Smart Single-Family Rental Investing

Opinions often vary regarding the advantages of investing in single-family homes (SFHs) over multi-family complexes (MFCs). Some feel the short-term potential of MFCs surpass that of SFHs. While others cite the long-term potential of the SFH as being a preferable trait. The reality is—of course—it depends.

What are your long-term goals? How much is your available capital? What is your overall tolerance for drama? Depending upon your answers to those questions, smart single-family rental investing in a city can indeed be preferable to multi-family rental investing when you take the following factors into consideration:

Lower Barrier to Entry

On the whole, it’s easier to get started with SFHs. In fact, a good strategy for young investors is to purchase a starter home in which to live while they save and help appreciation bolster the value of the property. Once their equity position becomes sufficient, they can then refinance the house to purchase a larger home. If you start at age 25, repeat this process every five years with 15-year mortgages and acquire your last property at age 50, you’ll have a nice home free and clear when you turn 65 — along with six paid-for rentals from which to derive retirement income.

Easier to Afford

Buying a SFH generally entails much less expense than acquiring a MFC. They are lower-priced, easier to finance and require much less liquid capital to buy. Plus, if you ever need to sell, they also tend to move more quickly when they come on the market—assuming they’re well maintained and in good locations.

Faster Appreciation

Single-family properties tend to appreciate more rapidly in cities than complexes do. The resell market is much broader for SFHs, as they can attract people who need to purchase a home as their primary residence as well as investors looking for nice rental properties to add to their portfolios. On the other hand, MFCs tend to appeal only to investors. As a result, the pool of potential buyers is smaller, so demand isn’t as great and appreciation happens more slowly.

Easier to Manage

Maintaining a SFH is much less involved than keeping up a MFC. In a rental house, you’re likely to have at best three toilets. In a MFC the number of units multiplies the number of toilets. Ditto appliances to fix, carpeting to replace, walls to paint and all of the other aspects of keeping your property in tip-top condition. Yes, good property management companies can relieve you of much of the burden, but even then, your costs are lower with SFHs.

More Desirable to Families

In general, SFHs are easier to rent when they’re in good locations because people with children prefer to live in houses. This also means your turnover rate will be lower because all things being equal, a family is more likely to stay put — as long as the place remains comfortable and meets their needs as a family. Further, most people with children prefer a neighborhood setting with backyards, trees and other like-minded people nearby. This is more likely to be the case in a neighborhood of SFHs, than in an area zoned for MFCs.

Fewer “Personality” Problems

Anytime you put a bunch of people in close proximity to one another, you’re inviting personality clashes. Yes, you can screen your tenants very carefully, but it won’t guarantee Tenant A’s preference for the Raiders won’t irk Tenant B’s love of the 49ers. In SFHs, the person who pays the rent calls the shots for the behavior of the occupants of the entire place. In a MFC the number of units multiplies this factor and everybody doesn’t have the same sensibilities, which can lead to landlords finding themselves in the uncomfortable position of arbitrator.

For these reasons and many others, many people prefer smart single-family rental investing in cities to multi-family complexes. Ultimately, it all depends upon the particulars of your individual situation.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.

Three Factors that Affect Futures Trading

When prices fluctuate, it affects every area of the economy, and it is a desire to be shielded from any negative fallout that often drives investors to add futures trading to their portfolios. The perfect tool to reduce volatility for both businesses and individuals alike, such contracts can serve an invaluable purpose when it comes to safeguarding your market successes.

However, futures trading should be approached in the same way as any other type of trading, and many investors fail to appreciate this. In order to properly understand what drives these investment instruments, and thus be able to use them to your best advantage, you therefore need a grasp of the various factors that affect them.

To help you out, here are three that you need to know…

#1: General Factors 

Like any sort of investment, general economic conditions will affect the value of assets. Where a nation is experiencing a financial boom, for example, price rises are likely; where it is not, decreases are more probable.

The wider factors that impact these must also be taken into account, and this means that political uncertainty, social instability, and commercial or industrial prospects should all be evaluated when choosing your futures investments.

#2: Commodity Factors

 One of the largest and most popular segments of the futures markets is commodities, and this means that any factors affecting this area will also need to be considered. Thus, events or happenings which influence the supply or cost of production of a particular commodity will have the ability to impact its value on the futures markets.

In the case of agricultural futures, for example, this will mean looking at any recent unfavourable weather patterns, such as droughts in particular countries or floods in certain regions.

In addition, export and import policies or restrictions might also affect prices, so the impact of events such as Brexit should be thoroughly assessed.

#3: Currency Factors

 Currency futures are as volatile as the currency markets they’re based on, as experts like FxPro can attest. Influenced by a huge range of factors, from central bank decisions to government policies regarding taxation, conflict, and even political upheaval, trading these contracts requires an in-depth understanding of the foreign exchange and all of its intricacies.

The factors discussed above offer only an initial insight into all of those that you will need to understand, and this means that futures trading is not something that should be entered into lightly. However, provided that you’re willing to put the effort into developing the skills and knowledge necessary to succeed in such a specialist area, the opportunities are there for those talented enough to take them.

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Understand the Basics of Spread Betting

Spread betting was started in UK in the year 1970 to speculate changing price of gold. Later it gained popularity and was used in financial companies. Today, in stock market people have started trading cautiously to earn for long term. However, one needs to have in-depth knowledge and trading mind to trade and gain profit. Spread betting is now the best ways considered to trade and the safest ways to consider. Financial betting is the safest way to earn the benefit of a changing market scenario. However, it is important to be backed by a reputable spread betting company like ETX Capital.

If you’re a beginner and have no knowledge about the betting, then it is important to have some knowledge about it and betting safely:

Choose your Bet: This is the foremost thing to consider while learning the betting process. If you manage to find the effective strategy that gives you better return, then you can make significant amount through it. There are certain factors to consider which include- History of the company, internal events and external events. It is essential to check the position of the company in the market.

Know the Timing to Bet: Betting at the right time and on the right product of the company is important. If you’ve spotted an asset which can make a significant move, you can place the bet when the price is low or high. The trick is to bet and earn maximum profits, without waiting for too long.

Know when to close the Bet: Once you’ve done the betting, it is important to know when to close the betting. Many people have witnessed a negative result while they keep going with the betting and having no idea when to close. These people end up waiting too long to close the bet, which results into losing of money or missing out the gain.

People who spread bet often lose money that can bring down their confidence. So following certain tips on losing money can be beneficial:

Good Betting Practice: If you want to have a good practice and learning process about the spread betting, then you can go for online dummy betting service. There is no real money involved, so one can use most of the opportunities before going ahead with the real money.

Right Betting Broker: If you’re using online broker service that carries good reputation in the market, then it is the best way to bet. These online brokers provide regular updates and betting assistance helping you to earn.

It is generally advised the spread bet of small amounts and regular stock brokerage account for holding and buying shares. The main advantage of financial spread betting is tax free earning. Start with small steps, and move up over the time as you keep learning.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.

Is Forex Trading Safe?

Due to the rather poor performance of many open markets this year, countless investors have been turning their attention to the exciting world of the Forex industry. Considering that a massive $5.3 trillion dollars is said to change hands every day, this should come as no surprise. Words such as profit, liquidity, movement and fluctuation are often associated with currency pairs.  Such concepts have left many wondering if Forex trading is a safe form of investment. To answer this question,let’s examine a few concepts in more detail.

Appreciating Liquidity

The Forex markets are currently the most liquid investment field in the world. Liquidity naturally equates to higher potential profits within a short period of time. However, it is also wise to know that such movements canlead to substantial losses if the correct strategies (and electronic platforms) are not chosen. Prudence is therefore a key strategic concern before investing.  The mechanics of trading should be studied carefully. This can be likened to sailing across an ocean. Navigation and understanding nautical principles are critical to avoid capsizing.

Risk Versus Reward

The majority of traders who eventually lose money do so as a result of greed. In other words, quick profits can cause a people to turn a blind eye to what is around the corner. Trading and gambling are two entirely different concepts. Therefore, the two cannot exist together.  As a result, the most successful Forex investors will leave their emotions at the door. Once a certain profit margin is reached, a wise investor will simply walk away and trade another day. The same strategy holds true in terms of a loss. Successful trading is just as much of a discipline as it is a science and an art form.

The Platforms Employed

Perhaps the most critical aspect of Forex investing involves choosing the most applicable trading platform. There is no room for second-best brokers for those who wish to enjoy sustainable wealth. Some of the key aspects of any system should always include:

  • Access to real-time data and news feeds.
  • Intuitive trading platforms.
  • Numerous trading tools and instruments.
  • An ability to invest in a number of categories and underlying currency pairs.
  • The utilization of dedicated smartphone applications.

These are only a handful of the available tools. Such vehicles are essential to stay on top of the latest news and immediately execute a position. Traders who do not have access to these vital amenities will almost certainly miss lucrative opportunities and in a worst-case scenario, they could lose a significant amount of money.

In Conclusion

Forex trading is safe as long as an investor employs sound strategies.  This is much like any other market investment. If you find a good firm to work with, you can be work towards a rewarding and lucrative financial future.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.