Tuesday, 23 August 2011
Tuesday, 16 August 2011
Goals of the modern real estate investor
Today's real estate investor faces the daunting challenge of having to effectively generate and mulyi their wealth whilst balancing other areas of their lives. Often times, new and experience investors do not know how to choose the right property invesment opportunity to accelerate the achievement their financial goals. Perhaps, it may be fear, misguided advice or simply lacking the skill and know-how to get started. But then, there are those who start, only to find out later that they are copying outdated ideas and strategies.
Well, whilst real estate investing provides an excellent opportunity for generating wealth far more easier than other assets with less volatility, it is fundamentally important that the investor is aware of his/her goal before they start investing. By the investor knowing his goal before hand, he/she can design a plan to effectively manage and optimize the performance of their property portfolio and minise failre.
Incidentally, the 2007/08 credit crisis has not only destroyed a lot of investors wealth, but has also rendered many asset classes obsolete, thereby, presenting a rigorous challenge. Even the biggest of investors have realised that they have to chang their game plan to protect their portfolio or face the prospect of having their safety net or little pot of gold vanish. The modern real estate investor is no longer interested in cashflow, capital gains or residual income. Instead, they are focussed on new goals in the new decade.
The two new goals that are on the top of smart real estate investor and inside investors plan are,namely, (a) returns on human betterment and (b) multi-generational wealth transfer. I will discuss these two new goals in more details in my next blog. Alternatively, follow me on twitter or read a copy of my new book, 'Surviving Amid the Rubble'.
Well, whilst real estate investing provides an excellent opportunity for generating wealth far more easier than other assets with less volatility, it is fundamentally important that the investor is aware of his/her goal before they start investing. By the investor knowing his goal before hand, he/she can design a plan to effectively manage and optimize the performance of their property portfolio and minise failre.
Incidentally, the 2007/08 credit crisis has not only destroyed a lot of investors wealth, but has also rendered many asset classes obsolete, thereby, presenting a rigorous challenge. Even the biggest of investors have realised that they have to chang their game plan to protect their portfolio or face the prospect of having their safety net or little pot of gold vanish. The modern real estate investor is no longer interested in cashflow, capital gains or residual income. Instead, they are focussed on new goals in the new decade.
The two new goals that are on the top of smart real estate investor and inside investors plan are,namely, (a) returns on human betterment and (b) multi-generational wealth transfer. I will discuss these two new goals in more details in my next blog. Alternatively, follow me on twitter or read a copy of my new book, 'Surviving Amid the Rubble'.
Tuesday, 2 August 2011
The great escape! Why cash rich property investors are fleeing abroad?
It is now four years on since the 2007 financial crisis has battered western economies, yet savvy, cash-rich real estate investors are still reluctant to jump back into the western property market. Instead, they are looking further afield and is perfectly understandable why they are doing so. The first reason is that western economies like the U.K., southern europe and and USA are saddle with massive financial debt (or budget deficit). The obvious result is for these countries to adopt austerity measures. We have already witness countries like Portugal, Ireland, Italy, Greece and Spain (PIIGS) adopting such policy measures.
As a potential real estate investor, you may be asking yourself, 'How would an increasing national debt affectme, my family, my pension and/or my financial future?' Well, for starters, large budget deficit means rising taxes and public sector services cut and minimal subsidies, which ultimately makes you poorer.
Another reason why cash rich investors are reluctant to invest in wesern economies is because their financial goals hae changed. Modern asset builders are not simply interested in capital growth and residual income. Instead, their new goals include, multi-generational wealth management and effective wealth transfer among others. Economies with high debts create policies that are counter-productive to an investor achieving such goals. Therefore, to prevent you and your family from getting poorer, you need to adopt a strategy that enables you shift your investing abroad, i.e. in economies with budget surpluses, such as. emerging markets.
Do not get left behind! The savvy property investors are already doing it. For example, last month, hotel property owner Stelios Haji-ioannou, entered into a Master Franchise Agreement (MFA) with Lonrho to spread the Easy Hotel brand all across Africa. Likewise, property mogul Vincent Tchenguiz has been investing in solar farms in South Africa.and property investing tycoon Donald Trump hasbeen heavily investing in Latin America. Further, their are numerous benefits (such as, tax waiver) to reap in countries with budget surpluses, which are now scarely available in The West.
A few years ago, Invesment Bank Goldman Sachs, published a paper on the economies that will offer the best investment opportunties in the coming years. Apart China, India and Brazil, countries such as, Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa (Civets), followed by, Mexico, Iran, Nigeria and T (Mint) will all offer excellent opportunities..
Besides huge budget surpluses, Government incentives and low taxes, the other factors that are motivating smart property investors to make their cash work hard for them in these emerging markets, include, marcro-economic stability, political maturity, openness to trade and investment, growing educated population and growing affluent consumers.
It should be noted, that there are some potential risks for the unprepared investor, but rest ashore, the returns far outweigh the risk. So, are you ready to make a fortune from investing in commercial real estate abroad?
As a potential real estate investor, you may be asking yourself, 'How would an increasing national debt affectme, my family, my pension and/or my financial future?' Well, for starters, large budget deficit means rising taxes and public sector services cut and minimal subsidies, which ultimately makes you poorer.
Another reason why cash rich investors are reluctant to invest in wesern economies is because their financial goals hae changed. Modern asset builders are not simply interested in capital growth and residual income. Instead, their new goals include, multi-generational wealth management and effective wealth transfer among others. Economies with high debts create policies that are counter-productive to an investor achieving such goals. Therefore, to prevent you and your family from getting poorer, you need to adopt a strategy that enables you shift your investing abroad, i.e. in economies with budget surpluses, such as. emerging markets.
Do not get left behind! The savvy property investors are already doing it. For example, last month, hotel property owner Stelios Haji-ioannou, entered into a Master Franchise Agreement (MFA) with Lonrho to spread the Easy Hotel brand all across Africa. Likewise, property mogul Vincent Tchenguiz has been investing in solar farms in South Africa.and property investing tycoon Donald Trump hasbeen heavily investing in Latin America. Further, their are numerous benefits (such as, tax waiver) to reap in countries with budget surpluses, which are now scarely available in The West.
A few years ago, Invesment Bank Goldman Sachs, published a paper on the economies that will offer the best investment opportunties in the coming years. Apart China, India and Brazil, countries such as, Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa (Civets), followed by, Mexico, Iran, Nigeria and T (Mint) will all offer excellent opportunities..
Besides huge budget surpluses, Government incentives and low taxes, the other factors that are motivating smart property investors to make their cash work hard for them in these emerging markets, include, marcro-economic stability, political maturity, openness to trade and investment, growing educated population and growing affluent consumers.
It should be noted, that there are some potential risks for the unprepared investor, but rest ashore, the returns far outweigh the risk. So, are you ready to make a fortune from investing in commercial real estate abroad?
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