Tag Archives: real estate

Seek and You Will Find

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“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.” — Matthew 7:7

Some persons think that if they have clear financial goals which they would like to accomplish, then they should not experience too many obstacles en route to success. They believe that if they come upon challenges which make the process difficult, then their goals were not destined to be realised.

There will be occasions when no matter how desperately you wish for your dream to come true, it will be highly unlikely to occur. This could be the case if you don’t convert your dream into a smart goal; with specific, measurable, actionable, relevant and time-based objectives that you can apply.

For example, if every month when you pay your landlord, you declare, “One day I’m going to turn the key to my own door,” but you never put plans in place for this desire to become real, then don’t expect a miraculous event to eventually bestow you with the home of your dreams. Continue reading Seek and You Will Find →

Home Ownership Reality Check

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Many people will express that one of their major financial dreams is to purchase their own home. It seems that the desire for home ownership runs deep in their minds, hearts and souls, as owning an abode gives a sense of security that few other investments can provide.

However, despite the universal appeal of home ownership, a relatively small percentage of Jamaicans ever accomplish this worthwhile objective. Although the desire to buy a home remains firmly lodged on their wish list, too few are actually able to convert this dream into reality.

The elusive home dream

There are various reasons why home acquisition can be challenging for most Jamaicans. Firstly, the adverse economic situation precludes many consumers from being able to commit enough of their money to save for this goal. Every dollar that they earn is needed to meet basic expenses. Continue reading Home Ownership Reality Check →

How to become a successful investor

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Last week we looked at several investor personalities which Robert Kiyosaki describes in his best-selling investing book, CASHFLOW Quadrant. While examining the attitudes and actions of different types of investors, he explains that most of them will only achieve minimal success because they lack the financial intelligence required to become wealthy.

Kiyosaki outlines three investor types that will become successful with money. The first is the long-term investor that is actively involved in making investment decisions. He explains that these persons invest in their own financial education before they buy an investment, so that they can fully understand how to make appropriate choices with their money.

These investors are financially disciplined; they live within their means and minimise their liabilities. Once they have identified their goals, they find out how much they need to invest to attain their objectives and create realistic action plans. They seek advice from competent financial advisors, are usually conservative, and avoid complex investing options. Continue reading How to become a successful investor →

Smart Real Estate Investing

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In challenging times there are always tremendous opportunities for smart investors to make profit. Despite the fact that we are in the middle of a reported recession, there are several ways to earn good returns from investing in Jamaica.

Right now, money market instruments are yielding attractive interest rates; government global bonds can be bought at low prices; stocks in quality companies are trading way below their true values; and buyers have the upper hand in the real estate market.

While you can get expert guidance on investing in the money market, bonds and stocks from several licensed financial advisors, it’s not so easy to find out how to win in the real estate market. Continue reading Smart Real Estate Investing →

Homeownership Challenges

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According to recent news reports, mortgage interest rates are set to rise drastically as a result of the interest rate increases on Bank of Jamaica (BOJ) securities. Financial institutions will have to raise the interest rates paid on deposits in line with market rates, and therefore they will be forced to charge more for loans.

How will these developments affect Jamaica’s housing market? According to real estate industry experts, increases in mortgage costs will have a negative impact on both existing and prospective home owners.

BOJ data revealed that up to June 2008, the amount of mortgage loans in arrears for three months and more had risen by some 71 per cent over the previous year. Delinquency rates are expected to grow even more as the cost of homeownership increases.

In addition, most consumers’ income levels are not moving up to match these increased finance costs, so many hopeful homeowners may not have the cash flow required to qualify for a mortgage. Continue reading Homeownership Challenges →

Other ‘Alternative’ Investments

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Thanks to the upsurge in investment clubs and institutions offering high monthly returns, Jamaicans have developed a seemingly unquenchable appetite for ‘alternative’ investments. Many investors, no longer satisfied with the regular returns paid by established financial entities, are on a constant search for high-yielding options.

Trading in the foreign exchange market (forex) provided the first opportunity for many ordinary investors to participate in the global investment markets. This investing phenomenon, formally unknown to Jamaicans, was termed an ‘alternative’ investment.

However, with forex being the largest financial market in the world with over US$3 trillion traded 24 hours per day, Sunday to Friday, it hardly seems to deserve to be described as an alternative market.

However, looking at the definition of alternative, it might very well be acceptable to give it this description.  Dictionary.com provides one definition of alternative as “employing or following nontraditional or unconventional ideas and methods existing outside the establishment such as an alternative newspaper or alternative lifestyles.” Continue reading Other ‘Alternative’ Investments →

Raising Money-Smart Children Pt 2

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In these challenging economic times, when the spending power of a dollar is declining but expenses keep increasing, it’s important for parents to equip their children with the necessary skills to become good money managers.

Last week we learned how Andrea Reid-Davis, a realtor and shrewd investor, has successfully taught her daughters Gabrielle, 18 and Gayan, 14 to save and earn money. Their wisdom with money belies their years, and this week we’ll look at some of the strategies they have used to enrich themselves.

The Value Of Work

One of the key principles that Reid-Davis has passed on to her daughters is the value of honest labour. She insists that children should be very aware of the work that their parents do to get money to take care of them. This is even more important when the adults have a family business, she confirmed, as children should be encouraged to participate by working in the enterprise. Continue reading Raising Money-Smart Children Pt 2 →

Can You Afford To Buy A Home?

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“I’ve been saving towards the deposit on a house for a couple of years. Given the rising real estate prices, I think I should try to buy a home now, but I’m not sure if I can manage the mortgage payments. How can I know if I’m really able to afford to purchase a home?”

The real estate market boom has led to rapidly increasing housing prices and consequently, diminishing hopes of acquiring dream homes. The temptation for some anxious homeowners-in-waiting is to buy quickly before prices get higher, without knowing if their financial position really allows them to afford it.

Last week we looked at the pros and cons of buying a home versus renting a property. If you’ve decided that owning your own home is an important goal, you have to examine your finances to ensure that you’ll be able to meet this major commitment.

The first thing to consider is: what are all the costs involved in buying a home? Continue reading Can You Afford To Buy A Home? →

Buying vs. Renting a Home

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“I’ll be forty years old this year, and all my friends keep encouraging me to buy my own home before it’s too late. I’m very comfortable with my rented property and I really don’t want to spend a lot of money buying a house. Am I making a financial mistake by continuing to rent instead of buying? “

The biggest financial dream of most persons is to own their own home. However, an increasing number of people are opting out of home ownership, even though they may be able to afford to buy.

Is purchasing your own home the great financial benefit that it’s always portrayed? Or could it be more profitable to put your cash in other forms of investments? There is no one answer that will suit every person.

Buying a home is a significant investment of time and money, and you will need to consider the pros and cons of renting versus buying, in order to decide what’s best for you. Continue reading Buying vs. Renting a Home →