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Digg it UP - Why Invest In Property?
Many search engine marketing specializing companies offer free online URL submission for web site promotion into their list of services. This is a way to attract their prospects to engage a relationship with them thus trust is built. If a website owner trusts a certain search engine marketing firm, it is more likely that they will take advantage of every service that the S E M firm presents.According to a credible source the big names in the search engine community reports more than 80 percent of the traffic a website obtains. Thus it is a must for site owners
And I will show you why. It's hard to say what sort of return you might get
If you have looked for ways to make money online, you will find many websites on the internet claiming that you can make easy money online. Of course, in order to make money online, you must buy “their” product. This is very typical scenario, and most of these product vendors just keep making more and more money, while poor consumers like you repeatedly buy many guides with different names and brands. At the end of the day, we kick ourselves for buying so many guides which seem to repeat the same ideas over and over again.So after being confronted by hundreds of marketing mess
Once I realised this, I didn't look back. Now if you are an experienced investor this may be obvious, but for the benefit of those who haven't seen the light, let me explain ... Leverage is your ability to magnify your returns by using other peoples' money (in this case, it's usually the bank's money).
To give a clear example, say you have ?20,000 to invest. This can be a lump sum or by releasing equity in your main residency.
So what is the best way of investing this money?
Option 1 – Stick it in your local bank
Considered by some as the safest option, "at least you can't lose it, and you get some guaranteed increase in value" usually goes the argument.
Money in the Bank - assumed return: 4%
Now ?20,000
1 Year ?20,800
5 Years ?24,333
10 Years ?29,605
As you can see, after 10 years, you've made virtually no progress at all, especially when you consider the effects of tax and inflation.
Option 2 – Stocks and Shares
Now over the last 10 years, although admittedly not in last 4 years, the stock market has been very popular. However I cannot accept it is a better bet. When I read that the stock market is a better bet over the next 2 years as will go up by 15% a year, as opposed to the property market that may go up by 5% a year this does not take leverage into account and so paints a very distorted picture!!
And I will show you why. It's hard to say what sort of return you might get
Paying for health care can consume a large portion of an individual or family’s disposable income. Some costs are non-negotiable but there are ways to lower the amount you spend on insuring your health.DeductiblesYou may be able to pay a lower premium by paying a higher deductible. This is particularly true if you are insured as an individual rather than through your employer. If you choose this option it is wise to place a portion of the money saved on your premium into an account which is used solely to pay your deductible.Co-pay amountMany
Once I realised this, I didn't look back. Now if you are an experienced investor this may be obvious, but for the benefit of those who haven't seen the light, let me explain ... Leverage is your ability to magnify your returns by using other peoples' money (in this case, it's usually the bank's money).
To give a clear example, say you have ?20,000 to invest. This can be a lump sum or by releasing equity in your main residency.
So what is the best way of investing this money?
Option 1 – Stick it in your local bank
Considered by some as the safest option, "at least you can't lose it, and you get some guaranteed increase in value" usually goes the argument.
Money in the Bank - assumed return: 4%
Now ?20,000
1 Year ?20,800
5 Years ?24,333
10 Years ?29,605
As you can see, after 10 years, you've made virtually no progress at all, especially when you consider the effects of tax and inflation.
Option 2 – Stocks and Shares
Now over the last 10 years, although admittedly not in last 4 years, the stock market has been very popular. However I cannot accept it is a better bet. When I read that the stock market is a better bet over the next 2 years as will go up by 15% a year, as opposed to the property market that may go up by 5% a year this does not take leverage into account and so paints a very distorted picture!!
And I will show you why. It's hard to say what sort of return you might get
In my 20+ years as a sales rep, I was always confused by the tension in most companies between sales and marketing. In fact, the general attitude between these departments is open disdain for each other’s function. Marketing believes it’s their advertising that convinces prospects to buy. I’ve worked with many marketing people who think they bring in great leads, and all sales people have to do is answer the phone and they’ll make a sale. The sales department is usually of the opinion that marketing spends a lot of money to get a ‘few decent prospects’.So, who is right?
So what is the best way of investing this money?
Option 1 – Stick it in your local bank
Considered by some as the safest option, "at least you can't lose it, and you get some guaranteed increase in value" usually goes the argument.
Money in the Bank - assumed return: 4%
Now ?20,000
1 Year ?20,800
5 Years ?24,333
10 Years ?29,605
As you can see, after 10 years, you've made virtually no progress at all, especially when you consider the effects of tax and inflation.
Option 2 – Stocks and Shares
Now over the last 10 years, although admittedly not in last 4 years, the stock market has been very popular. However I cannot accept it is a better bet. When I read that the stock market is a better bet over the next 2 years as will go up by 15% a year, as opposed to the property market that may go up by 5% a year this does not take leverage into account and so paints a very distorted picture!!
And I will show you why. It's hard to say what sort of return you might get
Write product descriptions. There are millions of items for sale online and if you were to do a search of just one product on Google you would find that the product descriptions on each of the sites are virtually the same. How is a company to stand out? Simple, they have you write an original product description for their items. Not only will they stand out, but they also have a better chance to be indexed higher in the search engines. Write a referral blog for local contractors. Blogs are still hot and very easy to use. Here’s a twist on a referral business that’s
1 Year ?20,800
5 Years ?24,333
10 Years ?29,605
As you can see, after 10 years, you've made virtually no progress at all, especially when you consider the effects of tax and inflation.
Option 2 – Stocks and Shares
Now over the last 10 years, although admittedly not in last 4 years, the stock market has been very popular. However I cannot accept it is a better bet. When I read that the stock market is a better bet over the next 2 years as will go up by 15% a year, as opposed to the property market that may go up by 5% a year this does not take leverage into account and so paints a very distorted picture!!
And I will show you why. It's hard to say what sort of return you might get
Credit Cards and Loans sounds like just two things, but in actuality, it is dozens of things. Due to a combination of user preferences, lifestyles, and marketing ideas, there are dozens of different types of credit cards out there. Because of the wide variety of things people need money for and the wide variety of ways to collateralize a loan, there are dozens and dozens of different types of loans out there.Because of the huge variety of different types of credit cards and loans, you need a really big web site to find out about all of them. If you go off in search of
And I will show you why. It's hard to say what sort of return you might get on the stockmarket, but let's say you get 12% a year for the next 10 years – very unlikely, but let's just go with this. So if you could beat the odds and get a 12% return every year ......
Money in the Stockmarket - assumed return:12%
Now ?20,000
1 Year ?22,400
5 Years ?35,247
10 Years ?62,117
Now that’s a big increase on sticking the money in the bank, but clearly is not guaranteed. But can you do better?? I think you know what I’m going to say…
Option 3 Property
One of the great things about property is it enables you to leverage the ?20,000 to purchase a ?100,000 investment property (in other words, borrow the remaining ?80,000 from the bank). Now say the property market slows down to an average of only 6% return for the next 10 years. This would probably be a fair estimate in the UK, although there are plenty of markets which are growing more rapidly, lets concentrate on UK for this example.
Money in Property - assumed return: 6%
Now ?20,000 (?100,000 property value – 80,000 mortgage)
1 Year ?26,000 (?106,000 property value – 80,000 mortgage)
5 Years ?53,823 (?133,823 property value – 80,000 mortgage)
10 Years ?99,085 (?179,085 property value – 80,000 mortgage)
Make sense? So you make 6% increase on the full value of the property, not just the ?20,000 which you initially had. This is the power of leverage. In effect you have increased your initial investment 5 fold in 10 years! So even
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