Three Top Investments in 2008

I have invested in gold mines in Africa, oil wells in Louisiana, individual stocks and rental property and lost my shirt on special occasions. My dad was a risk taker when it comes to investments, coal, gas stations, used car lots, fishing for a living and digging peat. He always encouraged me and believed that the investment that you had to take some risks to get ahead.

There are three investment that provided the greatest return for me over the years and I'd like to share them with you.

2008 was a disappointment to say the least. S & P 500 Index is an annual return of negative 37% last year. As you might guess it was not one of my top three investment. I have taken heavy losses as most everyone else in stocks, mutual funds and bonds. My first three investments remain the same.

Number 3
Rental properties in my opinion is the number three top investment. Let's look at a family home worth $ 100,000 and rent for $ 600 a month. The average value of homes has increased about 3% per year. If the property is empty Sat to about 3% per annum on your investment. If it rents for $ 600 a month and will be earning 7.2% or $ 7,200 per year.

But what about the cost of owning a rental property?

the three main costs and just about the only ones in the first five years of a new house or remodel the insurance, property taxes and termite warranties. Depending on the country you are, the amount you will pay for this will vary. On average you could expect to be around $ 1,790.00 a year out. Subtract that from the rental income, and you have about $ 5,410 of income or pay 5.4% instead of 7.2% of your investment.

If you have a 20% income tax bracket and the assets are depreciated using the MACRS formula, and will have a total deduction of depreciation, and expenses of about $ 5,274, a year-end savings on your taxes by $ 1,054. So, add another 1% return on your investment and you'll end up with 9.4%. All of the above is assuming that you paid cash for a house, and that will be the best thing to do. However, most of us do not have enough money available to invest. So you have $ 20,000 to put down, I would not recommend buying a house with less than 20% down. Now you have a mortgage loan of $ 80,000 from interest of $ 4,320 per year. Your tax savings is now $ 1,918 each year. Your mortgage payment of $ 454 added to your cost $ 149 takes all your income and rental costs you $ 3.00 per month. At the end of each year you have $ 1,900 to apply for a loan or to make repairs.

And now look again at an initial investment of $ 20,000 each year (100,000 x 0.03 = 3,000), will return for the 3000 annual return on investment of 15%. If you have $ 1,900 of tax savings, your annual return on investment would be 24.5%! And it could be consistent in the next 27.5 years. For a bonus, if you rented a house for the full 27.5 years, depreciation is gone and your cost back to the original price of the house.

Follow the above advice and do not buy anything that you can not keep if it fails to rent, lease real estate is still a good investment. With more people out of their homes should not be a greater demand for rental homes.

Number 2
It is true that the value of the house went down in the past year, but so are interest rates. If not now own a home, now is the time to start looking. Just stay within your means and remember the 20 to 25% of your income for housing is still a good rule to follow. Save up to 20% for down, get the lowest rate and avoid the extra cost of mortgage insurance.

house to live in the top of your other investments. If you were to rent a $ 100,000 home, and will be out $ 600 a month in expenses with nothing to show for it at the end of five years. However, if you were buying a house, you will have almost the same return on investment as in the example above. With the exception of senior insurance and lower tax credits. If you paid 20% down, your $ 20,000 investment will return about 20% each year. However, instead of $ 600 a month in rent, and will be making only $ 454 a month in mortgage payments. That's another $ 1,752 a year in savings, or 8.76% return. This will give you a total annual investment return of 28.76% per annum. It is difficult to find an investment that will give you that rate of return from year to year.

Number 1
Although my net worth is down 32% from a year ago, I have not changed any of my investments, therefore I have not yet taken a loss, except for retirement withdrawals that are getting expensive. In recent years I have become completely debt free, and if things continue to decline I could lower my standard of living. But my number one investment keeps me on top.

Are you ready for this, number one and most important investment, is not really investing at all. She returns to what is not ours at all. "Return to me, and I'll get back to you, " says the Lord Almighty. (Malachi 3:07)
He goes on to say, "But you ask," How do we get back? "Will a man rob God? " But you rob me, "But you ask, 'How do we rob you?'" In tithes and offerings are under the curse -. whole nation of you - because you are robbing me bring the whole tithe my house in. . Test me in this, "says the Lord Almighty, " and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have enough space to ."

Notice that says tithes and offerings, we pay our tenth first before we pay anything else, this is our first result, and if God first in our lives we'll get back to what it was his first before anything else. Then the promise not only to our offer, but all of our remaining finances. I do not know about you, but I had much rather have the blessing of a curse!

I have followed all three investment strategies, while others, as well as the State may, without a doubt, that I have been blessed in my finances. I can not measure the ROI from the next No. 1, but higher than all others combined! If you have any doubts, try it, if not the blessing, to avoid the curse!