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In recent years, money market fund investments have become increasingly popular as investors have become increasingly risk-averse. Particularly, during the recent credit crisis, investors have discovered a sort of safer investments in money market funds as opposed to short-term bonds and traditional savings accounts. However, the drop of the share price of Reserve Primary Fund (RFIXX) below the $1 level (‘breaking the buck’) has shown that money market funds are not the safest of options for risk-averse investors.

Money market funds use the invested money to buy into a large pool of short-term bonds that may include corporate bonds, government bonds or municipal bonds. Unlike other investment vehicles such as stock and bond mutual funds that are subject to price fluctuations, money market funds maintain a net asset value (NAV) of $1.00 per share. This gives investors the feeling that money market mutual funds have virtually no risk.

Money market mutual funds were not supposed to lose their value. Their short-term nature (290 days) provides a considerable level of security against default because, typically, corporate difficulties do not arise in such a short period of time. Theoretically, if a company faces difficulties that would make lending to it a risky option, it would take more than 290 days for the money market mutual funds to exchange their securities at full value. Yet, the default of Lehman Brothers in 2008, the Internet bubble and the implosion of Enron are prominent examples of major companies that defaulted on their debt seemingly overnight.

Money market funds are risky because they are subject to different factors that can drive their price below $1 level. Breaking the buck implies that investors’ returns are less than the invested principal. Indeed, the price decline of the Reserve Primary Fund to 97 cents a share has shown that money market funds can lose their value and be as illiquid as any other mutual fund.

For 2010, analysts cannot estimate accurately when and if there will another surprise related to money market investments. However, there are some factors that are likely to contribute to money market funds ‘breaking the buck’ barrier, affecting their value.

In particular:

a)      Company’s declining assets

Since mid-2009, capital markets have been on an uptrend bull rally as many companies reported profits. On the other hand though, the banking sector continued to fail and job losses continued to mount across several industries. For 2010, the uncertainty is likely to limit investment, while new regulation for investor protection are likely to be implement throughout the year. In such an uncertain and turbulent environment, companies may not be profitable enough to sustain a net asset value of $1.00 in their bonds. If the company whose bonds the money market funds owns faces financial problems, the bonds’ value will decline causing a proportional decline in value in the funds owned by each shareholder.

b)      Investors redeeming simultaneously

In majority, money market funds are invested in short-term bonds that have similar maturity dates. If a large number of investors redeem their money simultaneously, it will create a major problem of liquidity in the market that will cause loss in the value of money market funds. Large simultaneous redemptions could lead a money market fund to sell a part of its assets prior to their maturity date. This may cause a decline in the value of fund.

The truth of the matter is that ‘breaking the buck’ happens all the time. Investors may not realize it because it is not obvious, but considering that they spend their after-tax, after-inflation money, it is certain that by factoring in tax and inflation, money market funds lose their value.  However, as this is more a technical thing, investors seek for the confidence level associated with the fact that the NAV will almost never fall below the $1 level.

Money market mutual funds diversify their short-term investments to protect investors against unexpected difficulties. In doing so, even if one company were to unpredictably default on its debt, the other investments would trade-off for those losses. Besides, in case of a widespread fluctuation in the short-term debt markets, the price of all short-term securities could drop considerably regardless of the financial situation of the individual companies that issued the debt. This explains the “breaking the buck” situation of 2008 where several money market mutual funds collapsed.

Investor expectations in relation to net asset value, particularly after years of consistent NAV, are that a major crisis is required to cause a severe fluctuation in the net asset value of money market funds. However, as investor confidence is shaken, it is possible that, in 2010, money market funds are not an option, unless investors feel protected under new regulations that will allow borrowing and investing with evident reassurance. The Treasury temporarily guaranteed money market mutual funds aiming to put off further investor confidence problems in the short-term debt markets. To that end, the Federal Reserve guarantee that was originally scheduled to expire in October, 2009 has been extended until February 1, 2010.

Christina Pomoni has acquired her MBA Finance from the American College of Greece. Her advanced familiarity with financial statement analysis, capital budgeting and market research has been acquired through her professional career at high-esteemed organizations. As part of her long journey, Christina has served as an Equity Research Associate at Telesis Securities (EFG Eurobank) and a Financial & Investment Advisor at ING Group. Besides, having lived at Chicago, IL, Boca Raton, FL and Paris, France has helped her, not only to be a successful professional, but mostly to see life under a more creative and innovative perspective.

Since 2005, Christina provides high quality writing services to numerous websites and research companies contributing her knowledge and expertise. Her areas of specialization are Business, Finance & Investment, Society, Politics & Culture. She also has a very good knowledge of Entertainment, Health & Fitness and Computers & Technology.

Christina currently designs the website of her own writing company. Believing that knowledge is the road to opportunity and development, her mission is to promote her already established knowledge to a growing number of visitors and to provide high quality writing services to meet the most demanding customer requirements.

Article Source:http://www.articlesbase.com/investing-articles/how-safe-are-money-market-mutual-fund-investments-for-2010-1656681.html

n March ‘09 the American dollar index touched 52.1850, its highest point this year. Since then, however, it has been a steady downward drift for the greenback. Come December 09, the dollar index had slipped to 46.5547 (15 day average), its lowest point in more than a year.

Source – www.x-rates.com

Earlier the economic risk of the Indian rupee was typically one-way: downwards. Undoubtedly, the Rupee was expected to weaken against the Dollar. Thus, most NRIs preferred leaving their money in foreign currency or FCNR deposits – the low yield on these deposits would be more than made up by a continually falling Rupee, thereby making the Rupee wealth of NRIs grow with time.

Now, however, the situation has changed. The Indian economy is sitting on large foreign exchange reserves (> $250 billion). Given that India is now more globally linked than at any other time in its recent history, the impact on the value of its currency is that it is buffeted by international trends.

Whatever might be expected to happen in the short term (1-3 months timeframe) with USD/INR movement, over the next 1 year it seems that the Rupee is headed for a moderate strengthening against the Dollar from its current levels? This would be based on current fundamentals of asset market as well as pure demand and supply driven.

On the fundamentals side, India is expecting a rate hike by March 2010, which now appears a near certainty and given the Fed’s stance on continuance of easy policy in 2010, rate differentials in Asia pacific and the west should widen and put further pressure on the US dollar. This coupled with sustained growth signal from the RBI and its comfort of clocking GDP growth upwards of 6% in fiscal 2010 and possibly higher growth in fiscal 2011 puts the demand supply situation of the USD/INR market in favour of the latter.

The last point which makes the case for a weaker dollar from an Indian context is also the fact the should there be a correction in the equities market, valuations would look compelling in medium term thereby making way for more dollars coming into lending strength.

How does it affect you?

NRIs investing back in the US will have major set backs. For example, last year you could buy Rs. 4.5 lakhs worth of property in just $10,000 now it requires $11,500, an increase in the dollar spend. Similarly if an NRI is sending money back home an average $1000 yielded Rs. 43,000 but now only yield Rs. 39,000. On average there is an 8% decrease in the yield.

Interest rates in India are close to 8% for fixed deposits (9% for senior citizens). Interest rates in the US are also around 5% and further going down. The debt portion of the NRI investment portfolio (earning 4%-5% in the US) if held in dollars will not keep pace with the increasing inflation in India (which is a lot higher).

Steady erosion in the US Dollar will severely impact the NRIs. Most of them hold dollar assets – (their future earnings held mostly in dollars) which on purchasing power parity basis will also diminish. While they enjoyed the ride when the rupee slipped to Rs 52, they will have to unwillingly give away a fair proportion of these notional gains. In rupee terms, they would steadily lose a certain portion of their net accumulated wealth each year.

The depreciating dollar will also increase the cost of living in the US as most of the items of general consumption are imported from developing countries (India, China, South East Asian nations etc). The comforting factor is that for Non Resident Indians who have no plans of returning to India- the dollar rupee equation may not hold much relevance.

However, if NRIs intend to return to India/ have returned and hold assets abroad should re-look at their financial goals and evaluate what their country wise allocation should be; i.e. If 70% of their goals are in India, they should systematically start moving funds to India accordingly.

For more information go to investmentyogi.com

Article Source:http://www.articlesbase.com/investing-articles/implications-of-falling-dollar-on-nri-saving-and-investments-1633057.html

Inflation affects your earnings, your investments, what you can purchase and your lifestyle. It may seem like a technical concept best left to economists to discuss, but here’s why you need to know more about it.

In March 2010 various agencies are expected to assess inflation for the fiscal year of 2009-2010 at anywhere from around 6.5% (RBI estimate as of October ‘09 policy review) to 8% (as per Citi economist Rohini Malkani, noted Dec 14, 2009 in the Economic Times).

That means, since the previous tax year, on average goods and services in India will cost from 6.5% to 8% more than the previous year.

With luck, you may have had a salary increase of that amount to keep up with your lifestyle expenses. With the economic downturn, you may not have had the increase.

What about your investments? If you held a diversified portfolio with debt and equity and earned around 15%, you are doing well. You earned money in real terms. Anything more than that is icing on the cake (provided the investment continues to do well, that is, or you sell it). If you held all your money in FDs yielding 6% to 7% or in a cash account at the bank earning 3% to 4%, then you actually lost money this year. You will be able to purchase less for the same price than you could last year.

This concept is hard to accept: you want your money to be safe and stable but in going the totally safe route, you may be losing money long term. Many Debt products can be safe options and return a bit more than inflation. A Provident fund investment (obligatory for many in large companies) earns currently around 8%.

We are not discounting debt and other safe options for your money—it is an important part of every portfolio, giving stability through assured returns, safety through the fact that it is a non-correlated asset (meaning debt won’t decrease in value when shares do, usually it will increase in value) and an assurance that it will be there no matter what. If all the companies that we invest in through mutual funds and/or directly, went bankrupt (obviously not likely), in theory, the Provident Fund and other debt options would still be there to see you through.

Really the best option, however is to be sure you have enough diversity in your portfolio to allow for growth, best captured through equity. Equity tends to grow faster than debt and usually outpaces inflation.

Inflation is more important for emerging markets like India than developed markets. The currency, economy, prices and general economic system are more volatile and growing faster and will generally produce sharp swings in inflation that must be closely monitored. If you watch carefully, invest well and are well advised, you can do well. In a highly inflationary environment, investments will often also earn higher returns to reward investors.

Inflation is often matched by fast growth rates which produce good earnings for companies that people and mutual funds invest in. But it musn’t get out of control. This is why the government closely monitors inflation to make sure it won’t get too high. If it does, watch for fiscal and monetary policies like taxing inflows of foreign dollars, raising interest rates and removing any stimulus measures put in place during the economic slowdown. One impact of the very slow to negative growth we are currently seeing in many of the Western countries is near zero inflation. It corresponds to growth.

This is why inflation is not static. Inflation for assessment year 2007-2008 was 4.5%. It changes all the time and we are not able to predict it with great accuracy. This is why it helps to keep an eye on it.

Another factor to be aware of is how uneven inflation can be. Education costs in both the USA and in India have far outpaced average inflation for many years. At InvestmentYogi in our financial plans, we currently use an inflation figure of 6% (this represents a historical average with future predicted inflation factored in) and an education inflation figure of 10%. This is important when planning your child’s higher education, whether in India or abroad. Food prices worldwide also fall in the higher inflation rates (for November alone increase was 19% as per Economic Times of Dec 14), and are expected to for years to come, while other consumer goods may not have changed prices or may have gone down.

Retirement is a key area to watch out for. You must save large amounts and save early in order for earnings and compounded growth to increase sufficiently to support you in your old age. Think about 7% (if inflation stays there!) per year for the next 40 years. Just make sure that money is diversified in your investments! And for current retirees, they need to have access to “Safe” money but woe to those who don’t hold some equity and are looking at the next 20 years in retirement. That is a long time to make your money last in a world of rising prices. The era of company-offered pensions is declining and one must look out for oneself. Even those with a pension will fast find its value eroding if the pension amount is fixed and the economy is not.

Aside from diversification, there are some other tools to look for. Pension funds you can buy generally track inflation, as do some other investments. This is a sort of guarantee that inflation will not outpace your funds.

Whatever your strategy, be aware of the inflation rate and make sure you are keeping up with it, if not surpassing it, in your investments and other earnings. And be sure to talk to your elders about these concepts, which may be foreign to them. Older people tend to prefer “safe” investments but make sure they are not being so safe that they lose money! Once their earning power is gone, they need the money more than anyone else.

Article Source:http://www.articlesbase.com/investing-articles/impact-of-inflation-on-your-savings-and-investments-1607508.html

Are you dynamic? Or are you safe? Are you one of those aggressive investors who like to try out the fast moving stocks even if it means taking a lot of risk? Or would you rather be the conventional investor picking only select stocks that display a predictable behavior? Or maybe a bit of both – playing by the ear – one who takes measured, calculated risks? If so, then the Small-and-Medium-Indian-Leading-Equities (SMILE) that was launched in February 2005 by Sundaram BNP Paribas Mutual Fund could be tailor-made just for you.

Sadly at that point of time, stock prices as well the Sensex & Nifty were high and there was plenty of scepticism in the markets about the impending bear phase. This is October 2009 and now that we have left the bears behind us, (as we can safely say) and with the Sensex crossing the 17,000 Level and also from the macro economic point of view, the general faith in the economy and the markets has been substantially restored. The pumping in of funds by the FIIs and a good & stable functional government have worked towards bringing in adequate liquidity in the financial system which in turn has enhanced the level of optimism in the Indian market as also in all the Global markets which bottomed out together around February-March, this year.

It has been a noticeable trend in the recent past that Mid Cap and Small Cap stocks tend to outperform the Large Caps in the longer term. It is because of this reason that SMILE intends to have Mid and Small Caps as its strategic focus with a cushion of 35% on Large Cap stocks.

Key Features of the Scheme

• Aggressively managed multipurpose fund
• Capital appreciation by active, sector, trading & cash calls
• Focus on Mid Cap & Small Cap with a cushion of 35% in large cap stocks
• CNX Mid Cap Index Bench mark adopted for comparing with standard returns
• Capital curve bias towards Mid Cap & Small Cap (together minimum 65%) and Large Cap stocks (maximum 35%)

While the aggressive approach of the fund involves higher risk, its primary focus on dynamic stocks would also lead to returns that far exceed the standard benchmark.

The important feature of this portfolio is that its investments in Large Cap stocks is flexible up to 35%, acting as a safeguard against the risk due to volatile market conditions.

The SMILE portfolio is an opportunity to investors to invest in Mid Cap & Small Cap stocks while at the same time providing a stable Large Cap exposure of 35%. So go ahead, seize your chance to SMILE!

Paramita Banerjee is an Investment Banker based in India and shares her ideas and experience through her articles.

Article Source:http://www.articlesbase.com/investing-articles/how-you-can-make-your-investments-smile-1603020.html

Residential real estate is one the best investments available today. PERIOD. I’m not suggesting that you should invest your 401K in the junk foreclosure next door. But I am suggesting that investing in the mortgage on that foreclosure is a GREAT idea. And it is an ultra safe, secured investment as I’ll explain a little later. In spite of the horror stories you have heard in the past year about banks and foreclosures, NOW is the time to buy. While the market is flooded with an excess of homes, the pricing has never been better. Whether you feel the bottom is here and prices are soon going to rise or you think the slide will continue, we have an investment plan for you.

For the faint of heart who just want a guaranteed high return on a safe, secured investment, check out this scenario:

We buy houses in the Atlanta area and have gotten pretty good at buying at DEEP DISCOUNTS.Sometimes we don’t have time to wait 4-6 weeks for a bank to process a loan, so we find private investors with some cash to invest. This can be from a self directed IRA or 401K or perhaps an inheritance. Your trustee wires the funds to the closing attorney who issues the same documents furnished to a Commercial Lender; title insurance, a security Deed to the property and a Mortgage paying you or your plan, the highest, guaranteed interest rate you are likely to find today. Your investment is very safe because we do not borrow more than 50% to 60% of the current market value of the property. So even if real estate prices slide another 20%, your $50,000 mortgage on a $100,000 house is still secured with a property worth $80,000. That is about as SAFE and SECURE an investment as you can make. The demand for housing is guaranteed as the U.S. population continues to grow and Atlanta is still among the fastest growing in the Nation. Prices may continue a little further decline, but no one is expecting a 50% drop. For a detailed description of this program, visit our website HiderInvestmentGroup.com and if it appeals to you complete the contact information form.

If you are a little more agressive and can tolerate a little risk, you will love this plan. Become a partner with us and share in the profits. Banks are eager to sell foreclosed homes for 40-50% of current market value. The banks must get these homes off their books as soon as possible and with private investors, we can close very quickly so we get many deals even when we are not the highest bidder. The Private Investor is protected by the mortgage, title insurance and Security Deed, just as any Commercial Lender would require.

Your investment is still safe and secure but we can’t guarantee a particular rate of return. Your return is likely to be much greater than with our guaranteed program.

Many economists are predicting Hyper Inflation in the very near future and they recomend investing in hard assets like real estate. I remember in the 1970′s when inflation was 20% per year, house values would double every 2-4 years. With all the money being pumped into the U.S. economy now, I’m betting 20% inflation will look mild in 2-3 years. Now is the time to invest in safe, secure real estate. Whether you want a guaranteed hight rate of return or you want a chance to see your funds increase even faster, fill out the contact information form and Get your retirement plan off the dole and put it back to work!

Full time Real Estate Investor and Professional Home Buyer, we specialize in buying houses in Lilburn GA, Snellville, Lawrenceville and Loganville, GA. We frequently use Pension Plan money of other investors to fund our purchases.

Article Source:http://www.articlesbase.com/investing-articles/great-guaranteed-high-returns-on-really-safe-secured-investments-1562257.html

In today’s economy, you need the income from your investments to fund your retirement.  You cannot depend on social security income to pay your expenses after retirement.  Social security just barely covers your basic living expenses – if at all.  Whether it’s medical expenses, the desire to travel or even the desire to have more than just a minimal life style, you’ll need some additional income.  You must have a financial plan – a road map to get you to where you want to be.  This means you must be aware of and understand the different kinds of investments available to you.

Here’s a brief description of some options.

Retirement/401K Plans
Many employers offer 401K plans.  Money is deducted from your paycheck on a tax deferred basis.  It is then invested for you in a variety of ways.  Some employers will even offer matching funds to really help put building your next egg on the fast track.

Life Insurance Policies
Life insurance policies are an important part of estate planning, especially if you have a young family.  Should you die, money will be available to your survivors to help them maintain their life style.

Corporate Stocks
Purchasing stocks gives you ownership in companies.  Historically, stocks have been a substantial portion of many individual’s portfolios.  Many companies also offer dividend re-investment plans that will help grow your nest egg for you.

Bonds
Bonds are promissory notes issued by a municipality, the federal government or private companies.  Bonds come in several varieties.  Some are tax exempt.  All bonds are rated according to their safety.  Research any bond before you invest in them.

Mutual Funds
Generally, mutual funds are a “basket” of funds from several different companies.  Research any mutual fund you’re interest in – different funds have different goals, investment philosophies and, as a consequence, have different track record.

Money Market Funds
One short-term investment is a Money Market Fund. These are offered by banks and investment companies.  They often work much like a checking account and pay a nominal amount of interest.  

Annuities
Annuities are generally available through insurance companies.  Terms vary from company to company and between the various types of annuities.  Generally, an annuity is an investment that pays a specified amount of money on an annual basis.

Certificates of Deposit
When you buy a CD, you agree to deposit a specific amount of money for a specific period of time.  CDs pay a higher rate of interest than savings account.  If you do redeem a CD early, however, there is a penalty.

Real Estate
Be careful about investing in real estate.  Lately, values have declined and owners have found themselves “underwater” – they now owe more on the property than they can realize in a sale.  

These are just of a few of the options available to you in investing.  No matter what you decide to do, do your research first.  There are many sites on the Internet that will provide you with basic information – the rates being earned by CDs for example.  

It is important to realize that you must save for your retirement and the sooner you start, the better.

Larry Haywood runs the site mystockmarkettips.com which is a stock market news and tips site. Interested in Forex trading? Read our article: Do Forex Robots Work?

Article Source:http://www.articlesbase.com/investing-articles/a-primer-of-basic-investments-1551462.html

Safe High Return Investments – Investment Opportunities That Make Money

The age of severity has replaced the age of greediness, and we will have to adjust purse zip and investment plan accordingly. Many People are asking the questions, where to invest, how to invest, where to find investment ideas or investment opportunities, and how to make profit from lucrative investment idea.

1. Investors are grabbing self-help products, and leadership coaching programs that make money, and make profit fast. you can follow me on twitter  www.twitter.com/ziziworld or you can invest in my current ‘Rapid Dream Goal Achievement System called   N.V.LS.E and I have related products that need investment. You can contact me on 00 – 44 – (0) 7999 579 135 Andre

The wave detour in the global market was predicted a year ago when Market analysis sent report on investment ideas that investment in banks, stocks, mutual funds are high risk, and most of them have collapsed

Diversify investment opportunities into self-help coaching system is the smartest and more lucrative investment opportunities that has a potential of residual multiple stream of income. Smart investment and investors don’t sit around and think about an investment opportunity forever, or spending half of one’s life asking questions such as Where to find the best investment? How to make profit? How to invest? Where to invest and make profit? How to Save and make money the easy, fast and profitable way.

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After horrid year for stock investors, the idea of putting money into anything other than cash must seem like advice out of left field. There are investments that make profit whatever the current economy deals which will help you to ride out the recession safely. Invest in N.V.LS.E. Low risk investment in self-help like N.V.L.S.E sits at the forefront of modern science; this is the best time ever to invest in this coaching system.  Contact the pioneer of this system 00 – 44 – (0) 7999 579 135

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Bio:Andre Zizi is a philosophy graduate and a philosopher, trained in the educational Psychology, with NLP Dip, teaching qualification, writer, mentor, philosophical counsellor, and independent neuroscience researcher. I can be contacted on 00 – 44 – (0) 7999 579 135 and available to meet for informal chat, and drink in London, UK.

IF  for you cannot reach me on my cell phone, find me on skype. My ID: Andre-Zizi

Andre Zizi
Author – The Spiritual Psychology of the Science of Money-Phology
A Philosophy Graduate & Therapist. Philosopher/Mentor/Teacher

Article Source:http://www.articlesbase.com/investing-articles/safe-high-return-investments-opportunities-closing-down-in-january-2010-1533123.html

Before setting in on a definite agreement, calculate the amount that you are allowed to borrow using variables such as annual incomes and monthly outgoings. These are essential computations in order not to be engulfed with debt down the road. Next, you should speak to a local financial advisor or attend seminars which feature talks on the best mortgage deals. Not only that, ensure that your credit score is at optimum level so that the application is easier to be approved.

The most frequent covenant is a fixed rate mortgage deal which has a permanent interest rate. You can invest in for 10 to 20 years and save more on the interest. Initial rates usually range from 1.98% to 3.4%, depending on the provider’s policy. Basically determining the rate of interest for a specific duration enables a rest-assured conscience for the borrower. This option is also recommended for those with non-supplementary salary and cannot easily attain an added bonus.

The other option is the adjustable rate mortgage deal, where the interest rate can change during the whole course of the payment. The initial rate is when there is a specified period of time that the borrower pays a fixed amount. This is called the adjustment period. Then the interest rate is decided based on the index rate, which is heavily influenced by national or local average cost of resources and credit links.

Interest rate adjustments are made every half a year, usually affixing 1% of change. Then, an increment of 2% for the next payments on an annual basis is levied.

All in all the best offers pour in when you have a good credit record so that your financial credibility is recognized by the provider and the possibility for yourself to receive the best rates are significantly higher.

At the end of this article, I’d like to share cool website with more information on topics like mortgage comparison and best mortgage deals . Visit for more details.

Article Source:http://www.articlesbase.com/investing-articles/pledging-for-the-best-home-investments-1484819.html

When it comes to property investment, many people start with ‘what they know’. This means buying a property, renovating it and then selling it on at a profit, or buying a property then letting it out.

However, once you have some property investment under your belt and before you look to do ‘more of the same’ then it’s worth making sure that your next investment(s) work in good and bad economic conditions, perhaps deliver a return at different times or in different ways to your existing investments.

So what does your property investment deliver at the moment? Not sure? Then write down the following:-

What have you invested?
Don’t forget to include all the costs you have incurred from legal fees to surveys, required certificates (building control sign; gas safety certificates etc), any agent’s fees as well as large sums such as deposits.

What have you earned?
Calculate what your investments have delivered to you to date. Increased capital? Net income?

Work out the return
Then take the total amount your investments have/are delivering to you and divide this by the amount you have invested.

Check this against other potential returns
If you are investing in residential buy to let, check the returns you could be getting against commercial investments. If you are doing renovations, check what you could get if you bought land and built a property. Even better, check the buy to let returns against building a property and then renting it out.

Always check your investments against your exit strategy!
It’s not easy to work out whether an investment works for you unless you have a clear exit strategy. Make sure that you know what you expect your properties value to increase to, what income you need to make it worthwhile holding on to your property asset. 

Understand market conditions!
Also be clear on what’s happening in the market. Some people worked out that selling in 2007 at the height of the market was a good idea, they are the ones investing back in the market now as they have the cash to do so.

Having done your research you may find something that gives a better return to your investments. However you also may decide to ‘carry on with what you know’. Either way, at least you will have done your investment due diligence and know if there is a property investment opportunity that makes sense to add to your investments or not!

Kate is one of the top property experts in the UK and regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express, and has appeared on BBC2, as well as featured on BBC Radio 4 and a number of local BBC Radio stations.

Kate has also been a consultant to the property sector for a number of years and is the author of a number of books, including four for Which? – Buy, Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook.

Contact Kate Faulkner at http://www.designsonproperty.co.uk/

Article Source:http://www.articlesbase.com/investing-articles/why-you-should-diversify-your-property-investments-1423989.html