Trading Can be a Sport – So Treat It Like One

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In many ways, trading is like a sport. Not just because it gets competitive, although that’s certainly a big factor. (There’s a Trading World Championship, after all!) The mentality you have to bring to trading is much like the mentality one must bring to a sport. Here’s what I’m talking about.

 

Practice your game

No sports success got that way overnight. Michael Jordan didn’t decide one day that he wanted to be in the NBA and then just turned into the best overnight. Just like all the other greats of any sports, Jordon puts years of blood, sweat, and tears into becoming the best. The same goes for a lot of life’s pursuits. If you want to succeed in something, you have to be good – and you need to work to get good at anything!

Is practicing for trading going to involve blood, sweat, and tears? Well, I doubt it will be that vigorous. Maybe you’ll break into a nervous sweat now and then, but it’s unlikely. That’s because practicing for trading can be done without putting anything at stake. You can get a decent demo account and start trading with virtual money. This helps you understand the concepts and flex your financial muscles.

 

Find the right coach

Many sports stars would be more than happy to say that they share their victory with their coaches. The star may have had the raw talent, endurance, and strength. But the coach helped them get to where they are. They helped keep their heads in the game. They helped them attain the knowledge that they couldn’t get by simply exercising and practicing. In other words, they had a good helping hand. And this can apply to the game of trading, too.

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If you don’t want to go at this completely solo, then you can look into working with an investment broker. But just as a sports star has to be careful with their coach choice, you shouldn’t just go with the first broker you see. You need to be very careful when making your selection. As with a sports coach, you’re probably going to have a long-term relationship with this person, and trust is going to be crucial. Get versed in the criteria you need to pay attention to.

 

Coming to terms with failure

You’ve seen plenty of sports stars that have had mind-blowing hot streaks. They’ll score game after game after game. They’ll beat all of their opponents within an impressive span of time. But how many sports stars can you name who have never tasted defeat? Who have never gona a game without scoring? Who haven’t seen turbulence and failure before or during their career?

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Successful traders know what its like to face defeat. They made a bad choice once, or the market suddenly turned against them. It’s something that they’ll see throughout their career. They’ll also have suffered failure a lot before they tasted success. Just look at Warren Buffett – he has a long history of failure. You should be prepared for the occasional loss, because it’s going to happen, especially when you’re starting out. But if you pick yourself up and stay on course, then you could still see amazing success in the end.

The Best Tax Benefits Of Property Investment

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There are many things which attract people to property investment. It’s fairly stable compared to the stock and currency exchanges, and can be extremely lucrative when it’s approached the right way. One more upside to property investment is the range of tax benefits you can draw from it. If you’re on the fence about going into property investment, then here are some of the great tax deductions you may qualify for.

First of all, interest. Depending on what the money is being used for, your loan interest may be tax deductible. You may have believed otherwise, but it actually doesn’t matter which property you used to secure the loan in question. Let’s say you borrowed $50,000 by re-mortgaging your home, and then used that money as a deposit on a rental property. You would then be able to claim the interest back as you’re using it for business purposes. If you’re setting out plans for a letting business, and you plan on using your former home for it, you should seriously consider re-mortgaging. In all likelihood, all the interest on your mortgage will be tax deductible.

 

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Going into property investment will also mean that you can reap the brilliant tax benefits of a 1031 exchange. This is a straightforward and increasingly common move for property investors, and involves trading one property for another through a designated intermediary. By selling one property that you own, and then re-investing in a replacement for it, you’ll be able to defer any ordinary income and capital gain taxes. With their low adjusted cost basis, these taxes can be pretty significant. This is partly why the IRS allows investors to use this valuable exception in trading a 1031 exchange property for another commercial or investment property. When you’re able to defer these taxes, you’ll get a healthy injection of capital. You can then use this to acquire more properties with better investment benefits than you would have had otherwise.

Repairs and maintenance on rental or commercial properties is another area where you could be reaping in significant tax benefits. You may not have known it before, but you can make a provision for costs in the future, even if they haven’t actually been incurred, and claim a tax deduction. However, you’re still legally required to incur those costs. Let’s say you owned a handful of apartments which are part of a larger complex. You receive a notice letting you know that the owners of the complex are planning to have some roofing work done. After some back-and-forth with the contractors, you receive a quote saying that your share of the costs is going to be $6,000. Following this, you can make a provision for your $6,000 slice in your accounts for the same tax year, even though the contractors haven’t done any work yet. As you can imagine, the deductions on this kind of expense can be extremely helpful!

There you have some of the biggest tax benefits of property investment. You may not qualify for all of them, but if you do don’t let them slip by!

 

5 Reasons Real Estate Is A Worthy Investment (And How To Get Started!)

Let’s talk about real estate investments! Are they worthy of your hard earned cash? I’d argue that they are, very much so. In fact, I have five arguments to back me up, written here:

It’s One Of The Safest Investments Around

It doesn’t take an expert to figure out that property has been increasing in value for decades. If you bought a house ten years ago, it would be an absolute bargain compared to today. And, in all likelihood, the value will continue to increase bit by bit. What this means is that real estate is a very safe investment. It’s something you can invest in, and be almost certain it will grow in value over a decade or so. This makes it a much safer investment than stocks or shares, for example. These things are volatile, and there’s every chance your shares can plummet at any moment. All it takes is one event to change the value of someone’s shares. Look at the BP oil crisis as an example of this. When that happened, BP shares decreased in value faster than ever before; many people lost loads of money. Play it safe, and stick to property investment.

You Get More Out Of Your Investment

With a lot of things, you invest in them, and that’s it. You just sit back and wait for them to bring you the money you want. There’s not a great deal else you can get from your investments when you trade Forex or stocks. But, with real estate, you get a lot more for your money. What you end up with is a property that you own. It’s yours to do with as you please. Some people want to renovate it and sell it right away. Others are in for the long-haul, and live in their property while it grows in value, then sell it decades later. My point is, you get more personal involvement out of real estate investments. You’re not just investing in invisible shares or currency pairs; you get something you can use.

Multiple Ways To Make Money

Now, we land on the biggest reason to invest in real estate. What do all the other main investment options have in common? You only make money in one way. You buy something, then sell it when it increases in value. But, with real estate, you have so many ways in which you can make money. Obviously, you can go down the traditional route if you wish. Buy a house, wait a few years, then sell it when it’s worth more. Or, you can try out different options to get more money. Many people choose to add value to their property, so the value increases quicker. They invest in real estate, make cost-effective improvements, and sell it for profit. This is commonly known as property flipping and is a very good way of making quick cash.

Another option is buying a property and then renting it out to other people. This is a very popular method of earning money from your real estate investment. It presents a chance for a regular cash flow, and you can quickly build an empire.

With so many ways to make money, your opportunities are endless. It makes real estate a far more attractive proposition.

Easy To Get Started

Anyone can get started in real estate; there are no proper requirements at all. All you need is a bright mind and a keen eye for properties. Of course, you’ll need some cash to buy these properties with. And, a lot of money goes into buying a house. But, have no fear, there’s plenty of financing options available for you. It’s relatively easy to get a mortgage, as long as your credit history checks out. And, you can always try joining forces with other people and combine your money for joint investments. At the end of the day, real estate is so easy to get into. It’s not an exclusive club that banishes people away. Everyone can get involved, and you should give it a go!

There’s A Property Boom

Okay, this point is very much an argument for the present. At this moment in time, we’re experiencing a property boom. This means the real estate market is in fantastic health. Buying and selling properties can get you more money than ever before. There’s only a slim chance you’ll lose cash on quick property flipping investments. When the market is booming, it’s worth getting involved while you can!

As you can see, there are plenty of reasons real estate is a worthy investment. Personally, it’s up there as one of the top options for you. Everyone should try and own property; it will put you in a commanding position.

Now, I bet a lot of you are interested in learning more about real estate investments, aren’t you? Well, as a treat, I have a few tips on how you can get started. Check them out here:

Register With An Estate Agent

Investing in real estate is all about finding the best properties out there. And, registering with an estate agent is one of the best ways to do this. It puts you on their records, and they’ll notify you of any properties that come on the market. Of course, you can set certain parameters for the agent to consider too. Set a price range and the type of property you’re interested in buying. This helps them filter out any properties that don’t fit your needs and ensures you get the ones you want.

Estate agents have a lot of experience when it comes to finding good properties. It’s their livelihood, and they can help you out a lot. There’s a much better chance of you finding a good investment if you register with an estate agent. Plus, there are other benefits that this can bring you too. For one, they can help you sell any real estate that you might have. So, the selling process is made easier for you too. And, as it says on this page from Bridgfords, some estate agents offer surveying and solicitors too. This means you have all the things you need in one place and don’t have to go out hiring them separately. If you want to invest in real estate, then you’ll need a surveyor and a solicitor, there’s no way to avoid this.

Register with as many agencies as you can, as it will give you the best possible chance of real estate success.

Sort Out Your Finances

As mentioned earlier, you have different options when financing your investment. My top tip is to sort everything out. Get all your financial information together, and figure out the best method for you. Some people might have enough in their savings account to purchase a property right away. If this is the case, then you should go ahead and do it. Remember, real estate is a safe investment; you won’t lose your money.

But, if you need additional help, then you have to consider your options. Are you going to apply for a mortgage, or will you look for some investment partners? Both of these options have their pros and cons. With a mortgage, you get to invest on your own. So, any profits won’t have to be shared out between other people. However, you do have to deal with a mortgage debt hanging over your head.

Naturally, the pros and cons of investment partners will be the opposite of this. You have to share profits out between you, meaning you don’t earn as much. But, there’s no debt hanging over your head, and you haven’t got to go through the mortgage application process.

I can’t tell you which option is the best, it all depend on your personal situation. The important thing is to sort your finances out, so you know which route to choose.

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Invest In A Property That Suits Your Needs

If you’re investing alone, then you have to be very careful with your decision. It’s easy to buy something that doesn’t suit your needs. This is the main way people get caught out with real estate investments. They make the wrong choices, and it sets them back. Let me try and explain this to you in more detail.

If you’re investing for the long-haul, then you want a property that’s suitable to live in. So, you’ll buy a house that you like, and will happily live in for many years. Then, you’ll sell it for a profit as the value increases over time. Simple, right? But, if you’re property flipping, you have a different agenda. You don’t want a perfect property; you want something that you can add value too. So, you’ll be interested in houses and flats that need a bit of work done on them. This gives you wiggle room to increase the value and flip it for a profit.

The point is, different people will be interested in different things. Figure out your needs, and then find a property that satisfies them.

Hopefully, these little tips can help you get your feet off the ground and invest in real estate. As the first five points will show you, it’s a very worthy investment!