How To Start Investing For Financial Independence, Part 2Written by Chris Anderson, PhD
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3) Have VERY good reasons why you don’t think you will lose money…… You may not make as much as expected but you would rather not lose money at this stage -- They have done their due diligence and feel strongly about investment. 4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan-- they are not swinging for fences but rather patiently using previous market's money to increase their investment. Well, like other investment, suppose this one works out in their favor. In their two year holding period, lots experienced a 35% increase in price. Not bad. They were hoping for more since they knew some places had that kind of increase in a few months but they are not complaining. After closing costs, investor had about $55,000 invested and netted a total of $162,000 after expenses. Of course their silent partner, Uncle Sam, wanted their cut so now they are left with a $137,700 in profits and $192,700 in working capital. Not too bad after only 4 years. Now let's ask question are they financially free? We'll, I doubt it. The investor could probably now survive for 2-3 years on nest egg but only if they did not reinvest it. However, if family and friends find out about this gain, then they will think investor is now "rich" and living like Vanderbilts...... For anybody that has made it to Step 2, you know they are far from rich because now they want to invest to go to Step 3 and this will likely consume most of their money. Frequently you will find people in $0.5 -$2Million dollar net worth in this category where they are doing great on paper but they don't have any more "extra" money to spend than they did a few years ago. After Step 3-4 however, this can change dramatically. Before we conclude this week's article, let's talk about a very common, and deadly mistake. In language of Texas Hold'em poker, it is All In mentality. Frequently, after a first success, people now feel bulletproof and decide they want this process to go faster. They leverage everything have and take on as much risk as banks will allow them. If things work out for them, they will explode their wealth with that step. However, if something slips up, they are in trouble. Most people believe nothing like that can happen to them they are too smart. I mean everybody knows that real estate does not go down, Right? I know a gentlemen who is extremely smart, extremely business savvy, and grew his net worth to well over a BILLION dollars. Within a few years of that mark, he net worth was NEGATIVE and had to declare bankruptcy because of real estate. The process of building wealth in a controlled fashion over 6-10 years is so straightforward that I cannot see taking those kind of risks to make it happen in a much shorter time frame.
Chris Anderson is a leading authority on preconstruction real estate investing and has been referenced in many venues including the New York Times and USA Today. Get updated information about preconstruction projects at GetPreconstructionDeals.com.
Euro Tax Haven ThreatWritten by Roger Munns
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Property Price Uncertainty
Both Monaco and Andorra’s property prices have seen a levelling off this year, according to Tribune Properties, but say this can be explained by factors other than new EU directive. Tribune say that in Monaco passing of Prince Rainier earlier this year cast a shadow over Principality, while in Andorra local market has slowed as Andorrans struggle to keep up with price of property, fuelled by buyers from around world seeking residency.
Two other factors have contributed to slow down in first half of year which could be reversed in second half – absence of UK buyers awaiting outcome of their election in May which saw Labour Government returned for a historic third term with Tony Blair as Prime Minister and possible tax rises in pipeline, and buyers holding US dollars who were hit by rise in value of Euro – which has now peaked following EU Constitution ‘No’ votes in France and The Netherlands in June.
Both Andorra and Monaco require new residents to live there for six months a year to maintain their residency (but Andorra doesn’t police this once residency is granted). Andorra property prices start from just over 200,000 Euros for a one bedroom apartment, while Monaco is more expensive with one bedroom apartments from around 600,000 Euros.
Tribune Properties offer details of properties for sale in both Andorra and Monaco. For Andorra property visit http://www.propertyandorra.com , for property and real estate in Monaco and Monte Carlo visit http://www.monacoproperty.net Property in Malta is also available at http://www.maltaproperty.info