Victory Investment

Archive for October, 2011

As a young investor you may be more focused on the rise in capital value; whereas someone in their golden years can be more focused on generating income. Property is one asset class that does both, rising in value and generating income. It is often referred to as the “IDEAL” investment. “IDEAL” is a simple acronym that highlights just some of the key benefits of owning real estate:

One of the key benefits of property investment over many types of investments is its inherent ability to generate passive income. When investing in property the key thing is to focus on net income. Many real estate agents will quote gross yield figures i.e. the annual rent as a percentage of the property price. Whilst this is a reasonable indicator of your potential return on investment, I prefer to focus on net yield or net income. You absolutely must have net positive cash-flow otherwise you haven’t got an investment on your hands but a burdensome liability. The challenge in property investment is to minimise the down payment (which will maximise your mortgage) whilst at the same time generating positive cash flow each month.  

A rental home is seen as a depreciable asset just like a car or piece of factory machinery. Rental properties with positive cash flow can show an accounting loss, granting the owner a tax deduction, or, as Robert Kiyosaki calls it, “Phantom Cash Flow”. Depreciation is an accounting loss and only shows up on paper. It can result in you being able to turn a small economic profit into a small tax loss. So, even though you could be “loosing” money on paper you could actually be making a monthly cash profit.

The building value (Purchase price – Land Value = Building Value) of residential property is usually depreciated over 27.5 years.  Commercial property is usually depreciated over 39 years.

As you pay down the principle of the mortgage loan you are gradually building up your equity stake in the property. So, even if there is no increase in the value of the property over the term of the loan you still end up with an asset with 100% equity at the end of the mortgage loan term.  
Expenses such as property management fees, maintenance, insurance, mortgage interest etc., are deductible from the rental income, thereby reducing your tax liability.

Your asset should appreciate in value over time. Often the largest part of a return on an investment in real estate is in the appreciation in the value of the asset and the resultant gain in equity. Property prices can sometimes reduce in the short term due to changes in demand, access to finance, etc. but over the long-term you will benefit from appreciation.

Leverage is the principle of using a small amount of your own money to control a large value asset. One of the unique aspects of real estate over other investment classes is your ability to borrow up to 80% or 90% of the purchase price of the asset. This is leverage i.e.  using Other People’s Money (OPM).  

By fully understanding and utilising these characteristics of property investing you can take advantage of this powerful investment asset to build wealth quickly and get rich fast.

Are terms like ROI, diversification, cap rates, risk analysis, puts & call confusing you? If you are seeking to build your wealth for retirement or to achieve life goals, you need an investment plan. My guide to basic investment fundamentals is simple to understand. It’s always best to start young saving and investing but it’s never, ever too late to start.

Investments are both a hedge against insecurities of the future from inflation and for increased needs for money such as for retirement. Critical to investing is the power of compounding. This is what makes investing attractive. Your future wealth is decided largely by the prudent investment plans you undertake now. Investments always comes with an element of risk. It is for you to weigh the level of risk with possible rewards. Understanding risk is the cornerstone of investment fundamentals.

Diversification is the key to good investment management. Spreading your assets and investments across various types of investment spreads your risk. You never want to put too much money into one category – such as all your money in one stock. Spreading you investments across stocks, bonds, real estate and other categories better insures that if one stock or investment category goes south, it will be minimized by other categories that are doing better.

Risk is about your comfort level. If you are young, you may be willing to take much larger risks, and potentially larger rewards, than if you are nearing retirement when you don’t want to risk losing the value of your portfolio.

Investments such as treasury bills, CD’s and bank deposits earn a fixed interest; and they are low risk. Stocks and mutual funds promise more growth potential. When they do well, you stand to gain because you earn money on the money your investment makes. Investment in property can bring you handsome returns but over a period of time. Those willing to take greater risks use leverage. That is, they use the banks money to make money. Borrowing to buy stocks, or borrowing to buy an investment property is riskier but gives you the potential to earn much more. Diversifying investments ensures that you don’t lose everything if a particular investment doesn’t work out well.

: Decide the amount that you can set aside for investment. With right planning, you should be able to set aside and build up an investment fund. Ensure that you have built sufficient cash reserve to meet short-term emergencies. Six months of salary put away in a low-risk savings account is a good place to start. Plan your expenditures so as to redirect funds for investment. Put away a percentage of your pay increase to long-term savings investment.

: Take a broader perspective when planning your finances. Chalk out your financial goals such as child’s education, retirement or buying a home. Analyze your current situation and determine your needs.

: You should consider taking the guidance of an investment advisor. An advisor can help in tailoring your investment to suit your requirements. This would work well for those strapped for time and those who are not well-versed with financial planning.

: Investing in stocks and bonds is not everyone’s cup of tea – nor do you have the time to keep up on when to buy and sell. If you buy rental property, it takes time and effort to collect rents, handle complaints, fix problems, etc. Maybe REITs, which are like stocks in real estate, is a better alternative than owning property outright. Be realistic about the time you can put into managing your investments.

: Be realistic and reasonable about expectations on investments. While some may far surpass your expectations, sometimes investments may not pay off as well as they promised. Plan your tax liabilities too when overseeing your investment plans. Consider capital gains that may come into effect.

: Before placing your money towards an investment, weigh the cost of the investment. What are the broker and transaction fees if you are buying stocks or bonds. If buying investment property, carefully detail out all expenses and you will need to project them into the future.

The best advice is to start small and learn. As you gain confidence in yourself, it is easy to expand your portfolio. Learn more about Building Wealth.

The expansion mutual fund is the equity stock shares invested in one of many fastest rising firms. These investments are highly risky to the inventory market, which will increase the chance level. Their worth will increase steeply with a rise in stock market, and falls quickly with a downfall in the market. Growth mutual funds could be useful in lengthy-time period investments.

People keen on long-time period funding can enjoy good income whereas these seeking brief-term profits and common earnings mustn’t put money into the growth mutual funds. On the subject of mutual funds, they supply capital appreciation in medium or lengthy-term investments. The worth of progress of the corporate or agency raises the value of those funds, thereby allowing buyers to take pleasure in profits.

The growth mutual funds are categorized into 4 sorts- aggressive growth fund, crossover funds, capital appreciation funds and balanced funds. Aggressive development mutual fund funding is relatively riskier than other three as they rise and decline at a sooner pace. The balanced fund investment might be executed in the form of bonds, brief-time period bonds, widespread shares in addition to most well-liked stocks.

The balanced funds provide common earnings to the traders while giving the long-time period capital gains. They are least dangerous mutual fund investment. The capital investment funds may also be referred to as as different aggressive investment funds as they’re risky investments. A crossover fund investment will be made in each public as well as personal sectors of equity.

Before investing in any mutual funds in India, it is very important divide and consider your funds that you’re planning to invest. Allocation of assets plays an integral role in fetching good returns on investments. You can get a set of documents printed by each mutual fund in India to know the status and worth of the firm. The indicator paperwork are prospectus, annual report and extra information provided by the company.

After confirming the status, credibility and value of the corporate, select the asset through which you want to invest. Never invest all of your finance in one asset as you can incur heavy losses if their prices fall. All the time divide your finance into various belongings, resembling shares, bonds, or funds to attenuate the risk. If there’s a lower in the worth of some assets, there may be still a risk to earn from other assets. Therefore, divide your risk and stabilize the returns in your investments.

A proper analysis on numerous funds and their prospects is essential because it permits the traders to gather more details about the standing of investments within the market. You have to consult a fund supervisor or investment advisor, if you’re new to the expansion mutual fund Investments. The professionals guide you to earn better profits in your buy of the expansion mutual funds. A correct help is all the time helpful within the case of investments. They may refer you the popular mutual funds and show you how to in analyzing the paperwork of the popular companies. You’ll have the ability to mange your investments on a better note.

One of the most profitable investments during these tough economic conditions across the world has been gold. There has been a sharp rise in the price of gold over the last one year, which has led to increasing investor interest in the yellow metal. Today, one of the most popular routes to invest in this precious metal has been the exchange traded fund (ETF). Using ETFs enables investors to get an exposure to gold in their portfolio. While looking at this route there are also some other details that have to be considered for the purpose of ensuring that all angles related to the investment are covered.

Gold ETF

There are several gold ETFs that have been launched by mutual funds in the country. These are mutual fund schemes that are listed on the stock exchanges and an investor can buy and sell the units in the scheme just like he/she trades a stock. The transactions in an ETF can be done at any time during the day when the stock exchange is open for business, and hence it provides an element of flexibility for the investor. The best part of the investment is that the investor does not have to wait till the end of the day for the value to be known and he/she can make use of the price change that takes place during the day to benefit from the changing situation.

Linked to Gold

The main theme of the entire investment is that the price of the ETF is linked to the price of gold. This means that when an investor is buying an ETF, he/she has a direct exposure to the price of gold. Whenever the investor feels that the price of gold is going to rise and he/she would like to benefit from the move then he/she can buy the gold ETF and then gain from the rise when it occurs. The other point is also that transacting in this route is cheap because the cost for the investor is just the brokerage fee that he/she will pay for the transaction. In addition, there is the management expense of the fund, but this is low and is directly adjusted in the net asset value, so the investor does not have to pay this separately.

Limitation

The benefit that is witnessed in the form of gold ETF also represents a sort of limitation for the investor. This is because the instrument is appropriate in order to gain from the rise in the value but at the same time this cannot help an investor profit in case there is going to be a fall in the value of gold.

There are times when the investor might also have a view that the price of gold may fall and in several cases he/she might be correct in such an assessment too. In such a situation, the investor would like to ensure that he/she gains from the knowledge of this expected price movement. If investors want to ensure that they make use of only the gold ETF then there is nothing that they can do in terms of gaining from such a view because in case of a price fall the gold ETF will also come down. Investors cannot sell such units without having them in their portfolios. This is different from the use of gold futures where these can be sold to gain from a fall in price.

However, investors can try and ensure that they do not end up losing when the price of gold actually falls. This can be done by selling off the existing gold ETF holding before the expected price reduction. In case the price actually falls as per the expectation then the investors can buy the units again and gain when the price rises in the future. However, it is not necessary that the prices have to rise after a certain fall and it can be quite some time before there is actually another rise in the price of the metal. In such a situation, this route is inadequate for the investor who would have no option but to turn to the futures market.

At the same time, even though there are liquidity features in the gold ETF, investors have to understand that there has to be significant price movements to justify regular trading in such units. In that sense, for a normal small investor the gold ETF is a medium- to long-term investment.

While stakeholders and institutions are starting to find value in making investments on building efficiency, initiatives to implement green buildings across industries has increased over time. Such trend is more evident in investment trusts and companies which need to make sure that they could increase their property portfolio which have a green classification to prove building efficiency.

Real estate investment trusts are turning to the Leadership in Energy and Environmental Design (LEED) program to establish credentials for building stocks. More than a third of real estate investment trusts across the county are seeking LEED certification or certified buildings.

Buildings account for 60% of global greenhouse gas emissions and companies must ensure that they address building efficiency as they move toward corporate sustainability. Investors are aware that they can realize a premium in terms of occupancy and return on investment by concentrating on green initiatives.

It is interesting to note that, despite the downturn, interest in green investments remains high. Investors have considered the long-term practicality of building efficiency investments, and likewise extended the pursuit of opportunities for sustainability. The topic of energy efficiency has become very hot amongst owners and occupants of buildings.

Occupants are seeking ways to lease building which have LEED certifications, and therefore high building efficiency rates. This push shows that leaseholders are increasingly interested in operating their businesses in an efficient manner. Tenants are becoming so much aware to insist that they would be occupying a green building that would have the corresponding certification as proof should the customers or employees seek for such.

The market has shown that tenants are willing to pay a premium to occupy space that is classified according to LEED standards. Owners are well aware that they are more likely to retain tenant occupancy and gain premium rates if they make the investment in building efficiency now.

Investors have noticed that efficient buildings and those that are upgraded tend to have lower operating costs, which would be a more cost-effective investment. When coupled with proactive, energy-conscious tenants, owning or investing in a ‘green’ building can be a smart decision.

While green buildings can cost as much as 5% more to actually construct, these costs are absorbed through operational efficiencies within the first few years of operation. The real estate investment trust business has been actively involved in the pursuit of building efficiency since they introduced their Leader in the Light program, back in 2005.

Building efficiency standards will undoubtedly increase exponentially as society comes to demand an approach to energy efficiency and sustainability, and should be a priority issue to tackle in the boardroom at the present time.

Investment Banking
Mr. Nilesh Parwari, Founder of Printbell.com
10th February 2008
IIPM Tower I, Khar (West)

Mr. Nilesh Parwari, Founder of Printbell.com and also a practical guide for Financial Modeling in various educational institutions in India and USA gave a brief introduction on investment banking. He spoke on the inception, growth and how investment banking could be a great career option. Examples of companies of investment banking, their work structure and profit margins were discussed.

Comparative analysis of investment banking in India and the USA were highlighted and various career opportunities were offered. He spoke about Technological aspects of investment banking focusing on excel and how to use it .A demo was also shown by means of a book compiled by him. Also some useful interview skills were touched upon, followed by a Question & Answer session.

Mr. Nilesh Parwari, Founder of Printbell.com and also a practical guide for Financial Modeling in various educational institutions in India and USA gave a brief introduction on investment banking. He spoke on the inception, growth and how investment banking could be a great career option. Examples of companies of investment banking, their work structure and profit margins were discussed.Comparative analysis of investment banking in India and the USA were highlighted and various career opportunities were offered. He spoke about Technological aspects of investment banking focusing on excel and how to use it .A demo was also shown by means of a book compiled by him. Also some useful interview skills were touched upon, followed by a Question & Answer session.

 Forward Thinking
MR. PRATIK SHRINGARPURE,
AVIVA LIFE INSURANCE

2ND September 2007
IIPM, Mumbai

India’s economy is booming, and so are the employment opportunities. Financial services sector is on a high growth trajectory as well; fuelled by the higher economic growth, improved liquidity, changing investment patterns and higher awareness levels. Insurance is one of the fast paced industries within the Financial service sector; with more and more players entering this lucrative field, the job market dynamics are fast-changing.

Given the competitive environment Mr. Pratik, Corporate Human Resources, West India enlightened IIPM, Mumbai students on “ by explaining how the company is operating and its needs to go beyond enhancing its brand value amongst the current workforce.

Lacking the expertise to raise capital on their own or through organized securities markets (NYSE, OTC, Nasdaq, or the American Stock Exchange), the corporation must rely on investment banks. Therefore, they contract these banks so that they can design and negotiate the company’s best strategy and to recommend the sale of either bonds (debt) or stock (equity).
The bank’s resident staff includes a legal department that makes sure all Government regulations are complied with and all the necessary documentation properly gathered and printed. An important aspect of this expertise is the research called “Due Diligence,” which certifies that a checklist of material facts have been scrutinized to protect investors, the bank, and the company that is issuing the securities.
For small corporations seeking finance, the investment banks will require a retainer, which varies from house to house, but usually around ,000. Since each deal is different and unique, the corporate controller must shop around to get a good idea as to what a reasonable fee may be.
With the deal settled, the investment bank proceeds to get the issue out. Initially they will prepare the Private Placement Memorandum (PPM) which contains a blueprint for marketing the issue.
Mergers and acquisitions (M&A)
Investment bankers also handle mergers and acquisitions and corporate restructurings. This is a very lucrative field for many investment bankers. By bringing together companies and either merging them or acquiring them (and letting them work independently), investment banks foster the growth of successful companies. Some companies achieve growth and earnings through mergers and acquisitions rather than through the operations of their main line of business. Take for example, General Electric. Investors no longer think of GE as a manufacturing electronics company, but as a conglomerate and finance company. Not only do investment banks bring together companies to form a larger company, but they also break them up into smaller companies, spinoffs, or carve-outs. In either case, the banks will make money.
Brokerage and proprietary trading
Proprietary Investing refers to the management of portfolios of high-yield bonds, leveraged loans and other publicly traded securities. The management teams use intense credit research and relative value analysis.  The “prop desk” handles the trades of stocks, bonds, options, commodities, swaps, and other derivatives.
Different strategies are employed for different clients. For example, less aggressive techniques and risk will be employed in the management of pension funds. Likewise, not-for-profit institutions will restrict the trading to safer techniques.
Although investment banks are viewed as businesses which assist other business and institutions in raising money in the capital markets, in fact they also do lots of trading for their own accounts. Part of their daily activities involve: index arbitrage, statistical arbitrage, merger arbitrage, and volatility arbitrage.
Students
Many of my students often ask me, can I start with a commercial bank and then transfer to an investment house? Yes. This happens all the time. But, human resources, and division heads in investment banks tend to look down on applicants with commercial bank experience. The action, they feel, is in investment banks. Another question that comes up: what college majors are preferred for investment banking? The answer is: finance, accounting, and economics. Yet, I’ve met successful investment bankers who majored in liberal arts. In fact, a friend of mine majored in French Literature. The ultimate major that is required is: intelligence, coupled with a flair for numbers, and excellent communication skills.

Regardless of the ongoing debate out there, internet has made many students become lazy. Many students often spend too much time with their online social networking and they become lazy to work on their paper assignments. This trend is very good news for both online writing services and professional writers because the trend means there will be high demand on writing services. If you love writing and academic writing is your expertise, there are endless academic writing jobs that are waiting for you. There are two options available for you, struggling on your own to find direct orders or join reputable online writing services that offer you plenty of jobs and high writing rate. If you are smart and you want instant money, the second choice is highly recommended. Finding jobs on your own is very difficult since reputable online writing services have dominated the industry for years and it is very difficult for you to get a little space.

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The value of a property is determined by many factors including size, enhancements, neighborhoods, economic conditions and the state it resides in. Dallas has a proven track record of being one of the largest contributors to the country’s export economy, which makes property investments in this city a lucrative decision. There are many other attributes that contribute to the successful future of Dallas investment properties and with the city being a prominent business hub, the scope for growth is endless. This potential includes businesses that foresee their branches in Dallas and those who are looking to build a great business relationship, with the ones that are established there.

Dallas is a metropolis that boasts a range of parks, entertainment complexes, prestigious neighborhoods and shopping districts that attract an overwhelming number of local and national investors, who are looking to capture their share of this enviable market. The newest addition to the city is the Trinity River project that runs through north and south Dallas and is spread over 23 miles of pristine property. The surprising part is that even with this vast exposure, there are a fair number of commercial and residential properties up for grabs in the vicinity.

Some of the most exquisite neighborhoods in Dallas are Highland Park and park cities, which feature impressive school systems and shopping villages. Downtown Dallas has recently experienced the flourish of new constructions and the revamp of stunning older homes. Preston Hollow, Oaklawn and Lakewood are just a few of the notable neighborhoods to keep in mind, when shopping for Dallas investment properties.

Dallas investment properties are extremely affordable, when compared to the other cities in the United States, for the simple reason that it is embedded with all the luxuries, at a cost below the national average. The last year has seen a growth in population by half a million and 180,000 unique job prospects, which makes Dallas investment properties all the prosperous and assuring.

The ideal properties in Dallas are in the range of 0-0 thousand, with the rent averaging at 50-00 monthly. These staggering numbers are equivalent to a 1% purchase price or better and a well deserved rent to value ratio. Another aspect of Dallas investment properties is a vast rental market, due to the low rank in Texas credit scores, which benefits both the investor and the tenants, as investors charge higher rents and the tenants avoid paying high property tax.

The trend for an investment of 5-10 years is a seamless way of acquiring Dallas properties and yields profits within the first couple of years, if executed with proper planning and direction. Dallas foreclosures are available at a fraction of the cost, which translates to 30-50% below the market rate. The city of Dallas hosts its own basketball, football and baseball teams, the American airlines center and the world’s second busiest airport, which sets Dallas investments properties apart from the other cities. Dallas investment properties are promising and should not be overlooked under any circumstances.

I am sure most of you have known any kinds of drug can be very dangerous to be consumed. Let me ask you question. Do you know about cocaine? Yup, cocaine is one example of drugs that is very dangerous and able to destroy part of your body, including the organ. As you have known, there are so many people who have detected of having this kind of addiction because it is quite easy for getting cocaine. That is why it is very important for knowing more about this drug.

Usually, people who have cocaine addiction will show strange behavior. You have to be careful in you see someone with strange attitude, such as panic, talkative, and etc. Some Signs of Cocaine Use that you need to know is about money. Sometimes, cocaine addict cannot save their money because they will use it for buying some cocaine. For solving this problem, you have to find the best Cocaine Drug Rehab that will help you to escape from the addiction. Delray Recovery Center as the professional Drug Rehab will give everything for saving your life and also the future.

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