Saturday, 12 May 2012

Land Investments for Long Term Capital Growth

Land Investments for Long Term Capital Growth

When looking at investments for long-term capital growth potential, investments in UK land have returned stunning rates of growth coupled with low risk.

Overall prices (farmland) have increased by up to 30% in the last 12 months and 130% since the early 1990s with an average 920% growth in the last 20 years.

An Attractive Alternative Investment

When looking at investments for long-term capital growth most investors consider mutual funds, investment trusts, stocks, equities, and hedge funds. However, the fact is that land has shown better average growth with less downside volatility. This makes land a solid investment for the conservative risk conscious investor.
Once the preserve of large institutional investors, this exciting market is now open to smaller investors.

Why Land Has Such Great Potential

When looking at investments for long-term capital growth potential, we need to look at the supply and demand equation.

Land has all the ingredients for demand to exceed supply and see land prices climb higher in the coming years.

The Case for UK Land

When looking at investments for long-term capital growth potential, it is clear that of all the countries in the world to invest in land, the UK is one of the most attractive for the following reasons:

1. Rapid Population Growth – The population of the UK in 1981 was 56.2 million. In 2001, the population had increased by about 2.6 million to 58.8 million inhabitants.

2. Immigration – In terms of immigration, there is the granting of entry to the UK, of over 170,000 people per year. This constitutes over 60% of the annual population growth. Therefore, at current rates of growth the UK can expect to see at least an additional 3.4 million inhabitants within the next 20 years.

3. Social Trends – There is also a rising divorce rate in the UK. In 1980 and there were approximately 148,500 divorces throughout the UK In 2000 this figure climbed to nearly 200,000, an increase of over 30%. Furthermore, more people are staying single by choice and getting married later in life.

A recent treasury report stated that: In the next 17 years, with the rising population and increased lack of affordable housing, the UK will need another 1.5 million homes with 300,000 required in and around London alone.

Essentially, this means that there is a need for massive scale housing development in the UK at present and for the near future.

This will see land remain one of the most attractive investments for long term capital growth.
The Demand for UK Land

The building of much of this housing is to be on brown field sites, or redeveloped areas, this land is in short supply and is expensive to purchase and develop.

The priority to build new housing will necessitate the reclassification and development of green belt land throughout Britain.

Land Banking – The Key to Long Term Capital Growth

Land banking simply involves the acquisition of land, which does not enjoy planning consent, in advance of expanding urbanization. When urban expansion occurs the land rises in value with the granting of planning consent.

The way to make big capital gains in land banking involves buying land in specific areas, in the hope of future development.

With the granting of planning permission, a significant capital gain is possible.
Land Investments for Long Term Capital Growth

Good past performance with low risk and the prospect of good future capital growth, makes investing in land for longer term growth an attractive option for all investors.

How to Use Land Investment to Improve Your Financial Future – Tips to Get You Started

How to Use Land Investment to Improve Your Financial Future – Tips to Get You Started

Anybody who has ever built any sort of wealth would probably say that there are few ways to do so without some type of investment. These days the word ‘invest’ can be a scary one, indeed. With the way the economy has been going in the past several years it can be difficult to put money into anything with some assurance that you will get it back let alone see any type of profit from it.

There is no profit without the potential risk; after all, that is the nature of investments. While there are certain types of investments that are a bit less sure-footed than others, land investments remain one of the more lucrative investment opportunities out there. Why? It has so much potential and buyers aren’t locked into anything at all-you included. If you are interested in getting started in the world of investments, why not use land investment as a way to get your foot in the door to improving your financial future?

Here are a few ways that you can use land investment as a means of increasing your wealth.

Don’t Rush Into Things

One of the biggest mistakes that people make when it comes to investing is rushing into things. Putting all of your money into one plot of land hoping to get a huge payout right back is just not realistic. Take your time. Do your research. Put together a portfolio and do everything that you can to get all of your affairs in order before you write the check. So many people out there are afraid to ‘miss the boat’ that they end up sinking the whole darn thing; taking your time can prevent that from happening to you.

Get Some Expert Advice

Everybody needs a mentor; getting into land investment for the first time is no different. If you want people to take you seriously you have to know what you are talking about. If you want to be successful, you have to know what you are doing. Both of these can be accomplished by taking a little tutelage from somebody who knows what they are doing because they have done it before themselves.

Consider Different Endeavors

There are different ways to go about making money from land investment. Flipping land is the most common way, especially for those who are just starting out in things. You also have the option of purchasing land for development, or collaborating with investors on a building project. Sticking to one thing gives you a greater chance of failure. If you try new things you at least know what it is that you are working with and can learn a bit from each one.

Don’t Give Up

The worst thing you can do when you are just getting started is to give up. How can you increase your wealth if you aren’t willing to take a chance every now and again? Nothing was ever gained without risking a loss; it’s the way of the world. In the world of investments you win some and you lose some. The sooner you learn that and find a way to recover from the losses and learn what needs to be changed, the closer you are to being able to use land investments to build a future for yourself financially.

How to Land Investment Returns You Can Take to the Bank

How to Land Investment Returns You Can Take to the Bank

When it comes to investment and calculating returns many people still get it wrong. Whoever said that one plus one equals two was correct in theory; however when it comes to actuality this theory only holds true after you finish the equation. Remember when your math assignment turned into a thesis written in some foreign language? You know pre-algebra, algebra then the harder math classes such as geometry, trigonometry and calculus. Well these topics are the rest of the story.

I never really started to understand the importance of math until one day I sat attentive in a seminar. It was the first time I had ever been exposed to the theory that marketing for any business is built on a geometric scale that grows both in a linear and exponential proportions. Well it hit me like a ton of bricks. I knew before I attended this seminar and right then the reassurance of the presenter’s statement that this was also true for the growth of money. Anything that has the ability to grow works in this way. Here these two examples are true in both practical application and theory for these very same reasons.

You know an annual percentage return may be the number that was grossed in performance; the net effect of your performance will be based solely on your other implicating factors such as your total gross income, business income, tax basis, tax sheltering, margin of transaction fees, as well as your compounded cost of living and inflation. You wont have the same outcome as another individual with different circumstances; even if you both had invested equal amounts and had matching portfolio picks. Gross performance would be equal but those outside factors would equate to different results.

So your net return is the number that will get you to your destination. You need this number for a true and clear view of your path; what adjustments you need to make for both short and long term planning. Now that we have the vision of the bigger objective we can work it backward to see where improvement is needed. You’ll need to analyze your current situation to take measurement of your current time lines for personal items such as your retirement, children’s college, trusts and charity contributions, cash needs with a preemptive costs basis analysis for items such as long term cash requirements, medical coverage, dental and vision care, travel, entertainment and those necessity items we dream about.

Once you have the data, facts and figures your reporting will give you the solved for X answer. With that number you can get a clear view of the amount of returns your investment needs are; hint, the longer the term of the investment the larger the returns need to be to cover long term capital principle reduction and taxation factors. The shorter the investment the larger the returns need to be for accelerated growth. Are you starting to see a pattern here; your returns need to be large enough to cover expenses as well as having the consistency to perform in the most volatile market conditions as well as in good times.

When searching for these investment vehicles what are the key indicators you need to look for, longevity, strength, overhead reduction, tax sheltering capability and overall strong returns. Only a small handful of these vehicles have proven strong enough to make their claim to fame. Over all in the industry a ten percent ROI is an average marker, you can get fixed returns in the five to nine percent all day long.

Strong performance; commonly called millionaire rates of return because they will grow your capital much faster and create more wealth for your than the base rates. Banks typically give out zero to two percent on their checking, savings or money market accounts. Some give slightly higher your next step up is into cd’s or bonds and mutual funds, again these are low risk low reward. Annuities pay fixed and variable rates in this same range.

After this you start moving in to the stock and commodity market here you can make slightly higher returns with more exposure because your betting against the company leadership, sales and performance you have no control or inside information to guide your decisions only a boring prospectus to help you try to understand how things were in the company until print date.

For more aggressive options you have both risk driven and reduced risk exposure factors involved. Personally I prefer reduced risk in most of my long term investments. This way I don’t have to keep watching every second, I use compounded interest plus high rates of return with investment vehicles that provide consistent performance so that my stress as well as market risk are tremendously reduced.
Millionaire rates of return earn enough of positive return to compensate for those influences we all have to bear. Essentially millionaire rates of return are in excess of twenty percent per year. So if you can imagine your money growing three percent or twenty to thirty percent or more per year you can get the idea. It’s like filling up a twelve ounce glass with water with an eye dropper or using the faucet. Which one are you going choose?

You could use a fire hose but you might blow your glass off of the counter, you could try the raging white water yet again you may lose your glass and or your entire ability to reinvest in a new glass after you lost it. You see too much or too little power in your portfolio could have an adverse effect. Your choosing of assets need to be specific to your requirements not those of a financial advisors pocket book.

Make sure you understand how everything fits together in your life before you make those critical decisions. Have you received proper education and feel comfortable that this is what type of investment you need. Make no doubt about it everyone needs to become immunized and protected from financial disaster and financial illiteracy; it’s an epidemic in society that eats people alive. It’s robbing them of their youth and vitality and turns everyday average people into bitter, sour and grumpy citizens miserable with the out come of their life.

All due to the choices they made about money and the choices they made handling money. You have the choice to land big huge profits or meager profits that leave you grumpy. Get your financial affairs in order know before it’s too late. Make smart educated choices and learn from and like the master of profit potential on ways to hedge against capital reduction and extinction. Make the best choices you can for every situation to attract what you both want and need to prosper and grow.

Search for those hidden and less known investments then research them until you have answered all of your questions, have proof that it works for all those involved and make the choice is this right for you? Go ahead do it then wait for your performance returns to show up strong and make you proud.

Overseas Land Investment – Where and When to Invest in Land

Overseas Land Investment – Where and When to Invest in Land

Oversea’s land is a sector of investment that has grown dramatically over recent years and looks set to continue this trend for quite some time. Investing in land can be extremely profitable and many opt for land in their own country, however it is often the case that investing in land overseas can prove to be a lot more profitable and affordable.

Firstly, land overseas is often much cheaper than here at home. This means that straight away the investment carries less risk and is more affordable. It also means that there is much more room for growth and therefore potential profits.

The second reason why buying land overseas can be more profitable than investment land here at home is that often land abroad has more reason to increase in value rapidly. Investment in land here can be profitable too but land prices here tend to grow steadily and a predicted rate simply because there are no new factors contributing to rapid growth.

Land overseas on the other hand, can benefit from external factors that can contribute to very rapid growth meaning that overseas land investment can not only be cheaper in the first place but can also produce much bigger profits much faster than typical investment in land here at home.

When considering an investing in land abroad it is worth exploring whether any of these external factors apply to the area you are looking at investing in. For example, is this a new up and coming tourist hot spot? Has the Government recently made a large investment in the area? Are businesses moving to the area? Is there a growing expat community settling there? Any of these factors can make a massive difference to the potential of your investment.

The next step is deciding when is the best time to invest. Overseas land investment can be very profitable but if you invest in overseas land that has already experienced the best part of the explosive growth then it defeats the object.

The trick is to time the overseas land investment correctly. In an ideal World you are looking to buy overseas land at a time when the external factors can be seen to be having an impact in the near future but before any true changes have taken place. This is the stage where investors will be cautious and therefore at first the overseas land value will grow slowly. However, as more and more people take the step the proverbial snowball begins and even more jump on the bandwagon. As more people jump on the bandwagon prices are forced up faster and faster until it hits a peak. It is obvious to say that the ideal point to get in is just before the momentum builds up and then to exit the overseas land investment once that peak has been achieved.

Overseas land investment can be extremely profitable and is usually very simple. It also benefits from often having no tax burden or maintenance costs making it even more appealing. However, no matter how appealing and overseas land investment may seem at first, always consider the above points before making any land purchase

Wednesday, 2 May 2012

Advantages of House Investment Over Land Investment

Advantages of House Investment Over Land Investment

Investing in property is one of the major areas of investment today, with more and more people involved in buying as well as selling the same. Property investment can be broadly divided into two categories, namely house investment and land investment. Both types of investment have similar risks but different advantages and disadvantages. While there is no wrong type of investment with respect to property, it is always advisable to understand the pros and cons of these two main categories before actually putting your money into any of these.

It is pertinent to note that in both types of investment, namely house and land investment, liquidity can be a problem, at least initially. However, in the long run, it is obvious that both types of investment yield profits. While experts believe that land is a low risk investment as compared to all others, house investment has more advantages when compared to land investment. Firstly, the amount of money that you need to put down to get a mortgage loan for house investment is far less than land investment. In other words, down payment is more when it is land than when it is house, making it easy for people to invest in homes.

Secondly, selling your house property is easier than land investment. This is because you have more people looking for house properties as compared to those who are interested in buying land. So, if you are in the real estate business, making money through flipping is easy and requires lesser investment when it is a house property than in the case of land. With regard to land investment, flipping for a good profit is often difficult unless you have built something on it or improved it. This means that the investor has to not only invest in the land but also invest into creating something, which can then be sold for a profit.

Another major advantage of house investment is that you can let it out to tenants for a monthly rent unlike land investment. Houses or rental properties are a great way for people in the real estate business to make steady income with absolutely low risk. Of course, it is imperative to include cost of repairs, taxes as well as mortgage payments before you calculate profits from the rental properties. While the profit yielding process might be slow and small in the beginning, the biggest advantage is that it brings a steady cash flow, which will gradually increase after you repay your entire mortgage payment. Moreover, it is immediate cash flow, which is not the case with a land investment, where you have to build before you can rent out or make profit from rents.

While it is true that in rental properties or houses, you might have to make some minor repairs or renovate before you let it out, in normal practices, this is not as extensive as constructing a new building or home on a piece of land. Therefore, the time required for such repairs or renovation is minimal, often ensuring that you start earning profits or returns from your investment, almost immediately.