Growing Your Property Investment Portfolio: Ways to Build a Passive Income

Ways-to-Build-a-Passive-Income“Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity had devised. It is the basis of all security and about the only indestructible security.” – Russell Sage

Part of being a responsible adult is to ensure that you have an income when you reach retirement age. Additionally, the amount you need to save is ever-increasing in value because of the rising median age of the elderly.

Retirement funds are traditionally saved through a variety of investment vehicles such as retirement annuity funds, growing a stocks and bonds investment portfolio tradable on one or more of the global stock exchanges, as well as the purchase of investment properties.

Your property investment portfolio: Purchasing and managing rental properties

While all of the investment vehicles mentioned above are valid and useful, the judicious purchase of residential property as an investment can, and must, be considered a wise choice. As the quotation mentioned above by Russel Sage notes, “real estate is an imperishable asset.

In other words, a purchased property gains value as time goes by; therefore, it makes sense to include the purchase of residential properties as a fundamental part of your overall retirement investment portfolio.

At this juncture, it is vital to note the following caveat:

Real estate does not lose value over time if it is well-maintained and cared for continuously.  Therefore, the question that must be asked and answered is: “How do you, as the investment property portfolio owner, ensure that the properties included in this portfolio not only retain their original value, but they increase in value?”

The succinct answer is to this question is to hire a service focused HOA management company to manage your entire portfolio.

The advantages of contracting a property management company

By way of expanding on this short answer, it is vital to note that there are several benefits to hiring a professional, highly-skilled, and knowledgeable third-party to ensure that your investment portfolio increases rather than shrinks in value.

Here are some of the more important benefits of hiring a professional property manager:

The timelous collection of rental payments

According to Shelly Hagan, in her article titled “Almost 40% of U.S. homes are ‘Free and Clear’ of a mortgage”, less than 40% of all properties are purchased without the need for a successful mortgage application.

This figure translates into the fact that over 60% of all properties are purchased via the mortgage vehicle. And, these mortgages need to be repaid every month using the rental income. If the tenant does not pay the rent on time, the mortgage repayment cannot be met for a particular month; resulting in a default on the property owner’s part.

Source suitable tenants

Additionally, along a similar vein, it is vital to ensure that the tenants that sign the rental contract not only pay the rent on time but that they do not destroy the property during their tenure.

A professional property management company is skilled at, and well-versed in, ensuring that suitable renters are procured to let one of your properties. They run background checks, credit checks, and do whatever else is needed to make sure that only high-quality, responsible tenants move in.

Final thoughts

As the quotation by Russel Sage mentioned at the outset of this article highlights: Investing in real estate “is the most solid security that human ingenuity had devised.” Consequently, it is well worth considering and prioritizing.

 
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Expert Tips to Maximize Your Returns on Cashing Gold Jewelry for Emergencies

In the fluctuating economy of today, we can see that gold is more accepted as an investment than stocks. The price of gold had gone up to 20 percent in this decade. If you are one among those thousands of Americans who would like to invest in gold and then follow the hottest trends on the block to sell it later by getting back a better value, this is the right time. Expert Tips to Maximize Your Returns on Cashing Gold Jewelry for Emergencies

But, don’t be in a hurry to do it. It is essential to know when the good deals come on the hands of the consumer, and it also crucial to do proper homework before buying or selling their jewelry at the typical gold parties or selling it at the local stores. Better Business Bureau (BBB) of America advises the gold consumers that even though gold parties may be a comfortable way to cash gold, they may not always offer you the best deals.

Here are some tips for the sellers to keep in mind while cashing gold to get the best deals.

Understanding the gold scales

The actual weight of gold will determine the value of it, but various jewelers may use different measures as called a Troy ounce. As per the US standard scales, gold is measured 28 g per ounce when the gold is measured 31.1 g per a Troy ounce. Some of the dealers may also follow the unit of weight as pennyweight (dwt) to measure the Troy ounce, and some other may use grams as the measure. A pennyweight is about 1.555 grams. So, while selling, always be alert that the dealers don’t weigh your gold by pennyweight and they pay you based on grams, which is a sneaky trick used by fraud dealers to devalue gold and pay out less for it.

Understanding Karats

The purest form of gold is 24 karat, which is too soft and malleable and cannot be used to make any jewelry.  So, gold is mixed with other metals to form alloys to form it to different products. This mixing is also required for bringing strength, color, and durability to gold. Federal Trade Commission (FTC) also specified that the jewelry items sold in the United States should be described regarding karat purity of the alloy.

One karat is 1/24 of the pure weight of gold. In this way, 14 karats may mean that the jewelry you buy consists of 14 parts of gold and rest ten parts as other metals. The item cannot be marked as gold jewelry if the karat rating is less than 10. So, it is essential for the consumers to know the karat value when we buy gold NY or selling it, to take an informed decision and get the best value for your jewelry. Next, we will discuss some quick smart tips to get the best value on selling gold.

  • Value different karats separately

Don’t value your jewelry of various karats together when trying to buy or sell. Some dealers may try to weigh all jewelry together, which may be of different karats and then pay you the amount worth for the lowest karat ones. So, always separate your jewelry based on the karat specifications before going to a gold party and be vigilant while doing the evaluation.

  • Know the actual rates

Gold price keeps on changing day by day. So, it is ideal to call up a local jeweler or make use of the reliable online resources to know the latest valuation of gold and market price for buying and selling. The dealer who is into this industry for long knows that people are looking for quick cash when they are coming for gold parties and try to take advantage of this haste to offer value lower than actual. So, you have to be well prepared after doing enough homework while attempting sales.

  • Know the buyer

You can check at the jewelry stores online or offline and the gold buyer registry with BBB (online website of www.bbb.org.) You can also find business reviews at this website, which will tell you about the authenticity and reliability of the buyers and you can also check whether there are any complaints registered against them in the past.

  • Know what you go to sell

Some of the items may be more worth when you are selling as they are like the vintage jewelry pieces of the handmade gold articles or so. Some medals or mementos made in gold also may value more than what they are regarding weight and purity. If you have a bracelet of the golden necklace which comes from a celebrity designer or well-known brand, then it may also be valued more some buyers beyond actual.

  • Understand the fine prints

If you select a mail-away type service, then ensure that you go through all the policies, terms, and conditions carefully before taking a decision. On sending items through it, always get it insured. Also, check how long it will take for you to get it reimbursed and how long they will keep the gold before melting it. There may also be a lock-in period to turn down the offer, and it is essential to know this duration too. Always take some photos of the items before sending and ensure that you hold the originals as well as a backup photocopy of the relevant paperwork and filings related to it.

  • Shop around to explore all options

Don’t be in haste of jump in without a second thought when you offer your gold for sales. Similar to buying, you can always shop around to find various bids and also to assess buyers to get hold of the best deal. To make sure that you get the best returns on your gold, always get it appraised by an expert before attempting selling. Buyers do appraise it, but even if it costs you a bit more upfront, it is always ideal for you to get it done by an unbiased appraiser on your own.

Considering all the above points, you also have to be realistic while attempting to sell gold. Gold parties may often be held by neighborhoods or friends, and these may be more about fun than the actual value. Taking all these factors, sellers at typical gold parties may tend to get about 70% to 80% of the actual value of their items.

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To Rent or Own

All of us need a place to live, and most of us need a car to help us get around. When we’re young, we tend to rent an apartment or house, and we may also use a car that our parents helped us buy. As we leave college and become full-fledged adults, we start to realize there are other options out there. By the time we hit thirty, owning may seem like a better idea. It may seem like the more “adult” option. Is it always, though? It may make sense to rent a home and buy a car, or vice versa. The right answer for you depends on a series of factors, many of which can and do change with time.

Vehicles 

Rent To Own a Vehicle
Image: Carmax.com

Buying a car outright or through a payment plan is the best option for a majority of drivers, but leasing also works well for people in certain circumstances. The two biggest advantages to leasing might be the lower monthly payments and the small down payment. The fixed time period can also be a draw for people who lose interest in a car quickly. It’s easier to return a vehicle at the end of 24 or 36 months than it is to go through all the hassle of trading it in. If that sounds like you, then take a look at some of the deals on Best Car Deals Now or a similar site.

Who shouldn’t lease a car? Well, people with a bad credit score generally aren’t great candidates. In fact, you need excellent credit to even think about leasing in most cases. It may sound counterintuitive, but it’s typically easier to obtain a car loan with less-than-perfect credit than it is lease a vehicle. Leasing also isn’t a good idea for people who plan on driving the wheels off their car, since lease agreements charge you on a per-mile basis for going above a certain amount of mileage. If you’ve got small kids, buying is better as well, because those wear-and-tear fees can really add up with a lease.

Homes Rent To Own a Home

A big part of the American dream involves owning a home. We like to imagine raising a family and settling down on our very own parcel of land, regardless of if that land is on a small lot in the city or an expansive one in the country. Despite that, rental rates in America are the highest they’ve been since the 1960s. Blame that on a combination of factors, including residual fear from the housing crisis that began in 2007. People want to buy, but inventories are low and prices tend to be high.

That doesn’t mean owning a house is a bad idea, but it means you should make sure that you’re getting into the market at the right time. Talk to a home financial adviser about what you want, and then talk about what you can get on the current market. You may find that the two are closer than you thought. If not, try to figure out when buying a home might be more feasible, and make a timeline if possible. A dream deferred can still be realized, especially if you make a plan and commit to getting your finances in better order

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