4 Things to Consider When Purchasing Your First Investment Property

Buying property, when done right, can pave the way to wealth and create financial freedom.

Whether you’re a first timer or a seasoned investor looking to diversify your portfolio to include property careful, strategic planning is vital to your success.

Here are some of the biggest things you need to consider before diving in to buying an investment property.

Can you really afford to invest?

Before the hunt for property even begins you need to work out how much you can afford to invest and more importantly, how much the bank will lend you.

Seek out a certified financial planner or accountant, to get the most accurate understanding of what you can afford. They’ll conduct a cash flow analysis and crunch the numbers so you can base your decisions and strategy on hard data.

There are several hidden costs to factor in when buying property, which include: financial advice fees, legal fees, building inspections, insurance and ongoing maintenance and repair costs.

Think long term

Smart investors know property investment won’t make them rich overnight. It’s a long term game.

Take one of the most successful investors, Warren Buffett for example, who says: “If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.”

Get the right advice and outline the best investment strategy

Don’t be afraid to turn to the experts for help. A solid investment strategy needs to be based on data, tailored to your specific financial circumstances. Ask yourself, “Why do I want to invest in property”. 

Finding the right investment strategy for you is really a question of risk versus return. How much risk do you need to take to get a defined outcome? Having a clearly outlining goal of what you are aiming to achieve will go a long way to understanding exactly how much risk you need to take to get there. 

 When speaking about risk, we mean debt levels, tax structures, location and type of asset. Speak to your financial advisor about your risk tolerance. The support of good financial advisors will make you a confident investor, save you time trying to learn and understand technical jargon and help you to avoid making costly mistakes. 

How do you find advisers you can trust? Shop around, meet with a few different advisors and always check their certifications.

Find a mentor

Educate yourself on what it takes to be a successful property investor. Find one of those who have succeeded in property investment and are willing to share their secrets to success through blogs, online community forums, published books and articles. Scour the internet for invaluable knowledge and tips from these mentors.

Treat your investment like a business. When selecting the right investment property to buy take your time to do the research. Gather as much data as possible on the area’s overall growth, housing market, job market and rental demand. 

When inspecting potential properties to buy, don’t get emotionally attached to a particular property, buy with your head. You are not looking to buy your dream home. The property needs to be structurally sound, clean, tidy and well maintained to attract tenants. Speak to family and friends who have invested in property about their experiences. 

Gaining insight knowledge from advisors and mentors can help you identify the best locations and types of property to invest in. Approach your property investment venture as you would entering into a business. It requires a detailed, well thought out plan, strategy and commitment in order to manage it properly and successfully generate income.

For more advice on property investment, visit www.otiumgroup.com.au and download the Ultimate guide to property investing.

The Most Common Crimes That Increase When People Are Strapped For Cash

Cash is both praised and condemned in movies, songs and literature. Those who have it want more of it, and those who do not have it want the same. 

Those who are strapped for cash to meet obligations sometimes revert to criminal activity as a means to restore lost income. 

Here are the most common crimes that increase when people are strapped for cash.

Family Theft

Theft committed against family members is one of the most common entries into the world of illegally acquiring cash. Stories of children, neighbors and even spouses stealing from purses and wallets are so common that almost everyone can recount an instance or two. 

Parents and grandparents in some families are reluctant to report children and grandchildren who forge checks and steal jewelry and antiques to pawn, making it top the list for how those willing to revert to crime get money when strapped for cash.

Car Thefts

Modern vehicles are tougher to steal than they were a few years ago. Modern car thieves now commit car jacking heists instead. With most vehicles needing a key to make the engine work, it is easier to "jack" vehicles than it is to hot wire them. 

The stolen car business is alive and well, and it is going strong in almost every region of the United States. 

Mugging

Personal robbery has been such a common crime in urban areas that it is often depicted in television crime dramas. The suburbs and rural areas are now fertile grounds for cash-strapped people looking to make a quick score. 

Mugging is robbing someone in public that often involves personal attack. It includes purse snatching and grab-and-run thefts of personal electronics as well as the traditional demand for money, jewelry and other valuables under threat of violence.

Robbery

Standard commercial and residential robberies include smash-and-grab and home invasion types of robberies along with your standard convenience store type of robbery with a criminal, a gun and the demand of cash. The criminals have graduated to demanding cash and/or drugs. 

Some of the criminals are users desiring the drugs. Others realize that drugs can be quickly converted to cash. A further incentive that has this crime on the rise is the number of homes with residents who are taking prescription narcotics and other popular drugs.

Shoplifting

Though it has such a high risk of those perpetrating being caught, shoplifting is viewed by criminals as a victimless crime because it is most often perpetrated on big retail businesses. Shoplifters rationalize the crime by saying things such as, "That's why they have insurance," and "They make too much money anyway." 

Personal electronics, cigarettes, and cosmetics are extremely popular shoplifting items. Meat, especially expensive steaks, are the target in grocery stores. Shoplifters steal them and then sell them. If you are accused of shoplifting, it's important to talk to an attorney right away, say the experts at Clark & Clark LLC.

Embezzling

An easy crime for some employees and volunteers is embezzlement. Those with access to company funds, whether it be petty cash or bank accounts, see opportunity if their morals and ethics are low and their desire for cash is high. 

Many companies have instituted higher levels of security when it comes to accessing funds and redundant accounting. However, there are still plenty of employees out there who have access to company credit cards, fuel credit cards, checking accounts and liberal petty cash boxes without any redundant monitoring of how the money is being spent. 

Non-profit volunteer groups are often fertile grounds for this type of thief because volunteerism often implies higher ethics and morals of the volunteers.

The old saying about locks keeping honest people honest can be adapted to apply to many people who are strapped for cash and looking to make an easy buck. People with no prior history of criminal activity often report when caught stealing that they needed the money and the opportunity was there. 

Though society should not have to lock its doors, it does every single night. Taking this mindset to heighten security to dissuade those strapped for cash from turning into thieves, whether they are family, friends, neighbors, volunteers or employees, may be good too.

Managing Risk Is Extremely Important for a Company

There's no question that the pace of business has increased. Many companies operate every hour of the day and across all borders. Assets can be distributed across the globe instantly. 

That changes the nature of risk substantially. Companies are not able to be complacent when it comes to risk. They must diligently manage it or it will quickly get away from them. Being resilient and ready against risk is what makes a proactive firm prosper in the global economy. 

Mitigate Risks Easily

Risks are always going to exist. There's no way to eliminate them all together. Sustainable businesses understand how to mitigate them so they're never pushed out of business by it. That comes from making a careful assessment on an ongoing basis. 

Monitoring the risks and then creating policies to deal with it is the basic idea. Assurance teams have to be agile and ready to move quickly when a new risk has been identified. It's not enough to wait around for risk to show up. 

By then it could already be too late. Getting out ahead of risks is always going to be the key to successful risk assurance. Companies that are able to do that retain profits and continue to operate.

Handle Major Risks That Could Cause Harm

There are risks that are so enormous they could result in the end of the firm. Fighting back against these types of risk is easier with the right technology. Mitigating risk also has the additional benefit of helping your company to find new opportunities for growth. 

If you're constantly monitoring current policies and systems for improvement, you're going to find ways to make even more money. Your entire enterprise has to be trained on how to assess risks on a transactional and department basis. They will keep coming at you quickly. It's debatable if you can stop all risks. 

Some would seem to be beyond the realm of control. Human factors can and do carry risk because of behaviour. Infrastructure, technological, and regulatory risks are sometimes out of the grasp of your firm.

Still, the goal of reducing all risks to minimal levels is going to be the ultimate goal of anyone who is responsible for managing risk. There's no question that the numbers can be managed, and profits can be made. There is always a danger of one-off litigation or a disaster, but those risks can be numerically scored.

You'll find that all major companies are relying heavily on assurance professionals. The field is growing and is unlikely to slow down. Risks are continuing to grow from every sector. 

Your team should be able to use your processes to keep ahead of the problems. Your employees can learn the correct way to keep risk at bay. Good luck with your assurance program.

Risk sources are more often identified and located not only in infrastructural or technological assets and tangible variables, but also in human factor variables, mental states and decision making. 

The interaction between human factors and tangible aspects of risk highlights the need to focus closely on human factors as one of the main drivers for risk management, a "change driver" that comes first of all from the need to know how humans perform in challenging environments and in face of risks. 

As the author describes, «it is an extremely hard task to be able to apply an objective and systematic self-observation, and to make a clear and decisive step from the level of the mere "sensation" that something is going wrong, to the clear understanding of how, when and where to act. 

Managing Risk

The truth of a problem or risk is often obfuscated by wrong or incomplete analyses, fake targets, perceptual illusions, unclear focusing, altered mental states, and lack of good communication and confrontation of risk management solutions with reliable partners. 

This makes the Human Factor aspect of Risk Management sometimes heavier than its tangible and technological counterpart.

Role of a Debt Counselor in a Debt Relief Firm

Debt counseling is the right choice for people who are interested in helping people in financial crisis. When some individuals find themselves in a financially difficult situation, when they are faced with rapidly mounting debt that they cannot manage on their own, they generally need to contact a debt counselor in a debt relief firm. 

Debt counselors are adept at offering advice on all aspects of finance right from budgeting to wealth management, financial planning relating to debt mitigation or debt relief services. They also represent their clients in court proceedings or creditor meetings.

Expected Academic Qualifications

Beyond everything, a credit and debt counselor is expected and required to have a tremendously strong base in finance and economics, and to possess a working understanding of federal and state statutes, regulations and laws on banking, lending and other aspects of personal finance. 

A bachelor’s degree in business, economics or finance is hence the perfect academic background. 

• Debt Management: Is Settling Right for You?

Your CV will get noticed if you could complement this with a few years’ job experience in the private finance sector. It is noteworthy that several companies value and give precedence to job experience over educational qualifications. To be absorbed into a job, you will be required to attain accredited certification through an examination. 

Necessary Soft-Skills

Besides the knowledge of how to navigate tricky financial situations and come out on top, a debt counselor will need to possess a strong command over verbal as well as written communication as a large portion of his job is the negotiation aspect, which requires him to liaise with creditors, courts and other agencies on behalf of his client. 

An aptitude in mathematics ensures that he is able to crunch the numbers and find the most logical and least expensive way out for his client.

Several employers also stress on knowledge of computers and accounting software. Your communicability is also improved if you are well-versed in a foreign language, which makes it easier for you to serve a particular community besides general clients. 

You will need to blend in with several types of people, and be patient to their plight, hear them out and serve them to the best of your ability. Administrative skills, time management abilities and prioritization are musts for any candidate who wishes to climb the ladder in the debt counseling and relief industry.

What Does a Debt Counselor Do?

A debt counselor is a financial advisor who deals with clients in financial distress. Being a debt counselor, you will be expected to provide emotional, moral and practical support to your clients so that you can see them through their period of indebtedness through financial planning, budgeting, wealth management, and if required, declaration and negotiation of bankruptcy. 

You will have to speak in the clients’ voice and also represent them in all legal proceedings as well as financial negotiations with creditors and their mediators.

The first step of a counselor’s job is analysis. You are expected to list and understand all aspects of the client’s monthly income and expenditure, and also make a list of all the debts, mortgages and leases which have been taken by them. 

Further, you need to prioritize this list to understand which debts are needed to be paid off immediately, so that they do not snowball into much larger amounts. The next step is to devise a payment plan, and then draw up all the paperwork. 

You will need to present your plan to the creditor, negotiate with them and get a written confirmation of the acceptance of the modified payment scheme. The legal aspects soon follow. Several clients may be forced to opt for bankruptcy. In that case it would be your job to help them through it and then assist them in improving their credit scores.

Debt Counselor Job Prospects

The debt relief industry is growing each day, and a steady growth pattern from the year 2010 to 2020 has been predicted by the U.S. Bureau of Labor Statistics. This means that there will be more job openings in the coming years. The indicated median income of a debt counselor in 2012 was $39,420. It is primarily a desk-based job, but sometimes you need to visit offices and courts for liaisons. 

Author Bio: Corey Mather has written several debt reviews and other finance-related articles for his blog. Having worked in the finance sector for over a decade, he has a sound knowledge in this business.

Worried About the Future? Take Control of Your Finances Now

Many people tend to forget that all their habits and spending decisions affect their financial health. Excessive lifestyle and wealthy appearance aren’t worth a dime if it isn’t supported by a realistic and sustainable budget. 

Keep in mind that in today’s market, anybody can lose a job or receive a salary cut. To find the financial footing, you will have to plan ahead and build new habits. Every decision counts and should lead to you living on less than you make.

In your head

Managing money is one of the key skills enabling you to plan the future. It means that the first thing to do is to set your long-term financial goals. In order to do that, you first have to list all your assets and liabilities. This will give you your net worth- a clear picture about your current financial whereabouts.

Next step is to create a personal budget. It’s crucial to know where does your money come from and how are you spending it. This helps you keep track of countless little things you can do to reduce the everyday expenditures. So, put effort to cook at home more often, and save some energy to shrink the bills. Small expenses amass to a large amount after some time.

Take your time when making big decisions and avoid buying on impulse. Visiting a thrift shop won’t hurt your reputation, and it most certainly won’t harm your budget. Learn to say no, and to delay the gratification. Sky is not the limit when it comes to spending, it should be set in your head. 

How about a raise?

If you have debt on your list, try to pay it off as soon as possible. A student loan or a mortgage has its benefits, but interest rates can take a big chunk of your earnings over time. It helps if you have a good credit history, which opens up better loan opportunities. Check your annual credit report, and always strive to improve your credit score.

Sometimes this doesn’t suffice, and people must consider how to earn more money. Finding an extra job is a nice alternative but it’s not always an option. Try to ask for a higher pay, or take on some side projects and extra working hours. Earning money online is today more popular than ever, and there is a myriad of ways to pull this off.

The stock market is another great opportunity for those who know the facts and figures. Even they would have to educate themselves and do the research about the types of brokers and stock hunters. Compare binary brokers with those operating in banks and other financial institutions, and decide which path is best to take. 

Early bird

Even if your expenditures are lower than your income, it’s best to save or invest the money left over. Many make the mistake of spending a ton of cash as soon as they get a raise or other financial boost. They sabotage their finances and end up with an overwhelming debt.

The truth is, it’s never too early to start saving money. That way you can count on a bigger nest egg when you decide to retire. Keep in mind that this is a time when your income drops, but the costs of living don’t. Most experts advise people to save between 10 and 30 percent of their income. You can also start with the smaller amount and increase it gradually.

Starting an emergency fund is also something everyone should consider. Life can be unpredictable and many unpleasant surprises wait around the corner. Spend what is left after saving, not the other way around. Take the long view and keep in mind than all it takes is a determination to get a hold of your finances and your life. 

Future prospects

A starting point of a struggle to improve your financial health is to access your budget and establish a realistic plan. Make wise spending choices and satisfy your needs before any wants. Making an impression on someone and competing with colleagues when it comes to expensive cars isn’t sound financial decision-making.

Tidy up your finances instead, and focus on the future. Even small lifestyle changes can make a big impact on your monthly expenditures. So, set some money aside, eliminate your debt and you are on your way to live a stress-free for the rest of your life.

Top 5 Tips On How To Improve Your Forex Trading

While there is no doubt that each and every one who is in the foreign exchange market wants to make it big, there are many who are not able to make it big. This is mainly because they do not understand the main steps that need to be followed for making it reasonably big in the forex market. 

There is no doubt that there is money to be made in the forex market. However it is very important to understand how to trade well at forex. Here are five important tips that could help to see people making decent money in the foreign exchange market.

Forex Trading is a Serious Business

If you wish to be successful in the forex trading you should understand that it is serious business and one cannot afford to dabble it in it as they do in an online casino game. Yes, there is risk involved in forex trading. Which business does not have risk for that matter? 

The onus therefore lies on you to find out ways and means by which you can mitigate the risks. Hence every time you get into the forex market keeping in mind that there is risk involved, you will learn to be careful and avoid taking rash or impulsive decisions. 

Your main objective should be to ensure that the revenues that you generate from your forex business for a specific period should be more than the expenses and costs that you incur. So, you should learn to look at each and every forex transaction as a cost. This will help you to be more careful and more research and information oriented. 

Learn To Manage Risk And Reward Efficiently

If you are keen on making money in the forex market it is very important for you to draw the right line between risk and reward, and manage that risk effectively. Understanding the basics of position sizing is something that could be considered as indispensable. You should know reasonably well as to how many lots you should trade for each trade setup. This will help you to remain within the risk band-width that you have chosen for yourself.

This will help you to gradually grow your business and avoid massive slipups which could be highly demoralizing or even financially devastating for many. One of the main reasons why people fail in forex trading is because they overshoot their risk appetite or they do not how to adjust their position sizes and activate the much needed stop loss option. 

Over Trading Should Be Avoided

This could be considered as a continuation of the above paragraph. Biting off more than one can chew is perhaps the biggest reasons for massive losses in Forex trading. The biggest challenge is to understand and stop at the point where the risk of overtrading begins. 

This is where many people make the mistake and cross the red line without knowing that they have done it. Being aware of the red line and still continuing with it is akin to taking forex trading as a gambling option than as a serious business. 

Master A Few Strategies

At the end of the day there is no denying the fact that the secret lies in avoid overtrading. To enable this to happen it would not be a bad idea to learn trading off on simplistic price based strategies. It might also be necessary to master them. 

This is because it will provide you with the knowledge that could be helpful in not falling prey to overtrading. Further it will also be not a bad idea to get into some demo trading for the first few months before going to trade with hard money. It will be a good learning ground.

Come Out With a Trading Plan

The next important point is to always have a pre-defined forex trading plan so that you start treating it as a serious business instead of dabbling at it once in a while. You should have a reasonably foolproof business model without which you will not be able to move from one level to another. 

All actions in forex market must be predefined to get the right results. Hence having a plan is of paramount importance.