Archive for August, 2010
The 7 Laws of Money and real estate investment
‘The Richest Man in Babylon “which was published by George S. Clason in 1955, is a fixture of financial literature, the most inspiring book on wealth ever written, as Fred Siegel, a modern author who has recently adapted to the current reality of financial markets.
The original story tells the story of Arkad, more prosperous men of Babylon (now Iraq), the site of the legendary Hanging Gardens, between the Tigris and Euphrates, and a mythical land of riches and opulence.
Arkad and advice given to acquiring and maintaining wealth are the focus of a book that Fred Siegel decided to rewrite to make their valuable lessons are more relevant in today’s world. These tips are condensed into the seven laws of money.
FIRST LAW: Pay yourself
Fred Siegel defines this idea in a simple manner. “Before you start spending, the best we can do is pay yourself,” which is achieved by saving 10% of monthly income.
Of course, follow this law requires discipline but the good thing is that when it becomes a habit, do not miss the money you’re saving. Moreover, says Siegel, “soon will be proud of that 10% saved and just remember what the other 90% spending.
The property investment can accelerate this process since its yield were also passive income can increase that portion of savings without much effort.
SECOND LAW: Establish budgets to control spending
Of course you can always think: I can barely keep up with what I make now How you may be able to save 10% of my salary? In the same way that organizes the administration of economic activity is to organize the administration of personal finances and expenditures are necessary to define what and what not.
Having taken this reality, it is best to budget for expenses that really are needed to make each month. According to Siegel, is an interesting phenomenon contained in this principle. If you control every euro, the final will be two things.
First, it will cut expenses, like buying a soda or a sandwich, since it is too complicated to write in the newspaper. It will also be possible to see how much it costs per month for coffee daily or buy a newspaper, for example.
What should I consider when buying a property?
When we go to buy a property, there are a number of issues that we must look beyond the number of rooms or personal taste. Here’s what we are …
One of the most important is to distinguish between those things that can be processed through a reasonable investment to the value of the property, and those that are not modifiable, which are the most important because they make the very structure of it.
For example, the location, category of the building, daylight, plant layout. Other aspects, such as a coat of paint, coating, renovate a bathroom or kitchen, are things that can be modified.
The guidelines are applicable to the Southern Hemisphere, in the case of the northern hemisphere must be reversed.
Ø The products most demanded by the average buyer at this time are the boys department at 1.2 and 3 rooms, below $ 100,000, which serve both for personal use as a store of value or rental.
Ø Many stakeholders consulted us about what are the best areas of the Capital. If the destination is housing, not the same for everyone. There are areas and neighborhoods where only move those who already come from there, or have family or relatives there, while others are open immigration in the city, or to which people move anywhere.
Within each neighborhood, the most valued are those with good views, close spaces and green spaces, preferably with good means of locomotion (issue exacerbated by the traffic congestion plaguing the city. In the last five years is first recovered strong north-central corridor of the city, but now the growth is coming to the south.