Business and Finance Analysis

Posts Tagged ‘Investment Tips’

Why Real Estate Profitable
Using other people’s money, or use the financing is just one of convenience that can be utilized invest into property. But other than that there are many benefits of investment in property that makes it very attractive in comparison to other investments.

• Cash Flows, “Cash Flow”,

Cash flow is the money you receive on a regular basis on the money you invested in an investment. for example interest on savings and deposits are cash flow because it provides income to you. In property, the rent could be income or cash flow for you. More and more buildings can you rented the greater your cash flow.

• Value of your ownership of the house increases.

Value your rights of ownership or property investment is financed from the concept of using other people’s money was going to increase, far exceeds your debt or obligation. Person’s ownership rights in an investment is known as equity. For example if the purchase of your property investment amounted to USD 100 million, financed by the bank’s USD 70 million, the remaining Rp 30 million to use your own money. So your ownership rights to the investment worth USD 100 million had amounted to USD 30 million or 30% of it. The ownership will increase in value because of the reduced debt repayment obligations. In addition, your property rights are also increasing because of rising property values. Your property value will go up due to inflation makes the prices of goods and services has increased, including property. As a result of this inflation is not just a property value goes up but you also have the opportunity to increase cash flow or your regular income through increased house rents in line with inflation earlier. The increase in the value of this property can even increase your borrowing power. Banks are usually happy to give additional loans based on collateral or property price increases. You can use this money to pay off old debt balance, and the rest of the money from these loans can get your bag. Then to adjust to a new loan installment of rent income.

If you are an employee, of course, want to get a salary as possible, if the salary was paid by the company which you are not within your capabilities, then you will find another company who is able to pay you higher. Or you are looking for other income such as catering business, selling and other pulses.

Besides the issue of salaries, to compete with fellow employees who are younger are other problems you face in addition to salary. With more knowledge ‘ADVANCED’, with the idea of the new, higher work motivation, and are willing to pay with lower salaries. Of course, your boss or owner of the company will ‘look’ to your colleagues, and eventually you will get to sink.

Besides, another problem which we may not realize is INFLATION. For example, if your salary increase of 10%, and the rate of inflation was 12.5%, the actual salary will be reduced 2.5%. In order for your income is not reduced, that you are doing you should  your income with the following formula:

(Inflation – increase in salary)
———————————- x salary
(investment interest)

By assumption, the bank rate = 8%, and with income above formula which should be set aside for savings is 31.25% of your salary. Value which is high enough for most employees in Indonesia. Look for investment instruments other than savings / deposits.

Many people or even many of the blog readers did (or we did) this question sometime. Therefore throughout this post I will go through various concepts and themes that are very important to respond estapregunta and above all things, give us a reason to invest.

Then repeat the question, What good is investing? Or rather, why?

The purchasing power of money:

Suppose you have $ 30 in his home, kept in a box, you are saving in a month to spend on something you want. Every day she leaves home to work and return at 9 am.

During the time that is out of work, a thief enters and takes a single peso. So throughout the month without you knowing. Arriving later this month will find their $ 30 when you open the box and realize that is empty.

Congratulations, you’ve come to understand in some ways the concept of “inflation.” This topic discussed in the media but who may not know much.

The above explains so little story in a rather absurd as inflation is “eating” our savings Inflation is a sustained increase in price of an economy. So if you now with $ 30 could buy a book, perhaps within 10 years this book out $ 150. This is the power of inflation and hence the decrease of “purchasing power of money.” Read the rest of this entry »

Investment model 4 – Create Value

One of the activities or hobbies that I always had in my life was drawing.

I remember as a kid and I was at school into cartoon or comics that after many I ended up buying. While not the style of Marvel comics, my friends wanted them and that caused a lot of grace and had the courage to be unique.

At this point in my life I realized there are few professions or activities in life which we can create value. Precisely this was what I did, took some sheets, pencils and began to draw (Register value)

So the latest model of investment that I will discuss will be to create value, but from the standpoint of the investor, since if we work and create value, we are not investing.

* How does this model?

Its operation is very simple, has a low level of risk and it is two or more parties together to create value and make a profit there. These parties may be individuals or different resources to fulfill the same purpose. Read the rest of this entry »

Investment Model 3 – Retain value

So far I comment on two investment models that can be used at any time, they are “the price” and “seed capital.” Today I shall discuss another model called the “hold value.”

If you look at the photo that I added today can distinguish the surname of a player known “Messi.” If you are not aware of who is this guy, tell him your story summary:

“This young man began to show football skills when he was 5 years. After being in Newells how in River, ended up playing for FC Barcelona at age 17, becoming the youngest player in the history of FC Barcelona”

Very brief, but goes straight to the point of what I want to make, the model of “Hold Value”:

* How does this model?

It is very simple, perhaps at first not realize the potential you have and can not find any way to retain value, but must bear in mind the possibility. This model operates under the idea of retaining anything that we can generate a value later. Read the rest of this entry »

Investment model 2 – Buy cheap sell high

In the previous topic I commented on the first investment model we can use. This was the “price” and basically trying to follow the technique of “buy low, sell high” and are getting good prices by chance, or simply search through our contact network.

But now we’ll see the model of the “seed”, and how it works. Obviously this model of investment is very different from before, but if you know how to use his techniques, you will generate better returns than using the previous model.

How does this model?

This model is used when you want to help by providing a quantity of capital, an entrepreneur in his project for a launch how to improve the activity being performed. In this case we have a difficulty that is the “risk” because if the project is not launching, we do not know if they really work or not.

What about strategies for entry and exit?

In this case the problem is not the front, and we can negotiate or to generate a way to get into the business that is truly effective in achieving our objectives. Read the rest of this entry »

Due to a problem in Blogger with accents in titles, two of the old main blog entries were left without the correct link, the strange thing is that for some time came. These entries are those of the investment models are 4.

In truth the problem lies in the model 1 and 4. The solution is to put in the URL address “N” at the end of the word “INVESTMENT” so that it is “Inversin.” The other and more convenient solution was to create the post again to have the four models together and print them all in one step if you want.

Then the explanation of each model.

An investment model – the price

In the previous topic I commented on the entry and exit strategies which we have to at the time of investment. In this issue I will discuss one way (or models) of investment we have in mind to grasp opportunities.

This model is the famous system of buying cheap to sell to a higher. Many people do this activity for example, those going to stores that sell products on a wholesale, then sell. I can buy a soda at a store, but surely if I buy a whole pack to get a better price.

* How does this system?

It’s basically what I mentioned above, “buy low to sell more expensive.” But obviously we need to consider strategies for entry and exit in this process and we will see why. As I mentioned earlier we won at the entrance and the exit. Read the rest of this entry »

Do you plan to open an estate? It’s almost more profitable to buy an apartment
Today almost is more profitable to launch and maintain a business to sell or rent properties to buy one. The initial investment to create an estate does not usually move from the 60,000 euros, which can be recovered within five years.

To meet these deadlines is required an annual return of between 20 and 50 percent while real estate agents say the seasonality of the business income does vary according to season and location of the property on the map.

Renting a room: 800 euros

The location, preferably to rent, you must have an average area of 70 square meters plus a showcase of “at least two square meters,” explains Julio Pradera, a member of real estate group’s expansion Perfect Floor. Spending will be the first to list on the list and remember that it is permanent throughout the life of the business. Some 800 euros a month is the approximate cost but varies according to the city in which it decides to make the agency and the types of properties that interest you.

For example, if you have decided that industrial buildings are your product, your business will have better reception on the outskirts of town in the midst of the city, whose public demand for more local stories and urban.

Read the rest of this entry »

Considering how quickly communications networks grow, there is another way to take advantage of it: through entertainment companies that rely on them.

Of that universe, Fortune selects Broadcom, Viacom and Univision. The first figure in this list because the items manufactured connectors that allow other applications and products to arrive before television. Thus, in the coming years, their products will help to complete the integration of television and the internet.

Viacom appears among the favorites thanks to the large number of brands and resources to have their label: CBS, MTV, VH1, Nickelodeon, TNN, Paramount Television and Showtime, among others. Univision brings a new element: demography.

Absolute leader among media groups for hispanoparlantes, will benefit the growth of this population, particularly in North America, where it is based. In addition, analysts believe it is in a position to triple its purchasing power in the next decade.

Kings of Wall Street

The next trend has to do with the base metal. Thus, large banks and financial firms will benefit from savings lso new generations and continue to have a powerful ally: globalization, allowing them to continue conquering new markets. Only one fact: it is expected that the medium term the number of U.S. citizens age maximum savings (between 45 and 60 years) spend 60 to 80 million.

Read the rest of this entry »

Sure more than one investor has nightmares about all the activities in which to invest shuffled, he did some years later and have become great success stories, like Microsoft or Google.

However, although in the past failed to catch any of those big winners in the market, never too late to build a portfolio that will lead to success.

Thus, Fortune magazine has identified the trends that have the potential to transform the economy over the next ten years, and the ten values that you can take advantage of them.

According to American publication, these trends are basically four: the rapid changes in communications networks, the new and challenging entertainment industry, the boomerización financial services and the renewed importance of biotechnology.

Alone are powerful, but more interesting is that combined can really transform the way we work and interact.

Hand in hand with some of the best fund managers in the U.S., first class signature as Janus Capital and Franklin Templeton, have selected more companies can benefit from these trends, but they also have exceptional management skills to function whatever the economic environment.

As market volatility, some of those companies making losses in recent months and even years, but this, according to Fortune, is not something that should worry investors if they are largoplacistas.

Read the rest of this entry »