Monthly Archives: September 2008

Author : Scott Martin

When you re comparing shares vs property in an attempt to decide where you ll invest your hard earned money next, it s never a case of one being entirely good or entirely bad Shares and property both have their benefits and downsides The important thing is to look for good choices in each sector, and to decide which option fits your particular situation

For a while, the shares versus property argument was going in favor of property, as far as most people were concerned Investing in property was fashionable With the recent real estate crisis in America property investment is losing its appeal for many However, that doesn t mean that investment property isn t a viable choice Buying property to rent is still a good option, and there s plenty of opportunity available in commercial property

Stocks and shares have bounced back and forth recently, and many people are concerned about their future prospects However, the right choice can mean that, for you, the shares vs property debate comes up in favor of the stock market It all depends on your situation there are good things about both of them Anyone who argues that one is definitely superior to the other hasn t done his or her homework

Benefits of Property

In general, property wins the shares vs property argument for people interested in stability and long term growth Property offers good leverage and strong capital gains Established properties fare better, and it s important to choose carefully Look for good locations and opportunities for price appreciation If you want to be sure of income, think about rental locations as a safe bet

Property investment is something that many find easier to understand than share investment There s a certain level of knowledge and sophistication required, but less technical understanding In terms of shares vs property, property is also more tangible you ll be able to see where your money is going

Investing in property can also give you more control over your investment Property investors have complete control over the investment, where share investors have only the influence of their voting power In terms of shares vs property, Property also gives you the ability to personally add value if you choose to renovate or develop it

Benefits of Shares

When we talk about shares vs property, shares offer high liquidity and good cash flow prospects They re easier to profit on in the short term, if you keep a good eye on shares prices Income is one of the most certain parts of any investment return That means you should look for companies you know to be well managed, which have a good profit record if you think shares are the best choice in the shares vs property debate

In addition to the above, when it comes to shares vs property, shares are much more divisible You can sell down portions of your portfolio without selling the whole thing something that can t be said about property The minimum investment is also usually lower If you can only invest five thousand dollars, that s not a problem

Transaction costs are lower in the shares vs property debate, too The only costs required are brokerage on acquisition and disposal On the other hand, property will have a number of extra costs on both ends, plus the cost of maintaining it Direct share ownership actually has no ongoing costs at all

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Author : Zainul Anuar

Less than 0 8 individual investors have effective asset allocation for their investment And 97 9 of novice investors don t even know how to allocate their cash prior to investing in stock market In this article, I m going to share with you the suggested asset allocation that I used myself for your own references

I bet you must have heard someone saying invest only with money that you can afford to lose At least, this is what I m always saying to myself and to all my loyal readers Nevertheless, when I said so, many reply back to how much exactly? They are hoping some figure or percentage that they can start applying in their cash management So here we go,

Easy Money for Medium to High Risk Investment

First of all, high risk investment is highly subjective to individual risk tolerance Something risky for me might not be risky to you at all It s depend on your knowledge, skills and experience when dealing with such opportunities And of course how confident are you dealing with external factors that are beyond your control; such as market volatility and commodity uncertainties

But for me, medium to short term trading are considered as medium to high risk investment And therefore, I personally allocate easy money for this activity Easy money includes but not limited to bonuses from your employer, gratuity after you retire, or dividends from existing investment With money that I can afford to lose, I can trade stocks with emotionally detached

40 Cash for Low Risk Investment

You might want to apply this suggested asset allocation since you can comfortably put most of your hard earned money into something that you have faith in it And to me, I consider buying great stocks at cheap price as the lowest risk investment ever This is just like buying Berkshire Hathaway shares at only $10,000

Isn t that a no brainer investment decision?

However, the challenges are finding good stocks and have patient not to buy them unless the share prices are cheap enough You can do this by first identifying potential stocks that worth investing After you have shortlisted them all, try to determine how much each stock worth by calculating its intrinsic value Then, buy the stocks once the share prices are within the margin of safety After all, this is what Warren Buffet did all this while

40 Cash Reserve to Further Diversify

If you are thinking of putting all of your hard earned money into stock market, think again The fact is, limiting your investment in one asset classes alone; such as stock market only, can bring disaster No matter how good your investing skills and how much you have diversify your money into different stocks across various industries, I found it just not good enough

Consider diversifying into other asset classes such as real estate or maybe building your own businesses as well

I prefer buying high end properties than others since that market segment seems to be less susceptible to economic condition Real estate investment is a good platform for you to understand how businesses works, especially your negotiation skills Slowly, I venture into some other businesses to increase my return on investment From such activities, I have better understanding on which stocks to invest

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