7 Simple Tips For Investing Success

Wouldn’t it be great to have great Investing Success without any risk, I certainly think so, although the simple reality with investing is that there is a risk. However with a plan, knowledge and in time experience this risk can be minimised and the overall outcome is a very effective means of achieving your financial goals. The type of plan to adopt is really dependent on what suits you best, you may like to have an aggressive strategy with possible greater returns and more risk, or maybe a less aggressive strategy with lesser returns and lower risk, or even anywhere in between. Also you may like to have investments that mostly look after themselves and only require attention every now and again, or you may prefer to be more involved in your investments and know exactly what your money is doing all the time. There is no real perfect plan or any real secret to investing however these simple tips may assist in your investing success.Tip 1: Set Motivating GoalsGoal setting is a very effective when investing, it provides the means to set a target for yourself, gives you direction and is helpful in motivating you to do the things to achieve your desired result. Setting motivating goals is completely dependent on personal preference, you may be motivated by the goal of returning enough money from your investments to buy a luxury yacht or you may be motivated by the goal of having 20 investment properties in your portfolio. There is no right or wrong goal as long as it gives you direction, gives you something to aim for and motivates you, then you’re on the right track.Tip 2: Do your HomeworkWith the potential risk involved with any type of investment, doing your homework is an essential process. You wouldn’t go to a car yard with no particular car in mind and purchase the first one you see, you would do your homework first wouldn’t you. For example you would have some criteria set out and you may be looking for a car that is reliable, performs well, appeals to you, basically a car that just ticks all the right boxes. The same goes with investing, you would most likely not get the best result by investing in the first shares you come across or the first property that you inspect. For the stock market, doing your homework may involve searching news articles or press releases for a particular company you have an interest in and checking the history of the stock price. While for a property you may do a check on the surrounding suburb, find out the previous sale price, get building and pests inspections done on it. There are countless things you can do to ensure that you are making a wise investment decision, make sure you do your homework and you’ll do better than most.Tip 3: Invest Regularly Investing is not a get rich quick scheme to be truly successful at investing you need to do it regularly. The best chance to acquire measurable wealth lies in developing the habit of adding to your investments regularly and putting the money where it can do the most for you. You can put $10,000 into a share account returning an average of 20% per year, and if you take all of that return out every year in ten years time you may have earned $2,000 every year but you’ll still have only $10,000 in that account minus account keeping fees and the loss in inflation, tax etc., giving a total net worth of $30,000. However if you reinvested that $2,000 every year, in ten years time you’ll have a total net worth of about $62,000. That’s $62,000 in your share account now with the potential to earn you $12,400/year at 20%, as opposed to the $2,000 you would still be earning with the other scenario. Now this may not included potential losses in either case, but the idea is to highlight to you the benefit of regularly fuelling your investments?Tip 4: Keep an Investment DiaryKeeping a record of your investments can be a great learning tool to determine the strategies which work best for you and can be an insight into why an investment worked so well or why it didn’t work so well. Having the right information which you can always look back on will lead to wiser investments in the future, therefore minimising risks, increasing the potential returns and thus greater investing success. Information that may be helpful to keep a record of includes:

The research done to find the investment
The investments you turned away and why you turned them away
Why you chose the particular investment
The plan you had in place prior to making the investment
In the case of an investment property you may take note of the agents used, renovations done and renovation contractors used.
In the case of a share market investment you may take note of the stop loss margin, profit margin and stop profit loss margin used and whether they can be adjusted to reduce risk and increase potential profit.
Tip 5: Diversify Diversity is in old old wooden ship, joking (Anchorman reference for those that haven’t seen it), diversifying your investments in an effective means of managing your risk and increasing returns. The type of diversification strategy should be dependent upon your age, income and investment goals. For example, if you were young and just beginning you investments you have the opportunity to have more increased risk and may benefit from putting your assets into stocks that have long-term potential, and stocks with greater risk and potential returns. While if you were approaching retirement you may benefit more from shifting your assets into income producing investments such as bonds or utility stocks. Your diversification strategy could involve setting up a portfolio consisting of equal parts of different investment vehicles such as, bonds, local stocks, foreign stocks, and real estate. Once a year, you could then adjust each vehicle to maintain the same asset distribution by taking the gains in your winning investments and spreading them amongst your losing investments.Tip 6: Have a Plan and Stick to itThe journey to investing success can have many distractions and obstacles that can lead you off course, the way in which to overcome these and maintain the right path is to have a plan and stick to it. Whether it starts off being extremely basic with just basic goals, milestones, strategies etc. the idea is to know where you’re going and work out what is required to get there, once you get more involved you will be adjust and fine tune your plan to be more effective. For example your goal may be to own 5 investment properties in 5 years time, you may work out that in order to achieve your goal you need to work an extra 5 hrs of overtime a week, cut back on some expenses and get training or obtain the knowledge to learn how to go about it effectively, this would be your plan. Your milestones may be to ensure you have at least one investment property every year. Now if it so happens that you miss one of your milestones it’s not the end. You just simply need to go through your records work out why you didn’t achieve your milestone and re-adjust your plan accordingly. If you do achieve your milestone this doesn’t mean there is no room for improvement, although you should reward yourself, let yourself know that you’re doing well and rewards are a great motivator as well.Tip 7: Manage your RiskYou can effectively manage your risk by following the above mentioned tips such as doing your homework, having a plan and sticking to it, and diversifying. Additionally risk can be managed by first identifying what your risk are, the most common risk with investing is obviously losing your money. What is it however that causes you to loose your money? Just for example with stock market investing there is a risk of a stock doing the opposite of what you indeed it to do or you selling to early and losing potential profit, with property investing the risk are that the value of the property won’t increase as intended or you may not be able to rent it out. Once you’ve identified what are the potential factors that can cause you to lose money in a given investment you can begin to work out a plan to manage the identified risk. Strategies to manage your risk could be to avoid the risk altogether and look for something else, try and reduce the risk or simply accept the risk. Whatever your plan may be just ensure that the risk is monitored and constantly look for ways in which to minimise the risk.ConclusionIn summary investing success may be obtained by using a combination of the above mentioned tips, however don’t limit yourself to these, it is a constant learning process, no investor out there knows everything there is to know about investing. Find what best works for you then just get out their have a go and achieve your investing success.

Good Tips For Buying Property – House

Location, locations, locations… is probably the most quoted mantra in property investment. Yet, when you have to choose between a few property units, how do you choose the best unit in terms of physical and geographical aspects?5 main TIPS help to make a big difference in rental income and resale value of your property:-LOCATIONS:
1. The area that you love most or the area that you are going into.
2. You might narrow down your search to a section; for instance, you might want to see whether the property near the park or the shops.
3. Look at the road on which the property sits and the position of the property.IDENTIFY THE MAJOR DEFECTS:
Most importantly, you must feel comfortable while viewing the property. If you are, then can start examining other detail. While you are at the site, avoid spending too much time on superficial things like the paint work and the garden, which are only minor issues. You should look for major defects like roof leakage, termite infestation, structural cracks along the foundations and sewerage blockage.Emphasises good structure, which includes the layout of the property, the number of columns and pillars as well as the foundation of the land. If there are too many columns, it would be very difficult to renovate the house. If you notice a gap between the wall and the floor, it is a sign of earth movement, which denotes a structural problem.The defect root leakage, often refer to “add spots” such as the storeroom and the toilet in the master bedroom. Usually, people touch up water stains on the ceiling in the living room because it’s unsightly to guests. But most people would not touch up the ceiling of the add spots.When inspecting the living room, note whether there is a fresh cost of paint on the ceiling. Ceiling are usually painted over with emulsion paint. If you see one shiny patch, that could mean that there has been a leak and the owner might used gloss paint to cover up. While emulsion paint absorbs water, gloss paint is waterproof.Floor quality is another important factor. Whether you are walking on timber or marble flooring, make sure that it is not hollow.PAY A PREMIUM FOR MORE LAND:
Pay a little more of premium to get back a lot of premium. If you have the financial capacity, pick a corner lot. Corner lot are usually in high demand and limited units because of the extra land. The corner lot should not be on the main road, where the traffic is heavy.If you cannot afford a corner lot, choose an intermediate unit carefully. It is important to know who your neighbours are. If your neighbour is a kindergarten operator, the unit will look funny, and it did make your house look out of place. In the morning there will be a lot of traffic and might have a lot of cars parked in front of your house.It is best to avoid buying next to an extensively done-up unit. It will drawn your house and make it look out of place.Property will added advantage if the unit is faces the parks, greenery or a lake, especially if it is situated within legally gated and guarded development. 2nd, the main entrance is facing north or south. With this direction, you do not get direct sunlight and it would make the house cooler.PAY ATTENTION TO THE VIEW AND THE SURROUNDINGS:
Do not buy a residential property that faces a busy main road to avoid environmental pollution and inconvenience. it should be at least three to four house away from the main road.Avoid units near facilities like power lines, school, commercial areas, mosques, temples and oxidation ponds as well as hill slopes (to avoid potential landslides). Avoid T-junctions like the plague. T-junctions have certain risks. Car light shine directly into your house. Accidents may happen because of the location of property.Green is always good, but we have to be cautions that adjacent playground or park should be well maintained. Ideally, the park or playground should be separately from you home by a corridor or a road. If a playground is very close to your house, there may be privacy and security issues. And you might get footballs being kicked into your garden frequently.Likewise, water features like a lake should not be too close to your unit. Otherwise, you will have issues of dampness and snakes. Make sure that your unit is more than 100cm away from the water features.PICK THE RIGHT FLOOR:
If you are investing in a high-rise apartment, go for the 10th floor or above to get better view and less noise. And it will be cooler.Avoid top floor unit, especially if the property is 10 to 20 years old as there will be problem with roof leakages and there is potential of tile movements due to exposure to strong winds. Issues of roof leakage, it would be difficult to carry out repair.Avoid buying ground floor, unless it offers certain advantage such as extra spaces, well positioned and not near main traffic flow. Otherwise, you won’t have privacy.