Real Estate Investment, a second look at the RISK factor

Real Estate Investment, a second look at the RISK factor

Generally, when acquiring real estate properties, investors usually put down certain percentag Down Payment and finance the rest. Astute investors and bankers will always keep the "Market Risk" in mind when considering any type of investments. "Always cover the downside first, and the profit will take care itself." Real estate market just like any other free markets will has it's up and down, affected by economy, interest rate, supply and demand conditions and even seasonality. However, when the property price fluctuating, the first part of the equity being affected will be the down payment…Read more …
Interest

Interest

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” - Albert EinsteinRead more …
72規則

72規則

「72 規則」は投資家がよく使うツールの一つで、予想利回りに対してどのぐらいの期間で資本を2倍にするか早速判断できることです。 資本2倍になるまで約年間数=(72/年間利回り)Read more …
Always cover the downside first

Always cover the downside first

"Rule No.1 is never lose money. Rule No.2 is never forget rule number one." - Warren Buffett The astute investors all know - "Covering Downside" is the first priority when making investment decisions. Just like the "rules" that Warren Buffett has been advocated. We can take a look at a simple example bellowed that demonstrates the affect of "losing" and subsequent "effort" that is needed just to make it back to where things were before. If the initial lost is 5% then just a little bit more than 5% of "winning" needed to compensate…Read more …
單純,但很少為人所思考的不動產投資風險

單純,但很少為人所思考的不動產投資風險

一般不動產物件購入時,投資者通常支付頭期款( DownPayment ),剩餘部分則是銀行貸款。 精明的投資家和銀行家銘記在心的一點 - "市場風險"是任何投資的首要考慮。"Always cover the downside first, the profit will take care itself"。 不動產市場一如任何自由市場有其起伏,經濟好壞,利率,市場供需狀況甚至季節都是影響物件價格的眾多因素中的一小部分。 當市場波動,物件價格起伏時,最先受到影響的部分及是頭期款部分。物件價格跌落時,銀行貸款的部分並不會因而改變,相對的,剩餘價值( Equity )則跟著降低。 這是一般投資大眾所未思考的議題:頭期款是不動產投資最大風險的部分。 從另一個角度來看,銀行 - 自古以來及存在最成功的事業,永遠是站在低風險的一方來參與各項投資事業。投資者則是主要的風險承擔者。 精明的投資者可選擇以低風險的角度參與投資項目,而且仍然享有其他參與者相同的獲利。Read more …