Category Archives: Investment

Property Investment Vs Property Speculation

Most people get Real Estate wrong for two simple reasons.:

1. They don’t understand the difference between an asset and a liability
2. They don’t understand the difference between investing and speculating

The broke majority live under the misguided belief that their family home is an asset. An asset by definition is Something valuable that an entity owns, benefits from or has use of, in generating income. The key is the words generating income. By that definition your home is not an asset, it is a liability. It does not generate income, it costs you money.

The broke majority will borrow as much as they possibly can, to buy the most expensive home they can afford, in the mistaken belief that this is a good investment. In fact they are are burdening themselves with the worst kind of debt. Long term, expensive, non-deductible debt that produces no income in return. The same kind of debt that lead to the housing collapse in the USA.

Successful investors understand this crucial point. Your home is not an investment.

The Business Dictionary defines an investment as Money committed or property acquired for future income. Now some will argue that an investment doesn’t have to produce an income and cite as an example gold bullion, collectibles or share futures contracts. By definition, none of these are investments, they are items of speculation. They can go up in value or, just as easily, go down. You are speculating on the future trade-able value, not investing in the inherent value of the income an asset represents. Tens of thousands of homeowners around the world discovered in 2009 that home values can fall and can fall dramatically and disastrously.

If you buy a house to live in with no income return expected from it, but in the hope it will increase in value, you are speculating not Investing.

If you buy a house to rent out, you are investing. The Australian government has long recognised the difference and that is why they allow you to claim the expenses relating to a rental property, including interest payments, as a tax deduction but do not allow any deductions for expenses incurred in buying a house to live in. In other words, the government is willing to share the risk of investing in income generating real estate because the risks are lower than tying up your money in your home.

Smart investors have a small or no mortgage on their own home and the majority of their borrowings are for rental property because that is the lowest risk strategy. They also get the best advice they can on quickly reducing the mortgage on their home.

Remarkable Spanish Wines To Compete With Bordeaux For Wine Investment Attention

Although when it comes to wine investment it is usually either Bordeaux or Burgundy wines that attract the most investor attention, the upcoming Sothebys (NYSE:BID) April sale in Hong Kong will see clarets facing some Spanish competition with a fine wine selection from the legendary Vega Sicilia winery featured at the auction.

Stupendous Vega Sicilia Collection

On March 11, Sothebys announced that the highlights of its Hong Kong Spring Sale 2013 would include an impressive selection of 234 lots of wines direct from the legendary Spanish winery of Bodegas Vega Sicilia. In the auction houses press release, Serena Sutcliffe, International Head of Sothebys Wine, pointed out that it was a great privilege for Sothebys to bring to auction this stupendous collection of wines direct from Vega Sicilia, adding that the auction would present a unique opportunity for collectors to acquire decades of vintages.

As reported by the Decanter magazine, a vertical lot of 22 magnums of Vega Sicilia Unico, which comes from the personal collection of the winerys managing director Pablo Alvarez, is expected to bring HK$95,000-160,000 (8,240-13,878). In addition, a lot of Vega Sicilia Unico 1942 is estimated to sell for HK$80,000-120,000. The sale will also feature the winerys Reserva
Especial and Valbuena No 5 bottlings.

Sothebys Hong Kong Auctions

At Sothebys Hong Kong sales, the Vega Sicilia wines will compete for wine investment attention with some top clarets including Chateaux Petrus 1990, which is expected to go for HK$200,000- HK$280,000, and Chateaux Cheval Blanc 2000, priced between HK$120,000 and HK$200,000.

Wine with a Soul

As reported by Bloomberg, on February 25, Mr Alvarez showcased a rare tasting of Vega Sicilia wines to the media and buyers at the Mandarin Oriental hotel in New York. Mr Alvarez outlined the challenges associated with wine making, including sweltering-hot weather in the vineyards during the day, and near-freezing temperatures at night. Our entire philosophy is to make a wine of great elegance, he noted, as quoted by Bloomberg.

Vega Sicilia wines which have been produced in the Ribera del Duero region of northern Spain for almost 150 years are ranked by connoisseurs alongside Frances Premier Cru Bordeaux and are likely to receive significant wine investment attention at the upcoming Hong Kong auction.The Decanter magazine quoted Sothebys Ms Sutcliffe as describing Vega Sicilia as a wine with a soul which at the same time is a true reflection of its region, climate and the areas oenological traditions.

The 12 UK Land Investment Guidelines

Following these guidelines will help you proceed wisely with investing in UK land:

1) Is the investment land in a region with high demand for housing?

The property should be in area that is viable and not at risk of future decline. Review statistics and trends about violent crime, school performance, industry loss or retention, and poverty, as these factors are crucial to determining housing demand. Find out what the city’s position is on funding for, and commitment to improving any of the aforementioned housing demand indicators.

2) Has a full sustainability study been carried out on the land investment site?

The land investment site must be evaluated to see what impact land development would have on the environment and natural resources. Any disturbance or potential harm to archeological sites, protected species, or conservation areas should be noted. Inspect the land’s topography for any sloping or flooding potential. Assess the effect that your potential investment might have on the present character of the land and buildings. Consider if a new development would “fit in” with the existing developments’ character?

3) Does the land investment site have road access? Is there an existing transport infrastructure?

Inquire about any plans for modification of roads that may affect the property in question. If there are such plans, are they already funded and scheduled or are they still in the planning stages? Research factors that affect the importance of access, such as the number of people who commute to work as opposed to working locally.

4) Does the area where the investment land lies have sufficient amenities to support residents of a new development?

Evaluate the quality and enrollment capacity of local schools availability of recreational facilities. Consider not only the quantity and variety of shops, but ask about longevity versus or high turnover of those businesses. Look into the ease of accessing both inpatient and outpatient medical care. Ask about immediate or future plans for addition or removal of any of the above amenities.

5) Does the company with whom you are investing have a successful record of accomplishment with UK Land Investments?

Ask for referrals from current and previous clients and actually contact them. Search public records, industry journals, and periodicals to be apprised of the company’s reputation, stability, and expertise with investing in UK Land.

6) Does the company contractually retain a holding in the land investment site?

Investigating matters such as this may seem to be obvious and unnecessary but will save you time and money in the long- run

7) Does the company contractually commit funds to the planning application for the land investment site?

Be sure that commitment of funds to the planning application for your potential investment in UK land is specified in the contract.

Emerging Market Investment Advice Tips

The emerging market describes a broad range of markets from second and third world countries. It encompasses economies such as China and Brazil, together with countries in Africa and Asia. Generally, the term emerging markets represents economies which are as yet not fully developed, and subsequently an investment in an emerging market can often be high risk but has the potential to yield great returns as their economies are still developing.

If you are considering investing in emerging markets, these advice tips are worth considering.
Do not put all your eggs in the one basket: No financial portfolio should be tied up with just one investment, and any investment in the emerging market should not comprise a dominant percentage of a portfolio.

Long term view: The emerging market has been likened to investing in America in the 1920s as over forty years an investor would have gained a substantial return on any investment. In that time he would have seen prices drop through the floor. This is similar to emerging market investment today, so be prepared to take a long term view to good returns.

Advice: Obtaining general advice on the emerging market is essential, especially if you are new to financial investment. Financial advisors, banks, and other institutions seem like good places to gain valuable advice on the surface. More often than not however, the investor who seeks guidance from these places often pays for advice they do not need, as many of the best decisions can and should be handled by the investor.

A few financial investment companies have realised this and take a hands off approach and only step in with general advice if needed. These are the companies to turn to when guidance is needed.
Commissions: It goes without saying that any financial investment company is going to charge commissions, and subsequently it makes sense to look for a company that charges low rates. Some offer 0% commission initially, and this is a good place to start.

Risk vs. Return: Any investment into the emerging market is high risk. The returns however, have the potential to be considerable and subsequently an emerging market investment becomes a viable option. It is possible to invest in a country or into a fund which in turn is managed by a fund manager.

The latter becomes a question of faith and trust in that manager to do the right thing with your money, so the decision to choose a financial investment company with a view to fund management should not be taken lightly.

Currently, China and Brazil are often seen as good choices for emerging market investment.

Ultimately it is important to realise that as an investor you need to be in control of the fund, even if it is supervised by a fund manager. Some financial companies give you that control, and it is worth spending sometime to find a financial investment company like this.

Diversifying Your Investment Portfolio

Having a diverse investment portfolio usually means to continue investing, but also keeping these assets safe from any negative actions that may take place on the market. Even if there are various ways people can choose from in order to invest, the investors now prefer to have a limited number of transactions. This is mainly due to the financial crisis that has spread around the entire world, but also to people not being able to take advantage of the benefits that certain investment offer. However, in order to diversify the investment portfolio, it is best to understand what this diversity implies.

It is not that hard for anyone to understand that diversification implies that the investor choose to put his money in various stocks from different sectors of the market. People who make investments in various products or services prefer to do it in order to keep away their assets from the sudden changes that may happen on the market. This way they can lose some of the investments value while keeping safe other financial ventures. Some of the bad effects that can appear on the market may be temporary, while others may last permanently. For this reason, it is recommended to invest in more stocks so that to not lose all the assets gained so far.

The investment specialized advice those who want to venture themselves in financial businesses to make small deals at first. This way, they are given the possibility to invest in more fields and also to give up the poor speculation without losing a great sum of money. One of the best investments that can be made given the actual financial crisis is in gold. This precious metal is known to have resisted on the market from the ancient times. The value of gold has never decreased significantly and people tend to trust it more than any other commodity.

Due to the fact that the market has experienced a lot of uncertainty in the past few years makes it difficult for investors to recognize a good deal. Even the real estate domain has diminished its value so much that those who want to invest turn their attention away.

This being said, gold has started to win ground on the market because people have realized that this precious metal will always continue to be demanded on the market. It is even more precious because it can be used in various industries. So, investors cannot go wrong with such businesses and at least a small profit is to be expected.

Due diligence – the key to every investment

Due diligence is the term commonly used for investigation of any kind. People in todays world are extremely cautious before entering into any kind of investment whether it is stocks or assets. Investment due diligence involves performing a thorough check up on the property before investing. In case of stocks or hedge funds, the person can perform due diligence by going through the prospectus and checking on the fund managers background and capability. Investment due diligence when it comes to property, requires a specific check list which takes care of the authenticity of the transaction and acquisition, as in the case of industries. An effective checklist will contain the financial background of the principal, the physical condition of the property and the marketing capability of the place. If the due diligence investigation is performed properly then the buyer can avoid himself from getting into a trap.

In case of commercial properties, the commercial landlords often conduct a thorough due diligence investigation. Preparing a proper acquisition due diligence list is very important for commercial property investors. They must look for the underground and storage tanks, drinking water taste reports, radon and remediation reports, plans and survey report and also visit the site physically to track any kind of disputes between the seller and the buyer.

The Merger and Acquisition (M&A) activities are mainly dependent on the analysis of due diligence. It mainly involves financial and legal due diligence. The merger and acquisition by companies take a deep look into the financial assets, articles of incorporation, market value, technology and the competency of the company. Once a company decides to sell the property, the bank is taken into confidence to keep the M&A accounts. Then the property is given to the investment bank; thereafter, investment banking due diligence starts playing its role. The bank goes through the legal points and discusses the litigation issues before the sale.

In the case of rental residential properties, there is also an effective due diligence method. This method is commonly used by collection agencies appointed by the landlords to track the default tenants. The collection agencies use the skip trace tools to track the contacts of the faulty tenants.

So, whether it is a small or big investment, due diligence investigation plays a pivotal role in property investment. Proper investigation can result in fruitful investment and can take you a long way. Consult the masters and invest today!

New Regulatory Body Set To Transform Britains Wine Investment Industry

NFIB and WIA to Provide Better Protection for Wine Investors

Millions of Britons enjoy drinking it and many now see it as a long-term investment. Unfortunately, fine wine has also become a focus for fraudsters who trick investors into buying wines or vineyards that bear little resemblance to what they see in the prospectus, or may not even exist. The increasing number of such rorts in Britain has led to calls for action to be taken to protect investors and to increase consumer confidence in fine wines. In the upshot, the UKs National Fraud Intelligence Bureau (NFIB) is joining forces with the newly-formed Wine Investment Association (WIA) to tackle the problem.

On 14 February 2013, the NFIB and the WIA jointly announced the launch of the new self-regulatory body which will aim to transform the growing wine investment industry by providing better protection for investors in the UK. The WIA has been formed by leading figures from the fine wine investment industry and seeks to support the sector’s growth through voluntary regulation, establishing best practices and setting up processes to identify fraudulent activity.

Director of the NFIB, Det. Supt. Dave Clark, said: “Fraudsters will always follow the money, wine investment is just the latest in a long line of investment opportunities that are being exploited and corrupted to the detriment of the industry as a whole. He added that the NFIB sees the creation of an auditable framework of self-regulation as a step towards maintaining and increasing consumer confidence, while also identifying investment companies which do not operate in accordance with the required high standards.

New Code to Tackle Wine Investment Frauds

Following an extensive consultation period, the WIA has set out the standards and procedures with which its members must comply to remain in good standing. Under the new code of conduct to be drawn up, wine investment firms will undergo stringent audits by accountancy firm Mazars. These will include checks on systems such as stock rotation and to make sure that purchase orders and invoices tally. The director of the WIA, Peter Shakeshaft, revealed that companies which successfully complete the independent audit process commissioned by the newly-formed regulatory body will bear a WIA logo offering consumers a trustworthy safety kitemark. Shakeshaft added: Our industry has been held back far too long by unscrupulous practitioners and issues around fraud. The WIA will really hold the industry to account.

Cult Wines Ltd – best place for fine wine investment

People are always looking for some new investment sector as per their risk appetite. Yeah many times wrong investment can burn all hard work into ash. So, after having a big recession and still Europe economic crisis on the go one always look for safe investment. In last decade one sector has outperformed in an all recession and it is wine investment and fine wine investment.

Before doing any investment there is certain thing which is very important to take care to be safe and secure. One must have to identify some risk factors and all. So first step is to decide on which sector you want to invest then how much amount, and would you like e o one amount or you want systematic investment plan.

Timing of investment is also plays a big role in high return on investment. The most important point is that when you are investing, the time is very important; its totally depending upon current market condition. If you have analysis of market condition you would opt for wine investment. Look at the statistics for wine investment In UK, before a decade, fine wine portfolio was around 10000 and after decade it is almost 50000.

Wine investment will not have adverse effect if any economic crisis happens globally. As we can see in last recession wine investment standout and gave high return. So one can easily say wine investment can give return even in recession. In last 10 years wine investment has given 900% return which is really impressive and attractive.

Cult wines Ltd is the leader where you can get the rarest wines at very competitive rate and if anyone wants to go to the most safe and secure investment than will preference go to the Cult Wines Ltd also Cult Wines Ltd provides solutions for sourcing, investing, storing, selling and consuming Fine Wine of any kind to the investors or for any type of businessman. Cult Wines Ltd provides the fined tuned portfolio mainly designed for high capital growth and accounts and regulated mostly at warehouses. Cult Wines Ltd mainly deals with active foreign and domestic holdings and if any beginner wants to invest in the market than no safe investment except in wines and Cult Wines Ltd where you will get higher returns on investments and also provides the portfolio management services.

So far by this information I hope one can easily take decision for wine investment and Cult wines ltd can help you to build right wine portfolio.

Credi Corp Securities Alternative Investment Strategy – Offshore Investments

Investing funds offshore of one’s home country, there is an immediate benefit of protection against the troubles of the country’s market or currency. Offshore investing can take many forms. Alternative investment vehicles often include a component of offshore investments, such as offshore real estate, or offshore farm land and agricultural production, or even offshore gold and silver storage.

Here at Credi Corp Securities we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

Credi Corp Securities: Advantages of Offshore Investments as Alternative Investment Vehicles Offshore investing once was for the ultra-wealthy, those sporting net worth’s well North of $10 million. Now almost anyone can move funds into the more exciting and potentially profitable world of offshore investments. Knowledge of how to enjoy the advantages of offshore investing is much more expensive and rare than with standard home country investing however.

As an alternative investment, moving funds out of your country of origin has largely been a winning trade for the past decade when calculated with currency fluctuations. China, Brazil, and India have all offered higher returns during bulls markets then the U.S. stock indexes over the past decade for instance. While these markets can be played with ETF’s, there are several key shares that must be purchased using offshore investing houses.

Some of the key advantages of offshore investing within an alternative investment framework include: Higher potential returns than the domestic market, much broader range of stocks to choose from, often better pricing than domestic ETF’s, early availability of smaller capitalized issues, protection against single market dependence in real estate, stocks, weather effects, political effects, and currency devaluations.

Much like domestic investing, offshore money management can steer towards main line investing in big projects or companies, or more towards alternatives to the main companies. While the risk can be greater with alternative investments, the rewards can be significantly higher and come much faster with a systematic approach to evaluating alternative investing ideas within an offshore portfolio.

Here are 6 ideas for moving funds offshore and potentially enjoying high alternative investment returns: offshore direct company investment, offshore private placements, offshore currency investment (FOREX), offshore fund investment, offshore gold and silver storage, offshore investment account denominated in a local currency, such as USA Dollar, Australian Dollar, Singapore Dollar, or GBP Pound.

These 6 offshore options for investing can broaden a portfolio. Instead of only being dependent on major stock indexes, the above investments offer security against single market dynamics. Not only is there potential for higher returns, but potential for avoiding massive loses if all of your investments are based on one market and are susceptible to political, economic or natural disasters.

Hedge Funds – How To Make The Right Investment Choices

After the 2008 world economic crisis, finding the right investment vehicles seems much harder and trickier. Worldwide currency, which everyone believed in, has shown its face value and, overall people have lost their confidence in the popular investment means available on the global market. However, one of the post crisis positive effects is that individuals became more aware and cautious about the significance of managing their resources appropriately and securing their assets.

Although the present day market openings sets forth an apparently endless variety of choices, making the right investment is all about selecting that alternative apposite for your means, objectives and goals on short, medium and long term. Resorting to professionals is one of the best ways to drive your worth to the right target as long as you manage to find some trustworthy, skilled, and dependable experts.

In nowadays context, the hedge fund is fairly set at the higher end of the investment opportunities scale. Working as a private pool of capital, little known to the wide public, such funds rather address the sophisticated investor that can afford hefty net investments in the prospect of likewise gains. Unlike most types of funds, a hedge fund gathers capital from a fairly limited number of individuals and, naturally the investment amounts are significantly greater, being typically believed to range between one million and six million dollars. Nevertheless, there is no investment maximal threshold regulation in place.

The hedge fund is actively run by a manager, who is in charge with all financial strategies and decisions. Once in, the investors can not set a veto on his decisions. Drawing back the capital ahead of a predetermined time span usually calls upon considerable penalties, which remain in the fund and are finally split between the remaining investors. The hedge fund manager takes up an operational commission and a performance brokerage.

In comparison with other type of investments, the hedge fund primarily differs through a wider range of investment strategies it can adopt and a more regulatory-free area of action, including short selling and hilt leveraging. No such fund is risk free, yet primarily depending on the objects of ventures, the manager can draw in high gains with relatively small risks. For instance, precious metal investments have proved to be such nest eggs. Although, one needs to be no expert to know that investing in gold – the ultimate safe heaven of all seasons- is the right investment choice for all kinds of financial portfolios, the profits of a hedge fund may considerably overrun those achievable from independent investments.