investing Archives - 3 Kids and Us

Investments To Consider When You Have One Million Dollars

January 24, 2022 by admin

A million dollars is a considerable amount of money, and if you are looking to invest this amount, there are various options available to you. You will need to consider all the options carefully and ensure you select the one you are most comfortable with and offers the least risk. When investing your money, you need to be aware that you can lose some or all of it, depending on the risk of the investment you take.

Below are some options that you may want to consider using your million dollars to invest in that offer decent returns and get your money working for you.

Investing In Property

You can decide to put your million dollars into property, and you can buy a house with your money and keep it as an investment. If you wanted, you could rent the property out to receive a monthly income from it, which can also help safeguard your investment. The property will require maintenance, and you can use the rent money you get to pay for the house’s upkeep. Keeping the house in excellent condition will help it retain and hopefully increase its value. You can see excellent returns on your investment.

Investing In Gold

Since the global pandemic, the price of gold has reached record highs, and it is an attractive investment for many people. A million dollars will get you around 12kg of gold, which is a sizeable investment. However, you will also need to consider where you will store your gold, and most options have some cost involved. When you buy from a reputable Brisbane gold bullion dealer, you can often keep your purchase with the gold dealer at a monthly cost. You can also store your investment in a safety deposit box which also has costs involved. If you decide to store your investment in your home, you will need a secure safe and suitable insurance policy to safeguard your investment. To find gold bullion dealer near, head over to Google and do a quick search.

Investing In Stocks & Shares

You can consider investing your million dollars in the stock market, but you will need to know what you are doing to keep it safe, or use the services of a reputable broker. Depending on the stocks you invest in, the stock market can be highly volatile, and there is a high chance you can lose your money in part or all of it. As such, you will want to invest in various stocks instead of putting all your eggs in one basket.

Investing In Cryptocurrency

You can also consider investing your million dollars in cryptocurrency, but this can be a highly volatile market. The price of the various cryptocurrencies is prone to big swings up and down. If you decide to invest in cryptocurrency, you may want to consider adding various ones to your investment portfolio, which is a much safer option.

If you are looking to safeguard your investment, it is often best to diversify it and spread it in different options. Having all your eggs in one basket can be devastating when your investment collapses, and you can lose everything.

4 mistakes every real estate investor makes which you can avoid

June 24, 2019 by admin

The real estate industry is very lucrative only if it is done properly. It is possible to become rich in the market but it won’t be easy. Most real estate investors make certain mistakes that result in losses. Avoiding the following mistakes can help you make money in the real estate industry.

1. Overpaying

One of the biggest mistakes most first-time real estate investors do, is paying too much on a property. The essence of any investment is buying at a low price and selling at a higher price. Therefore, you will only make money in the real estate industry if you get a property at a good price. However, if you buy a property at a higher price, your investment on return will be significantly affected because the property will appreciate very little. In some cases, you might even make a loss

2. Lack of a good understanding of the market

This is another major mistake most real estate investors make. Understanding the market means more than just knowing the neighbourhood. You have to understand the underlying demand of the particular market you intend to invest in.

For instance, if you like investing in the off plan property in Dubai, you will not be successful if you don’t understand the market. If you want to resell, who are the potential buyers? You should understand what the potential buyers are looking for.

The off-plan market is one of the latest trends in the Dubai real estate industry. Some of the top developers are getting involved in the off-plan market. For example, there are several Meraas off plan projects in Dubai such as Sur la Mer townhouses. If you are interested in completed projects, there is a rich selection of apartments for sale in Palm Jumeirah where you can invest and expect a high ROI.

3. Failure to do Due diligence

Before you put your money on any property, you must be willing to go an extra mile to perform due diligence. The failure to research on the property, the neighbourhood and the market in general is an intolerable error that may cause loses. However, it is a mistake most real estate investors make and they end up stuck with a property that is a money loser.

4. Lack of strategy

Having a transactional view of the real estate is another mistake some investors make. Like any other type of investment, you need to create a plan and stick by it. If you don’t have a viable investment plan, you might make a mistake of buying the wrong property just because you were offered a good deal.

Serious Home Upgrades: How to Finance Them

July 31, 2018 by admin

As homeowners, we always look for ways to improve our homes in order to secure better living conditions for our families and to add more value to our assets. Unfortunately, this doesn’t always go smoothly, as money is often the biggest issue. Also, it’s not uncommon to have the home improvement project turn into a never-ending process that devours your precious budget in the blink of an eye!

For that reason, it’s imperative you take time and make careful financial plans and research all available financing options and possible downfalls. You may also be able to save some money on home upgrades by doing them yourself. For example, there are plenty of assemble yourself cabinets available online that are easy to install. Here are a few other suggestions on how you can deal with this sensitive matter.

Use cash if you can

If you’re undertaking a large-scale home renovation project and it’s possible to divide it into smaller stages, using cash is probably the best option. In that way, the risk of piling up debt decreases significantly.

The average cost of serious home improvements and upgrades is usually around $20,000 and for most people, finding that sum of money in a short period of time is often impossible. So, dividing your project into smaller and more feasible phases is your best chance.

Take a loan

Even the big renovation projects can be scaled down to medium ones as far as the costs go. That means somewhere between $15,000 and $50,000, which will make you eligible for unsecured or personal loans. They’re easy to apply for and you don’t need any collateral.

There’s also the option of longer periods for payback without putting your home as a collateral, but interest rates are much higher and there are no tax benefits to boot. So in the end, you’ll pay more than you initially planned, but most clients claim it’s worth the price.

Combo options

Going with cash or loans only is not your only option. Another feasible option is combining these two and in many cases, experts recommend it. The main advantage is that you’ll be able to reduce the amount you pay in interest. Just bear in mind that the longer you stretch your financial plan, the bigger the odds are that you’ll end up in a tight spot.

Financing program

When thinking of improving and upgrading your home, you need to consider the time we live in now and the future as well. We are already experiencing climatic changes, extreme temperatures, and induced storms, so investing your money into insulation, door, window and roof reinforcement is something to be seriously considered.

Such investment is quite substantial and, for most people, unattainable. However, with financing programs such as PACE (Property Assessed Clean Energy), serious improvements and energy-efficient upgrades are now easily done. This is a new concept in financing property improvements that help save energy, harness renewable energy, conserve water and offer protection against natural disasters.

The obvious question here is: how does Pace work? In general, with the help of PACE, homeowners can get full financing for their renovation project, based on the available equity in their property and payment ability. The entire amount, including interest and any applicable fees, is added to your property taxes which you then pay over a period of time. It can be done via your annual or semi-annual property tax bill or as a part of your monthly mortgage installment.

0% credit cards

It’s almost hard to believe, but there are some surprisingly good options here, too, provided you have a decent credit. If that is the case, your bank might offer you a zero-rate credit card that will probably sound like science fiction to you. But, it’s quite a realistic probability and it can finance your project without a cent paid in interest.

Unfortunately, it doesn’t come without potential traps that can easily swallow you, if you’re not careful enough. These are usually sky-high interest rates after the expiration date, the lack of tax benefits, the balance transfer fee, penalties for missing a payment or being late and a short period of time for the payback.

When you’re thinking about the ways to finance your home improvement project, your main consideration is being prudent and thinking about contingency. However enticing and appealing some financial loans or programs may seem initially, you should look beyond the instantly available sum of money. In order to avoid creating more serious problems long term, pick your projects carefully and invest only in those that will add value to your home and improve the quality of your living standard.

What To Think About Before Purchasing A New Home

July 25, 2018 by admin

Purchasing a new home is a major decision and not one you should take lightly or determine on a whim. It can be a drawn-out process, and there’s a lot that you need to think about, consider and contemplate before buying a property.

It’s worth your time and energy to find out what these aspects are and then sit down with your spouse and go through them one by one. Ultimately, you want to feel completely comfortable and confident in your choice to buy before you go through with the transaction and spend your money. Keep in mind that once the deal is done, the house is yours and you’re responsible for it from that point on.

Where You Want to Live

Think about where you want to live before purchasing a new home and identify the reasons why you feel this way. For example, this could be your chance to get a new job someplace else and move your family to a new city or neighborhood. Maybe you’ve had your eye on a particular area for a while and always pictured you and your loved ones selecting a home close to good schools and decent shopping. It’s important to thoroughly research various neighborhoods and know exactly what you’re getting before you move in, so you know you’ll be happy there and not regret your decision later on.

Features You Desire

Sit down and make a list of all the features you desire and then put them in priority order. This way you’ll know what to look for when you’re touring homes and narrowing down what you want to buy and can afford. For instance, it could be that you want a large finished basement or big backyard with a lot of land and privacy. Think this through and make sure you’re not settling for any house when you’re out and about and on the hunt. Be patient and wait for what it is you want so that you can truly be happy in your new house one day.

Your Finances & Credit Score

You’re not going to get approved for a loan or mortgage if you have a poor credit score and your finances are all out of sorts. Refer to a company such as Bonsai Finance to learn how to starting building up your credit today, so you come across as a more attractive homebuyer. Think about all the expenses that come with owning a new home and the amount of money you’ll require for a down payment. It’s better to buy a house you know you can afford than to make a purchase with the understanding that you’ll be living on an extremely tight budget from here on out.

If You want the Additional Responsibility

Owning a home is a huge responsibility and is a big commitment you’re signing yourself up for. Think through if you’re ready for this extra work and if you’re willing to put in the time, money and energy it takes to upkeep a home. Your weekends will now entail you making updates, fixing repairs and taking care of your landscaping instead of relaxing on the couch watching your favorite television show. It’s now your job to make sure the home you own stays in good condition and that you don’t let important projects linger for too long.

Working With A Trusted Realtor

You’ll want to seek out and find a trusted realtor who you can work with to help you purchase your new home. They have access to additional listings you can’t see on your own and will be able to get you into the homes you desire to check out quickly. Build a good relationship with this person and make sure they understand exactly what it is you’re looking for in your next property. A trusted and respected realtor can help walk you through the buying and inspection process and make sure you’re getting your monies worth and aren’t being ripped off. Listen to their advice and what they have to say before making any final decisions or commitments.

Your Future

It’s not a wise idea to purchase a home that solely fits your current needs. Instead, think about your future and what your requirements will be down the road. For example, maybe you’re thinking about starting a family and will need more bedrooms in the years to come. Keep in mind that you’ll likely be at this property long-term, so consider how your life might change going forward and if the home you’re considering will be a good option for you. Your goal is to make sure the house you’re looking at it could be the one for you and your family for years to come versus finding a quick fix.

Other Options

You don’t have to buy a house just because that’s what people do, or you see your friends and family members making the commitment. Remember that you always have other options such as staying where you are or renting a property. Think about if this is truly the move you want to make or if you’re happy with your current situation and don’t necessarily need to find a new place right now. If you aren’t in a pinch to relocate then take your time and go about the process the right way, so you don’t make any major mistakes. Check out new neighborhoods, determine if you think you’ll be at your job for the long haul and don’t rush into a commitment just because you’re feeling pressured to buy.

Conclusion

Buying a new home isn’t a decision you make overnight without putting any thought or effort into it. It’s a wise idea to think about all of these factors before you move forward with a purchase, so you feel absolutely comfortable with the end result. Be sure to consider all of the different variables and your options before you proceed and close on a house. You’ll thank yourself for doing so down the road when you’re living in a property you adore and can see yourself staying in for the future.

Risky Business: High-Yield Investment Options Only the Truly Brave Should Try

July 7, 2018 by admin

Investors can either play it safe or go all out and take on a whole load of risk. The riskier an investment is, the higher your return yield could be. Nearly all investors prefer to take on these high-return investments, but cannot manage the risk either financially or emotionally, but if you are drawn to the thrill of this type of investment, there are several risky but potentially lucrative investment methods to consider. As always, investors should weigh the risk against potential returns. When seeking massive returns, investors risk becoming gamblers, therefore, understand the exact amount of risk you face if you continue to seek over-the-top returns.

Buying and Selling Stocks Daily

Playing the stock market every 24 hours, known as day trading, is a highly risky form of investing, however, savvy traders can have their lucky break and possibly even become millionaires overnight. Traders tend to have an infamous reputation because they are taking on massive amounts of risk when buying stocks. Selling off purchased stock is never a guarantee. Regardless of these problems, professional traders can enjoy massive paydays, so the practice remains popular. Anyone can become a trader if they know the risks and understand that they could lose all their money. That’s not to say that you would. But if a trade goes wrong, you should be able to withstand the loss financially and psychologically. Start trading with a set amount, such as $1,000, that you can easily earn back. Never buy stock with money you actually need.

Investing in Emerging Markets

An emerging market is a country undergoing rapid economic development after years of underperformance. The biggest emerging market in recent history is China. There are many such countries today that could be categorized as emerging markets for investors to fund. Investing in an emerging market can really pay off, as seen in countries like China and South Korea. However, this can also go the other way. A prominent example is Brazil, once lauded as a major world economy that has since fallen apart due to corruption and violence. Emerging markets exist in countries with young governments and a history of war and unrest. The drawback, however, is that these very problems could crop up once more, threatening economic gains. War and unrest are certainly not elements that draw in investors. Despite these obvious risks, investing in an emerging market can pay off if the country continues to be successful. Think China. However, there are inherent political risks that cannot be shaken off. You should invest in emerging markets only if you can take on unexpected political risks.

High Yield Bonds

High yield bonds can be issued by either governments or companies. These bonds have one characteristic—extraordinary returns. For these eye-popping returns, the investor would be taking on extraordinary levels of risk as well. The problem with high yield bonds is that nearly 10 percent of them are junk bonds—worthless at the end of the day. Investors may double the risk of principal capital loss if