Learn About the Real Estate Market and Construction

Property management is the process by which control not only purchasing processes, equipment, maintenance and use of buildings, but also the quality of these. The property manager is responsible for controlling and managing home equity properly, or that of another, so as to achieve maximum performance with the highest quality.

Today, and more after the boom that has suffered the sector, the task of property managers has become a profession essential, because the holder of more than one property, in many cases, is not able to control for management itself property documentation, thus preventing profit, so that appropriate professional uses a property manager.

If you are thinking about how to profit in something that is profitable in the long term. Have you considered lots of options but with the reality of the Latin American countries is not safe to put your money, today we show a new business proposition in the long run ... we suggest you invest in a real estate proposal.

The real estate market is becoming more globalized and the investments made ​​in it are increasingly frequent multinational capital. This will have a great opportunity as their prices become more competitive.

The crises that cross most developing countries show investment at appropriate times and this is one of them. The countries currently profitably to money are several, including notably Brazil, China, Canada, among others.

When you decide to access such proposals should be aware that prices will increase as the work progresses, that is usually a percentage increase each time through a different-launch phase, construction, completion, . These increases are also subject to the number of units, promotion and other particular aspects of the construction to be made.

Investors who are currently in business often make huge profits because one or more departments reserve prior to the start of construction. At this point the investor usually be asked to make payment of a percentage ranging between 10% and 30% of the total value of the sale during the construction period. The remaining amount shall be paid upon the work culminates and will be financed through a mortgage contract to be held with a financial institution.

The advantages obtained when choosing this type of proposals can be listed below:

 

 

1. Obtaining higher profits as a result of price increases during the making of it. The increase varied between 10 and 15 percent.

Two. Benefits are achieved between about 10 and 30 percentage points above the total price, but only have made the payment of only a portion of the investment.

Three. The payment methods differ according to the work in which you enroll.

April. The length of time that usually ranges from work last year and 2 years.

May. Almost all of the investments can be resold at any time.

No doubt there are great opportunities in real estate, one of the secrets of this business is finding out the supply and demand on the street, researching and asking about possibilities of buying, selling and construction. In future articles we will expand the topic.

How to Invest in Real Estate and Land

You want to invest money to raise their capital gains safe ... but is too conservative. We present one of the most secure that there ... real estate.

Investing in property has always been one of the lower-risk, absorbing property value inflation, one of the most significant variables in countries in crisis. It is also one that pays dividends every month with security.

At the time of placing their money in real estate or land should be considered that can not be chosen either because it may implicate a big risk, such as properties with hidden damage, insecure areas with noise pollution, etc.. On the contrary, we must conduct a study of the property to be acquired to go make sure you get the best return possible and not stall your money at a problem.

Some facts to keep in mind when choosing where to invest are:

• Area where it is located.
• Construction material used
• Neighborhood safety.
• Location and level of neighborhood schools.
• Nearness of public health service.
• Financial state of the city in which it invests to be safe from layoffs in companies.
• Housekeeping qualified to keep the place clean.
• Recreational and sports facilities close to home.

All these data to assess a property and assess economic value.

There is also other related proposal which can increase their income in a phased manner and is buying land. That is, instead of buying a house or apartment, I acquire a plot.

The purchase of land to build or speculate on its increased value over time, is a safe strategy being implemented by many companies and individuals.

 

 

On the other hand, the rent of land is profitable because there is a growing demand for food, especially those that are grown. Therefore, one of the first investment is to buy land to lease for agricultural production. With this method you will earn a regular income established.

We consider here the two possibilities we offer are safe to perform and each has its advantages and disadvantages. However, both options require an initial investment and the previous evolution to be acquired.

If you choose a home should evaluate each of the items considered. And if you choose a field, you can get a regular income, the decision is in their hands and under their own analysis of the case.

The Compound Interest (part II)

In the previous article we discussed that with compound interest was not very difficult to arrive at a figure of, say, € 300,000.

Well, needless to say, despite not be complicated requiring high doses of patience and discipline. Highly difficult thing when you have a considerable amount of money in hand, the temptation to eat uncontrollably or buying a luxury item, see a car, a house etc. exponentially increase.

A major plus point is the age at which you start, it is clear that the longer devote the most amount of compound interest can gather during a given period of time. So begin no later than age 30 would be ideal.

The first is to score a goal. Then decide how we figure that we will be around for a few years head.

Suppose we do not want risks and we're moving from, for example, 3-4% will give us a bank deposit and give us 5-7% by acquiring quality corporate debt. We mark a savings rate X which in monthly maturities of our investments go humble adding interest.

 

 

At the end of each year will add to the annual CPI rate of savings we had last year so we make sure we do not lose purchasing power over the years and inflation were not gaining ground.

An example. Monthly savings rate € 500, in a year together € 6,000. The next year we will have € 6,000 in an investment for example at 4.5% APR so that at the end of the second year we will have € 6,000 the first year, plus interest of € 6000 to 4.5% (213 euros after tax ( 21%)), but the 6000 euros (plus CPI should have risen to the saving rate) in the second year. A total of 12,213 euros in two years just.

Do you get the idea right? The third year we invested 12,213 euros, for example, the 4.5% that we will generate € 434 after tax, but the 6000 (plus annual CPI) for the third year, in total € 18,647.

In three years we will have € 18,647 without having updated the saving rate not to complicate the explanation. I think it's pretty clear the concept.

It is clear that more and more savings rate interest we reached the goal faster. But the same does not increase the interest savings. If you double the interest rate at which you are making your money work the result will not bend but is multiplied by 3'5. So imagine that can happen maximizing the savings rate and get a higher annual interest average. Spectacular.

It happens snowball effect, the principle is much start but once we have run for anyone.

To give more examples and see how it affects a slight increase projected interest rate over time.

Starting with 0 and with a savings rate of 610 € monthly, 3% compound interest capitalized through in 20 years we will have about 200,000 euros, in fact rather more in the calculation because we have not updated the CPI savings rate.

Just changing the 3% to 5% and we almost € 250,000. Can we imagine if we get over it?

If for whatever reason we can start from a number other than 0 that we have gained in time.

Let everyone do their calculations, charts and projections and let your imagination run wild. On the net there are plenty of calculators and compound interest tables .

Anyone is more motivated? You just have to want it.

Redemption Mortgage or leave the money on deposit?

This question always comes up in every discussion forums and in all conversations. In this blog will have generated enough comments like: 'I lack to pay 130,000 euros of mortgage and I have 40,000 in a deposit. What do I do with the savings? Amortized mortgage or leave it in the tank I might be giving interests?

The response itself is quite simple but you have to consider several factors. Not everything is to achieve maximum profitability.

If the 40,000 we have them in a tank get 4.5% APR 1422 after tax per year in interest.

If amortize mortgage until 9040 the maximum possible for us desgravamos holder a maximum of 15%, ie 1356 per year. But if the ownership of the mortgage there are two people you can deduct twice, 18.080 euros. With 15% return we will get 2712 euros hacienda.

 

 

The tariff includes fee, interest and principal. Therefore, if we pay a mortgage of 500 euros a month is 6000 a year and we should (in case of sole holder of the mortgage) repay to the maximum of 9040, ie add 3040 euros extra. Looking at it another way, we will have a deposit of 15% per year 9040.

If our mortgage fee is 850 euros per month 10,200 annual pay, therefore you should not write off anything because you spend the maximum in 1160, and in this case if you should leave the deposit at 4.5% APR and you probably have higher interest than you are paying for the mortgage.

If mortgage paid 650 euros a month (€ 7,800 per year) but we are two holders (my partner and I) we can deduct a maximum of 18,080 euros per year. That is, at the end of the fiscal year, in December, we'll add 10,280 euros to get the most and so will be like you have a deposit of 18,080 euros to 15% APR.

So much for the options to be financially profitable. But keep in mind that it is often better to pay a little more and have liquidity savings will run out sooner repay. I guess there are all kinds mentalities and before doing anything better inquire as to what may be the best option.

In case you want to ever repay mortgage amortized time and capital, since we got rid of shortening the time and lowering interest fee we will reduce some of the money to pay monthly but will also be paying interest to the bank.

Anyway people to purchase a residence from January 1, 2013 will no longer be tax deductible anything, so that 15% is canceled. In that scenario have the money saved to a good interest monetized over paid on the mortgage will be most profitable.

Equities vs. fixed income

We want to invest but do not know where to start. We heard that a neighbor buys shares, another has-bills ... but it sounds like Chinese. The most common among the ordinary people, not familiar with the investment world is to know the stock exchange. Equities bag not associated with on many occasions.

If we go a step further, on the other side of the sidewalk, no bonds. Four out of five people questioned in the street has never heard of the bonds, but the bonds of state and treasury bills.

There is a lack of knowledge of concepts and the association has to be clear that equity = stock exchange = buy / sell shares on an exchange.

And fixed income = letters / bonds / debentures, although in this case it is not so easy to explain as above.

I am often asked which is better, if the fixed or variable?, is an open question as it is not a duel to be the best way to invest, but every one of the options requires a plan or strategy determined and made ​​to measure.

By email I have received a comment on why equities RECOMMEND even. I have to say that I've never done, just position myself where best suits me and I adapt to the rules of the game on the fly. Who else who ever invested less in stock, if not he will have done so indirectly through your bank in a structured deposit or a mutual fund. Of all the people who have bought shares being aware of what they did, probably 8 out of 10 will have lost money, have won something and that ten will be made ​​in August. It's pure statistics. To earn a few most be missed.

The bag is fascinating. But never an individual investor may invest to a "higher level" because just as fascinating is equally manipulable. If I want to buy shares of Google I can do with a few mouse clicks. I can think that the company is "on fire" and that will go far. But managers may hedge funds, pension funds and large investment funds do not think the same and withdraw their positions. In that case the action begin letting down caught out if I have not heard before, either by choice or by the use of a stop loss (stop loss).

The strategy followed by these three groups of investors is quite simple in concept. They come in solid companies with good growth and the mere fact of having a reputation draws lots of people, and I do not mean people like you and me (also), but managers and smaller funds and large investors capital private. When the action is "hot" is said, the great go through the back door, by stealth, reaping the benefits and leaving others with an action that is devalued by simply taking away a part of its value . This happens every day, and is to blame for that 8 out of 10 of us lose money in stock market.

If you look at a recent case we can see if Apple / Google. The first was the world's most powerful company, shares more than 700 usd and bank account filled to the brim, to say nothing of the benefits you get. Until one day a great manager decides he has had enough and leaves, of course others are wary and follow him. There is no reason. Humans are like dogs when you shoot with a stick.

Source | Yahoo! Finance

So where has the money gone? Much of it directly to Google. In six months is up 40% to more than 900 usd per share, your business is going well or very well, but Apple is stronger and gets more benefits. And the box (cash money) is several times larger than that of the search engine block. But the funds are positioned in the search, making skyrocket while Apple already looks like 700 usd far and passes through a discrete (to be what it is) 400 usd.

Source | Yahoo! Finance

Until some lit, some other privileged information worldwide leading company, decides to abandon positions. The action will begin to lose because it is what makes the law of supply and demand. If a site is removed as there are less.

With fixed income this can not happen in this measure. Market does not work like this. As much as the bond is not fixed for the purpose of this type of investment is not the same. In this market, commonly, it comes knowing what is going to win, and although we can speculate without any problem, large funds do not use this method. In this market, which we are most knowing the outcome. Knowing that the current uncertainty is no reason for you to lose money, and if all goes well I will recover the initial capital plus interest at maturity.

Clearly positioning myself for fixed income, but that does not mean they do not use the equity (if I use it) but I move into what best suits my investment method.

I see it like a business. Imagine you are the manager of a company and you have two possible scenarios for the end of year results. Think of your choice dependent jobs. On one side of the table is the aggressive option (the reference to equities), this option is as follows: if the thing goes well the company will earn a 25% in this fiscal year. If something goes wrong the company will lose 15% and you have to make a cut of 30% of the workforce.

Across the table is the most relaxed (relating to bonds), in that you will not lose in that year but the benefits will not 8%.

Which do you prefer?

Sure you reflect on this example you have decided that the bond is better. No, not better. It's different. It is used for different things. It depends on your plan and your ambition. Not the same winning by 8% to 25%, but it is the same to win by 8% to lose 15%.

Quite some time I am in favor of adding 8 at 8, and not from adding 25 +10 -15 -8. I hope you understand. I am more than convinced that long-term earning just over fixed income than equities.

Just to give an example, a well-known blog (I will not say the name), which have a public investment portfolio. Since 2008, have achieved 16% revalue. A 16% cumulative, then dividing by the years from the start date is plus or minus 3%.

  In fixed income, and without being a "master business" minimum multiply that number by two.

This is not to say it's easy and those who invest in equities fools. Not at all. Only that each tool is used to a certain way of working.

The 12 principles of value investing (Part 1)

Bestinver has published a book that summarizes the 12 principles of management by value, with phrases and ideas of legendary managers who follow this philosophy, such as Peter Lynch, Warren Buffett, Mario Gabelli, Charlie Munger, John Templeton, John Neff, Jim Rogers, Christopher H. Browne, Walter Schloss or Francisco Garcia Paramés own. Joining them are two prominent figures Friedrich A. Von Hayek, Nobel laureate in economics and Benjamin Graham driver of investment value.
I put a short summary has been published weekly funds people, each one of these ideas:
1) The active equity is more profitable in the long term: Peter Lynch (1944), Magellan fund manager, once said that "the great advantage of investing in stocks, for those who accept the uncertainty, is the extraordinary reward for having reason. " From 1871-1992 and in spite of all bankruptcies, recessions and crises, stocks outperformed bonds in 80% of periods of 10 years and 100% of 30-year periods. Moreover, equities has resulted thirty times more profitable than bonds. The explanation is that when you buy shares you are buying a part of a business and is therefore part of its growth and expansion. "The bond investor is only the nearest source of money and the best we can hope for is to get it back with interest," says Bestinver AM on publication.
Real estate assets also increase the purchasing power of long-term investor, but not as consistent as stocks. As for raw materials, possibly the worst real asset returns over the long term due to its high cyclicality.
2) active equity is less risky in the long term: Indeed, and although it may seem paradoxical, the target equity is less risky to invest long-term, since its evolution is linked to economic growth and corporate profits . Instead government bonds depend on economic policies governments adopt q ue corresponding, often inflationary and therefore destructive of value to those "nominal assets" that do not incorporate price inflation. As an example, draws Bestinver Argentine investors. The investor in Argentine government bonds in 2001 lost 70% of their savings and have not since recovered, while the initial equity investor lost 60% in the same year and then not only recover quickly, but multiply by nine investment in five years. Moreover, the Argentine bond is approximately the same price as marked at the outset of the crisis. And, according to the manager, history is full of examples of very damaging inflationary periods for investors in all types of bonds (Argentina in 2002 and in the 80s and 90s; Russia in the 90s, Spain in the early 70, just as the U.S., or Germany in the 20s).
3) Few managers get beat market indices in the long run: Get an average annual return of over 10% that offers long-term stock market is not easy. In fact only 9% of American managers has managed to outperform the S & P 500 over 16 years (1981-1997). The fundamental reason is Bestinver is "the lack of discipline and the continuous changes of strategy they incur most fund managers", who often succumb to fads and phobias of each moment. Be true to the investment philosophy both in good and in bad times is one of the keys to obtaining a satisfactory long-term performance. History shows that the average fund manager tends to go wrong with your investment decisions and guided heavily by short-term economic forecasts. Thus, the different minima of the bag have been coinciding with maximum liquidity positions equity funds: 1970, 1974, 1982, 1987 and 1990.
4) Investment in setting produces higher returns than the indices in the long run: "All intelligent investing is value investing: buy something for less than it's worth," said Charlie Munger once (1924), vice chairman of Berkshire Hathaway . Among the different schools of management, "value investing" is the only one that brings together a group of managers who manage to beat the stock market long term and consistently. According to investment firm Ibbotson Associates, value investing has overtaken from a differential growth rate of 5% since 1932.
It is estimated that the investment value concentrates only between 5% and 10% of world capitalization by 200 managers, especially in North America and investors have achieved this common philosophy beat the market long term, although each with its own strategy.
5) The volatility and liquidity of an action are not representative of the risk: Friedrich A. Von Hayek (1899-1992), once said that "Wall Street used the CAPM model and other ways to reduce the uncertainty to a quantifiable risk. But only measure what is measurable, no matter what. " Thus, the risk that an investor takes when investing in shares is not determined by the volatility that has been in the past, but by the possibility of a permanent loss of value associated with the business of the company. Thus a volatile trading does not make a firm more risky but allows the investor to buy it at a time when the alteration between value and price is higher.
Neither the size or liquidity risk is representative, because in principle it is always easier to find major differences between value and price in small companies than in blue chips, as they are less analyzed. In fact, it has been shown that small caps are more profitable than large firms in the long run, but not necessarily more risky.
6) The stock market crises are inevitable and allow a significant value creation: As John Templeton (1912-2007), philanthropist and founder of Templeton Funds Financial, "the four most dangerous words in investment history to have been: this time is different. " Although the long-term actions are most profitable assets and secure, the history of the stock market is full of dramatic episodes. The value investor has to understand that uncertainty will always be present when investing in stocks, as strong or scilaciones are inherent to the market and investment strategy based on these oscillations is a mistake in the long term. However, staying true to the investment strategy during such episodes allows a significant value creation.
In the past 40 years the equity markets have faced several oil crises, many armed conflicts, various financial scandals, bankruptcies thousand and four major stock market crash. And despite everything, the S & P has provided an average annual rate of 9.3% since. Even from the crisis of 29, in less than four years an investor would have earned a higher return than investing in Treasury bills.
In my next article I will comment the last 6 value principles.
A greeting.

How the International Monetary Fund work

To get in history, the International Monetary Fund was created in 1945 in the United States, and its main objectives are to promote international monetary cooperation, facilitate international trade, and reduce, ultimately, poverty. It also conducts economic policies international regulatory and conciliatory. It is part of the United Nations being an intergovernmental organization made up of 187 members. Headquartered in Washington DC, but has several offices around the world.

IMF Performance

• The main objective of the International Monetary Fund is to ensure the stability of the international monetary system that allows member countries, and therefore its citizens transact with each other, which makes maintaining a stable financial system, sustainable and balanced.
• For this, the International Monetary Fund provides funding to member countries to improve the margin of maneuver of each country in relation to its balance of payments. Between national authorities and the International Monetary Fund made an action plan, ensuring effective both for its compliance.
• It also provides technical support and does a great job as a consultant to member countries to develop effective economic policies, for example on tax administration, monetary and exchange rate policy, supervision and regulation of banking systems and the regulations governing them.

IMF Resources

• Currently, the countries to become members of the International Monetary Fund, quotas must deposit called "subscription fees", which are directly related to the economic capacity of the country.
• These assessments determine the economic aid that the Fund will provide each country as well as their right to vote in decisions about regulations. Thus, the higher the contribution of a country, the more power on joint decisions and have more financial aid when tackling a crisis.
• When a country needs financial aid, IMF gives 25% of its shares, with the country's commitment to return within a period ranging from 3 to 5 years. It is expected that the country must repay the loan as soon as possible to not leave without credit to other member countries.
• In the past, obtaining resources from the International Monetary Fund was made by obtaining the interest on loans outstanding, which made it less effective and solvent, then opting for the model that is currently running .

What are the criteria of banks to lend

Unlike what banks and preach the good credit history of a customer is the most important when lending to this, but taking into account factors that are related to the ability to repay the loan voluntarily or necessity, and that should be very clear.

The ability to pay

The business of a credit institution not sue their debtors and keep their property in the event of default, which also usually results in losses, but to collect the amount borrowed and the interest and fees on time.
For this reason, the main criterion for granting loans is that the applicant can meet the periodic installments. Generally, in the case of mortgages, the monthly fee should not exceed 35% of the borrower's monthly income and your household.
If it is a loan in the medium or long term, banks and fixing the type of employment contract that the customer has, in addition to the strength of the employer. If this does not convince them, may require hiring a payment protection insurance, for example.

The warranty

Second, to ensure that in case of default can recover the borrowed capital and interest, the guarantee granted is very important. If it comes to purchasing a home, precisely the mortgage on the property is essential because the loan shall not exceed 80% of the valuation of this.
In other cases, especially whether to grant loans for amounts higher or long periods, you may require the financial institution, for example, the guarantor, that is, someone other than the client is committed to your estate to pay the debt if it does not comply.
It is also usual for the agency credit loans is fixed in current assets of the applicant, that is, both money and other personal property such as stocks or jewelry that may eventually be left with the first, as a garment, and use it to collect the debt.

How to negotiate with the bank's best interest rate

If getting a loan is in itself complicated, get a good interest rate may seem impossible. However, if you follow certain trading strategies, the results will be more profitable than those which have been finalized to not use them.Trading ResourcesTo get a good interest rate is necessary to have two tools that support robust negotiation otherwise the lender will not even bother to raise a possible downgrade. It is important to feel in a position strong enough to require a modification of the standard conditions.
The first of them is to have a good credit history and be customer for several years. In this case the bank does not lose the customer interested and can offer good rates, in fact, experience shows that once a borrower has a loan with an institution, the tendency is to take it both accounts as the other products .
Additionally, it is critical information in advance, asking for contributions to various lending institutions, preferably in writing, about the interest rate they offer. Only in this way you can tell if the rate you are offering the bank concerned is outside of the standard in the market and if it is reasonable to request a rebate.LinkagesOne of the mechanisms currently used by lending institutions to lower the normal interest rate is called bonding, which is to ask the client to hire some additional products and maintain during the term of repayment of the loan.
Within these there is the payroll debit and utility bills, such as electricity, water, telephone and gas contracting life insurance and payment protection, hiring credit cards, and plans pensions and savings.
It is important to analyze how many basis points interest rate cut each product and determining whether compensated hire and if you are able to keep. In the case of savings funds, for example, the borrower is obliged to make monthly contributions.