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Real Estate Investment is now treated as a major case of capital budgeting by using state-of-the-art investment analysis which incorporates the future stream of income it may generate and the associated risk adjustments. There are many ways to finance a real estate investment. Some investors may find it easy to get a loan for a good investment property. Others do not want to use standard real estate financing to buy a property. They would rather use creative financing. You can use any method to finance your real estate deal. As long as you remember there is never something for nothing in the real estate market you will do well.

When you find a property you want to buy the first thing you must look at is how you plan on financing the purchase. This can be in the form of a conventional loan. It is hard to get a lender to take this kind of risk unless you have perfect credit. There must be equity in the home. This may mean coming up with a down payment. You may be able to skip this if you are buying the home at far below the market value. The other problem with a conventional loan is the pre-payment penalties most banks impose. When buying a home to resell, you do not want to have your profits go into making a substantial early interest penalty payment. It makes sense to use this type of loan when you are buying the house as a rental property. For someone who is determined to flip the house, the conventional route is not the way to go.

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I personally recommend one to allocate at least 20% of his investments in to real estates, as it can gives you an average return in the long run as a asset class. Real Estate Investment is now treated as a major case of capital budgeting by using state-of-the-art investment analysis which incorporates the future stream of income it may generate and the associated risk adjustments.

Real estate can be defined as an immovable property such as land and everything permanently attached to it like buildings. The investment in real estate essentially depends on the risks associated with it, that is to say, even if the venture succeeds when the future stream of income will accrue to the investor and the alternative investment opportunities. Real estate investment can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale.

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Residential property prices have crashed. The stock market smashed last year. With the base rate at 0.5%, the best bank accounts aren’t yielding much more than 3%. No wonder investors are looking for alternatives. Even if they only offered similar returns to cash and equity investment, alternative investments would still provide portfolio diversification.
So what are the some of the options available to investors?

Agricultural investment

One interesting alternative is agricultural investment. Buying an arable farm might not be realistic for most investors, but pooled investment funds now allow investors to put as little as £1,000 a time into jatropha plantations (a form of biofuel) via Green Oil Investments, wheat in Western Australia via Hurlingham Capital, and teak plantations in Costa Rica via Costa Rica Invest.

While investors could equally – and more easily – purchase a commodities ETF, these investments give an exposure to land values as well as commodity prices and income. Hurlingham’s wheat based investments offer low risk (the capital value is partly protected) together with yields around 8% a year, and terms from 5 to 7 years. These look highly attractive for the income investor. Other prospects, such as some of the biofuels investments on the market, offer much higher returns, but have potentially higher risks, being based in countries where political risk is high. Not all such schemes offer annual returns; some require a 5-15 year investment period (for instance, in teak, even if bought as an existing plantation).

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Traditional real estate investing is mainly about buying low and selling high, and making a profit from that difference. But nowadays it needs real estate investing strategies with in depth knowledge, proper planning and of course the right strategy to make the venture successful.

Real estate investing strategy ensures that moneymaking investment opportunities are both identified and acted upon in a timely manner to aid the investors’ needs. Innovative real estate investing strategies ensure capital budgeting by using state of the art investment analysis, which includes the future flow of earning, it will generate, and the adjustments of the associated risks.

Real estate investing in the past was once kept for larger financial institutions or wealthy entrepreneurs. But things have changed dramatically in the real estate business. Real estate investing has become a normal way for the investors of all levels to increase wealth and control large amounts of investment property with little cash expenditure.

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Collecting fine art is quickly becoming a more common method of investing and saving money. Putting your money into artwork can result in more of a return than a regular savings account, which is contrary to what most people believe. Many people don’t think of fine art collecting when it comes to managing their money — but nothing could be further from the truth. Here are some common myths about fine art investments and financing.
Some of the biggest myths concerning fine art collecting and finances are that it doesn’t appreciate quickly enough to be a good investment. Also, a widely-held assumption and falsity is that art doesn’t do well in a down-turning economy and that prints aren’t valuable. This article dispels each of those myths and proves that art can be a suitable way to improve your investment portfolio.
MYTH: Art Doesn’t Appreciate As Fast As Traditional Investments
TRUTH: This couldn’t be further from the truth. A piece by Andy Warhol worth $1,000 in 2005 is worth about $3,250 today. Simply put, the art market is consistently showing impressive returns, often beating out traditional investments. Two business professors from New York University agree. Michael Moses and Jiangping Mei have complied and tracked the performance of fine art. The Mei Moses Index covers Impressionist, Modern, American (before 1950), and Old Master artists. “From last year, through the end of 2007, all our index was up 20% while the S&P total return was up 5%,” says Michael Moses (co-founder, Beautiful Asset Advisors).

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With so many Americans maxed out on credit, and a record number of bankruptcies, how can anyone expect to reach retirement safely in the greatest country in the world?

Today’s global economy is more credit driven to the point that the result has been disastrous for the Middle Class.

Americans owe more money than ever before with household debt growing to over 90% of annual disposable income.

Consumer delinquency rates and foreclosures have reached epic proportions. Many households do not have any sort of retirement assets or emergency funds to weather the Financial Storm we now find ourselves in.

How did we ever get into this mess in the first place, and what exactly can the average family do to regain control of their financial life in the midst of all this turmoil?

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Just barely recovering from the stock market fiasco, investors are beginning to rethink the logic of diversification of their portfolio. Many investment advisors are turning to Indian art as an emerging alternative investment option.

Although the concept of investing in art is relatively new in India, art has always been a viable investment option in the west. Art investment in India is gaining momentum with the works of M.F Husain, Tyeb Mehta and F.N Souza being lapped up by international collectors. FN Souza’s work ‘the Birth’ sold for $2.3 million, setting records in valuing Indian art. MF Husain and SH Raza are currently valued anywhere from $200,000 to $1 million. Industry experts expect prices to shoot up to between $5 million to $10 million in the next few years. The growth in Indian contemporary art also reflects the same trend. The prices of works of several famous artists like CF John, TM Azis, Yusuf Arakkal, Atul Dodiya have increased considerably since Indian art reached the international stage.

The potential for further rapid growth of the Indian art market makes it a viable investment alternative. For example, the ET art index (Art index by the Economic times) has grown phenomenally from just 116.53 points in 2000 to 3106.47 in September 2008. According to Arttatic, an independent research firm, the Indian art market in 2008 was valued at approximately $70 million from the $40 -$50 million level in 2007.

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When it comes to investing ones cash these days, it seems more rewarding and exciting to invest in a piece of art. The banks offer little interest and one of the advantages of alternative investments, such as wine, jewellery and classic cars, is that they can always be enjoyed even if financial returns are disappointing. And this is certainly true of art investment.

So what should one look for when investing in a painting or sculpture? Its best to spend a little time studying the artist that you wish to invest in.Do they have an agent? Are they a full time professional artist? Do they have gallery representation and a website ? Have they had solo exhibitions at established galleries?

If your budget doesnt stretch to a picasso or vangogh there are plenty of more affordable young artists

Visit places that sell original art. Go to an art gallery, museum and auction house to develop a sense of both great art and art that sells.

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Australian Aboriginal art has experienced an exceptional increase in popularity over recent years and it’s not just limited to within the home-country. Internationally the art form is recognized as very unique form of art, it is admired overseas and respected by art critics worldwide. Of late, it has also sprung to the attention of not only art investors but also to the wider audience, as wise buyers realize its high potential in the marketplace. As international attention increases and art critics express their respect for Aboriginal works, all kinds of collectors and potential buyers are becoming aware of the solidness of this investment. This art form is described by renowned art critic Robert Hughes as “the world’s last great art movement.”Whilst steeped in what was originally viewed as ethnographic historics, the works produced are very often amazingly modern in design and colour and therefore aesthetically pleasing.

Aboriginal Art is currently seen as the trendiest art scene in Australia, by fat outselling any other type of non-indigenous art and accounting for around 60 percent display rate in renowned Australian Art Galleries. As sales via the major Auction Houses in Australian capital cities will confirm, Aboriginal art is a best seller. As the world is awakening to the unique beauty of Aboriginal Art, prices augment radically. Now it would be a very good time to invest, as prices are considerably rising, and wise investment will definitely guarantee excellent returns.

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You are an admirer of fine arts. Do you collect handicraft, paintings or sculptures or any other artworks just to get an undefined satisfaction or as an investment too? Well, art as an investment has become popular in the recent past. However, there are supporters as well as opponents of the trend who give arguments for and against investing in art.

What’s good in Art Investment

Uncertain stock market returns, interest rates at their lowest in decades, and shaky property market has lead people to find alternative investment options- investing in art is one of them. The rise in demand and consequently in prices, is definitely a good news for people who collect art. Although there’s no certainty that prices will continue to rise, at least art will give pleasure and an emotional dividend by giving the chance to call oneself a collector. From 1875 to 2000, art has outplayed fixed income, but has been defeated by equities. However, in the past 2 years or so, in the wake of stock market losses, art has surpassed equities. Reports say that global art market avoids crash, even in times of economic downturn.

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