Pros and Cons of Property Investment

Property Investment
Investing in property is one of the biggest decisions you will ever make as an adult, as property investments can be quite substantial. There are several advantages to investing in property and there are many risks too. The important thing is to maximize the benefits, while being aware of the benefits.

In this article we discuss both, the pros and cons of property investment and leave it for you to decide if this is something you should consider.

Pros and Cons of Property Investments

Pros
#1: Property investments are less volatile compared to an investment in the stock market – You won’t find the same sort of volatility in property investments that you find in other investments such as the stock market. The reason for this is that properties take a much longer time to dispose of – so people cannot get rid of a house at a moment’s notice, as many usually do with a stock that they fall out of love with.

#2: You can use the power of leverage to maximize your profits from property investments – You can buy stocks on leverage – in which case it is referred to “buying on the margin”. But you will only have access to a limited leverage when buying stocks, which has to be paid off within days or a few weeks. It is different with property investment. Here, you only have to make a small downpayment of around 10 to 15 percent and make up for the rest of the price of the property by taking a home loan from a bank, which can be paid over several years. Leverage allows you to maximize your profit from the investment and gives you the power to go for high value deals.

#3: You can earn an excellent passive income by renting out the property – You will start making money from your property investment almost immediately. When you buy a house, you can rent it out if that is not your primary residence. The rent pays for the mortgage and the expenses. You will also have enough money left over to ensure a positive cash flow. Renting out your property is an excellent source of passive income and can fund your lifestyle for years to come.

#4: Property investment is done with the long term perspective – The value of your property appreciates over time. With the population growth in countries such as Australia, United States and the UK being as high as they are, there’s a huge demand for residential properties, which are always in short supply. So property prices appreciate gradually over a period of time, without the sort of volatility as seen in the stock market. In addition to that, it generates a very good rental income for you through the years. This makes real estate an excellent long term investment.

Cons
#1: It is an illiquid investment – As said earlier, you cannot get rid of the property easily. It takes months to sell a property. So if you are in an urgent need of money for an emergency, you won’t get that from selling real estate.

#2: Real estate investments are expensive – Investing in properties requires a high entry cost. You can buy shares for as little as $10, but to invest in a property, you will need to put up at least $100,000 to $200,000, unless you buy it on leverage. Also, it is not always easy to get a home loan or a mortgage to buy a property. So there’s a big barrier to entry to overcome, at least when you are starting out.

#3: You are affected by external factors such as changes in the interest rates or slowdown in the economy – The value of your property will take a hit in the event of a nationwide recession and depends on local factors as well. Also, if interest rates are raised suddenly, paying the mortgage would become so much more expensive for you.

#4: There could be issues that you are not aware of – There are always some hidden problems related to a property. For example, there could be a problem with pests that wasn’t clear to you while making the purchase. Or there could be a problem with the water supply.

#5: Bad tenants – Renting out the property is a great way to earn a passive income, but only as long as you get good tenants. A property owner’s worst nightmare is to rent out the property to problematic tenants, who fail to pay on time, do substantial damage to the property and worse.

We have discussed the pros and cons on property investment. The pros largely outweigh the cons, but you should be aware of the risks at all times. After all, there is no other asset class that is as lucrative as real estate – it only takes one highly successful property investment to set you up for life.

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Renewable Energy is the Future

Renewable Energy
Is renewable energy the future? Let’s think about it – how much longer do you expect the human civilization to exist? 500 years? 1000 years? 2000 years? Well, if humans are going to be around for so long, we better find an alternative to fossil fuels, because none of the fuels made from non-renewable sources of energy are going to last for too long. They will eventually be exhausted, and people will sooner or later have to depend entirely on alternative sources of energy.

Don’t trust policymakers, technocrats, or large corporations who act as though fossil fuels are going to last forever. They are not, and don’t get fooled by the current fall in oil prices. There may be an oil glut today, which has driven oil prices down, but how long will this last? We will soon be back to the days of oil costing $100 or even $200/ barrel.

And what about the implications of releasing CO2 and other greenhouse gases into the atmosphere? Global warming is a real and present danger and it cannot be wished away. Unless the emission of CO2 and other greenhouse gases are brought down significantly over the next decade, there is nothing to stop a 2°C rise in the global mean temperature.

The Intergovernmental Panel on Climate Change (IPCC) released a report recently where it showed how any rise in the global mean temperature that is over 2°C can have catastrophic consequences for the human civilization.

The question is not “if” we should be switching to renewable sources of energy but “when”. Well, the way things have been developing recently, we cannot really wait any longer.

If governments and large corporations fail to take active measures to save the planet and make the move to adopting renewable sources of energy – we the citizens should express our displeasure through the ballot boxes.

Vote out any politician or government that fails to comprehend the seriousness of the challenges faced by us, the citizens of the world. After all, it is our future and that of our children and grandchildren at stake.

Switching to renewable energy sources such as solar and wind energy can save lives. It can save the planet. What’s more – because of rapid advances in technology, there have been dramatic decreases in wind and solar prices over the last 5 years.

Apart from solar or wind energy, renewable energy sources include biomass, geothermal energy, hydrothermal (water) energy and more. No, renewable energy still cannot replace fossil fuels and the technology is not there for wind or solar energy to become primary sources of energy. But a gradual switch has to be made.

Scientists, technologists and entrepreneurs such as Elon Musk must be encouraged and supported in every way possible to come with new technologies and innovations that would lead to the mass adoption of renewable energy sources.

For example, efforts must be made so that electric cars such as those made by Musk’s Tesla Motors replace gasoline-powered cars on the road. As of now, this is not possible as there simply isn’t the infrastructure to support electric cars, such as the one for gasoline cars.

As more investment is made in companies that develop solutions based on renewable energy, we expect more jobs to be created, which would give a substantial boost to the economy. There are millions of people around the world who work in the renewable energy industry already. China has recognized the potential of “green technology” and has become the leading producer of green products and solutions.

Also, many of the oil producers are unstable countries run by autocratic leaderships that have been fuelling radicalism and religious extremism around the world. By switching to renewable energy sources, we could dramatically reduce our dependence on Saudi Arabian, Iranian or Russian oil, which would do wonders for our energy security and energy independence.

Sure, there are many naysayers who insist that renewable energy can never replace fossil fuels. Surely they would have known that countries such as Brazil, Norway and New Zealand already have a close to 100 percent renewable electricity? Denmark and Sweden are expected to achieve the same in just a few years.

There is no question that renewable energy is the future, and we are certainly moving in that direction. The change will be gradual rather than radical, but it is already happening.

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Investing in SEO to Grow Your Online Business

Investing in SEO to Grow Your Online Business

Are you having some hard time in managing your business, as it seems to have a poor generation of income? Then making it on search engine optimization or SEO companies can make a big difference. In this article, you will understand why you should invest in SEO to grow your online business.

SEO remains to be the most accurate way of creating an organic traffic on your business site. Through incorporating the ethical SEO strategies, your website can generate a larger amount of competent traffic. Benefits of search engine strategies were experienced by many companies whose businesses were selling online products. With the effective SEO promotion, your company can attract more potential traffic. This can also offers you the chance to get closer to your target audiences hiding in some places that your traditional strategy cannot access.

Investing in SEO can also provide you other realistic rewards. As a business owner, you have to be aware regarding the larger audience available online. This includes having your business website capable of producing new opportunities. If you invest in SEO, you can expect for

• Increased Visitors
Your business should obtain a good spot in the search engine rankings of every result pages. Once you are on the top pages, you have the chance to increase your visitors. This is because of the perception that, those result appearing on the top are deemed relevant and trustable. This in return can make your reputation high together with your brand recognition.

• Leads
The quickest that you make your business noticeable online, means easier for you to produce income. If your target customers locate you by means of search engine, their usual action is to find certain product or brand. This offers you access toward more leads that likely to produce purchases.

• Cost Effective Method
Majority of the digital marketers define SEO as the most inexpensive marketing tool, which produces attractive results. In connection of being affordable, SEO offers cost-effective substitute that can be tailored to reach your certain goals and needs. Finding the right SEO expert can assist you in identifying some effective SEO techniques that suits best on your business requirements

• Good Impression
Having proper optimization depending on primary keywords together with the keyword phrases, you are able to preserve the top position on search results for extended time. This means that you can produce a good impression on users and leads to relevant traffic on a daily basis.
SEO enables your business for your audiences allowing you to excel from your competition.

These are just some of the abundant reasons why investing in SEO can help you grow your online business. Remember that the good spot of your site transforms you as an authority in your chosen industry, which assist you in developing your business in the fastest time possible. Utilizing SEO for the improvement of your rank on the World Wide Web can provide to additional opportunities under the global setting, which will produce more income.

 

Important things to consider when investing in SEO

Investment for children – An investment advice for parents

Each parent wishes to see the future of his child secure. How can we achieve this? By making sure that his studies are covered, by making a savings fund that the child will be able to access at the right age, and other measures that will give the parent some piece of mind. Everything changes when children appear in our lives, and we would do anything to see them happy and fulfilled. Unfortunately, the insecurity of tomorrow makes more and more parents think about ways of investing in the future of their children as early as they can, before the economy gets destabilized again or they lose their jobs. And when such terrible times come, in case they do, you will be able to sleep at night, knowing that your child has something set aside just for him.

And with such a high desire of parents and grandparents, to invest money in the future of the youngest members of the family, there isn’t a lack in financial products to choose from. In fact, many parents find it hard to settle at one option, not knowing for sure which brings the biggest benefits. Also, the long term of the investment, about 10 to 15 years, until the child is 18 years old, makes the decisional process even harder. Most parents may be tempted to start a children’s trust fund, although the return is much more profitable in the case of shares. Trust funds are more traditional, but financial experts say that if parents are looking to get something out of them, there won’t be too much they will be able to enjoy.

But even if shares are more profitable, you won’t see too many parents jump into them. They are afraid of subjecting their precious savings to the risks of losing them. Still, this exaggerated conservative style can be to the detriment of the funds you are looking to gather for your child. To your knowledge, there are many investment funds especially created for children, so it is worth looking them up. Some of them might be Invesco Perpetual Children’s Fund or Scottish Investment Trust’s Stock plan: A Flying Start. When choosing such an investment plan, do check out the minimum deposit sum. The funds are efficient because they have a minimum amount that is required to be invested each month. But the best part is that nothing is fixed forever. Feel free to stop, change or start your payment whenever you feel like it.

So, there are two main methods of investing money in the future of your child. One would be a designated account, and the other is the investment fund. The control is entirely yours, until the child is 18 years old, a moment in which you can pass the account on the child’s name. Although, most parents will prefer to keep the account in their name, because it is less complicated this way, still having the control over the money and account. Thus, in the end, it is mainly up to you how you do it, but do some research before choosing the best option for you and your child.

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Secure your future with family investments

When you start a family, it is not all about keeping the family members fed, dressed and satisfied throughout the day. It is also about securing their future from a financial point of view. When we are young, we tend to think that nothing can go wrong. We have enough power to work and produce the funds we need, even start over again if we have to. But things change as we advance in age and when children begin to appear in our lives. We need to start thinking about securing our future, for the moments in which we won’t be able to work anymore or have the power to start from ground 0, with the help of family investments.

But, what are family investments? Well, everything in which the family members, who have an income, chose to spend a particular amount of money, to have benefits in the future, is considered an investment. The most common means of investment for a family are saving accounts, health insurances and pensions. It is a way to store money for the future, as your funds cannot be accessed only under certain conditions and after a period. But this is the whole point of the investment, even of a family investment, to raise money and enjoy them when the times are a bit harder than they are today.

So why should people do family investments? Again, you may feel thankful for having some money set aside if you have an emergency or need something you can afford buying with your one-month paycheck. This is why saving accounts can help here. If you can put aside a certain sum of money, which can be settled by you, according to your financial status, in years, you can raise a nice sum. Usually, saving deposits that are made for longer periods, meaning that you won’t be able to access the funds only after the passing of a couple of years, have a better interest rate. Also, it is futile to say that health insurance is one of the family investments everyone should have. According to the type of health insurance you make, you can have covered everything from accidents to illness and invalidity, having your family covered even if you can’t provide for them anymore, due to your medical condition. And investing in a pension is also a great idea because at old age you will need the financial support. You may need medicines or special care, and it would also be nice to afford to see places, now that you have so much free time.

Doing family investments may not be a priority, especially when we are young, but this is not the best way of thinking. If you wish to make an investment, the perfect time is when you have the power to work and produce funds that can be invested in your future. Knowing that you worked for something and you will have some funds to enjoy later in life, almost as a prize for what you did, can be a very comforting idea.

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kiva.org – Review

Kiva is a p2p lending organization which came in the market with the aim of eradicating poverty from the society. This was achieved by providing small loans to mainly startup entrepreneurs in the developing countries who cannot afford to go to the bank for a loan mainly because of their inability to pay any deposit or collateral for the loan. Thus Kiva doesn’t work for the lenders who are trying to earn interest on their money but rather it focuses on helping out the potential entrepreneurs who need financial help to get started.

How kiva works:

Basically Kiva operates by collecting microloans from organizations and individuals and then it employs its field partners who then distribute the money among the deserving entrepreneurs in the developing countries.

One notable aspect about the operations of Kiva is that it also provides training and support programs to the entrepreneurs who need some sort of help. The details of the loan repayment are posted on the Kiva website and also emailed to the lenders who want to receive it.

Making loans via Kiva:

For the ease of lenders, Kiva has maintained a list of entrepreneurs who are looking for safer loans to improve their operations. Lenders can browse through the list and select the entrepreneurs they wish to give loan to. The payment can be made through PayPal or via credit card. Once the loan has been repaid the lender has the option to lend someone else from the list or even withdraw their money if they want to. The best thing about Kiva loan service is that you can contribute with as little as $25 which is not that burdensome to do. Hence in this way Kiva is alleviating poverty in the most efficient way possible; one entrepreneur at a time.

Well, the biggest plus side is that a person gets to help improve a life of a deserving person with as little a risk as $25. The impact of such a lending is multifold. Not only you work for a noble cause by lending money, but you also get to realize the importance of money and how little is required to transform an individual’s life in the most safest way possible. Your lending can help the entire community without you ever realizing the full impact of your donation. Kiva follows a simple and straightforward formula: one entrepreneur at a time, which will ultimately help eliminate the disease of poverty from the developing nations and help them grow and prosper so that they can stand on their own feet.

Although Kiva’s loan repayments are not guaranteed, they do have an impressive loan repayment rate of 98.43%.

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How Kiva works – Example

InvestContainers.com : Investing in Shipping Containers

invest containers

Invest Containers is a company that deals with lending and leasing of quality expo containers to buyers and other freighter companies looking to transfer goods by sea. With over 8100 customers all around the world, Invest Containers has almost half a million containers out there under lease programs.

Inner workings of Invest Containers

  • Each container costs around $3900 US per unit.
  • Once you purchase the container, the container will be registered in your name and given a serial number for identification purposes. The container is then leased to traders and transporters.
  • You can choose between two options on your fully-insured shipping containers, regarding how you want to receive the return payments.

Option 1 : Fixed 8% on your investment annually

Option 2: Short term leasing to client with the promising potential of higher return, but rates are not fixed. Revenues will vary depending on the situation of the market.

  • If you own at least 4 containers, you will receive monthly payments. Otherwise, income returns will paid quarterly.

The advantages of Invest containers

  • All containers are insured and trackable.
  • All income is tax-free.
  • The contract contains a buy-back promise, whereby Invest Containers guarantee to buy back the containers at 100% of their original purchase price after 4 years.
  • Flexibility, as there are two options to choose from as explained above.

For more information please read their Free Invest Guide

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What is gocloudsolar.com all about?

Are you interested in investing in clean renewable energy like solar? CloudSolar is a revolutionary company based in Boston USA, that aims to provide everyone with the opportunity to investment in a solar panel, maintained by CloudSolar and hosted at their solar farm, that produces money by exporting electricity to the grid.

Of the electricity produced by your solar panel and sold to electricity grid, 80% of the money is paid to you, and 20 percent is used by Cloudsolar as a management fee. All your solar panel are 100 percent insured.

There are 3 types of solar panels you can own, which are :

  • ¼ panel : Cost $250 and has an estimated total economic output of $562
  • ½ panel : Cost $450 and has an estimated total economic output of $1125
  • Full panel : Cost $750 and has an estimated total economic output of $2250

CloudSolar estimate in their FAQ that “in a 25-year period, the total economic output could be 300% of an initial contribution of $750. “ Please visit their website gocloudsolar.com for more details.

Things you should know if you intend to install the solar panel in CloudSolar’s farm(s)

  • Anyone from any country can purchase a solar panel, and it’s not restricted to only USA citizens. You will receive a document showing that you are the owner, as well as the rights for the solar panel. The Farms are located in North-East USA and California USA.
  • Economic output of solar panels. Each quarter, CloudSolar will credit you the economic output generated by your panels, paid via cheque (mail) or online transfer.
  • You can monitor the solar panel’s output in real time through your online account.
  • All your panels will be insured and have a 25 year warranty. All repair and damages are taken care of by cloudsolar.
  • 20% of the economic output (income) produced by your solar is charged by CloudSolar as a management and operation fee.

For more information please visit : CloudSolar FAQ

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Tradekings Review

If you are looking for a discount online brokerage firm, then look no further than Tradeking. It is one of the most resilient trading platforms with probably the lowest stock-trade commissions, with free software (analysis software) and real time data, and an active trading community central to helping its clients manage and execute their strategies.

So for anyone new to online brokerage trading, here are some of the tradable securities that Tradeking is known for…

Stocks: Stocks are issued by joint stock companies or a corporation through an investment bank, and they can also be called “units of equity” or “ownership stock”.

Bonds: Bonds are loans issued to an organization. They can be also called debts. Investors can buy or sell debt securities.

Mutual funds: These are a collection of assets managed and pooled by multiple investors to buy stocks, bonds and other securities.

ETFs: Similar to mutual funds, ETFs hold other individual securities, but unlike mutual funds, ETFs fluctuate continuously all day.

Options: This is a contract where the buyer has the right to buy or sell an asset at a specific price, on or before the specified date. The seller also has an obligation to fulfill the transaction, if and when the buyer exercises the option.

Advantages of Tradekings

1. If you are new to online brokerage, then Tradekings has an informative page that will teach you everything you should know about how to invest: Tradeking Education Page

2. For anyone wanting to start an online portfolio, TradeKing is ideal, since it has no minimum to open an account, and they charge a low fee of $4.95 per stock trade. Options trade at 65 cents with a base charge of $4.95 per trade. For more information : TradeKing Rates

3. Tradeking are known for their promotional offers. TradeKing Promotional Offers

4. Free Data analysis, research tools and mobile access.

5. Customer Service : Online, by phone, email and live chat. Customer Service Contact Page

Disadvantages of Tradekings

1. No commission-free ETF trades.

2. For account that have been inactive for one year, an annual fee of USD $50 is charged. TradeKing fees

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Tradeking Trading Platform – Reviews

Ownbrix : Online Property Trading Platform

OwnBrix is a company that mainly deals in property investments and assists its clients in initiating a sequence of successful investment programs. It was inaugurated in 2009 and has offices around the world.

Workings of OwnBrix (Property investing made easy)

Registration is free, however VIP member will be able to access additional privileges. To find out more about payment options and the privileges of the VIP membership, see http://www.ownbrix.com/membership/

All of OwnBrix’s properties are split into segments called “Brix”, or in other words, property shares. The number of Brix issued is stated on the details page of each property. The cost for each Brix depends on the individual property you are investing in. You can either buy the Brix for the stated price, or place a bid for it.

There are 3 types ownership levels you can choose from:

  • Partial ownership
  • Total ownership
  • Or you can bid to buy out existing investors in any of the listed OwnBrix properties.

Once you make your first payment for an order, you will receive a confirmation email stating what percentage of the property you own and a certificate of ownership.
Note: The Certificate of Ownership is a legal document that is linked directly to the ownership of the property.

OwnBrix takes care of managing your property and has a professional team that monitors your investment.

As your property values grow, so will your Property Brix (share) value. Profits are distributed proportionally according to the percentage of shares owned.

Note: There are interest rates and fees for all purchases and investments.

Ownbrix FAQ page for more information : Ownbrix FAQ

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Ownbrix Property Trading Plaform