Post about "Investing"

Rental Properties and the Real Estate Market Abroad

The real estate market is experiencing an end to the construction boom that has been growing in intensity during the last six years. As was predicted by financial experts, foreign countries are now seeing more normal rates of building and construction in relation to the available properties. This doesn’t translate to problems for investors, but rather a potential to increase gains as it turns its attention to developing necessary improvements in other areas to help boost financial growth within a certain country.Mature MarketUp until now, the real estate market for rental property investments has resembled a circus act more than a mature market. Buyers bought from sellers and almost immediately sold again as two to three years are a relatively short time span when the situation of a stable real estate market is looked upon as a whole. Now, buyers purchase the real estate rental properties for sale abroad from the seller and retain the property longer instead of immediately disposing of the investment upon reaching the principle gain desired. This leads to longer negotiations, a more stable environment for profitability through the accruement of rents and an appearance of a slower market. In reality, the property market in Hungary is alive and well. It is just exiting the infancy stage of a boom and entering the more mature level of a more equalized market.Hungary is also beginning to develop other industries to further compliment the property market’s new role as a stabilized center ground. Tourism is one of the areas being developed. Just as real estate boomed for a period of six years, the expectations are such that tourism will now begin a boom with the real estate market as its leaning post. In particular, the health tourism and spas are in the works since Hungary has the benefits that a more natural seeking world is searching for when planning vacations. This will, of course, increase the value of property within the vicinity as supply will not exceed demand for accommodations. Instead, it can be expected to see a higher demand than a supply, creating an increase to rents and giving investors a boost in profit.Along with the changes, it is expected that equalization will continue throughout the economy over the next few years since the inclusion in the EU will naturally cause this effect. The equalization process will be slowed through the processes of re-pricing and the global economic crunch that dictates less spending during a short time span. It isn’t that there aren’t any negotiations in the completion stage, but rather that many negotiations are taking longer due to the re-pricing effect as Hungary enters maturity and equalization.Overall, the market for rental properties hasn’t ended, but rather changed directions. Instead of being a playground for quick turnaround and sales, Hungary now enters the challenging world of longer investments with more profitability possible in a stable environment that encourages continuous steady growth. The Hungarian market is now reflecting the beginnings of its true potential on an endless horizon. All booms come to an end. It is the nature of such things. The gold rush of California’s history ended, but the economy and the gold market did not.Hungary is experiencing much the same thing. The construction boom ended, but not the real estate market. Add to that the knowledge that only two thirds of the real estate market has been available to investors and it is easy to understand that Hungary still has some of the best investment possibilities for purchasing real estate for sale abroad.

How to Find the Best Investment

There is ONE best way to find your best investment in 2013, 2014 or well beyond. If you couldn’t find your best investment option if it was on a short list staring you in the face, investing money is about to be simplified for you.Your best approach to investing money is to have a goal in mind and then compare your investment options, based on YOUR priorities, in terms of: liquidity, safety, growth, income, and tax advantages. The option that ranks highest and best suits your priorities or needs is your best investment option. This simple process has made investing money simple for investors in the past and will work in 2013, 2014 and beyond. Plus, it will help you avoid major mistakes if you invest with a goal in mind — by eliminating choices that don’t fit your needs.LIQUIDITY and SAFETY: If you might need ready access to your money after you’ve invested AND can not afford to take a loss: forget about growth investments like stocks or stock funds, long-term bond funds, real estate, and tax-favored accounts like IRAs and retirement annuities. Your best investment option is to give up the prospect for higher returns, higher income, and tax breaks… until your financial position changes. For now investing money means keeping it safe and liquid in the bank or in a money market fund in case you need it for a financial emergency. Better safe than sorry.Once you are ready to invest with a long-term horizon (like for retirement) investing money for GROWTH should always include stocks and perhaps real estate as well. For most folks the best investment option for stocks is diversified stock mutual funds. The easiest way to invest money in real estate is with specialty real estate equity funds. Either way, the average investor accepts risk to earn higher returns; and mutual funds offer good liquidity if you want some money back. To get a TAX ADVANTAGE invest in funds through your 401k at work or in a traditional or Roth IRA account with a mutual fund company.Over the past 30 years investing money in bond funds was the simplest and perhaps the best investment option for average folks who wanted HIGHER INCOME. These funds earn higher interest (paid to investors as dividends) than truly safe options like bank savings accounts and CDs. For 2013, 2014, and beyond: do not consider bond funds if SAFETY is high on your list of priorities. Interest rates are near record lows; and bond funds will lose money when rates go back up.When investing money always have a goal in mind and rank your options in terms of liquidity, safety, growth, income, and tax advantages. That’s the only way to avoid major mistakes and find your best investment option.