Myths and Legends of Property Investment for New Investors to Avoid

The property investment market can be a great place to invest. The core elements of successful property investment are excellent capital risk management and a good eye for good properties. The myths and legends of the market, however, aren’t based on business principles, and that’s what makes them dangerous. If you’re a new investor, it’s a good idea to learn how to tell the truth from the hype.

A certain level of sales pitch in any property deal is understandable. Inflated statements of market potential, misleading information about local markets, and “dubious” predictions of capital and rental returns without mentioning costs are just hot air, and usually a lot of it.

These are some of the typical myths:

• The property market always goes up: It goes up relative to economic conditions like demand and prices. If credit is tight, sales are usually slow, unless you’ve got a line of credit which can cover high prices. A 10% variation in the average house price in Australia can cost $40-50,000. That’s enough to put an investment behind the eight ball for years in a slow market. 

• New estate properties are always good value for investors: New estates can be very good value. The issues for these new estates aren't obvious. A new estate out in the back of beyond is by definition a new home buyers’ market. Prices can be slow movers, and location issues may or may not be good selling points to commuters. Lack of infrastructure like schools and amenities may also be a negative factor for buyers. 

• Rental properties just keep going up: Rents go up, but so do maintenance costs and upkeep. Rates also tend to go up. The rental market is also fickle. Tenants may simply look for cheaper rates, meaning a rental property can go untenanted for quite a while. If you’re relying on rent to pay a mortgage, that can be trouble. 

• Property investment is money for jam: No, it isn't. The most successful property investors are experts. They’re also very good financial managers and know how to cope with market movements, slow sales and rental property management. To get the best out of an investment property involves good business sense and having a very good knowledge of markets and returns on investment strategies. 

• Commercial properties always bring good returns: Don’t bet on it. The commercial property market has its share of duds. The many “retail ghost towns” around the world are a silent and expensive testimony to the realities of many commercial property investments. Commercial properties need to be proven viable to provide credibility to their potential returns. 

For new property investors, the bottom line is this: Property investment can be an extremely good method of wealth creation, particularly over time. It is not a Get Rich Quick type of investment. Investments can go sour. Intelligent, informed investment in good property markets, preferably including getting professional advice regarding purchases, is the best working method for making money.

Grandparent Scam Strikes Again

Put yourself in the shoes of a caring Grandmother. Let’s say one day you receive a call from your grandson telling you they’ve been in an accident and are being held in jail in the Dominican Republic. They want you to keep their little debacle a secret but they need you to wire money to them ASAP to get them out of jail.


What would you do?


Claudia Beach of Jacksonville, Florida recently faced this exact scenario recently and in a worried, emotional state, sent the money straight away to her needy “grandson”. Her “grandson” first called asking for $3,400 for bail out of the Dominican Republic jail he was stuck in.


“My emotions went wild. I couldn’t think. All I could think was he was in jail in a foreign country”.


She rushed to her nearest Publix and wired the money immediately via Western Union.
Keeping her “grandson”s secret she apparently didn’t discus this matter with the boy’s parents. The very next day she received another call from him. This time he said they were making him pay his medical expenses of $2,400.


To Western Union!


Later that very afternoon the phone rang again. This time sonny-boy was asking for $1,800 to pay for the medical expenses of the lady he hit.
She says that the employees at Western Union questioned her each time if she was sure if this was her grandson. When he called the first time he told her that he didn’t sound like himself since he had been in the accident and had stitches in his lips. In a concerned state, she bought this story.


The money was wired each time to a lawyer by the name of Angel Rosario. Money that Claudia Beach will never see again. A total of $8,300. She has since filed a complaint with the Federal Trade Commission and the local police. Beach has come forward with this story to bring awareness to others that might be at risk for this scam.


To protect yourself:

• Do not disclose any information before you have confirmed it really is your grandchild.
  
• If you’re not sure ask the caller for their middle name or the elementary school he or she attended.
  
• Do not respond with a name but instead let the caller explain who he or she is.
  

What breaks my heart about this scam is that it preys on love. If you are a caring Grandparent be wary if you receive a call like this that tugs on your heart strings. If you receive a distress call from a family member in another country I would recommend first, verifying that they are in fact in another country. Using the bullet pointed suggestions above or maybe calling their cell phone? Or their parents to ask how they are doing and what they are up to? I understand there will be different cases for different family dynamics but before you pay up you need to verify an identity!

Video about Grandparent Scam Strikes Again by @GetOutOfDebtGuy from GetOutOfDebt.org

This guest post was submitted by Steve Rhode who is a consumer debt expert and helps people for free to learn how to get out of debt and avoid scams.

Using the internet to cut your travel costs

Image via Wikipedia

In the last couple of decades, the internet has grown exponentially into a tool that can be used for just about anything, a tool that practically dominates our everyday lives. Today, it is often our first point of call to check the news, buy a new camera or book a cheap holiday. 

Holidays are famously affordable when they’re booked on the internet, with everything from the flights, hotels to the cheap holiday insurance sporting slashed prices on various websites. Before you go ahead and book the first deal you see, milk the internet for all it is worth to save yourself a small fortune.

As an example, if you want to secure yourself cheap travel insurance compare deals on price comparison sites like moneysupermarket.com. That way, you can assess a vast list of the best deals on the internet on one website and choose the one that’s best for you.

When it comes to flights, there is, as you will know, a multitude of budget airlines that will potentially save you hundreds in this area. Most of the best deals are advertised, inevitably, on the home page of their websites, but it doesn’t hurt to do a little digging around for something that not everybody is going to see. Sites like Expedia.com offer flight and hotel packages to save you even more, but many of these kinds of deals are only available on the internet.

The same applies to hostel websites. Telephone bookings often incur an extortionate booking fee, but if you turn to the web, you might be pleasantly surprised. We’re not saying that there are absolutely no booking fees on the internet, because there are, but you may well come across a money-saving gem if you do your research.

Another way you save money on your travels is by booking the airport transfers (if applicable, of course) before you actually travel. If it’s not already booked, people often take advantage of the fact that you have no other choice than to get a transfer from the airport by hiking up the costs of their services.

Advanced booking is also the way forward if you plan on doing anything special on your travels. Things that require specialist equipment, like rock climbing, or group bookings, like ocean excursions, not only have reduced costs but also guarantee that you actually get a place.

Not everybody plans this far in advance, but it just goes to show that it can save you a significant amount of money if you do.

KISS: Keep it Simple Starbucks

Image via Wikipedia

This is a guest post by Vanessa Burke

It used to be that if I wanted a cup of coffee there were only two options; out of the tin in the kitchen and at the diner. The other day I walked into Starbucks and asked for a regular black cup of coffee and the kid behind the counter scoffed at me and immediately pronounced that “We don't have regular coffee.” I said to him “Fine, I won't give you any regular money,” as I walked out the door and made my way to the gas station to get my caffeine fix.

Everywhere we turn, businesses try to take advantage of innocent consumers by putting is in high pressure sales situations. They keep low-level employees on their toes all of the time by intimidating them to make sales or get fired if they don't reach their quota. When we are faced with these situations, it's hard to get what we actually want or need. It's also an easy way to become manipulated into buying frivolous upgrades and accessories that we might not be able to afford.

If businesses kept their employee rhetoric simpler I would be more inclined to buy what I need instead of spending all of my cash on suggested stuff. Here are some ways to avoid awkward situations and save yourself money when entering the retail and hospitality arena:

Retail

The other day I walked into Best Buy to check out some prepaid cell phones. As soon as I entered the door I was ambushed by about 4 different employees asking if I needed help finding anything. I politely told them no and went about my business. When I finished up in the mobile section, I headed over to the video game department to pick up something for my son. I was instantly bombarded by three more employees who wanted to “help” me.

An easy way to save money in the retail sector is to turn to Amazon or eBay. All of the product descriptions are already posted and you can get honest opinions from real consumers.

Coffee

As illustrated earlier, coffee has gotten way too complicated. I think that places like Starbucks and other coffee chains are losing a good deal of business because people are too frightened to order a regular cup of joe in fear of a verbal lashing from a “coffee expert.” In order to save money in the morning, try making your coffee at home instead of purchasing something with a name you can't pronounce.

Fine Spirits and Brews

This might be the most embarrassing part of the modern consumer culture. People who work in liquor superstores and behind bars always have a high-strung attitude when talking about their product. What if I walk into one of these stores and just want a case of Bud Light for Sunday football? Instead of going to a large liquor store specializing in exotic spirits, try going to your local supermarket for more savings.

Restaurants

In my opinion, suggestive selling has completely ruined the restaurant industry. What was once a nice way to get out of the house and not have to cook or clean up for yourself, is now a thirty minute sales pitch from a pompous server with a liberal arts degree. If you want have a restaurant experience without the sales pressure, try ordering take out and eat your food at the park. Not only will you save money on drinks and appetizers; you will also save on the tip.

The next time you go out to a store or restaurant, just politely dismiss the obtrusive help. Don't blame them for the annoying over-service, blame upper-management and the increasing corporatism of America.

Saving Money and Energy The Old Fashion Way

Image by bsabarnowl via FlickrEverybody is looking for ways to save money and energy. There are energy saving appliances, bulbs, and automobiles all ready to help in our goal. We are told to lower our carbon footprint and use less energy. Today we want to use less and waste less. We look to the future to find gadgets and machines that can do this for us. I say don't look forward to find solutions, look back!

Depending how old you are, if you want to be money and energy savers, go talk to your parents or grandparents. These people grew up in a day when they used less water, less fuel, created less waste and imported fewer goods than we do today. They took these actions out of necessity as opposed to our modern-day desire to help the planet, but the ecological impact is just as powerful. Here are seven lessons we can borrow from our elders that are easy on the wallet, and have significant environmental impact. Perhaps more importantly, they are easy to implement and relevant to our modern lifestyles.

Bottled water.
Believe it or not I grew up in a day when you didn't buy bottled water. Not because there wasn't any but because you would be thought of as foolish to buy something you basically could get for free from your faucet.

I remember keeping a pitcher of cold water in the refrigerator whenever we wanted a cold drink.

Clothes dryer.
Many homes never had a clothes dryer. Hanging your clothes outside in the fresh air was the only way to dry them. The clothes washer was a common device in a home as far back as the the early 1900's. The first electric one was invented in 1910.

Before the clothes dryer became a standard appliance in every American household, your grandmother simply took advantage of a sunny day, some rope or cord, clothespins. No cost, no maintenance, no carbon footprint. Clothes dryers have come a long way in energy efficiency over recent years, but the average home clothes dryer has a carbon footprint of about 4.4 lbs. of carbon dioxide per load of laundry. According to a recent Wall Street Journal article, “the biggest way to cut the environmental impact of cleaning clothes is to stop using a clothes dryer.”

Vegetable garden.
The home garden was common place many years ago. It was easy to do and a money saver even when fruits and vegetables were fairly inexpensive. When you bought a home, you would look for one that had a nice yard for growing vegtables and perferably many fruit trees. It was normal to go outside your home and be able to see an orange or apple tree in your back yard.

When the Obama Family decided to plant a garden it was seen as odd by the younger generation but made perfect sense to the over 50 crowd. My grandfather always grew vegetables out in the back yard, it would of been odd for him not to.

Saving rain water.
Rainwater is free, why not collect it? You can use it to water your garden or lawn. You can wash a car or the dog with it. You can pick up a few plastic drums free someplace and save money and water. Just channel your rain gutter system into it and have gallons of free water.

Pack your lunch for work.
Back when, most people brown bagged their lunch. Taking a box lunch when you would be out all day, for work, or the kids school lunch was normal. Eating out used to be an occasional event for older generations, often reserved for birthdays or anniversaries. Nowadays, the average American eats out about four times a week and spends nearly $3,000 yearly in take-out food.

The waste created by take-out packaging alone is enough to make you think twice. The money you can save by eating at home or by bringing your own lunch to work or school — in a reusable container, of course would make grandma very proud.

Home entertainment.
When our grandparents were younger, playing card games or board games was a popular form of entertainment. As a little boy, I remember spending hours playing gin rummy in my grandmother's kitchen, with my handful of cards.

Compared to today, we have electronic gaming systems like Wii, Nintendo or Xbox; cards and board games provided hours of entertainment with little impact on the environment or the wallet.

Spend less.
Anytime you buy something, you (and the environment) are paying way more for it than just the sticker price. There is the cost of resources used to make it, advertise it, transport it, maintain it, and inevitably, to dispose of it. The amount of stuff our grandparents bought on a regular basis pales in comparison to the overindulgent spending habits of our generation.

These ways to save money aren't just a common sense way to save money and energy, they demonstrate a mindset, a way of thinking that was ingrained in the over 50 crowd. Today we have a barrage of advertisers showing us ways to make life easier. All we have to do is hand our money over for so called better life. 

Consumers Have A New Way To Vent Their Customer Service Problems Using Social Media

Image via CrunchBase
Many of us are all-too-familiar with these and other phrases that accompany the soothing muzak used by many companies to manage our limited patience when we're on hold with their customer service departments. Unfortunately, even after a human is eventually reached, consumers often find that by the time they hang up the phone, the issue they called about remains unresolved. What can a frustrated consumer do?

Try Twitter.com

One alternative that consumers are increasingly turning to is Twitter. By now, many of us are using Twitter, a social networking and microblogging Web site that allows its users to post short messages (known as "tweets") that can be read by our "followers." Use of Twitter has exploded in the past few years. At last count, Twitter users were tweeting nearly 50 millions tweets per day.

Since Twitter is a public service, consumers’ tweets are visible to everyone on the Internet (unless the user blocks access to his or her account). Twitter has become a powerful megaphone for consumers. In the past, if a customer had a problem with a company, their negative experience was communicated mostly to friends and associates by word-of-mouth. In recent years, consumers have started voicing business reviews on the Internet, via blogs or review sites. With Twitter, there is even greater potential for thousands of users to hear - many, instantly - about bad experiences. For companies that are eager to protect their reputations, this is an issue they would be wise to manage.

Companies Are Watching

Numerous companies are doing just that -- assigning staff to monitor Twitter for customers who are dissatisfied and respond directly (via Twitter) to that customer. Many Fortune 500 companies have set up their own Twitter accounts, allowing customers to direct their tweets to a designated Twitter agent for a particular company (via Twitter's "@" reference system). Companies as varied as Comcast, JetBlue, Wachovia, Bank of America, UPS, and Blue Cross Blue Shield have set up Twitter accounts to complement their traditional customer service lines.

So how can frustrated consumers make use of Twitter to improve their customer service experience?

Here are some tips and tricks that might help:

1. Try the conventional method first. Most companies have dedicated customer service lines that can address common problems, though time spent on hold should be expected.
2. While you're on hold, use a search engine to search for "[company name] Twitter." This will usually bring up a list of Twitter accounts associated with a particular company.
3. If the traditional customer service route doesn't solve the problem, tweet away! Be succinct in your tweet (Twitter has a 140 character limit on tweets) and reference one or more of the Twitter accounts for the company in question, using the "@" reference. Example: "The widget I ordered from @acmewidgets showed up broken today. Customer service was no help."
4. Keep your expectations reasonable. Some companies have set up their Twitter accounts primarily to tweet about company news, not respond to customer complaints. Review the last few tweets of a particular company's Twitter account to make sure your tweet goes to the right account.
5. If you are contacted by a representative of the company, take your conversation to email or phone. This is a better way to describe the exact problem and get it fixed quickly.
6. Look for Verified Accounts. Twitter's openness has led to numerous accounts impersonating real companies or celebrities. Look for accounts that have been verified as legit by Twitter. Note that Verified Accounts for businesses are still in the beta, or testing, stage, so don't rely on this exclusively.
7. If your tweet led to the problem being solved, tweet about that, too! Companies will be more likely to help you and others in the future if they know that going the extra mile on Twitter led to positive feedback for all the world to see.

Twitter is a valuable tool in the consumer's toolbox for resolving customer service issues. If going the usual route of calling the customer service line doesn't solve your problem, don't be afraid to try Twitter to express your displeasure. The old saying that the squeaky wheel gets the grease has never been truer.