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2011年7月15日 星期五
China to Expand Efforts to Curb Growth in Property Prices
July 15 (Bloomberg) -- China will expand its efforts to curb the growth in residential prices to smaller cities after limiting home purchases in Beijing and Shanghai, according to a summary of a State Council meeting chaired by Premier Wen Jiabao.
The government said so-called second and third-tier cities which have seen excessive price gains should restrict the number of homes each family is allowed to buy, according to the State Council or cabinet yesterday.China is intensifying property restrictions nationwide after developers posted gains in first-half sales and housing transactions climbed 31 percent last month, even after more curbs were added earlier this year. The central bank last week raised interest rates for the fifth time since October.“If the government doesn’t step up to say anything at the half-year point, the market will interpret it as the government is tolerant to gains in the housing market,” said Yao Wei, an economist at Societe Generale SA in Hong Kong. “China is facing a big pressure from inflation and there’s no way the government will relax property curbs now.”China’s June housing transactions increased to 499.2 billion yuan ($77 billion), compared with 380.9 billion yuan in the previous month, based on first-half economic data provided by China’s statistics bureau on June 13. Sales in the first half climbed 22 percent to 2.1 trillion yuan from a year earlier, according to the data.Urumqi, DandongThe property boom is shifting from Beijing and Shanghai as government measures to curb the market haven’t kept prices from rising in secondary cities. Urumqi in the northwest and northeastern Dandong posted the biggest gains in May home prices, according to the statistics bureau. The data for June is scheduled to be released on July 18.Standard & Poor’s on June 15 cut its outlook on Chinese developers, echoing concerns of a property bubble aired by bears such as hedge fund manager Jim Chanos.The measure tracking property stocks on the Shanghai Composite Index rose 8.1 percent this year, the most among five industry groups on the benchmark gauge.China Vanke Co., the country’s biggest developer, reported last week that sales in the first six months rose 79 percent to 65.7 billion yuan, while Evergrande Real Estate Group said on July 11 that sales more than doubled to 42.3 billion yuan.‘Proper and Adequate’Cheung Kong Holdings Ltd., the developer controlled by Hong Kong billionaire Li Ka-shing, said yesterday it’s “proper and adequate” for China to impose measures to cool down its property market. Rising home prices run the risk of becoming a social problem, Executive Director Justin Chiu said in Shanghai, where he unveiled three new projects in the city.“We do hope prices will remain stable, otherwise the government will take more action,” Chiu told reporters. “As a property developer, we don’t want prices to rise too quickly either and want prices to be stable.”China’s rising inflation, which hit a three-year high in June, also boosted the investment data with higher costs for materials and wages, the statistics bureau said this week.“The property policies are at a critical moment,” the State Council said in the report. “We must strictly uphold the direction of the curbs and won’t ease the tightening measures.”June home prices climbed 0.4 percent from May, rising for a 10th straight month, according to SouFun Holdings Ltd., the country’s biggest real estate website. The increase was driven by smaller cities, while prices in larger ones including Beijing and Shanghai either posted slower gains or declines from May, SouFun said.China will also curb gains in housing rents, the State Council report said. The government will ensure the construction of 10 million units of social or affordable housing begins by the end of November, according to the report.“If they don’t continue to tighten the market, it will rebound soon,” said Jinsong Du, a Hong Kong-based property analyst at Credit Suisse Group AG, citing this week’s property sales data. “The property curbs haven’t showed positive effects.”--Bonnie Cao, Liza Lin. Editors: Linus Chua, Allen Wan
To contact Bloomberg News staff for this story: Bonnie Cao in Shanghai at bcao4@bloomberg.net; Liza Lin in Shanghai at llin15@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
2011年7月5日 星期二
2011年5月24日 星期二
7 Options To Buy Investment Property
As well as the whole world to choose from for location, there are a number of different ways to directly invest in property. What is a little daunting is the number of variables this creates - 175 by my reckoning! (7 ways to invest multiplied by at least 25 countries). So, once you have decided what to invest in, you can then get on to deciding where to invest (which has been covered elsewhere in HPA).
There are really three key factors to consider when deciding how and where to invest - risk, reward and effort involved. How you invest is important because it affects all three key factors; where you invest only really affects risk and reward. The reality is that many people only concentrate on the (potential) reward, and often become blind to the risk involved. Even more frequently though, people do not factor in the effort required for certain types of investment. This can then lead to frustration, despondency or panic, and at worst, a desire to stop investing completely.
I have ranked each of the 7 in terms of the level of effort required (The Hassle Index!). Coming in with the lowest ranking is Guaranteed Return Investments. These are simply a cash investment in to a project or scheme, you receive a monthly, quarterly or annual fixed return on your investment. As an example, a scheme investing in UK buy to lets has been delivering a 32% return for over 3 years now, paid monthly. Another in Turkey is delivering a 25% annual return. The risk element is high with these types of investments, especially when your cash does not secure you title on an actual property (as with the UK scheme). But the effort involved is simply to sign a contract and hand over your cash, after copious amounts of due diligence though! I know of an innovative company that is going to 're-package' these schemes and offer a lower return but with an insurance scheme bolted on, protecting your cash and reducing the risk element.
These investments appeal to cash rich/time poor individuals willing to place a percentage of their cash for a high return, especially if they are unable to obtain mortgages enabling them to gear up.
The second lowest ranking in the 'Hassle Index' is Syndicate Investments. Here again you invest cash along with a number of other individuals, which is then invested and managed on everyone's behalf. You are rewarded with a return based on the level of success of the whole scheme. The timing and level of returns are not guaranteed. The structure of these schemes varies; at one end you have the hugely popular schemes run by Ready2Invest, which are fully regulated and offered via a prospectus, investing in Montenegro, Bulgaria and Croatia. Alternatively Alan Forsyth runs excellent syndicates focussed in the emerging markets of Estonia and Latvia. These are smaller schemes and you are buying shares in a listed company and effectively becoming a 'mini developer'. The current scheme aims to deliver 30% p.a. returns with initial payment after only 18 months.
These investments appeal to a similar type of investor as the Guaranteed Returns, but the risk is reduced because the syndicates spread their investments across a number of projects and the set up of them is often far more structured and professional.
A potential downside of the Guaranteed Returns and Syndicates is that your growth does not have the benefit of leverage. As an example, if you invested £100,000 and achieved 30% return in one year, you've made £30,000! If you invested the same £100,000 and with an 80% mortgage bought a £500,000 property, you only need 6% growth to equal the £30,000. Anything above that and you are ahead.
Now the 'Hassle Index' moves on to the area of off-plan purchases, which I have split in to 3 different types. Next on the 'Hassle Index' is Off-plan 'flip' investments. This is a high risk strategy that involves an individual placing a deposit on one or more properties that have yet to be built, in the hope of selling (or 'flipping') at a higher price prior to final completion. The obvious risk is where you cannot re-sell because the market has shifted and you have to complete on the purchase(s) or lose the deposit and face potential legal action. There are numerous distress sales in parts of Spain and Bulgaria now as a result of this practice (creating perhaps an eighth way to invest for buyers willing to purchase these distress sales at below market value!) This is a growing sector and warrants a separate article. These purchases have been particularly popular with Irish buyers, but if you don't have the means to comfortably hold on to your purchases should the market change, you do need a strong constitution!
In some markets the shift in the market actually creates opportunities for 'flipping' for buyers who in fact intended to complete. We are seeing this in Perth, Western Australia at the moment where demand has increased so much buyers who paid deposits last year are achieving offers prior to completion of 30%+ more than the original off-plan price.
Number 4 on the 'Hassle Index' is Off-plan Managed Investments. Here again you pay a deposit before the development is built, but you know that it will be fully managed for you, with some offering the attraction of fixed returns. The hassle is higher than if you 'flip', because you have to complete on the property and arrange finance etc, but once you have gone through that your level of involvement is minimised. These can fall in to the category of 'apart-hotels', essentially fully serviced apartments, or you can even just buy a hotel room. Capital growth can be less than pure residential apartments, because the value is more closely tied to the rental return from the investment (often less susceptible to investment hype and bubbles); more akin to commercial property. Consequently these type of investments tend to appeal to buyers more interested in rental return than all out capital growth.
A prime example is a development in Chiang Mai, Thailand, which will be managed as a 5* complex by Pan Pacific, delivering a guaranteed 10% Nett return for 3 years and expected to rise from there. Evidence elsewhere (mainly in the U.S.) suggests that if the rental demand is strong and the location in demand, capital growth on these investments can still be very good, beyond what the fundamentals would be expected to deliver.
Number 5 is your straight forward Off-plan to keep. You will go through the sale process completely and then probably have to get more involved in the rental process at the other end. This is where you need to be really up on your due diligence, because if you miss with the location (fundamental supply and demand), you may find yourself with a property you are unable to rent or re-sell. This is the most popular method of purchase for investors though, because you are initially buying with only a deposit, hopefully at a reduced price because it is off-plan, achieving capital growth on the whole property during the build period (and then beyond). In addition, investors look to ensure that the projected rental returns will at least cover all costs of finance and ownership.
Buying Second-hand property is traditionally what most people are familiar within the UK market. It does come with some advantages that should lower the risk; you know what you are buying, you can see it, touch it and get it well and truly surveyed. In addition, you should be able to better estimate the rental return as agents can again see and touch, or there is already a tenant in place. In certain respects it does come with a little more hassle, because unless you find a good sourcing agent, you are 'on your own' to find the right property. With off-plan, you can tap in to the research and resources of several investment clubs and buy knowing that they have taken an element of the risk and effort away. In reality this means that the majority of investors can buy 'sight-unseen', although I would always recommend you visit a potential site if at all practical.
Finally, you could undertake a Renovation. Certainly the highest 'hassle', but if you have the stomach and time for it, potentially the most personally and financially rewarding. A quick viewing of daytime telly property programs shows how easily these can go wrong and money can be lost; you really need to know what you are doing.
So, briefly returning to the initial point about risk, reward and effort, the table is my opinion on how each of the 7 rate. What's interesting is how the scores all fall within a close range (14-17 points out of a total of 30). This is based on placing equal importance on all three variables. If you were to conduct the analysis yourself, perhaps using real examples (so you will also be taking in to account which countries you are looking at) for each category, you should weight the three variables (risk, reward, and effort) based on your personal preference or level of importance. You may consider reward to be far more important than effort, or the risk averse will add extra weight to that category. At the very least, ask yourself which of the three is most important to you and use that to help assess your future investment decisions.
Further research: Where on Earth can advise you where in the world to invest as well as what to invest in, based on your personal circumstances. The service is currently free.
Visit http://www.whereonearth.biz
email: sales@whereonearth.biz
or telephone +44 (0)8456 343 151
2011年5月19日 星期四
Where is Florida Investment Property
Florida Investment Property - Why Investing is a Wise Decision
There are many reasons to purchase investment property in Florida, the foremost being value appreciation. Property values generally rise while debt decreases; making real estate purchases a good investment. Every year since 1968, the national median home price has risen. Usually, home values increase at around the rate of inflation, with a greater increase possible. In recent years, median prices have increased by as much as 9 percent, making purchasing investment property in Florida a wise long term investment. Building equity is an excellent reason to purchase investment property in Florida. Equity grows over time for owners while renters don't see any return on their money. Purchasing property forces you to save, making you a wise investor without realizing it. Owning investment property in one Florida location may make it possible for you to expand, purchasing a second and third property as rental profits increase. Owning investment property in Florida gives you borrowing power, the ability to use your property equity to borrow funds for your own use, or for further investment. Owning investment property in Florida gives you a sense of stability, not only for the consistent rental income, but for the potential of it becoming a regular seasonal vacation home for your family. Imagine the pleasure and ease of knowing where you are going to vacation, there's no need to decide on location and try to compete to make reservations, with prices changing every year. There is stability on owning an investment property in Florida that can also be used as a family vacation resort.
Why the Interest in Florida Investment Property?
Considering the myriad of investment property locations on the market, Florida investment property is one of the most desirable. Home to 11 of the country's 100 fastest-growing counties, a Florida investment property has high potential as a profit-maker, unlike most other areas. Port St. Lucie, Miramar and Cape Coral are the fastest growing cities in Florida. It's unlikely you will make a mistake investing in Florida real estate considering the vast number of tourists and new residents flocking to the land of sun and surf. The most difficult decision to make will be which location in Florida to purchase. Good investments abound in each area of the state, from Miami in the south to Clearwater on the gulf coast, going east to Daytona Beach and north to the panhandle. Selecting a location depends on your goals for purchasing Florida investment property. Carefully consider what you intend to do with your Florida investment property. Will your purchase be used mainly as a rental property for vacationers? Do you intend to have access to the property during certain seasons? Or is your goal rental of the property to local tenants? Some of these questions will help you in narrowing down your search. Once you have determined whether your Florida investment property will be used primarily for vacationers or for local renters, and whether you intend on using it as a vacation resort yourself, it is easier to choose the location.
Florida Investment Property Locations
There are so many location options of investment property in Florida, making it difficult to select just the right location. Let's start from the top! Do you desire a beachfront location, or one close to the coast, or would you rather select property in a town setting. Tourist area or settled community, inland or beachside? Asking these questions helps you narrow down your search. Each area where an investment property in Florida is located has its own flavor, its own attractions. Let's start with the Miami area. Miami is located in the southeastern corner of Florida and Miami Beach is a seven mile long island known as America's Riviera. Home appreciation rate in the Miami area is about 11% with the median home price around $240,000. There are diverse offerings of single family homes, ocean front property and ocean view condominiums. Of course condo and home prices are offered in a vast range, with upscale areas bringing in up to $5 million. Condos and town homes may be cheaper, depending on location, but with price escalation and population density, even there it may be hard to find a bargain. Miami offers beautiful beaches with perennial sunshine but traffic congestion and the increasing population boom may be a deterrent to some. Just forty miles north of Miami, lies Boca Raton with five miles of coastline and gorgeous beaches. Appreciation rate here is around 11%. Clearwater, on the west coast of Florida borders Clearwater Harbor and the Gulf of Mexico. Indian Shores is a small historic community offering condos, gulf front property and Intracoastal Waterway homes and town homes. The appreciation rate for investment property in Florida, Clearwater is about 9%.
Investment Property in Florida - Daytona Beach, Jacksonville and Destin
Moving north in our search for investment property in Florida, let's take a look at the Daytona Beach area. Daytona is known as a spring break and family playground on Florida's east coast about 50 miles northeast of Orlando. Homes prices are surprisingly reasonable here in comparison with other popular Florida beach locations. Appreciation is about 10% with homes starting as low as $80,000. A large variety of housing choices exist, everything from inland or waterfront property, to townhouses and single family homes, ocean front or inland. Older homes abound but there are also several new upscale building projects. Let's take a look further north at Jacksonville. Jacksonville is known as Florida's River City due to the ever-present St. John's River which flows through the city, ponds and lakes. A modestly priced investment property in Florida can be found here with a range from $60,000 to several million. Appreciation is around 9% with continual growing home construction. Unique to Jacksonville is its diverse neighborhoods and building styles. Destin is located in the Emerald Coast of Florida, sitting on the Gulf of Mexico. It is just south of Alabama and was recently voted as having the best beaches in the US. Destin boasts great seafood, and excellent golfing and fishing. Home appreciation here is around 12% with the median home price about $165,000. Condos and townhouses here begin at $100,000 and can go upwards in the millions for waterfront property.
Investment Property in Florida - Attractive Tourist Areas
Let's play a little word association. I'll say Florida and chances are the majority of people will say Walt Disney World, or something relating to the Orlando area. Orlando has a thriving tourist economy that attracts close to thirty five million visitors each year. Real estate is booming here with the median price taking a dramatic jump from $166,000 to $200,000, an appreciation of 27%, making investing near Orlando a great venture. Conway Belle Isle, east Orange County, Maitland/Winter Park and northwest Orange County have seen the most dramatic property value increases. There is a strong job market here without forecasts of a downturn, keeping prices strong. There are a large variety of properties to choose from, including starter homes, modest cottages, older homes and impressive new developments. Orlando is called the City Beautiful and owes part of that title to its cleanliness, newness and innovation and variety of lakes and nearby attractions. Whether you are considering investment property in Florida as a rental for locals, as a tourist rental or to rent and use yourself, Orlando is an excellent choice in location. Consider the varied options of attractions in the Orlando area. Walt Disney World would be foremost as a draw card, followed by Sea World, and Universal Studios. But along with these well-known attractions, a plethora of other hot spots exist. Wet-N-Wild draws a huge number of the sizzling summer crowd, a great place to cool down on a scorching Florida summer day. Kennedy Space Center makes a great day trip as well as Cocoa Beach, home of Ron Jon's Surf Shop and Daytona Beach, a world famous family and spring break destination.
Investment Property in Florida - Locations near Disney World
Having established that owning investment property near Orlando would be a wise investment decision, the search now begins for a specific location. Disney World, Sea World and Universal Studios are located on the south side of Orlando. Condos, town homes and single family homes are commonly purchased for investment purchase in this area. Closest to the Disney area is the community of Kissimmee, Florida. Kissimmee was a sleepy cow town just a decade ago. It is now booming with tourist activity. A quaint downtown area still exists with a few cattle ranches on the outskirts but generally the flavor of Kissimmee now reflects its large tourist population. Close to Disney, within 30 to 45 minutes, lies the lesser-known town of Davenport, Florida. Surrounded by orange groves, it gives you the feel of old rural Florida, but is close enough to the major attractions to make this an attractive investment option. Looking to get into a ground floor investment opportunity? Bimimi Bay Resort, a brand new town home resort development is now offering purchase opportunities. The many amenities in the planning stages include a resort pool, 2 movie theatres, a major restaurant chain, club house, lazy river, food court and many others. For the price of principal, interest, taxes and insurance, the owner has the many advantages of using the property for a minimum rate while vacationing and letting Bimimi Bay take care of all the headaches of rental during the year, still receiving a reliable monthly income. It's a no lose deal for investors.
Lisa Carson http://www.biminibayresortinvestment.com lcarson@biminibayresortinvestment.com
2011年5月18日 星期三
6 REASONS for Investing in Florida Real Estate Investment Property NOW
I invite you to take the next few minutes to learn the truth about the real estate market, how it compares to other methods of building assets and why it is such a lucrative form of investing. Many potential investors will say, 'I need to get into the Florida Investment Property market', especially taking into account current stock market fluctuations and the HOT market for investment properties, but simply don't know the facts about Orlando property investing and how to use sale and leaseback method of property management.
When is the last time your financial advisor or stockbroker tried to convince you that moving a portion of your assets into the Florida Investment Property market might be a good idea? Never Right? The 'why' is simple. They don't earn commissions when you buy Florida Investment Property. It is also likely that you have probably never had an 'apples to apples' comparison of stocks versus Florida Investment Property quite like the one you will see here.
Reason 1:
Leverage: Banks will not typically loan money to buy stocks. Banks will however, compete fiercely to loan money to buy Florida Investment Property. Your first question should be, 'why is that'? It has to do with risk management, which we will discuss later. The fact that banks want to loan you money to buy Florida Investment Property creates a situation which we will call LEVERAGE.
Let's assume that you have $10,000 to put into some type of investment. If you choose to buy $10,000 worth of stocks, you will own exactly $10,000 worth of stocks. Pretty straight-forward. However, suppose you choose to invest that $10,000 into Florida Investment Property using a 90% mortgage (which in many cases can go up to 95-100% mortgages in today's market), you will own $100,000 worth of Florida Investment Property. If both of your investments were to appreciate by 10%, your actual gain with your stocks would be $1000 where your actual gain with Florida Investment Property would be $10,000. That equates to an actual 10% return on investment vs. a 100% return on investment. That's what we call leverage.
Leverage: Florida Real Estate vs. Stocks
The traditional argument against Florida Investment Property Investing (mainly from Stock Brokers) has always been 'I can get an average of 10% from stocks with little effort so why would I invest in Orlando Investment Property that only appreciates 6-7% per year'? This point-of-view is not taking leverage into account.
If you take the above statement to be true and compare the REAL numbers, the stock investment gained 10% of the initial $10,000 value (or $1000) and the Orlando Investment Property investment gained 6% of the initial $100,000 value (or $6000). That is still an actual return of 10% versus 60%. It is not hard to see which investment provides a greater immediate return on investment. Additionally. these numbers do not take into account any income from your property during the course of the year, or the substantial tax advantages to owning property, which we will discuss later.
Reason 2:
Value: As we mentioned previously, if you invest $10,000 into purchasing stocks, you own $10,000 worth of stocks (a fairly obvious point). If you invest $10,000 into purchasing Orlando Investment Property using the leverage of a 90% mortgage, you own $100,000 worth of Orlando Investment Property right? Well, only if you paid retail for your property. Any savvy investor will tell you that there are excellent deals to be had in Orlando Investment Property, you just have to find them.
What if you purchased a $100,000 property that happened to be worth $110,000 the day you bought it? Does it happen? The answer is yes, all the time. If you have your eyes open and are willing to 'go through the numbers' to find good deals, they are all around you. You may be asking yourself, why would anybody sell a $110,000 property for $100,000?
Value: Making money when you buy.
The reasons are endless as to why a quick sale is desired, but just to name a few: job relocation, divorce, an estate is being settled or maybe a current appraisal on the property simply wasn't done prior to selling. By 'finding this deal' you have accomplished two things.
You have added $10,000 to your asset column in the form of equity.
You have created additional LEVERAGE for yourself as the value of your property increases (a 6-10% gain on $110,000 is better than a 6-10% gain on $100,000!) Remember, you make money in Orlando Investment Property when you buy, not when you sell.
Reason 3:
Control: Let's take our assumption one step further. When you buy your $10,000 worth of stocks, what can you do to increase its value? If we follow the previous assumption, you have invested $10,000 using a 90% mortgage to purchase a $100,000 property that has an actual value of $110,000 because you 'found a good deal'. So what can you do to further increase the value of your new $110,000 property?
It is amazing what a cleanup, a little landscaping and a paint job can do to increase the value of a property. Only a few hundred dollars well spent can result in huge value gains in Orlando Investment Property. Your $110,000 property with a little effort could easily be worth $115,000, $120,000 or more virtually overnight! Do you have to do any of this work yourself? Absolutely not! If you like to do that sort of thing then have at it, but if not, simply hire it done and accept a little lower net gain.
Reason 4:
Superior Tax Position: The tax code in the United States is geared to reward Investors who make housing and other property available to the population. When you invest in stocks, you are taxed at some of the highest rates in the tax code. When you invest in Orlando Investment Property, you put yourself in one of the best tax positions in the business world. Remember the wealthy that hold substantial portions of their assets in Orlando Investment Property? Tax advantages are one of the main reasons this is true.
Continuing with the above example, let's say that you have completed your 'deal' with the $10,000 invested with a 90% mortgage to purchase the $100,000 property that appraised for $110,000 (because you 'found a good deal'), which you improved to say, $115,000 by spending another $1000 on cleanup etc. Assume that one year passes and the Orlando Investment Property market grew by 6%, your property would now be worth $122,000. So far, so good right? If you are like most people, you may want to spend some of your hard earned money.
Let's do the numbers. You have a mortgage at current rates that started at $90,000 and after a year worth of payments (the majority of which are tax deductible) you still owe approximately $89,000. However, your property is now worth approximately $122,000. If you were to refinance at 90% once again, you would take out a new mortgage of approximately $110,000. This will leave you with approximately $21,000 in cash in your pocket. Now, the BIG question; do you have to pay tax on that money? Absolutely Not! You have not sold the property or realized a 'capital gain'. You have simply borrowed money from yourself. You are able to do what you wish with that money, free from any tax whatsoever. Obviously, a good strategy might be to purchase two more properties just like your first deal!
Also, we have not taken into account the fact that ALL of your interest payments on this property are tax deductible. In addition, you are also able to depreciate the property itself and all of its contents for additional tax advantages if you choose to do so.
Let's be fair and compare the Orlando Investment Property tax position with the stock scenario. Assume that the $10,000 initial stock investment grew by 10% in the first year, creating a gain of $1000 and you wish to access it. If you draw it out, you will pay from 20-28% (or higher) in capital gains tax in order to have access to this money. This reduces your net gain to $800 (actual 8%) or less, depending on your tax situation. Compare that to Orlando Investment Property and you are beginning to get the picture.
Reason 5:
Limit Your Exposure To Risk
Risk Management: Do you remember at the top when we said that banks would compete fiercely to loan you money on Orlando Investment Property? The answer to the 'why' is very simple. Low Risk. Banks incur little if any risk when loaning money on Orlando Investment Property due to the steady, solid growth rate of the property market, as well as the fact that if you default on your payments they will simply sell the property to somebody else. This is in direct contrast to the volatile stock market, which can vary daily with sharp increases and decreases in value. Furthermore, banks realize that a property isn't going anywhere, whereas many investors know all too well about .com and other types of companies that were there yesterday and gone today.
This is all not to say that Orlando Investment Property markets don't go down from time to time, however the dips are much less dramatic than that which can take place in the stock market, proven out by the banks' willingness to loan money on property.
Reason 6:
Protecting your peace of mind.
Finally, Now that we understand the value of leverage and risk management we realize that a 6% Orlando Investment Property gain 'beats the pants off' a 10% stock gain in actual return on investment by a wide margin (approximately 50%, not taking into account several factors that can increase this number such as tax advantages, income on property etc.) Owning good, solid Orlando Investment Property allows you to sleep at night, or go on an extended vacation without worrying about your asset column. This is directly opposed to holding a substantial percentage of your assets in stocks.
Lisa Carson
http://www.biminibayresortinvestment.com
lcarson@biminibayresortinvestment.com