Real Estate 2
When we decide to invest in property, we need to choose what kind of property is worth investing, because there are various investment options depending on how much to invest and how long will you get benefit from your investment.
“Location, location, location” always holds true, sometimes, the property itself won’t appreciate, the growth of its price is the reflection of the appreciation of the land. Therefore, locations like CBD, towncenter, will give the investors good return. If you expect a long-term appreciation of property and you have enough money to invest, then city center will be a good choice. However, as the average price is relatively high, the investors might not expect a rapid or obvious appreciation over a short period.
To those who want a short-term return and not so much money to invest, new developing area may be a good target. When choosing such a place, investors always need to refer to the planning of the city, make sure the area has the potential to develop. If the fact proofs that you are right, it is likely that you can get a good return over a short-term period. However, investing in such places means higher risk than investing in city center.
Friday, December 25, 2009
Week 4
Real Estate 1
After reading sectors about property investment in Paul’s book, lots of thoughts came into my mind. I always pay attention to China’s real estate. During 2009, there was a dramatic growth in real estate, in terms of prices and amount of homes were sold. What I would like to talk about in this journal is how to grab the right moment to invest in property.
There is a common sense that we buy things when the price is low and sell things when price is high. However, in real estate investment, people always buy in when price is growing and sell out when price is declining. This situation is generated due to psycological effect rather than refering to the rational analysis. Investor are used to expect a continous and faster growth in price when the price is already climbing. However, the fact is if you invest in this moment, your possible benefits getting from price increase is actually been pressed down. Even worse, there always a bubble comes after dramatic increase in price. In my opinion, the right moment of investing is when the price is declining, investor need to consider the market fluctuation, if currently, the price in at the bottom, when the next wave comes, the prices will be brought to the top.
Personally, I think investors always have to fight againest their own, get rid of psycological impact, have brave heart, find out the truth of the market.
After reading sectors about property investment in Paul’s book, lots of thoughts came into my mind. I always pay attention to China’s real estate. During 2009, there was a dramatic growth in real estate, in terms of prices and amount of homes were sold. What I would like to talk about in this journal is how to grab the right moment to invest in property.
There is a common sense that we buy things when the price is low and sell things when price is high. However, in real estate investment, people always buy in when price is growing and sell out when price is declining. This situation is generated due to psycological effect rather than refering to the rational analysis. Investor are used to expect a continous and faster growth in price when the price is already climbing. However, the fact is if you invest in this moment, your possible benefits getting from price increase is actually been pressed down. Even worse, there always a bubble comes after dramatic increase in price. In my opinion, the right moment of investing is when the price is declining, investor need to consider the market fluctuation, if currently, the price in at the bottom, when the next wave comes, the prices will be brought to the top.
Personally, I think investors always have to fight againest their own, get rid of psycological impact, have brave heart, find out the truth of the market.
Sunday, December 13, 2009
Week 3
Invest in ourselves
When we graduate from uni, we begin to pursure the opportunities to work.. Some of many friends say it is not easy to get a job, especially the one suits you. I would like to say at the beginning of getting a job, because we are lack of experiences, we need to set the goals close to reality, I mean not too high to reach.
I heard from one of my friends, who has just graduated from uni with a bachelor degree in China. He didn’t obey his parents’ opinion---continue to finish master degree. The reason he did this is when he pursuring jobs, at the interviews, he felt that the only difference between a bachelor student and a master student is the salary. Except this the master students don’t have any priority. The result is he successfully got the job through many competitors due to his commnuications skills and abilities.
That proofs, sometimes, if you can get a job or not depends on your skills, abilities, whether you’ve shown the capability for the job rather than just put your degree certificate in front of you.
Another phenomenon shows in China, most students want to be white-collar with only a minority wants to be blue-collar which now earns higher salary and less competitive. I think if the students can clearly analyze supply-demand relation at the moment, there would be much easier to get a job.
When we graduate from uni, we begin to pursure the opportunities to work.. Some of many friends say it is not easy to get a job, especially the one suits you. I would like to say at the beginning of getting a job, because we are lack of experiences, we need to set the goals close to reality, I mean not too high to reach.
I heard from one of my friends, who has just graduated from uni with a bachelor degree in China. He didn’t obey his parents’ opinion---continue to finish master degree. The reason he did this is when he pursuring jobs, at the interviews, he felt that the only difference between a bachelor student and a master student is the salary. Except this the master students don’t have any priority. The result is he successfully got the job through many competitors due to his commnuications skills and abilities.
That proofs, sometimes, if you can get a job or not depends on your skills, abilities, whether you’ve shown the capability for the job rather than just put your degree certificate in front of you.
Another phenomenon shows in China, most students want to be white-collar with only a minority wants to be blue-collar which now earns higher salary and less competitive. I think if the students can clearly analyze supply-demand relation at the moment, there would be much easier to get a job.
Sunday, December 6, 2009
Week 2
Insurance
“Insurance is a fundamental component of wealth creation. It protects the assets you have now and therefore helps secure the future. It is not a luxury. It is a necessity.” Quote from Paul’s book.
I think in many youths’s mind, insurance is not so important, they cost money, but bring nothing beneficial when everything goes right. However, it is wrong.
"young invincibles" - 19 to 29 year olds who don't get health insurance with their jobs and don't carry individual coverage, often because they consider it a major expense they can live without. According to the report, across America, there are 13.2 million "young invincibles," who make up 30 percent of all uninsured - a number that's expected to climb in this economy.
young adults also have the highest rate of injury-related emergency room visits of all age groups - 46 percent of young uninsured adults reported having medical debt as a result.
It's worth it to pay that little bit of money a month and then be OK, be able to go to the doctor when you need to.
One needs to understand even if you’ve earned a lot of money but without adequate insurance, you may loose the money no matter how much effects you paid for them.
There are many kinds of insurance, what we need to do is to avoid having wrong insurance which would be a waste of money.
“Insurance is a fundamental component of wealth creation. It protects the assets you have now and therefore helps secure the future. It is not a luxury. It is a necessity.” Quote from Paul’s book.
I think in many youths’s mind, insurance is not so important, they cost money, but bring nothing beneficial when everything goes right. However, it is wrong.
"young invincibles" - 19 to 29 year olds who don't get health insurance with their jobs and don't carry individual coverage, often because they consider it a major expense they can live without. According to the report, across America, there are 13.2 million "young invincibles," who make up 30 percent of all uninsured - a number that's expected to climb in this economy.
young adults also have the highest rate of injury-related emergency room visits of all age groups - 46 percent of young uninsured adults reported having medical debt as a result.
It's worth it to pay that little bit of money a month and then be OK, be able to go to the doctor when you need to.
One needs to understand even if you’ve earned a lot of money but without adequate insurance, you may loose the money no matter how much effects you paid for them.
There are many kinds of insurance, what we need to do is to avoid having wrong insurance which would be a waste of money.
Wednesday, December 2, 2009
Week 1
Very happy to do this course, it is the first time that I systematically study financial plan. When I began to see the slides and read the book, I realized that habits are significant. Sometimes, even little thing you do will actually affect your finanical plan.
There are some habits that I think are good to have. One is have a plan. Now I am starting to make a plan for myself. To have a plan to follow, my future will have directions. I also can be encouraged by the plan to work hard in order to achieve the goals. Two is save little, save often, we always ignore the little money we spend rather to take a long-term consideration. Even 1 dollar a day, over 10 years, it will be 3650 dollors. If we save more, the more money we can have to invest and bring back more money.
I also read the book “rich dad, poor dad”. I was impressed by the argument that let money work for you, rather to make yourself work for money. As young men, we want to have big house, nice car…..that makes us easliy enslaved by money, because we want to earn more money. Now I realize that what we should focus on is to learn that earn money by investing, which seems like use money to get more money rather to use ourselves to get money. It is easy to say, but difficult to do, from now on I need to learn how to invest. Go! Go! Go!
There are some habits that I think are good to have. One is have a plan. Now I am starting to make a plan for myself. To have a plan to follow, my future will have directions. I also can be encouraged by the plan to work hard in order to achieve the goals. Two is save little, save often, we always ignore the little money we spend rather to take a long-term consideration. Even 1 dollar a day, over 10 years, it will be 3650 dollors. If we save more, the more money we can have to invest and bring back more money.
I also read the book “rich dad, poor dad”. I was impressed by the argument that let money work for you, rather to make yourself work for money. As young men, we want to have big house, nice car…..that makes us easliy enslaved by money, because we want to earn more money. Now I realize that what we should focus on is to learn that earn money by investing, which seems like use money to get more money rather to use ourselves to get money. It is easy to say, but difficult to do, from now on I need to learn how to invest. Go! Go! Go!
Subscribe to:
Posts (Atom)