Thursday, April 29, 2010
Loook at the king of currency
Now the confirmation...... nothing is superior then green buck.... Euro debacle helped dollar a lot....
One eyed man is really a King !!! rranjan27@gmail.com
Sunday, April 25, 2010
Alternative asset investment
Investment Analysis:-
Types of real property investments-----
- Raw Land
- Apartments
- Office Buildings
- Warehouses
- Community Shopping Centre
- Hotels & Motel
Raw Land
Appreciation is a function of demand and supply. We know while total supply of raw land is limited, but supply of urban land can be increased via addition of roads and utility services to otherwise underdeveloped raw land. Proximity to road and travel pattern directly related to value of the land.
It is passive investment, it does not provide cash flows to land holder & also do not provide depreciation for the tax purpose. Speculator invests in raw land in hopes of short term capital gain. Developer invests for long term operating need for projects.
Apartments'
Value determinants are population growth, location, convenience, & prestige of the locality we call it posh area.
Apartment returns are highly leveraged loan to income ratio may be upto 90%. Apartment provides tax depreciation.
In the start up phase of apartment construction there may be significant risk, because future demand can never be known with certainty.
Apartment investments are attractive to whom, who can afford large initial equity outlay. Investors who desire tax shelter are especially attracted to residential rental property investment.
To be continued………….
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