To view this Magazine issue click here
Must have latest version of Adobe Reader, http://www.adobe.com/products/acrobat/readstep2.html
Investor Risk vs. Reward For some people, risk is attractive; for others, it's something to be avoided at all costs. People want to make money, and to avoid losing money, but everyone has their own way of weighing risk and reward when making investment decisions. Risk perception is made up of a variety of factors that influence the way investors view risk, reward and their investments. Early success or early failures are some of the factors that most heavily influence an investor's risk perception.
Big Potential in Little Rock Real Estate
For a city of a little more than 180,000 people, Little Rock is relatively "little," but offers a big variety of investment opportunities. With a stable base of major employers, including the state government and a large medical industry, Little Rock has managed to avoid the sorts of dramatic economic changes that attract national media attention. Its low prices and positive growth pattern are attracting investors with both short-term flipping opportunities and long-term rentals with stable appreciation.
Investing in Montenegro
Little-known Montenegro, just across the Adriatic from Italy, boasts a beautiful coastline and a wealth of potential as a tourist destination. With impressive geographic diversity and much lower prices than neighboring Croatia, Montenegro is attracting both western and Russian tourists and investors. Montenegro topped the World Travel & Tourism Council's list for highest tourism growth rate in each of the last four years—and property price acceleration is beginning to reflect that shift.
Forex Investment Market
The foreign exchange market is the largest asset class in the world, with a global trading volume of more than $2 trillion per day. It allows investors to enhance overall portfolio stability by diversifying into other currencies. The market offers high volatility and liquidity, with 24-hour trading. Extensive leverage of up to 400 to one can magnify both returns and losses, so an appetite for risk, patience and self-discipline are crucial to success.
Boat Slips as Investments
As more and more people become interested in boating, and waterfront land is continually developed, the number of available boat slips dwindles. Because of their limited supply, boat slips are a commodity in rising demand, which makes them an interesting investment possibility. Boat slips can be rented out, but because of maintenance fees similar to those associated with condo ownership, their main benefit is capital appreciation.
Defer Taxes with 1031 Exchanges
Investment property owners with properties that have grown in value can defer the taxes on that gain by exchanging into new investment properties rather than selling their investments outright. Special qualifications and timelines must be met in order to complete the exchange, and they are not right for everyone, but they can be an effective way to maximize capital growth for the right investors.
1031 Exchanges: Top 5 Little-Known Uses
A variety of surprising opportunities are available through 1031 exchanges. Investors can purchase replacement properties before selling their original investment, properties of lower value that will be improved through renovation, partial exchanges and sometimes unusual investments, such as oil and gas, water and mineral rights and foreign property.
Investor Highlight: Damian Power
Damian Power is managing director of Power Overseas Property, an Irish company specializing in international real estate. He views property investments as financial instruments where the figures determine the validity of the investment. Power discusses how he became involved in foreign real estate, why he finds it exciting and key strategies he uses to select investments.
