car worth 15,000 dollars.

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What about investing in wine, companies like Woolfsung have been advising HNWI on the wine investment sector. Here the idea is that you buy up predicted good years and then stash them away in a cellar for ten years. Most vineyards have a pattern when it comes to years so experts can predict which will be good. Of course, there is always the risk that you may get it wrong, or that you haven’t stored it the right way. Then the wine will be ruined, and you lose the investment.

Check out what the elite pack is investing their money in and see if you can replicate it on a smaller level. You never know, your horse might come in.

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Selling Property? Read This First

March 23rd, 2017 Posted in Money Tips, Property Investment
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Selling a property isn’t quite as simple as a lot of people make out. It can be a complex and daunting task. After all, there’s a good reason why so many people hire outside help during the process!

If you’ve decided to sell a property, be it the home you’re living in currently or another property, then guides like this are pretty essential. Read on to make sure the process is smooth and gives you the best return. These are the things you must take into consideration.

The reason

Why are you selling the home? This may dictate how you’re going to sell it. You need to consider how fast you need to sell it and how much you need to sell it for. Let’s say you’re an investor. If you have the time on your side, then you can afford to wait to ensure you get the best price possible.

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Now let’s say you’re a family who are looking to move home. This, of course, is very different and even more sensitive. You’ll want to sell the place fairly quickly. But you need the best price you can get so you can afford the best house possible for your move! All this is to highlight that the reason for selling a property will determine how you go about the sale – and what results you should expect.

Getting the word out

Most people will choose to work with real estate agents in order to get the marketing done correctly for their house sale. But it’s not a process you should be completely divorced from. There are several steps you can take in order to be more proactive.

For example, writing up an in-depth introduction and description of the property will be appreciated by many customers. Using floor plans software to provide detailed floor plans along with the listing will help give people a clearer vision of the house. And you can even use social media to help advertise the property you’re trying to sell. The more proactive you get during this process, the more you may end up getting out of it!

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Value

This can be the most sensitive part of this process. Some would say it’s the simplest; it can’t be that hard to find out the home’s monetary value, right? Well, don’t jump to any conclusions. Do your best to get to a close estimate. You should do this from a few angles. Getting a valuation by a professional home value assessor is the obvious and best step, but you can also judge the value by other means. If possible, find out the values of some of the other homes in your neighborhood. Check out crime rates and the proximity from valuable amenities, too.

Let’s say you want a good mix of a fast sale and a good price. Try this popular (but slightly risky!) tactic: find out the value, then take 15% or so off that price. It should be a tasty-looking price that brings all the potential buyers to the yard, much like the famed milkshake of Kelis. The desired outcome? These people bidding against each other. This results in the value increasing to the original value, and perhaps even further.

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4 Ways To Own Real Estate

March 6th, 2017 Posted in Property Investment
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Getting on the property ladder is becoming increasingly more difficult. Before taking the dive into real estate, it’s important to consider all your options. Here are the four major ways that you can own property.

Traditional Buying

Traditional buying is still the main route into property. This is where you buy both the building and the land. Many choose to go through real estate brokers to find property. Finding a seller direct can sometimes be cheaper, but limits options. Some agents may charge buying fees, but this is generally reserved only for sellers. In either case, negotiating the price is recommended – you should aim to haggle of 5% of the value if you can.

You can also buy property off of an auction. Auctions are also a great opportunity for flipping property – discussed later on.

Leasing

In most cases, leasing property involved renting for a fixed term. This could be anything from a year or more. Some lease opportunities are more flexible than other – you may own the property, just not the land. In this instance, you may be able to make minor adjustments to the house as if it were you own. When it comes to traditional renting, hammering a nail in the wall might need permission from your landlord. Leasing is only half owning property, but is a cheaper alternative to buying and a more fixed alternative to renting. In many major cities around the world, the bulk of property is leased.

Self-building

Can’t find a property that meets your criteria? You can always build your own. It can cost up to a third of the price of buying (building and buying the land included), with the option of a self-build mortgage preventing you from having to pay outright. However, it can be a lengthier and more complex procedure. Whilst hiring architects, solicitors and builders isn’t too difficult a task, buying the land is a complex procedure. Land may be environmentally protected, may have limiting restrictions set by a local planning committee or may be physically unbuildable due to the ground. Before buying always check with the current landowner as to what the current restrictions are. In most cases you may negotiate prices.

Flipping

Flipping involves swapping one property directly for another, and so requires you to already own some form of property. By doing it effectively, you can earn a lot of money. Fail to flip correctly and you’ll lose a lot of money, making it a risky venture. Many who get involved in flipping property will buy property off an auction, possibly renovate it and then sell it for a profit. You can flip property without being worried about the profits however – if you want to directly swap with someone to a property that is less value but may be in a better location, you can do this.

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Teach Your Kids About The Online Property Market

February 27th, 2017 Posted in Property Investment, teaching children about money
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If you are in the process of moving house, this may be the perfect opportunity to teach your kids about an important phase that they are likely to go through later in life. A house is the biggest financial investment most people make, and selling it is a process that can be a complicated affair.

While they are learning about the financial aspects of house sale, they can also discover the different ways to improve the chances of it being sold quickly. Just as the internet is revolutionising so many parts of life, it is also doing the same to the process of selling a house. Here are just a few of the other ways that the internet has changed the housing market.

Research Online

Before people do anything these days, whether this is going out for a meal, heading out to the movies or buying a house, they are likely to research it online. Properties that are more difficult to find online are significantly less likely to get many viewings. It’s also likely to be time saving as people are able to view pictures before they actually decide whether or not they want to visit the property. You can even make a video that gives a virtual tour to give an extra personal touch.

If you are in the process of selling your house, show your child how your house is listed online and explain to them the value of it compared to different houses in your neighbourhood. Property prices are a tricky thing for anyone to understand, so the earlier you teach them, the better.

Real Estate on the Web

Certain companies are now offering online services that are providing a challenge to traditional real estate brokers. Companies like Doug Hopkins are now able to showcase their services through an online portal.  As the internet continues to move at warp speed, it is likely that these services will continue to increase in number. This is being seen as a way to massively reduce fees, but of course there are numerous pros and cons to this approach. It’s worth running over all of these with your kids as when they get round to buying and selling houses, it’s much more likely that the internet will be playing an even bigger role.

Communication

There are so many different ways for house buyers and sellers to get in contact with each other thanks to the internet. Whether this is just making small enquiries or actually putting in an offer, buyers and sellers can stay in touch like never before. When you are getting in touch with buyers, keep your kids in the loop so they know how things are developing and the types of questions that are likely to get asked.

In the future, the internet is likely to play an even bigger role in the property market. If you get your kids involved from a young age, they are more likely to have an advantage when the time comes for them to get on the property ladder.

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4 Tips To Help You Buy A Property ASAP

February 21st, 2017 Posted in Money Tips, Property Investment
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Buying a new property can be, well it can be difficult. It isn’t making a bid or having it accepted that is the hard part; the hard part is doing all the admin. Let’s just say it can take months before you are cleared to move into a property. A quick sale can take five weeks but many last so much longer. You clearly don’t want to wait this long before you get the keys so it is time to speed up the process.

Forget The Realtor

The days of using a realtor are over. There is no need for them because they only speed up the process. You need to find a property as quickly as possible but they will take weeks to help. Sure they want to sell you a property, but they want to sell the one that is right for them. Does commission ring any bells? With the help of an online letting agent like Heather Tibbetts you can cut out the middleman and find a property in no time. Plus you can call the seller and ask them for a private viewing. This is a much quicker way to get the deal over the line.

Go Easy On The Price

Before a seller accepts the price they have to agree to it which isn’t easy. Obviously you want to drive a hard bargain but you don’t have the time. The harder the bargain the more time you waste. So it is a good idea to not haggle over pennies especially if they are inconsequential. Offer them a fair price that you are willing to pay and negotiate. If they don’t play ball tell them that you offer is final and wait for their response. There is plenty more properties on the market with owners that will accept a fair price.

Find A Kindred Spirit

It is simple – the quickest way to finalise a deal is to find a seller who also wants a quick deal. If both of your interests are aligned you will sign on the dotted line as soon as possible because it suits both parties. So, all you have to do is find someone who needs the money which isn’t too hard. Those that desperately need the money will tell you from the beginning which is clue number one. Or you can pass on the information that you would like a quick sale and gauge their reaction. It is imperative to cut a deal as soon as you find someone with the same agenda.

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Pay Cash

Possibly the quickest way to get the deal done is to pay by cash. The reason property sales take so long is because of the banks. They have to finalise the mortgage and do background checks before they sign off. The result is that you have to wait months before everything is finalised. Paying cash means you don’t have to deal with the banks, and that in turn means you can cut a big chunk off of the timeline.

Follow these tips and you’ll have a new property in no time.

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