Should you invest in real estate this 2014?

When it comes to the real estate market, it is a known fact that the year 2013 was an extremely disappointing one. The performance by this sector did nothing to build up spirits of people investing in real estate and only really dampened them. Be it any sector, residential or commercial and even properties for retail purposes, there was absolutely no silver lining whatsoever. 

However, a new year has begun and investors are hopeful that the situation may take a different route and this year would be favourable for investing in real estate and buy flats Andheri. Ideally, experts are of the opinion that the latter half of 2014 will be a more beneficial period when it comes to investing in real estate. 

This is mainly due to the fact that the general elections will have been conducted and the situation may get more under control, thus helping the real estate sector in the bargain. Given below are some pieces of information offered by professionals and experts belonging to real estate so as to guide you in terms of real estate investment.

1.) Investing in commercial property:

When it comes to the commercial real estate sector, it is a known fact that 2013 was the most unfortunate year for this sector as it suffered most among its residential and retail counterparts. The owners of this real estate had to essentially suspend the activities wherein they were to lease the property simply because the market was way too uncertain and there was an obvious hurdle of the sales suddenly slowing down to a halt. 

To put it simply, the earnings made by a person as an individual and that by the entire corporate sector are essentially the deciding factors this year. Besides, the numbers of banks that wish to begin offering their services also affect the rate of commercial properties.

In 2014, the experts predict a growth in the supply rate and therefore, the rate of vacancy that was quite low in the past year is likely to increase this 2014 and therefore, the future of commercial real estate in 2014 looks bright, considering the fact that there are tax breaks being permitted by the Government when it comes to real estate investment trusts. 

2.) Investing in residential real estate:

In the beginning of the year 2013, the major metropolitan cities like Mumbai and Delhi NCR as also Pune suffered immensely when it came to real estate. The macroeconomy in 2013 was highly disappointing and the effect was visible on the residential real estate sector. 

The rupee continued to disappoint with a below average rate and there was no rise in the income level whatsoever, not to mention the fact that inflation was at an all time high. Therefore, individuals had to think twice before investing in real estate and they let the economic conditions take the better of them.

The general elections are likely to be the main reason why individuals would refrain from buying residential real estate or investing in the same in the first half of the New Year, 2014. While the prices of residential real estate are estimated to increase, the completion of the general election is likely to see a few individuals beginning to invest, following which a handful of other individuals are likely to follow suit. 

There are several residential real estate buildings that have merely been built but since the interest rates are quite high in first 6 months of 2014, they are likely to see the light of the day in the second half when the interest rates will dwindle. Therefore, if you wish to buy flats Andheri this 2014, you must consider waiting it out for the initial 6 months.

Author’s bio:

Margaret Clint is a real estate analyst and has been in this profession for over 12 years. She is known to offer advice when individuals wish to buy flats Andheri. She has a professional background in marketing management and worked as a real estate agent in the initial years of her career.

How to Protect Your Assets When Approaching Retirement

People who are 50 years or older, such as the venerable baby boomers, have begun to approach the age of retirement. As a result, they are naturally concerned about whether their retirement accounts will drop in value or not and how to keep them from doing so. Fortunately, there are a range of actions that the 50 and older crowd can take to make sure their assets and interests are protected. Here are some of the most key pieces of advice from financial advisers who frequently deal with people in this stage of life.

Use the law

One of the best strategies most baby boomers can take to secure their retirement savings and assets is to use the law. Commercial lawyers are good resources to use when navigating the uncharted waters of estate battles, divorces, loans, foreclosures, bankruptcies, wills, and other issues that can cripple a person's retirement savings in a heartbeat. A personal lawyer is a valuable asset to have on one's side, and commercial lawyers are experienced in dealing with all kinds of financial challenges frequently faced by baby boomers on the road to retirement.

Diversify

Besides hiring a personal lawyer, another important step to take on the road to a secure and rich retirement is to diversify. More than 8 out of every 10 financial planners managing portfolios of the 50 and over crowd state that planning for retirement as a baby boomer should really focus on protecting one's portfolio from potential losses in the market instead of looking out for potential market gains. Furthermore, another 3 out of every 4 financial advisers suggest a diverse portfolio may be the best way to keep from suffering any significant losses when one is about to retire.

Start up that cash cushion

However, just as it's important to diversify one's portfolio in order to minimize risk, it is also essential to keep from falling into the trap of putting all of one's savings in one's retirement accounts. Seven out of every 10 financial advisers states that an emergency fund in cash is an essential part of any boomer retirement strategy. This cash fund should be used to take care of any expenses that are financially significant and out of the ordinary, such as needing a new transmission or engine in a car, needing a new furnace or water heater in one's home, or suffering an accident that requires an extended hospital stay.

It is essential to do everything one can do to avoid having to start tapping into the retirement fund earlier than necessary. Doing so means one will face penalties and taxes, and this would all be preventable through the use of an emergency fund.

Stop non important purchases

Another good way to get one's nest egg in good shape when one is getting close to retirement is to try to trim one's costs of living as much as one possibly can before retirement. This is a strategy that 3 of every 5 financial planners for this demographic agree with.

If baby boomers can cut their costs before they retire, then it will become that much easier to keep their standards of living going when they retire. In fact, according to more than 5 out of every 10 financial advisers state that at least a few clients of theirs have had to cut down their current standards of living in response to losses they experienced in the market.

Look for guaranteed income sources

Finally, keeping guaranteed income sources in mind is essential, according to more than half of financial advisers. For example, most retirees will receive social security. Other kinds of annuity products that come with monthly payments that are guaranteed should also be looked into, as one can never have too many income streams.

Using Your Retirement Fund to Invest

retirement (Photo credit: 401(K) 2013)

Real estate is a hot commodity at the moment. Millions of people around the world are doing whatever they can to buy properties with the intent of selling them or renting them out to save for retirement. If you are looking to retire in the next few years, how can you use your retirement fund to invest in real estate?

Invest In A Superannuation Property

A superannuation property is a property that you buy using funds that you have saved up for retirement. The government changed the rules in 2007 to allow people to buy property directly from their retirement account. The upside is that you can potentially reduce capital gains and other taxes to nothing if you hold the proper inside of your retirement account long enough. Typically, you would have to pay capital gains and other taxes if you sold a property that owned outside of your retirement account.

What Should You Watch Out For?

If you are going to invest in a super property, you should consider the cost of doing so. While you can borrow money to help you finance the purchase, it is common for lenders to require a down payment of as much as 35 percent. This means that you would have to put down $35,000 to purchase a home worth $100,000. Interest rates may also be higher if you decide to invest with your retirement money.

How Much Do You Need to Invest?

Experts advise you to have at least $200,000 or more in your retirement account before thinking about investing in a super property. However, you can make any investment that you have the means to pay for. If you are over the age of 50, you should strongly consider making such a move because it can provide you with a stable income that can be earned for the rest of your life. Those who are interested in passing on wealth to their families, passing down real estate can be a good way to do that. 

What Are the Costs to Buying These Types of Properties?

Setting up a retirement account can cost thousands of dollars. There may be as much as $3,500 worth of initial set up fees. Each bank is allowed to charged more or less than that amount depending on how it operates. In addition to the cost of setting up the account, you have to take into account the extra interest that you are going to have to pay on any mortgage that you take out. It isn't uncommon to see lenders charge as much as 2 percent extra in interest per year.

Make Sure the Loan Is Gone Before You Plan to Retire

It is critical that the loan is paid off or almost completely paid off before you retire. If it isn't you could be relying on the mercy of the housing market or your tenant making timely rent payments. In addition, you need to make sure that the loan is a non-recourse loan. Loans that don't comply with this rule could be subject to a 46.5 percent tax. As with any other investment, make sure that you seek out qualified advice from someone who understands what you are trying to accomplish.

There are many good reasons why you should invest in real estate using your retirement money. However, make sure that you are doing it for the right reasons and have a plan to pay down any loan that you take out. Otherwise, you could have a hard time trying to recoup your money once you stop working on a full-time basis.

5 Inexpensive Ways to Improve Customer Loyalty for Your Business

A couple of years ago, Inc. published a rather fascinating article about customer loyalty. Within it, it said that it can actually cost a company as much as 5-10 times more money to try and obtain a new customer than it would to simply maintain the ones that they already have. It also stated that one way to keep customers coming back is to improve upon your customer loyalty strategies.

If you own a business and you'd like some effective yet inexpensive ways to keep your customers satisfied and happy, we have five great tips for you below:

Send out monthly surveys. One of the best ways to encourage customer loyalty is to see exactly what your customers need. An effective way to do this is to send out a monthly survey through your company newsletter. Services like Survey Monkey make it easy to set one up and it can provide you with all kinds of insights into how to make your products and services better. And when customers feel that you care about their opinions, they are more likely to return over and over again.

Respond to their comments. Thanks to your website and social media accounts like your Facebook fan page and Twitter page, your customers can connect with you on a daily basis. So, if you post an announcement about a new product or service and you notice that they have a question, be sure to respond as soon as possible. That's just one more way to make them feel like you genuinely care about their personal needs.

Do what you say you're going to do. One mistake that a lot of companies make is promising something but not deliver on the promise. For instance, if you have a big sale going on and you say that everyone who orders something within the next 48 hours will get free overnight shipping, while that might drive up sales, you could find yourself with some pretty frustrated customers if they don't get their products within a couple of days' time. The best way to get a loyal customer is by establishing trust and the best way to do that is to do exactly what you say you're going to do. Every single time.

Be solutions-oriented. If you want to get some brilliant directories reviews for your company, it's absolutely imperative that you be solutions-oriented. This means that when a customer reaches out with a problem, it's important that you listen but it's also important that you are prepared to provide a solution that will put their mind at ease. For example, if they ordered some shoes online and there is a tear in one of them, you need to have a good solution: send them an email with instructions on how they can ship it back for free for an exchange, and also offer them a 30-percent off discount on their next purchase (for example). You're not perfect and so problems will arise; however, you can prevent losing a customer if after you do a mistake, you put forth a concerted amount of effort to be solutions-oriented.

Instill a customer loyalty program. Whether it's a point system, a VIP program or random giveaways, customers are always excited to be involved in a loyalty program. So, make sure that you create one for your company. For more information on the kinds of customer loyalty programs that are effective, visit Blog. Hubspot and put "customer loyalty programs" in the search field.