Category: Investment

As the name suggests ELSS (equity linked savings scheme), invests primarily in equity shares of companies. As per financial regulations, the scheme Fund manager has to invest 80% of the total amount in the equity shares and the remaining 20% per cent can be invested in other instruments like bonds, debentures, government securities and others. When you invest in ELSS your money is locked for a period of three years (minimum). Once you invest in tax saver funds you cannot withdraw the amount for three years, this acts as a blessing in disguise as tax saving funds generally yield high returns during a 3year period. The common man is basically afraid of investing his money in equity shares as he is afraid of loosing money. But a look at the recent past shows that investors who have invested in tax saver funds have never lost out on their money, rather tax saver funds have been the front runners in terms of returns to investors. A small illustration will clarify comprehensions.

If you make an investment of Rs 1,00,000/ ( 1 lac), then under section 80c this complete amount is deducted from your gross income for that particular year. If your annual income puts you in the highest tax paying zone, i.e -34%, then the investment of Rs 1,00,000/ will ensure that you get an annual tax deduction of Rs, 34,000/. So logically speaking you invest Rs 66,000/ considering the deduction. Assuming that the Mutual Fund declares an annual dividend of 10% then your total return on Rs 66,000 is [(10,000/66000)* 100] = 15.15%. This particular dividend earned is also tax-free, hence more profit. Another profitable venture out of this investment is that after a period of 3 years the capital gain that you obtain out of the investment is also tax-free. This is what makes ELSS the most attractive investment for those who have the appetite for moderate risk. However, prior to making an investment selecting a good fund house based on its reputation and track record is important. Elss are considered to be the best tax saving mutual funds in India.

ELSS is a good option to save tax and generate long term capital gains. These gains are obtained from the equity market only if you are investing in a long time horizon. Adding money in a disciplined manner creates a good corpus. The basic confusion that the average investor could have is that they consider Equity Mutual Funds and ELSS to be the same, which in true sense isnt correct. Normal equity funds could be purchased today and disposed off tomorrow. Incase of ELSS there is a compulsory 3 year lock in period. As per the rules related to long-term capital gains, profit from equity MFs after one year becomes tax-free. As per latest sources the top 5 ELSS schemes are 1) Principal Personal Tax-saver, 2) DSP ML Tax Saver Fund, 3) Taurus Libra Taxshield, 4) Lotus India Tax Plan, 5) Franklin India Tax Shield ( FIT). Going by the current volatile market trends and with the current fiscal year approaching an end, investing in a good ELSS fund is a clever option to save taxes.

Any investment diversification strategy should involve undeveloped land.

Dont trust the national numbers on housing values as the final word on all real estate investment. Regional differences are significant and opportunities abound.

The conundrum for investors who are intrigued with UK land and real estate is, with a growing population and so little building in the past decade, why arent more houses being built?

After all, Census 2011 showed a growth rate of about 7 per cent since 2001, a much healthier addition of population than most countries found in the Eurozone. England and Wales in particular are a strong draw for immigration, and the birth rate has remained relatively strong even through the financial recession of the past six years. Exacerbating this further, pensioners are living longer and in greater health, keeping granny from moving out of her granny flat.

Savills research offers some data and analysis that suggests some fundamental ways in which housing will be built in the years to come. It offers a different perspective to anyone involved in land development, as investment on UK strategic land and raw acreage is most adaptable to market needs before buildings are constructed.

Specifically, the firm offers the following data points:

Regional differences mask home prices Overall, homes in Britain have seen an average value increase of 6.4 per cent since 2007. Which is all well and good, except it masks the differences between North and South: in the South East and London, increases in home values are in the ballpark of 10 to 20 per cent. In the North of the country, values have fallen. This is not to say a land investment in those areas will not make sense, as real estate is sometimes tied to hyper-local factors. But the larger point is that in London and the South East, better opportunities are likely to be found.

Generation rental Of greater significance is the shifting of ownership to rental for many middle class families. Savills reports the value of Britains private rented stock has risen by 42 per cent over the past five years and an extraordinary 250 per cent in the past ten years. The 4.8 million private homes that are rented today represent 17 per cent of all dwellings, when just ten years ago to-let housing was a mere 10 percent of the national inventory. What has caused this? Increasingly, working families are unable to afford the necessary deposits required for purchase, and tighter lending standards by banks also make it more difficult to get mortgages.

Best opportunities for those with cash to invest All those rental homes still need to be built, begging the question: Who will finance them? According to the director of Savills research, There is now a real opportunity for investors with cash, particularly those ready to invest for income, because capital value growth will be muted over the mid term.

Real estate developers are on the front lines, constructing the right buildings for the market. But before they can do that, land investment companies identify parcels nearest to where building of one type or another should take place. This often is where employment is growing, or for any other reason the population is sufficient to fill new housing. Strategic land development will usually involve property zoned for agriculture or commercial or industrial purposes which local planning commissions will identify as more appropriate for residences, factoring for local economic conditions and growth opportunities.

Individuals who want to participate in land development and investing in real asset classes should first work with a qualified, independent financial advisor to be certain they are working with legitimate players and that the investment fits their overall financial goals.

Ask any investment advisor or company or go and browse any alternative investment news website and the main topic is Brazilian real estate investments, and the main focus is the governments Minha Casa, Minha Vida (My House My Life) programme. But why all the interest in the country? and what is this programme all about? There is currently a massive property boom going on in all of Brazil’s main cities and it’s being fuelled by the demand for affordable residential housing.

Brazil’s economy has improved a great deal in recent years and is now the 6th largest economy in the world, there has also been a swift increase in general wealth of it’s people . This has meant an unparalleled demand for reasonably priced housing. The rapidly growing middle classes, for one thing, have needed many more affordable homes to purchase than were previously available. Coupled with this is the situation of those whose present accommodation is sadly unsatisfactory or below standard.

The solution to this housing shortage was an idea first put onto the table by the previous president of Brazil Lula da Silva way back in 2008 which was to build affordable housing for the growing middle classes and to have set sale prices, one hundred percent mortgages provided by Brazil’s federal bank and strict rules for purchase of a property to avoid these homes being bought and sold by the wrong people who were simply out to make a profit and to make certain that these homes went to middle class Brazilian families who needed then and who previously had little hope of getting onto the property ladder. The programme was finally launched 2009 and was welcomed both by the Brazilian media and the public. The name given to this programme was Minha Casa Minha Vida, which translates to my house, my life. Within the programmes first year tens of thousands of homes were built and sold and the scheme was seen as a huge success. Now approaching it’s forth year interest in the programme by foreign investors has grown significantly with investors from the United Kingdom, the United States, Asia and the Middle East investing heavily in the programme.

The reason that this programme is so popular with investors from around the world is that is marketed as the safest foreign real estate investment currently available, the programme is a backed by the Brazilian federal government and there are millions of families on the waiting list so that once a home is completed it is instantly sold and the investors funds, plus profits are returned, usually within 12 months. Investment is through actually developers who are building the homes and not through a third party investment company.

With any popular investment, once it is well known enough all the conmen and dodgy investment companies seem to come out of the woodwork keen to take your money and then vanish, so be cautious and bear in mind these simple points that could save you from being a victim of a con. You should be investing direct with a developer and not an investment company, the developer will use your investment to build one or more units and return your investment plus profit in around 12 months, minimum investment is usually between 23,000 and 25,000 and because the final sale price of these properties is set by the Brazilian federal government your profit is set also and genuine companies are offering between 18% and 22% depending on how many units you invest in, a company offering a too good to be true return on investments ( I’ve seen one dodgy company claiming 80% ROI) should be avoided like the plague.

In summary, anyone wanting to Invest in Brazil and it’s booming economy should consider Minha Casa Minha Vida Social Housing Investments, if your cautious and fully research who your investing through you can turn a tidy profit from this safe and secure investment.

Using Real Estate to Control Risks

Real estate allows you to control your risk because you can actively participate in the decision-making process. Passive investments such as stocks dont give you this opportunity. Movements in investment real estate values are less erratic than in the stock market. Most people dont understand the economic forces influencing the market. Since real estate is less volatile, its easier to control and to understand. A real estate investment is tangible. You can touch it, youve been exposed to it all your life, and you can identify with it. As a result of this familiarity, you are better able to understand it.

Effectively Reducing Your Taxes

Real estate ownership,especially midsize apartment buildings, continues to be the most popular form of investment because of its potential for substantial tax savings. Since you are able to actively participate in the management of real estate, the Internal Revenue Service (IRS) currently allows qualifying individuals to write off up to $25,000 per year against salary and other income. No other investment gives you this capability. In addition, you can defer paying income taxes on profits indefinitely by using tax-deferred exchanges.

Leveraging That Works

Real estate is the only major investment that gives you the ability to acquire ownership with very little money down. This degree of leveraging allows you to amplify profits by using other peoples money. The more assets you are able to control, the more opportunities you have to succeed. The degree of leverage is calculated by dividing the total purchase price of the property by the amount of funds used to purchase it. Thus, if a down payment of $10,000 plus a $90,000 loan is used to purchase a property, a 10 to 1 leverage ratio has been achieved. The greater the leverage, the more equity will increase or decrease with the change in value of the property.

Why Real Estate Investments are a “Smart” Way to Become Wealthy

Over 50 percent of the wealth of the world was in real estate in 2000. In the United States, real estate accounted for 48.2 percent of the wealth (of which residential real estate represented 36.7 percent). Equity investments (stocks) amounted to 19.3 percent and bonds 21.1 percent.

Real Estate Versus All Other Real Estate Investments

In the past 20 years, multifamily income properties have delivered the highest average total investment returns of all real estate types. With a built-in hedge against inflation, its no wonder that multifamily real estate has out-performed all other types of real estate investments with relatively low risk. Based on supply and demand over the next 10 years, residential income will out pace all other types of real estate investment. Strong demographic and financial indicators along with changing lifestyles should continue to positively influence apartment investments.

With an average unleveraged rate of return of 10.2 percent over the past 20 years, residential income property has proven to be an attractive low-risk investment. From 1990 to 2000 residential income investment provided a more consistent higher total average rate of return than all types of properties and with less variance.

Although 10.2 percent is a great rate of return, it wont get me on the dance floor. What will get me dancing is the rate of return using leverage. A rate based on a 25 percent down payment (leverage) works out to be over a 20 percent rate of return. This type of return definitely gets my feet moving.

Three Advantages Apartment Investments Have Over Other Types of Real Estate

Apartments should remain well ahead of other major property types because they are generally more stable. Three important factors account for this stability:
They are less dependent on business cycles for occupancy than any other types of real estate investments. It doesnt matter if interest rates and home prices are high or low, apartments are generally more affordable.
Apartments have shorter leases; thereby offering greater protection from inflation than the long-term leases associated with other properties. That is, rents can be negotiated more frequently.
The pool of tenants is much greater for apartments than other types of properties. This ensures a more consistent occupancy than industrial and commercial properties, which usually have only a few tenants to choose from.

The Building Size That Gives You the Greatest Profit Potential

When investing in apartment complexes, try to find the right building size that makes the best use of your time and gives you the greatest profit potential. Single-family houses and small apartment units do not always work because of the competition and property management problems. Managing property on a day-to-day basis may not be for you. You could spend just as much time on a four-unit building as on a 40-unit complex and not make nearly as much money. In fact, because owners of smaller properties usually become emotionally attached to their property, you tend to spend more time with them telling them that they made the right move. Larger units are the domain of the institutional investors, and you cant compete with their availability of funds. After making many property transactions, you may find, as we did, that mid-size apartment buildings are the right niche.

APARTMENTS-THE COMING BONANZA FOR YOU

Supply and demand play an important role in residential income property value. The demand for rental property is increasing because the number of people entering the rental market is increasing steadily each year. At the same time, construction costs, stricter zoning ordinances, and environmental factors are limiting the new construction of residential income property. Together, these trends bode well for investing in residential income property.

Because the 1997 tax act allows joint owners to exempt capital gains of $500,000, more and more people are selling their homes, saving their money, and moving into rental property. It is estimated that the demand for rentals is likely to increase over 10 percent during the next 10years. Residential income property offers one of the best protections against inflation. In fact, a study reported by the Journal of Financial Economics found that residential real estate is the only investment that offers a complete hedge against both anticipated and unanticipated inflation.

People always need the three basics-food, clothing, and shelter. As the population grows, the need for shelter grows along with it. The hedge against inflation with residential rentals is greater because, unlike long-term commercial leases, they are generally on a month-to-month basis. As prices increase, apartment owners can increase rents more rapidly with month-to-month leases than commercial owners who have long-term leases.

Low-rise developments or garden apartments, midsize apartment buildings, in suburban communities account for more of the buying and selling transactions than luxury apartments (which have a much smaller market). Seven out of ten millionaires made their money in real estate. Shelter is not only vital, but its often the greatest part of a persons net worth.

A midsize apartment is one type of investment that is a source of security and stability. Every investment has peaks and valleys, including rental real estate. But over the long-term, it always comes out on top. The key is knowing the right time to buy and sell. That is the golden rule in investing. This book will give you the knowledge you need to invest at the right time and right place.

REAL ESTATE: THE SHOCK ABSORBER

Real estate generally outperforms equities because of its higher yields, greater price stability, and downside protection even in a recession. When stock markets are down, real estate holds value and produces a positive return. Real estate is less prone to booms and busts than in the past. Residential income-producing real estate is now stronger than it has been in many years.

SUMMARY

Since apartment investments can be seen and touched and are not an abstract form of ownership evidenced by a piece of paper-they are investor friendly. People can identify with doors and windows, bedrooms and bathrooms, and floors and roofs. They dont feel that the market is being manipulated by programmed buying and selling. They feel they have control over their investments.

Shelter is one of the basic necessities of life. You cant comfortably sleep on gold, silver, or stock certificates, but you can stay warm and dry with a roof over your head. There will always be a need for housing. And midsized apartments fit the bill.

Buying a compound is a big investment, its not one you want to make every year.
and is certaintly not one you have to make every year.
Even if youre just getting started, there are compound bows that adjust to grow with you, and depending on your age when you start, may be the only bow you need to buy.

Yes, there are those who need the lastest and newest every year or every other year,
but to truly enjoy the sport of archery, you really only need to invest once maybe twice
in a compound bow.

Now like most things worth investing in, it should be worth investing the time to properly take care of, because the key to a successful hunt is a well maintained bow.
So how do you take care of a compound bow?

the first and probably the most important part of taking care of your bow, is purchasing a
bow case.when is the last time you spent a lot of money on something and left it set outside in the elements? In the back of your truck or hanging in your garage is not a good place for this investment. Excessive heat, dampness, dirt and pests, all play a big role in deterioratingyour compound bow. Proper storage in either a hard sided case or a soft sided case is very beneficial.

The next thing you should pay attention to, is the Bow Strings and Cables.
Bowstrings and cables need to be frequently and regularly waxed. This will help keep them strong and from becoming fuzzy and worn.
Inspect your strings and cables after each use and look for signs of fuzziness
then give them a wax treatment. Get into the habit of doing this and you will be confident that your bow will withstand hunting in damp conditions and your strings and cables will remain strong.

Other areas to pay attention to is your axles and bushings, for these you want to use a good bow oil, (youre manual should have this information) give them a few drops after each outing into the brush. Some compound bows dont require this kind of lubrication
So you want to make sure you check your manual first.

Always, always, always check your bow limbs for cracks, dents, or any sign of ware, before and after you shoot. And then always have a professional look at and fix the problem. Your warranty should cover this. Never try to fix this on your own.
And then check limb bolts and tighten any that are loose, a simple set of Allen wrenches is all you need. Finally wipe down your compound bow of any dirt and grime from the days outing.

By doing this each and every time you use your bow will keep you confident of its ability to perform well, and will help in making your investment last for years to come.

Are you looking to make your first purchase of a compound bow? Or maybe you still have questions? Visit => TheBowBarn.com, we love to help. We have what your looking for in compound bows, for men, women and youth and for a limited time our bows are still 15% off MSRP!! come in today.