Consider this situation.
A property investor identifies ten suitable properties each worth 100K (lets say) and submits a bid of 75K on each one. The details of each of these properties is irrelevent but flats within walking distance of a town centre or a railway station are a good idea. One bid is accepted (there probably will be more) and the developer goes ahead and purchases the property. He pays 12K deposit using short term finance obtained using credit cards and will pay 0% interest on the loan which will be needed for six months at the most.
As soon as possible he applies for and gets an 85% mortgage on the property. He spends 4K on a basic refurbishment and his legal costs are 1K. He has spent approximately 17K acquiring a property which is worth 100K.
He then gets the property revalued and he obtains the original 100K (or close to it) valuation. He then gets a new 85% mortgage on the property which would give him 85K and use it to repay the original 64K mortgage. He has his original 17K back and has a surplus of 4K. He owns a property worth 100K and has paid nothing for it.
He can easily find a tenant and the rent will cover his mortgage. He can sit back and watch the property increase in value. There obviously are blips, but property values increase the vast majority of the time and property is the best investment you can make.
This system would work even better if property values were increasing rapidly. He might get a valuation of 110K and a subsequent 10K increase in profit. If the investor is good at identifying undervalued properties then the profit margin becomes even bigger.
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Article Source: http://EzineArticles.com/?expert=Paul_M_Williams
Article Source: http://EzineArticles.com/1917679
Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Saturday, 28 May 2011
Wednesday, 15 December 2010
Is Nuclear Power Worth Investing In?
For the last ten years, most media outlets have paid a great deal of attention to the worldwide energy crisis and to global warming in particular. It is generally agreed that alternative energy sources will need to be developed to meet our ever expanding need for power. Possibilities include wind power, solar power, wave/tidal energy and biomass but while these technologies can make a contribution, it is unlikely that that existing alternative energy technology can provide enough energy to meet out needs.
Another possibility is nuclear power which is clean, efficient, reliable and relatively cheap. Despite the problems disposing of the dangerous waste produced, politicians seem to be ready to consider the use of nuclear power and might agree to a large scale construction program.
Many analysts have speculated that the worldwide nuclear energy market could grow substantially by 2030.
Does this mean nuclear energy is worth investing in?
In the U.S.A, the Department of Energy expects the amount of electricity needed to rise by 50% during the next twenty years. Worldwide electricity consumption is expected to double by 2030. Fossil fuel stocks are dwindling and the price oil continues to rise
It more than possible that there will be an increase in demand for nuclear power and this coincides with a weak amount of supply. Basic economics tells us that prices increase and decrease according to supply and demand.
Furthermore, as emerging economies in Asia develop over the next twenty years, the spike in demand for cheap, clean, reliable alternative energy sources could intensify and nuclear power is well placed.
Various private sector investment managers have recently described the structural shortage of power generation facilities in the developing world. Some countries are in the process of building large numbers of nuclear power stations and this will lift the demand for uranium.
Until recently, it has been very difficult for an ordinary investor to participate in the nuclear energy market because most investment opportunities were offshore. This has changed and there are now several options available:-
Three years ago, the New York Mercantile Exchange (NYMEX) launched its first futures contract for uranium. This allows investors to speculate on the future growth. Prices were high before the Global Credit Crisis in 2008 when uranium was trading at approximately $140 per pound. Recently it was approximately $40
Investors can invest in the potential growth in the price of uranium by investing in mining companies which often have a very low share price. Proper research should be carried out and if the company finds substantial deposits the share prices will rise significantly
Investors can invest in companies that have existing uranium operations such as BHP Billiton and Cameco which are both large companies and proven leaders in the field. Many smaller companies in countries with uranium deposits are good investment opportunities but shares would need to be purchased on a foreign exchange.
The currency of countries with uranium deposits should increase in price and Forex Brokers could give advice about whether this is a viable investment opportunity
Global Warming? Energy Crisis? No Way!
Article Source: http://EzineArticles.com/?expert=Paul_M_Williams
Another possibility is nuclear power which is clean, efficient, reliable and relatively cheap. Despite the problems disposing of the dangerous waste produced, politicians seem to be ready to consider the use of nuclear power and might agree to a large scale construction program.
Many analysts have speculated that the worldwide nuclear energy market could grow substantially by 2030.
Does this mean nuclear energy is worth investing in?
In the U.S.A, the Department of Energy expects the amount of electricity needed to rise by 50% during the next twenty years. Worldwide electricity consumption is expected to double by 2030. Fossil fuel stocks are dwindling and the price oil continues to rise
It more than possible that there will be an increase in demand for nuclear power and this coincides with a weak amount of supply. Basic economics tells us that prices increase and decrease according to supply and demand.
Furthermore, as emerging economies in Asia develop over the next twenty years, the spike in demand for cheap, clean, reliable alternative energy sources could intensify and nuclear power is well placed.
Various private sector investment managers have recently described the structural shortage of power generation facilities in the developing world. Some countries are in the process of building large numbers of nuclear power stations and this will lift the demand for uranium.
Until recently, it has been very difficult for an ordinary investor to participate in the nuclear energy market because most investment opportunities were offshore. This has changed and there are now several options available:-
Three years ago, the New York Mercantile Exchange (NYMEX) launched its first futures contract for uranium. This allows investors to speculate on the future growth. Prices were high before the Global Credit Crisis in 2008 when uranium was trading at approximately $140 per pound. Recently it was approximately $40
Investors can invest in the potential growth in the price of uranium by investing in mining companies which often have a very low share price. Proper research should be carried out and if the company finds substantial deposits the share prices will rise significantly
Investors can invest in companies that have existing uranium operations such as BHP Billiton and Cameco which are both large companies and proven leaders in the field. Many smaller companies in countries with uranium deposits are good investment opportunities but shares would need to be purchased on a foreign exchange.
The currency of countries with uranium deposits should increase in price and Forex Brokers could give advice about whether this is a viable investment opportunity
Global Warming? Energy Crisis? No Way!
Article Source: http://EzineArticles.com/?expert=Paul_M_Williams
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