Efficient Growth

Kicking off the evaluation process is the toughest for us. Question after question kept popping up “Is the property market low enough?”, “Is this property worth considering?”, “Are the numbers the only criteria for investment?” What are we really looking for in real estate investing?? Quick bucks $$ or Regular income…

Bottom-line = Money!!!

Property Agents have tons of recommendations for YOU! How will you know whether they are good investment for you?

There are many factors that need to be considered in evaluating a real estate investment. For example, location, environment/neighborhood, facilities, financing options, rental income, etc. If all above works, it is time calling your agents and set up appointments. Happy Viewings!!!!

Actually it is not difficult and it does not need much of your time to know if a real estate investment is worth investing in the first place. All you need is crunching some numbers with your calculator, and Bingo! You can decide whether the property is worth investing.

Later in this article, we will show you how these numbers work in your prospective real estate investment by two real life cases in Johor Bahru, Malaysia.

Numbering GAME
Numbers, numbers and numbers.. How do you get them?

You may try calling a few property agents, check with banks on properties valuations and of course there is plenty of information on the Internet. Once you have these numbers you can determine if a real estate investment is worth spending your time for a viewing. “Seeing is Believing.” Check out the property to see the actual condition and the environment, whether it is to your liking once you get your numbers RIGHT! Once you get your numbers, you will see:

Incomes
One-time income – selling price
Regular income – rental price

Costs
One-time expenses (startup costs) – down payment, agent’s brokerage, legal fees, stamp duty, furnishing cost, etc.
Regular expenses (monthly costs) – monthly loan repayment, monthly maintenance fee, quit rent, property tax, etc.

See how they (numbers) work..
The basic requirement for a good real estate investment is that the income it generates must be more than its costs.

If the selling price of a real estate investment is more than its purchase price and startup costs, this investment generates capital gain.

If the rental income of a real estate investment is more than its monthly expenses, this investment generates cash flow.

If you are looking for capital gain, the gain or loss depends very much on the real estate market. Hoping to make money from capital gain on real estate is like buying a product and hoping the value of the product will go up with time. On a long term basis, real estate will be appreciating in value because of inflation, but the gain is not guaranteed.

On the other hand, a real estate investment that generates cash flow effectively put money into your pocket every month, while your equity in the real estate investment increases over time. This is the real estate investment that we are looking for – an investment worth investing.

Too good to be true?
With this recession time, you will ask yourself, “Is it the RIGHT time for me to start investing in real estate? Everything is so uncertain NOW.”

In Johor Bahru, you can find plenty of real estate investments worth investing at this juncture. We discovered most of these investments that generate substantial cash flow are mainly apartments or condominiums. You can read from our upcoming article to know why apartments or condominiums are better real estate investments in Johor Bahru. Here are two recent real life cases of real estate investments worth investing in Johor Bahru.

Case 1: We found a condominium in Larkin area of Johor Bahru in Octorber 2008 selling at 0,000 with existing tenant. Monthly rental income is 00 while monthly maintenance cost is around 0 (maintenance fee plus sinking fund plus quit rent).

If we finance 90% of the purchase price to buy this condominium with interest rate 4.85% with a tenure of 30 years, monthly loan repayment is estimated to be 0. Thus, this condominium is generating a net cash flow of 0 every month, 80 every year.

Total capital outlay for this investment is ,000 for down payment including other startup costs like legal fee and brokerage.

Effectively this investment gives us a yearly cash-on-cash return of 18.5%. In other words, within 6 years we would be able to take back our capital ,000! The best thing is we still own the condominium. It will keep putting money into our pocket every month. We also have the option to sell it away when the market is good.

Case 2: There is a 3-rooms apartment in Tampoi sold at 5,000 in Octorber 2008. Monthly maintenance cost is about 0. If we finance 90% of the purchase price with interest rate 4.85% with a tenure of 30 years, monthly loan repayment is estimated to be 0.

Expected rental income for a fully furnished apartment in the area is about 00. With furnishing cost of ,000, total capital required for this investment is around ,000, while total monthly cost is 0.

The apartment is expected to generate a net cash flow of 0 every month, 00 every year. Cash-on-cash return on this investment is 20% which we can expect to take back all the capital within 5 years.

Sound interesting right?
Of course, so far we are only talking about numbers. A good real estate investment does not rely on purely numbers. You still have to go and have a look at the building structures, study the location and neighborhood, and perform other checks before you make your decision. What we have discussed, however, can save you time and give you more ideas on the potential returns of a real estate investment before you tell your agent which real estate you want to view in the coming weekend.

Read more about real estate investment tips at http://reijb.com

We write regularly about real estate investment. Some of our featured articles include:

“How to estimate the value of a property?“

“Why apartment can be the best real estate investment?“

“How important is location to an investment real estate?“

Coming from a humble little town called Tangkak in north Johor state of Malaysia, OngKL has chances to learn and work both in Johor Bahru and Singapore – a conurbation with 6.49 million still fast growing population – since year 1996. He is now having a chance to contribute back to the community by sharing what he sees, what he knows and what he learns in this wonderful place.

http://reijb.com

Retirement is one of the most significant changes that any of us will ever experience.

Everyone approaches retirement differently and with a mix of emotions, some of us can’t wait and others of us will be worried or even fearful.

Planning for retirement courses are more important today than they have ever been. We are much healthier, much more active and can expect to live much longer – a whole new phase of life and opportunity is opening up. Unlike other phases of life, this time there is less structure. For the first time we are faced with a period of maybe 30 years when we essentially write our own ‘job description’. That requires plenty of thought and planning, to avoid pitfalls and to ensure we make the most of it and enjoy a balanced retirement.

You can take a big step by getting some expert advice through a retirement course on how to make the most of your retirement, thereby making your remaining time in employment as stress-free and productive as possible.

It is important to recognise that many retirement courses still focus far too heavily on just the financial side of retirement, even if lifestyle aspects are in theory covered. Although finance is important it should not be dominant because the lifestyle aspects of retirement and decisions about them are fundamental to making the most of retirement.

In the past many retirement courses have also focused too much on information giving. A good course will also include methods that cause the individual to examine each aspect of retirement from their own point of view and encourage discussion between delegates.

Value to the individual of Retirement Courses

A retirement course that provides the right balance will lead to a number of benefits for attendees including

• Overcoming concerns and fears, making retirement an opportunity to look forward to.

• Making attendees of the retirement course consider retirement in a way they won’t have done before and as a result clearly identifying both the issues that need to be addressed and the opportunities. Raising new areas to consider even for those who have done a lot of thinking about retirement. Making them aware of common pitfalls.

• Making the level of change they are about to undergo clear and the retirement course will enable them to produce a personal plan which makes their transition to retirement smooth

• Generating lots of ideas for enjoying retirement – their own, their colleagues’, and the tutor’s. Different perspectives help them develop their own plan.

• Understanding how their relationship with their partner and others may be affected and the importance of planning this together (ideally attending the retirement course together)

Helen Smith is a specialist retirement consultant, for more information on retirement courses please visit http://www.laterlife.com

Many people have the notion that commodity futures trading is very difficult to understand. It may only seem difficult when you are new to futures trading, but once you understand the inner workings and get a hang of it, you will be well on your way to success.

People have a common misconception that commodity exchanges determine or establish the prices at which commodity futures are bought and sold. This is not true. Prices are determined by supply and demand conditions. Just keep in mind that if there are more buyers than sellers, prices will be forced up and vice versa.

Buy and sell orders, which originate from all sources and are channeled into the exchange-trading floor for execution, are actually the ones to determine the prices. These buy and sell orders are translated into actual purchases and sales on the trading floor.

The major function of the futures market is the transfer of risk, and increased liquidity between traders with different risk and time preferences, for instance from a hedger to a speculator. Futures trading is a method used to eliminate or minimize risks that occur when the prices in the market fluctuates.

Futures contracts are exchange-traded derivatives. A futures contract is traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a pre-set price. Futures contracts are basically for assumption or hedging.

There are two groups of futures traders: the hedgers, who are interested in the underlying commodity and are seeking to hedge out the risk of changes in price; and the speculators, who are interested in making a profit by predicting market moves and buying a commodity “on paper” for which they have no practical use. For example, commodities in the market can be bought today at today’s price, with the speculation of selling them at a higher price in the future.

On the other hand, hedging protects against fluctuations in market prices. This protection is made by allowing the risks of price changes to be transferred to professional risk takers. For instance, a manufacturer can protect itself from price increases in raw materials they need by hedging in the futures market.

Hedging has two types, hedge sale and hedge purchase. A person can buy a commodity and sell futures at the same quantity as protection against fluctuation in prices when he is still holding the stock.

You might think that this is gambling, but the fact is that speculation refers to the condition of a legitimate enterprise based on the current condition of the market trends. However, it is very risky for inexperienced futures traders who try to predict the market and speculate without having enough resources or experience.

Since the prices are distributed via telecommunications network and the internet, it makes online futures trading very convenient and simple for an individual. Nowadays many brokers offer their services for trading commodity futures online. Because more risk is involved in online futures trading than stock trading, you must judge for yourself whether or not it is worth the added risk of trading commodity futures online.

Keep in mind that an investment in futures can result in losses. Past performance results does not necessarily indicate future performance results.

For more on Futures Trading visit futures-trading-expert.info. Susan also writes at health-and-fitness-hub.info.

Financial Software Forex Trading

Are you looking for a forex trading tool but finding difficult to pick the best one for you? Well, there are so much a lot of people who find it quite difficult to choose the current software. The number one explanation for presently is it takes a lot of time to inspection in shape to get the ultimate one for you. Financial Software Forex Trading

If you consideration that it is not necessary to go for it, when that happens you are wrong. You should constantly keep in mind too you have to get the application if you in fact would like to be on the look for earning in the market. So, let us experience a happy article on the now software. Simple method to make profit The main reason why people go for forex trading software is that it is the simplest process for making profit when it comes to investing in shares and stocks. Financial Software Forex Trading

But the difficulty lies in the fact that there are lots of forex trading software that are found in the market due to which it becomes a big problem in choosing the best one. But if you are able to make a good research, you would be able to get one for you. You should be able to distinguish from the different software available in the market and always keep open your mind so that you do not fall prey to the wrong software. Financial Software Forex Trading

When you go for this software, you would find that there are automatic softwares available for you which run 24 hours a day as well as 7 days a week. What’s more, the automatic forex software never sleeps and carries on conducting trades at any time, whether be it a day or night. It helps to buy at a lower price and then sell it at a higher price even when you are asleep. Financial Software Forex Trading

Another feature of this software is that it is self adapting where it updates itself and finds the best one for you. There are software where it uses automated online exchange information and helps in making the trade quick without taking much of your time. Very affordable Now when it comes to the price of forex trading software, there is some misconception that is held by many novice traders who think that they have to burn a hole in their pocket to get one for them. But in reality, it is quite affordable and it makes the process of currency trading very efficient as well. Financial Software Forex Trading

It helps in eliminating human errors and also other problems that are associated with it. So, it is very inexpensive and you can always get one for you without any second thought. When it comes to speed, it is very fast and the transaction takes just a fraction of time. Stop what you are doing RIGHT NOW and get your Life Changing Financial Software Forex Trading Program. It’ll change your Life Forever!

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