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Wednesday, 27 March 2013

Property Strategy & Investment Opportunity in Real Estate

Property Strategy

A strategy that involves a series of rational approaches that can be used to logically comprehend your property needs so that you can appropriately plan and develop a method to acquire a property and invest according to your business needs and capacity is referred to as Property Strategy.

For the same, it is necessary to take into consideration the way in which you can handle your property assets for the management of the business strategy of your company. For a number of such properties, you need to recognize what could be the crucial concerns and the trade off decisions that people could face and make. Taking all such factors into consideration, you should decide on the top prospects that could aid in delivering the best profits in this business.

Investment opportunity

When the business in which investment has been done is in its infant stages of development, an asset management usually presents the opportunity to make an excellent return. These returns are enhanced when the management team of the company is experienced and committed and the operations are well-planned and the company manages to withstand any competition it faces against its peers in the industry. Such companies can give you more returns when you discover their potential earlier than the herd because such young companies are known to lack in trading liquidity and only a few buy orders could be sufficient to send the share price spiraling high enough. This point of time can enable you to enjoy an excellent return on your investments.

When companies are relatively young, they require capital for growth and expansion of their businesses. For the same, they search for investors in their company. Sometimes the capital amount needed is sufficiently large. Here, individual investors cannot provide them that high amount of money and so they take the help of accredited investors like banks, insurance companies, brokers, employee benefit plans and partnerships, etc.

There is need for the planning and operation of the property within the business plan that has been chalked out. Firstly, it is necessary to co-ordinate the business aims with the property goals and the policies therein, keeping in mind the facilities required for the same, their type, location and size. As for the location, they must conform to the results of the Location Analysis tool, which ensures that the areas are right for the business. This is the strategic plan adopted and updating of the same is done after a few years. 

Next, you must understand that the attainment of the property goals is largely dependent upon the achievement of the series of projects and activities. After this you need to develop a management plan to suit the specific property.

The best investment opportunities can be availed when the knowledge of the exact amount to invest, how and when it is to be done is known. Time and availability of capital are major factors that determine the investment strategy. The latter can either be for a short term or for a longer period. As an investor, you must consider the return on your investments. This is nothing but the profits that your investments yield you. Suppose you have invested in stocks. History has seen the value of stocks rise and dip within short spans of time and hence the return on investment can be received very fast, not at all or it can be attained in short spells. Where the returns are steady, the opportunities are considered better ones. 

As an investor, often the question arises: “Is my investment safe?” It is quite natural to feel insecure in this uncertain stock market and you can protect your investment in a couple of ways; either by compounding or by diversification. The fundamentals of compounding are that interest accrued in the first quarter adds to the principal and the combined value serves as principal for the second quarter and interest for the second quarter is again added to the principal and interest of the first quarter to form the principal of the third quarter and so on. Whereas Diversification involves the selection of a variety of investment products from different industries as a precaution in case one or more investments are affected by the marketplace. Your investments can be placed in agencies that offer protection like the FDIC, the SIPC, the FINRA, etc.

Those investments that give tax advantage, like student loans, retirement accounts, annuities, etc. can be preferred as they provide for tax advantages through deductions of taxes and/or tax deferments.



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