Posts Tagged ‘Downturn’
What happen to the illegal immigrants in the economy indeed downturn?
Posted by admin in Finance Tuesday, 18 January 2011 12:46 8 Comments
What happen to the illegal immigrants in the economy indeed downturn? Have we seen this before?
Surviving A Downturn In The Economy – How To Do It
Three years ago, my contracting business began to go in the tank. Sales went down by 40% in one year, even after I had nearly doubled the advertising budget. I realized that I needed to find another business to provide for my family and I looked to the internet.
In just a few months online, I was able to replace and actually exceed the income that my prior business had generated. I was able to get rid of the old business and focus totally online.
Many people today are facing what I faced, and the solution for them may be the same as it was for me. The internet, with it’s billions of daily searches, is a fertile ground for marketing. It is also an incredible way to market a product or business opportunity at low or no cost.
Learning how to market online with almost no budget was a key to my success. Once the money began to flow, I began to spend money online marketing, but eventually, I came to realize that the efforts I spent on generating free traffic were by far the most profitable.
Learning how to market for free online is something that many people hope for, but few achieve. The reason so many people fail, is that they get sucked into business opportunities that have no “self branding” aspect to them and the people marketing the products or opportunity get lost in the clutter of thousands using the same methodologies and tools.
The key to truly survive the current economic downturn with a home or online business is to know how to truly attract people to your offer or business.
To effectively do this, you need to be able to create a marketing system that has many points of entry for your prospective customer. Done properly, this can be done in a very part time way, but it needs to be done properly.
Learning to integrate things like article marketing, blogging, videos, social media like Facebook and Twitter, and even chatrooms with compelling landing pages, auto-responders and the correct offer is daunting for many. Every successful online marketer uses more than one of the above methods to market their product unless they are spending thousands per month on purchased marketing methods.
Unfortunately, even purchased marketing methods have many potential pitfalls. It is easy to spend a fortune on pay-per-click marketing and still not make any money.
Fortunately, none of the methods above are difficult in and of themselves. Anyone can easily learn how to use many different methods, but it does take time. Getting through the online marketing learning curve without spending your entire bank account is the best way to achieve success online.
Spending a ton of money on a product or home business opportunity that does not include with it an iron-clad method to successfully market it is the reason why so many fail.
When I first hopped into an online business, failure was not an option. I HAD to succeed to provide for my family. Success depended on the right system, not on the product. Sure, you have to be excited about the product, but I was interested in surviving a downturn in the economy more than I was interested in a product. I found a mentorship program and it enabled me to succeed online within mere weeks.
You can survive the downturn in the economy and a home or online business can be the vehicle. You do need to be very careful about how you go about choosing what system, product or opportunity to market. Make sure you get the proper training and join the right team and you may not just survive, you may prosper!
There are many different online marketing materials available online. Unfortunately, most are not complete as they only focus on one or two methods of online marketing. To learn how Steve learned how to get all of his training from one source, Click Here.
Seven Best Places To Invest In The Property Downturn
Posted by admin in Finance Wednesday, 12 May 2010 09:40 6 Comments
Joe Upchurch, director of Aston Lloyd said, The obvious attraction of buying in an emerging market is that prices are generally low and if you are buying purely for investment in the areas we have identified, things are bound to change.
“We have highlighted the negatives as well as the positives. Each area is not without risk but with due diligence, you should be able to avoid the pitfalls. Owning something in these areas may not impress your neighbours just yet, but in a few years they may well be jealous.”
Below is a snap shot of the report:
1. Slovakia: key emerging market in the European Union, the country’s property prices have risen by 100 percent since 2004, its capital Bratislava has 129 percent of the EU average GDP.
Where to invest: Central Bratislava where yields are high. Gross yields on 100 sqm and 120 sqm apartments are around 10.1 percent.
Watch out for: Minor land issues caused by unsolved heritage disputes prior to 1989 may require a prolonged acquisition procedure.
2. China: Home to 21 percent of the world’s population and forecast to be larger than the US economy by 2045, already the world’s second largest economy based on Purchasing Power Parity.
Where to invest: Shanghai with an increasing demand for high-end property.
Watch out for: Consult with solicitors on precise property rights as given the communist government’s policies, certain property rights are not guaranteed.
3. Northern Cyprus: Plans for reunification with the Republic of Cyprus, combined with average annual economic growth of 12.7 percent since 2003 and annual capital appreciation of 25 percent over the past two years, Northern Cyprus is a key property hotspot.
Where to invest: Bogaz – the coastal fishing village is the hot spot for investment. It is popular for its beaches, sought after restaurants and its strategic location near Famugusta.
Watch out for: With the division of the island in 1974 and the forced removal of residents in certain areas, some claims to property may exist if the island division is settled and displaced northern Cypriots return from the South. Buy through a reputable investment company who guarantee no such claims exist on the property under sale.
4. Ukraine: The second largest economy amongst the former Soviet States, with a predicted sustained GDP growth of 5 percent per annum through to 2010.
Ukrainian property in some areas is now priced higher than Warsaw and Amsterdam. Great potential for property investors for some time to come.
Where to invest: Kiev, has a growing expatriate community, and an increasing demand created for high standard builds in the capital. Prices have been driven up by demand. Supply to meet demand has not been sufficient, indicating that there is still room for investment.
Watch out for: Levels of corruption are high so a competent solicitor is essential. Taxes are also moderate to high. Gross rental income stands at 15 percent while leasing a property is subject to 20 percent VAT.
5. Bulgaria: a full member of the EU and tipped to receive over 8.8bn pounds in EU development funding to 2013.
Where to invest: Sofia, the capital city and home to majority of Bulgaria’s 200,000 millionaires, prices rose 35.21 percent in 2007 – a strong property investment.
Varna is the summer capital of Bulgaria. Euro 30 million invested in villas, apartments, shops and marinas. A lucrative area to invest, particularly in the holiday sector.
Watch out for: Closing costs are high (VAT, municipal tax, notary fees, registration fees and agent commission are paid by the buyer). Costs incurred by the buyer can therefore be up to 25 percent. There is also rental income tax so investors should make sure their investment returns profitable yields.
6. Turkey: Average annual growth rate of 7.3 percent since 2004, Turkey has established itself as a leading emerging market for property investors.
Burgeoning tourist industry and planned reforms ahead of its EU accession, poised to become one of the world’s top 10 economies by 2050.
Where to buy: Belek, Turkey’s golfing mecca with plans to add up to 15 golf courses to its range of 5-star golf retreats over the coming years, Belek is bathed in sunshine for 320 days a year. Property investment has increased by 40 percent since 2005.
Bodrum, the yachting and tourism hub of the country where property prices have risen by 30 percent over the past two years.
Altinkum is cheaper than Bodrum yet 90 minutes drive by car from the prime investment resort town offering varied opportunities for on-sell and lettings.
Watch out for: check the planning so you don’t have ugly builds near your investment; ensure that property for sale is accompanied by title deeds and make sure you get a competent solicitor to explain the terms before making the decision to purchase.
7. Poland: Poised to become the manufacturing hub of Europe, it has experienced economic growth of 6.3 percent since 2006 with a low inflation rate of 2.5 percent in 2007. The country’s housing market is significantly larger than other European emerging markets and mortgages are easier to obtain.
Where to buy: Warsaw, high housing demand and profitable long-stay rental properties.
Krakow, well suited for rental investor with a housing supply that does not meet the demands of its high earning population.
The Tri-City – three adjacent towns of Gdansk, Gdynia and Sopot lie on the coast of the Gdansk Bay of the Baltic Sea and attract considerable inward investment from companies looking to recruit due to its wealth of educated professionals. Sopot ranks as Poland’s ‘best places to live’ by Polityka magazine.
Watch out for: Growth in Warsaw potentially unsustainable; increased due diligence on behalf of investors as some vendors offering inflated prices taking advantage of the boom in foreign speculative buying.
This article was provided by Fly-2let.co.uk – a leading UK based overseas property investment website which specialises in investment homes overseas.
For more information please visit http://www.fly-2let.co.uk.
Ways Investors Can Survive a Market Downturn
Posted by admin in Finance Saturday, 8 May 2010 03:03 No Comments
We all know that a real estate market downturn is frightening for everyone – including investors. When the market is doing well everyone is happy; but, when it starts to go South it can get very stressful. Many new investors sometimes watch veteran investors and can’t understand how they manage through the uncertainty real estate market year after year and survive – often thrive. Well, we all know that not all of them come out on the other side unscathed. Many get scared early and exit the market to avoid getting caught up in the downturn. Some don’t have a choice – they don’t have the capital resources to stay. The real secret to being a successful real estate investor lies in sticking it out through the bad times and capitalizing as much as possible when times are good. So, what should an investor do when the market does experience a downturn? How can investors navigate through and then be in position to take advantage of the many benefits when the market finally goes back up again? First, try to avoid selling in a down market. This may seem obvious, but many investors don’t understand this concept and this is their first response to a crisis. If property you own for investment goes down in value, the best approach is to try to hold onto it until your property value increases. This can definitely be nerve-wracking, but if you’ve done your homework on the real estate market you’ll know that it will come back. The real estate market is cyclical and it won’t remain at a high or a low forever. Timing will vary, but if you can stick it out, the market will recover from a downturn or even a crash. One of the most common reasons that an investor may sell when the market is in a downturn is that they are afraid the market will get even worse. Obviously, that’s always a possibility. The market will have to get to the bottom before it can begin the climb back up. Selling during this down phase of the real estate market is usually an emotional decision that isn’t well thought out. If an investor decides to sell in a down market and then has to scramble to come up with the funds to pay the costs associated with the sale, this is a sure indicator that more thought needs to go into the sell decision. The best plan would be to step back and look at your options before selling the property. Note all the costs required to sell vs. the costs required to keep the property. Make decisions based on facts – not emotions. If an investor sells a property below what they paid for it, the buyer will often wait on the market to leverage the great deal they just got on your property. So, they’ll hold it, repair it if necessary, rent it, and then sell when the market goes back up. Obviously, in this scenario the original investor just gave the new investor a big payday when it may have been possible for the payday to come back to them. So, it’s far better to weigh all your options first. Historically, there are always more renters during a down market than buyers, so renting the property may be a great option. The reason there are more renters in a market downturn (and certainly a crash) is that would be homebuyers can’t get qualified for loans because lenders become more conservative. They implement more restrictive underwriting guidelines and requirements so fewer loans get approved. This puts more people back into the rental group while they wait to be able to purchase. So if an investor does decide to sell during a down market, he should make sure that it is because the decision is the right one based on facts, not emotion. Another important tactic to managing through a real estate downturn as an investor is to put aside some cash when possible. This can be difficult, but to keep extra funds available is a good idea no matter what the market is doing, really. Having the extra money on hand as a cushion until the market settles means that an investor will have options at all times. If possible, look for opportunities during a down turn. A smart investor is the one who finds those properties that someone else can’t or is afraid to keep. Foreclosures are another opportunity in a down market. Sadly, some people don’t manage to pay for and stay in their homes when real estate markets take a dive. This creates great opportunity for an investor if they’re ready.
We all know that a real estate market downturn is frightening for everyone – including investors. When the market is doing well everyone is happy; but, when it starts to go South it can get very stressful. Many new investors sometimes watch veteran investors and can’t understand how they manage through the uncertainty real estate market year after year and survive – often thrive.
Well, we all know that not all of them come out on the other side unscathed. Many get scared early and exit the market to avoid getting caught up in the downturn. Some don’t have a choice – they don’t have the capital resources to stay. The real secret to being a successful real estate investor lies in sticking it out through the bad times and capitalizing as much as possible when times are good.
So, what should an investor do when the market does experience a downturn? How can investors navigate through and then be in position to take advantage of the many benefits when the market finally goes back up again?
First, try to avoid selling in a down market. This may seem obvious, but many investors don’t understand this concept and this is their first response to a crisis. If property you own for investment goes down in value, the best approach is to try to hold onto it until your property value increases. This can definitely be nerve-wracking, but if you’ve done your homework on the real estate market you’ll know that it will come back. The real estate market is cyclical and it won’t remain at a high or a low forever. Timing will vary, but if you can stick it out, the market will recover from a downturn or even a crash.
One of the most common reasons that an investor may sell when the market is in a downturn is that they are afraid the market will get even worse. Obviously, that’s always a possibility. The market will have to get to the bottom before it can begin the climb back up.
Selling during this down phase of the real estate market is usually an emotional decision that isn’t well thought out. If an investor decides to sell in a down market and then has to scramble to come up with the funds to pay the costs associated with the sale, this is a sure indicator that more thought needs to go into the sell decision. The best plan would be to step back and look at your options before selling the property. Note all the costs required to sell vs. the costs required to keep the property. Make decisions based on facts – not emotions.
If an investor sells a property below what they paid for it, the buyer will often wait on the market to leverage the great deal they just got on your property. So, they’ll hold it, repair it if necessary, rent it, and then sell when the market goes back up. Obviously, in this scenario the original investor just gave the new investor a big payday when it may have been possible for the payday to come back to them.
So, it’s far better to weigh all your options first. Historically, there are always more renters during a down market than buyers, so renting the property may be a great option. The reason there are more renters in a market downturn (and certainly a crash) is that would be homebuyers can’t get qualified for loans because lenders become more conservative. They implement more restrictive underwriting guidelines and requirements so fewer loans get approved. This puts more people back into the rental group while they wait to be able to purchase.
So if an investor does decide to sell during a down market, he should make sure that it is because the decision is the right one based on facts, not emotion.
Another important tactic to managing through a real estate downturn as an investor is to put aside some cash when possible. This can be difficult, but to keep extra funds available is a good idea no matter what the market is doing, really. Having the extra money on hand as a cushion until the market settles means that an investor will have options at all times.
If possible, look for opportunities during a down turn. A smart investor is the one who finds those properties that someone else can’t or is afraid to keep. Foreclosures are another opportunity in a down market. Sadly, some people don’t manage to pay for and stay in their homes when real estate markets take a dive. This creates great opportunity for an investor if they’re ready.
John Piper on the Economic Downturn
Posted by admin in Finance Thursday, 6 May 2010 14:16 24 Comments
John Piper talks about how a Christian should respond to the country’s current recession.
Indian Property Investors are Forced to Sell in Loss by Global Downturn
Posted by admin in Finance Friday, 30 April 2010 20:48 No Comments
Young property investors in India are selling at a loss because they can no longer afford to pay the interest and costs associated with owning multiple properties.
The global downturn has set off a panic reaction, inducing investors to close deals at losses. It has become almost impossible for those who invested in real estate last year to exit the scene as the downturn has deepened and the prices being quoted do not even cover the purchase costs and interest expenses.
Typical is 35-year-old Rahul Verma, who works with a Noida-based IT company. He bought a flat in Greater Noida early last year purely as an investment with a bank loan to finance 85% of the cost. Since then his EMIs have continuously gone up thanks to a series of rate hikes by the RBI. However, the prices haven’t climbed as expected and the outgoings have made the property expensive. Rahul is now left with the only option of selling at a loss. And given the global economic gloom, he is willing to take a hit.
‘Several investors are stuck simply because there hasn’t been enough price appreciation in the past one year,’ said Raheja Developers Chairman of Navin Raheja. He said that young investors bought at the peak of the property cycle last year. Many purchased two apartments simultaneously, assuming that they would finance one by selling off the other at a premium. They are now caught in a difficult situation as they bought at a higher market rate and are compelled to service two EMIs.
Some investors have started defaulting. Others are approaching developers to cancel their bookings and return the money. Meanwhile developers are finding it hard to finance projects and banks have started taking proactive measures to prevent defaults in their real estate portfolio by cutting exposure to loans against property.
State lender Punjab National Bank (PNB) has taken a lead and has stopped giving such loans, while Bank of India, Bank of Baroda and Indian Overseas Bank have decided to go slow on such loans. ‘We are discouraging loan against property by refusing to provide overdraft facilities and charging higher margins,’ said a spokesman for Bank of India. Other banks are discouraging such loans by valuing the property at distress level or by valuing the property at the price it was purchased.
The recent changes in Indian economy have made a tough task to the individual young & salaried investors in a derth. However, the RBI action of reducing Repo rate and interest rates of Home loans might give some help in terms of EMI to the investors.
For more details, please visit- http://indianrealtynews.blogspot.com
5 Simple Steps to Take Advantage in a Downturn Economy
Posted by admin in Finance Tuesday, 27 April 2010 06:07 No Comments
Many businesses struggle in this economy that stresses about ways to stretch the dollar and gain customers to maintain business goals. In the month that started with April Fools, it seems fitting to talk about ways to avoid the pranks of an economic recession. No matter what industry or business, the problems and issues facing business owners might seem insurmountable in any economy; however, there are ways to make the most of a downturned economy to help business flourish and grow.
If you are considering your business goals for the first time or seeking to gain a new outlook on your current business structure, think about these Five Simple Steps to Take Advantage in a Downturn Economy:
1. Build your Business Social Network—In the daily hustle and bustle of growing a business, contacts and networking often suffer from a lack of face time. The most important measures for building strong customer relationships and business growth, this is the perfect time to re-establish a connection with past contacts or take the time to build new contacts into your network. From online communities like LinkedIn to networking communities like Women Connections, adding social network to your business can bring heavy returns in connections and support.
2. Gain Guidance—Whether this is your time to discover your purpose or find a support network through Boost your Business Mastermind Coaching take advantage of your time to find the direction needed to amp your sales and gain perspective into your goals. As time passes, it is easy to lose direction and get off track with business goals. Finding a good support structure and examining your business strengths against your weaknesses will help you locate the next steps.
3. Evaluate Your Course of Action—Every business has important things that they do not have time to complete due to day to day activities that are time consuming. From customer satisfaction surveys to email blasts about new products, these steps can function to both build your customer involvement in your company and find new ways to turn past customers into repeat customers.
4. Replan Your Approach—Once you have taken the time to build a network of connections, find the guidance you need to discover your purpose, and examine what steps you are missing from your current business efforts, the next step is to replan your route to business success. With the constant change in communication, functionality, and availability of resources for businesses, it is possible to do more with less and to approach new markets with more niche products. By taking a good long look at the strategies you have been using over the last 12 months (maybe even longer!), you will be able to update your approach to you business with fresh ideas about reaching your customers and understanding their needs. Now, build a new plan using these ideas as a basis for approaching your customer base.
5. Execute Your Plan—After restructuring your thinking, approach, and taking a long hard look at your course of action, you have a new plan of action. The last step is always the hardest: execution and responsibility. Here is where the groundwork of the first two steps really benefits business owners suffering in a downturned economy. Through connecting with networking groups and forming a support structure with dynamic events like Boost your Business Master Mind Coaching Group, you will have a readymade team of synergy waiting to give you feedback on ideas and input on direction with a wide net of experiences and points of view.
When the economy shifts as it has in the past year, business owners tend to feel powerless to control the outcome and overwhelmed by day-to-day decisions. By shifting perspectives and standing outside of the leadership role of running a business, it is both possible and probable to use the economic uncertainty to your business advantage with these 5 simple steps to taking advantage in a downturned economy.
Finally someone who helps women find their stride in business!
Jane Morrison teaches prosperity and business principals to professionals in business.. If you?re looking for more self assuredness, sales techniques that work, strategies to work smarter and not harder, and are ready to start living your dreams, she?s ready to turn your life around. Contact her at jane@smartsavvysuccess.com
For a free copy of Six Steps for Savvy Business Success, http://www.smartsavvysuccess.com/ecourse.htm
Recent Comments