The Easiest Stock Investment Strategy - Invest in Dividend Paying Companies

By Rikhi Raj Sachdev 

The best stock investment strategies are the ones that have been proven over a period of time, the longer the better. Few investment strategies have withstood the test of time. Great investors throughout history have used different approaches to investing according to their temperament and goals. The goal of every investor is to make money and compound their way to financial freedom while protecting their capital, whether the investor has a long term or short term view.
The different approaches are Value investing, Growth Investing and Income Investing and or Dividend Reinvesting. Each of these approaches can be used by the long term or short term investor, whether he is a day trader, momentum trader, contrarian investor, turnaround situations, buy and hold investor. These approaches can be used singly or jointly. Remember, every investor wants value from his investment. Everybody wants a bargain. Bargains can be achieved by analyzing the fundamentals of the company or by technical analysis.
Why is investing in dividend paying companies is the strategy to invest in the stock market when compared to other strategies? It is because once you have completed your analysis and you have decided to invest in the company, all you have to do is monitor the fundamental of the company including the payment of dividends.
Analysis of dividend income investing, value investing or growth investing is basically the same. All styles take effort and time to complete. However, keeping of income dividend is the easiest as you do not have to monitor the share price movement on an daily basis. With income investing you only need to monitor the fundamentals and dividends on a monthly, quarterly, semi annually or yearly basis. This gives you time to enjoy life.
All of the strategies study the Balance Sheet, Income Statement, and Cash Flow Statement to calculate the ratios such asset growth, rate of liability reduction, sales growth, earnings per share growth, and return on equity. Once a suitable company is found, then the investor studies the strength of the management. Finally, the investor calculates the intrinsic value. Intrinsic value is the value of a company based on an underlying perception calculated from different ratios of the business. If the market price is lower than the market price, then the investor has found a bargain.
The difference of each strategy is minimal that is seems they are the same. However, it is important to realize that each strategy seeks a different end result. Dividend income investing primarily seeks income first, value second and growth third. Value investing seeks value first, income second and growth third. Growth investing seeks growth first, value second and income from dividend is not important for growth investors. In reality all are seeking value hoping to profit from their investment strategy.
For each investor the value is different. The best strategy is dividend income investing because while waiting to get capital gains from growth you can still earn passive income along the way. Better still you can reinvest divined income to compound your net worth without having to sell the investment. You can hold the investment forever or sell when you think the full value as been achieved. With growth investing to only way to achieve income is to sell the investment. Why would you want to sell an investment that has grown in value? Therefore, income investing is always better. Remember, you must find value in every investment, you cannot pay too much for an investment otherwise you will never get value. As Warren Buffet says "price is what you pay, value is what you get". What can be a better value than getting immediate passive income from dividend income investing?
So, are you looking to be an active stock investor, yet do not want to monitor your investments the whole day. Do you want to invest solely for growth or do you want income which will lead you to financial freedom through compounding your income.
All of these stock investment strategies can be used to achieve success. Do you want to choose the easy or the hard way? I am quite for the easy method will be your choice and that choice is Income Investing. In the long term income investing and reinvesting the dividends will help you achieve financial freedom. Remember to choose the strategy which is suitable to your temperament. Also, remember, the easier system will always be the better choice. Learn and become the master of income investing through dividends paying companies. Remember, the aim of investing is financial freedom.

Article Source: http://EzineArticles.com/6502539

Property Tax Assessments - Is There a Way to Save Money?

By Felix Nihamin

Property taxes are often considered a necessary evil. Most of us do not enjoy paying them, however, we are aware that without these taxes our local government, safety services and schools could not function properly or even at all.
Property taxes are based on the value of your home multiplied by the current tax rate. When you make improvements or additions to your home, your local government can reassess the value of your home and raise your property tax liability accordingly. Likewise, with many property values dropping across the country, property owners have the right to request a property value review called a reassessment. This reassessment can be done by a private firm or by your local government. Often, requesting
this service from your local government will cost less or even have no cost.
Due to the recession and weak real estate market many of us received automatic reassessments from our local municipality. Some may have thought this would result in lowered property taxes for the year. Not the case for the majority of us. In order for the town or county to operate they need the revenues from our homes. Therefore, most adjusted the rate up to compensate for the lowered property value. I encourage you all to research this to understand what your financial obligation is.
Before you get started take a look at your current tax appraisal. Check measurements, square footage and any description of number of rooms or whether or not a basement is finished, etc. Make a list of any errors. You should also take a look at your neighbors' property values. These can often be found online at your county auditor's website. You can also get a quick idea of these values by visiting sites such as Zillow or Trulia and searching homes in your area. If their values are much lower than yours, that is a good place to begin with appealing your own property tax liability.
When considering requesting a property value reassessment, it is a good idea to consult a real estate attorney who can help you decide if this is a wise choice. A real estate attorney may have already worked on a similar case and have the knowledge and experience to let you know if the end result could be worth the effort.
A real estate attorney can also help you make sure that there are no miscalculations in your current property tax rate and should also be familiar with the property tax appeal process in your area. Working with an attorney who specializes in real estate, such as Felix Nihamin and Associates, can save you from making costly mistakes when considering appealing for lower property taxes.

Buy to Let Property Outperforms the Stock Market

By Carolyn Clayton

In today's tempestuous climate it can be a challenge to know the best area in which to invest your money. The stock market is up and down like a yo-yo, and those with money invested here are definitely in for a rough ride for a while yet.

Historically, property has always been the safest long-term investment for your money. And with the rental market once again showing good signs of recovery it can also provide you with an income.
One major reason UK property is such a great investment is simply supply and demand. The UK is an island and as such there is not an unlimited amount of land on which to build. T
he fact remains that there are not enough houses already built or being built for the amount of people who want to live here.
When it comes down to investing, most of us have short memories. We all remember stock market and housing market crashes, and these can understandable make us cautious. But what we fail to remember are the strong periods of growth which lead up to these crashes. When these ups and downs are looked at over the long-term then over the past 30 years, investing in property far outperforms investing in the stock market.
However, there is a caveat to this. Investing in property, especially buy to let property, is not something to be entered into lightly. Gone are the days when you could get 100% buy to let mortgages, stick your property on the market and have a tenant in within days.
But - and this is a large but, buy to rent now is still a worthwhile long-term prospect as long as you do your homework first. And with the volatile state of the world's stock markets right now, the canny buy to let investor can come out a whole lot better off.
Data taken from the government and analysed from the past 20 years showed the difference in yield from an investment of £100,000. Those who invested in the stock market would see their stake worth £302,253. But those who invested in buy to let would see their stake worth £786,792. Okay, this data doesn't take into account the turmoil over the past couple of years, but it makes a point of how much buy to let can outperform the stock market.
So considering a buy to let property really is a viable proposition for the long term. Ensure that you research both the good points and the bad - know the possible pitfalls and buy for the rental income, not short-term capital growth. If you are careful and let the rent build up over time, eventually your aim should be to pay off the mortgage on the property. Then you will end up holding the property's full capital value - a worthwhile investment indeed.

Article Source: http://EzineArticles.com/6279249

Getting Your Property Ready for Letting

By Carolyn Clayton

First impressions, as they say, are everything. When getting your property ship shape for prospective tenants to view, there are areas which need addressing before you even think of placing it on the market.
The Major Things

Of course, it is your responsibility to ensure the building is of a safe standard and that the electrics, heating and plumbing are fully serviced and working. Consider the age of any heating or plumbing - if the system is old it may be advisable to have it renewed before rental, so you will cut down on call outs and breakdowns.
Be sure to install plenty of smoke and carbon dioxide alarms.

Flooring
There's a reason why so many rental properties have tiled or laminate floors. They are easy to keep clean and less prone to damage. Even if you have carpeted floors upstairs, it's worth considering changing those in high traffic areas such as the hallway and living room to something a little more hardwearing.
If your floors are carpeted, get them professionally cleaned.
Walls
The easiest décor is to have the walls plaster finished and decorate with a coat or two of neutral paint (magnolia anyone?). These are easy to freshen up should it be necessary between tenancies.
White Goods
Even if you are renting the property unfurnished you may be expected to provide a washing machine and dishwasher. If it's furnished, then you'll need to supply a fridge, freezer and probably a tumble dryer as well. There are so many on the market now that it can be difficult to know which to purchase, but there's a good range of budget options available from most stores.
Furniture
Depending on how you are renting, furniture may or may not be an option. If the place is furnished, make sure you don't leave anything in there of high monetary of sentimental value. Think simple and neutral, and don't buy cream sofas! IKEA tends to be a big favourite with landlords!
Keep it Simple
The best thing with a rental property is to keep colours neutral and clean. The last thing a prospective tenant wants is to walk into a property with bright red walls or an orange ceiling! Although your tenant will not own the property, it will still be their home. And they will like to think that they can make their own stamp on it. Neutral and clean colours ensure that this is possible.
Exterior Appeal
Don't forget the outside. If necessary, touch up any paintwork and tidy up the garden - back and front. Give the windows a clean as this all adds to the first impression.
If you do all of this then you ensure that your property will have the best possible chance of a tenant wanting to live here. Renting a house is fairly similar to selling - you want that first impression to have the 'wow' factor, and getting everything prepared prior to putting it on the market will help to achieve this.

Article Source: http://EzineArticles.com/6279256