We invest our brain for future bright

Many folks are nervous, uncertain and confused...there is fear in the air. Their number one question? "How will the current mortgage meltdown affect real estate investing?" Warren Buffet, one of the greatest investors of all time, offers the best strategy:

"Be fearful when others are greedy. Be greedy when others are fearful."

Investors like Warren Buffet and Donald Trump continually profit from this mantra.

When the real estate bubble was building, Donald Trump told people not to buy--but many did not listen--and unfortunately they are paying the price. Now, Mr. Trump is telling people to buy, buy, and buy some more. Once again Mr. Trump is at the forefront of smart investment choices. Listen to Mr. Trump's opinion on why the current financial turmoil is actually very good news for real estate investors looking for once-in-a-lifetime deals.

The most important is to take advantage of the largest real estate liquidation in history--and how he made more money in down markets than at any other time--you understand how critical it is to take advantage of low prices, low interest rates and a huge housing surplus.

Dubai-based developer Nakheel is opening its first on-site sales centre at Al Furjan, a new initiative to maximise the first-hand experience for buyers at its developments, the company said in a statement. The sales centre and show villas will welcome both existing and potential buyers to the development, giving them an insight into how the development is progressing and a feeling for the location and ambience of the development. By welcoming visitors on-site, Al Furjan can successfully promote the principles of community living, the basis on which this development is formed.

There are many different types of investment. Broadly speaking, they fit into four asset classes:

• Short term deposits
• Bonds
• Property
• Shares

Within each asset class there are investments to suit different kinds of risk, duration, returns and liquidity

(1) Short term deposits

Bank savings accounts

The simplest kind of short term (or cash) investment is a savings account. Returns are low compared to other investments, but returns are guaranteed by the bank - so your investment won't drop in value in the short term like others might. You can withdraw part or all of your money whenever you want (total liquidity). This makes them ideal for short term savings goals, or as a place to keep your emergency fund - They're not a good investment option for medium or long term goals.

Bank fixed term investments

You give the bank a lump sum for a set period (a fixed term) usually three, six or 12 months. Your money is locked away for the fixed term. In return, you get a higher interest rate than you could get in a straight savings account. You may be able to withdraw your money, but you will get a lower rate. These can be a good short or medium term investment, depending on interest rates. Interest rates are always changing - sometimes they go through a 'high phase' - this is usually a good time to have money on fixed term deposit.

(2) Bonds

A bond is like an IOU issued by a government or a company. You give them money for a certain period, and they promise to pay a certain interest rate and re-pay you on maturity. Bonds lock your money away for a set period of time, but they can sometimes be traded. Generally, they aren't a good short term investment. Small investors don't usually invest directly in bonds, it's more usual to go through a managed fund.

Finance company debentures are a kind of bond. These are not usually able to be traded. Finance companies come in many shapes and sizes, and the risk of their investments varies as well.

(3) Property

For most New Zealanders, their home is their largest asset. But you need to separate your emotional ties to your home from your investment objectives. Think about how much of your net worth is tied up in your home. Would it be wiser to buy a smaller house and spread your money across other investments as well? Check out how your home fits into your retirement plan.

Rental property

Owning property rented to individuals or businesses can be a safe and profitable investment. Returns from property investment come from rental income, after deducting expenses, and from the increase in the value of property over time.

People debate whether property is a better investment than shares. What’s important to remember is that they’re different forms of investment. If well managed both can provide good long-term results. If not, and without the right knowledge and attention, investment in shares and property can result in significant losses. It’s easy to see losses on the share market because the prices are available almost daily. Losses on property investment are generally not published, so don’t believe anyone who suggests “you can’t go wrong with property investment”.

We don’t encourage anyone to rush into investment in shares in particular companies or investment in a particular property. Unless you’re prepared to put the time into understanding and managing the many aspects and issues of property investment, then we suggest you leave it to others.

That’s not to say you can’t benefit from property as an investment. There are several different ways in investing in property - directly or indirectly.

If you’re interested in direct property investment, you can manage the day-to-day administration of your rental property yourself, or use a property management company to do it for you. A property management company takes on the tasks of finding tenants, collecting the rent and bond monies, and attending to maintenance issues etc on your behalf. The fees charged for these services are usually a percentage of the rental income.

For an indirect property investment, you can invest in a KiwiSaver scheme, private superannuation scheme or managed investment fund that invests some of your money in property. This could be by way of ownership of rented buildings or by way of an investment in shares of public companies, which specialise in property ownership.

This is another option that gives you the many advantages of property ownership without having to find the property and do the hands on management yourself. This type of indirect property investment also makes it easier for the average investor to get the benefits of diversification.

Also take a look at direct investment in property.

(4) Shares

By investing in shares in a public company listed on a stock exchange you get the right to share in the future income and value of that company. Your return can come in two ways:

• Dividends paid out of the profits made by the company.
• Capital gains made because you're able at some time to sell your shares for more than you paid. Gains may reflect the fact that the company has grown or improved its performance or that the investment community see that it has improved future prospects.

Of course shares can also lose value.

Any loss or gain in value is said to be 'realised' if you sell the shares right there and then. If you hold onto them the loss or gain is 'unrealised'.

The price of shares in any individual public listed company can vary from day to day. On any day some shares may go up in value and some down, depending on how investors view the prospects of each company. And all of the listed company shares in a particular country or industry may increase or decrease in price because of rises and falls in economic confidence or changes in the particular industry. There are a range of complex factors which influence share prices on a daily basis and no one can accurately predict what price listed shares will be in the future.

We know from past experience that some companies will fail and some will flourish. Overall the long-term trend is for the value of listed companies to increase at a rate higher than inflation. Therefore by investing in a wide range of companies operating in a range of industries and countries, an investor has a good chance of making long-term gains. Remember that in assessing the return from shares you need to take into account dividends received as well as capital gains. You should also expect that the dividends from the shares that you own will increase over time.

Because of the volatility of share prices (ie the fact that in the short term they may go up or down) it’s not wise to invest funds which you need in the short term, in shares. When you need your money you’ll generally be able to sell your shares, but the price at the time may be below your purchase price. Shares should be used as a long-term investment.

Understanding the product range explains how fund managers help investors find combinations of shares and other products, which suit their needs.

Also take a look at direct investment to see why some investors prefer to develop their own investment portfolios themselves.

Direct investment

You can invest directly in term deposits, bonds, shares and property or you can place your money in a KiwiSaver scheme, private superannuation scheme or managed fund and have full time specialists look after the investment decisions for you.

For some people making their own investment decisions and taking a more hands on approach gives them personal satisfaction and saves them paying management fees. If you’re interested in direct investment talk to an accountant or adviser.

Direct investment in shares in specific companies or selected rental properties should only be undertaken if you have detailed knowledge or are prepared to pay for specialist advice. Particularly in the case of property investment, you need to be willing to either spend the necessary time on administration and management, or to pay a property management company to do this for you.

If you’re interested in direct investment in shares you can start by talking to an adviser or NZX Market Participant.

People who want to acquire their own property investment generally have to rely more on their own knowledge and judgement. It’s therefore important to read publications and attend property investment seminars before making any decisions.

Issues you need to consider include the location and type of property (eg city or rural, residential, retail, warehouse, manufacturing, office or special purpose property such as motels or carparking buildings etc), financing and taxation arrangements, price, condition of property and maintenance requirements, lease terms, selection of sound tenants, record keeping etc. Owning a property is like operating a small business. Know the business, put time into the detail and you’ve a good chance of doing well. Rushing in without doing your homework can lead to disaster or at least a risk that you’ll lose some of your capital.

If you want to invest directly in shares or property remember the importance of duration, risk, diversification, returns and liquidity.

Managed funds

In a managed fund your money is pooled with other investors, and a professional fund manager invests it in a variety of investments. Managed funds come in many forms - different funds invest in different types of assets for different objectives. Some funds target all-out growth and invest more in high risk shares than others - they could rise dramatically or just as easily drop dramatically. These are funds for money that isn't absolutely vital to your future plans. Other funds look for solid long term growth from a range of deposits, bonds, and shares - a better place for a lump sum intended for your retirement. Financial advisers, banks and insurance companies can all advise you on managed funds that match your investment needs.

Note there used to be a tax disadvantage in investing in managed funds. However this is no longer the case with managed funds that are PIEs (Portfolio Investment Entities).

Managed funds allow investors access to markets which would otherwise be difficult to invest in. For example, managed funds let you invest overseas or in commercial property.

Managed funds usually involve paying management and administration fees. These can vary a lot, so check to see what you'd have to pay. Use our product comparison checklist to compare several funds.

ETA InfoTech, the IT arm of Dubai-based ETA Ascon Star Group, announced investment of Dhs55m in the region's healthcare, education and BFSI (banking, finance, securities, and insurance) sectors in line with the government's vision for the UAE.

As pioneers in providing IT solutions to the UAE's Healthcare and Education, the company's decision to invest more in these sectors is in response to the growing market requirement for seamless integration of products and services in the region.

ETA InfoTech is showcasing its flagship Products & Solutions in the fields of Healthcare, Education and BFSI at Gitex Dubai 2008, the annual Information Technology exhibition being held in Dubai from October 19 to 23.

The company's stand is located at D6- 40 in Hall-6 of Dubai International Convention & Exhibition Centre, where it has displayed its 12 flagship products.

ETA InfoTech provides high-end products and solutions in ERP, Banking, Fleet Management & GPS-based Tracking, Driving School Management, School and College Management, Content Technology & e-Learning, Business Intelligence, Healthcare, CRM and Video Conferencing.

ETA InfoTech has branches across India, the USA, Middle East, South East Asia and Africa and has development centres in India, Bangladesh and Dubai.

On the IT Solutions front, ETA InfoTech has partnered with leading technology providers, namely Oracle, SAP, Microsoft, Sun, HP, Cisco, NetApp, 3Com, Symantec, Trend Micro, Avaya, Talisma, Infowave, Bosco and IMS.

Some of ETA InfoTech's customers in the UAE include the Government of Dubai, Abu Dhabi Municipality, Ministry of Health, Ajman Ports, Weatherford, Wafa Oil and Field, LG, IBM, Mitsubishi, Lornamead, Wade Adams, Ascon, Star Properties, Khalidiya Palace Residence, Al Reem Island, Al Jurf, Damas, Al Haseena, GEMS Group of Schools, BITS Pilani, Manipal University, Al Ghurair University, RAK Rock, RAK Nor, Steven Rock, Cars, Al Ghazal Transport, Emirates bank, First Gulf Bank, Bank of Baroda, Al Noor Hospital, Al Zahra Hospital and Arabia Healthcare.

Mayadeen, a listed Kuwaiti shareholding company, has announced it has signed five major contracts for its Shams Abu Dhabi projects.

Emirates Technical Associates, Beijing Construction Engineering Group and Cansult Maunsell are among the five companies that are due to work on its Dari and Aurora projects.

Khalid Jassem Al-Wazzan, Mayadeen chairman, said that the contracts have been signed to show the scope of ambition from the company and its commitment to delivering the build to it the highest possible standard.

"This is a milestone in Mayadeen's journey to establishing itself as a key player in the property development industry across the region," he stated.

Naser Ali Al-Attar, Mayadeen chief executive officer, said that it wanted to work with these "distinguished institutions" in order to complete the project.

According to the firm, both of the projects will have two high-rise residential towers reaching more than 200 metres high while having one tower for commercial purposes.

Meanwhile, Colliers International last week announced the launch of its House Price Index for Dubai.

Cityscape Abu Dhabi 2009 will organize The International Real Estate Investment & Development Event . It is an annual networking exhibition focusing on all aspects of the property development cycle with two parallel conferences running alongside the exhibition. It attracts regional and international investors, property developers, leading architects and designers to an annual forum that celebrates the very best in real estate, architecture, urban planning and design.

There will be an exhibition and conference for those who are interested.

Japan has a very huge advantages towards global economic downturn nowadays. Since it has a very solid capital in every banks. With its $5 trillion economy and store of cash rich banks, Japan had initially appeared comparatively unscathed from the credit crisis swiftly gathering pace across the United States and Europe. While America and Britain still struggling to secure all their financial institutions, I seems that japan is untouchable in today`s global financial meltdown. In fact, japan is now offering to help any other countries who really suffer due to this crisis.

The British and American plans, though far from identical, have two common elements according to officials: injection of government money into banks in return for ownership stakes and guarantees of repayment for various types of loans. Both remedies will be center stage on Saturday, when President Bush meets with finance ministers from the world’s richest countries at an unusual White House meeting to swap ideas. Mr. Bush’s invitation to finance ministers from Britain, Italy, Germany, France, Canada and Japan came on a day of phone calls and letters between European leaders and with Washington. Adding to the urgency, the Japanese stock market plunged more than 10 percent Friday morning, after having dropped 9 percent on Wednesday.

U.S. action so far is unprecedented in scale since the Great Depression. In the past five weeks alone, the government has taken over mortgage-finance firms Fannie Mae and Freddie Mac, rescued insurer American International Group Inc., backed the deposits of money-market funds and authorized a $700 billion bank rescue program. In putting together those measures, policy makers stretched the limits of what they can do under the law. The Fed has repeatedly invoked emergency powers only available to it at times of ``unusual and exigent circumstances'' to extend credit of up to $123.8 billion to AIG and set up its commercial-paper program.

And U.S. policy makers aren't finished yet. Paulson yesterday signaled he's considering pumping capital into U.S. financial institutions, saying ``we will use all of the tools we've been given to maximum effectiveness'' under the $700 billion Troubled Asset Relief Program. Barclays Capital Inc., Macroeconomic Advisers LLC and other forecasters predict the Fed will cut rates by another half-point this month to 1 percent. That would match the lowest level in five decades.

"Policy makers want to get as much stimulus into the system as soon as possible,'' said Brian Sack, a former Fed economist now at Macroeconomic Advisers in Washington.

Yet for all these efforts, investors remain unnerved and financial markets are in turmoil. U.S. stock indexes fell for a sixth day yesterday, plummeting 16 percent in that period.

To finally beat the crisis, policy makers outside the U.S. may have to show the same flexibility as their U.S. counterparts. The markets were unnerved earlier this week after a summit of European leaders concluded without a comprehensive, cross-border remedy for their banks' deepening woes, forcing countries to go it alone.

The U.K. yesterday granted Britain's banks an unprecedented 50-billion-pound ($86 billion) lifeline and emergency loans from the central bank.

I.A.I.G.C. is a multilateral regional organization with its membership comprising twenty one Arab countries. It was set up in 1974 and ever since has had its seat in Kuwait. Its capital (US.$ 81m.) and reserves (US.$ 171m.) amount to US.$ 252 million. It was initially set up as an investment insurance institution. Coupling providing insurance with undertaking investment promotive research, it was intended to ameliorate an inter-Arab flow of investment.

I.A.I.G.C. insures against noncommercial risks an Arab investor’s investment in an Arab country
other than that of his nationality. The eligible investor is the natural person who is a national of an Arab country. The juridical person is also eligible if it is substantially owned by Arab countries or by their nationals and has its seat in an Arab country. The exception are 50% or more Arab owned juridical persons whose seats are located outside the Arab countries. Eighty five such banking and investment corporations and corporations engaged in exports have up to now
been accepted as eligible for IAIGC’s insurance. The list is expanding as other jointly-owned Arab institutions show interest. The eligible investments comprise, in addition to direct, indirect and portfolio investments, loans the maturity of which exceeds three years. Public investments are eligible for insurance provided that they operate on a commercial basis.

It has been a dream for every new student to get loan for their study. Yeah unless for those who really capable to earn sponsorship from government or private sector. The student loan, like PTPTN, provide such service in order to ‘help’ student so that their life will become a little bit easier at the campus.

In fact student loans repayment can be a real nightmare without adopting some strategies that would help the new graduates to organize their social and financial life. But then is you really wanna be a loan-independent or FAMA (father and Mother) independent, or even wanna have some extra income, here are some strategies, which have been proposed by most of the finance guru::

1. An additional part-time job; this is the most popular way to earn extra money for local student. Even some time a determined student really need to have part-time job ( 3 hrs sleep every day)in order to pay for their study fee (loan-independent). But, in Malaysia, for a so called part-time job, there are limited of places you can go. Most offering places are likely fast food restaurant ;McDonald, KFC, Pizza Domino……and some petrol station and toll gate might have vacancies for part-time job. Tutor? quite interesting for multiple part-time job. Just wanna tell you a story, a friend of mine is a good example for this kind of categories.In very morning (around 4.00 am) he will woke up to help the Mahallah (hostel) canteen`s owner to buy groceries from Selayang Wet market. Then go to class. At the evening, he teach SPM student (tuition) at their house (teach on demand) until 10.00 pm….every day..including saturday and sunday…Yet he is a very knowledgeable person.
   
2. Freelancing is another option (meaning that they can do particular pieces of work for different organizations, without working all the time for a single organization); This activity requires additional knowledge where you are required to post article, journal, blog, or do some book editing. Translation work also can be a very good pay for freelancers.This job has become famous among Malaysian student since past few years and they are gradually increase in number.
   
   
3. Business; One of the option. but not many will succeed. The nature of business is pretty different as to compare when you are an employee, part-time or full time. But, you might start with Car rental, MLM, Direct Selling, insurance, or even open up booth and selling some of items from padang besar or bukit kayu hitam ..cheaper there what.What about online business? it is also okay but be careful with that so called ‘online’ activities. Really tricky. And I do believe that your initial involvement in these activities will give a very huge advantageous to yourself. Believe me.

I know this is not an easy job to live in a such hard condition. However, if we talk about Malaysian student who study abroad, this is what normally they do, struggle in their life as student and do multiple jobs at the same time, to feed their everyday life and for College fee as well. Why we cannot do in our homeland? Simple, just because they are born in Malaysia, born as a Malaysian and living in Malaysia. Struggle for living? very rare to hear Malaysian student play a very hard life for their living..Only for determined people who really want to train themselves to play ” work hard ” exercise.

psst: don`t just for the sake of making a lot of money then you will abandon your undergoing study. That will become more worst for you. Just remember,

“KNOWLEDGE IS OUR SHIELD TO LIVE IN THIS WORLD “

Since lately, we have seen a lot of companies collapse due to economic downturn faced by America. The biggest issue is on the 'sub-prime mortgage', which has caused investor to miss billion of dollars. For those who really understand about the concept of 'sub-prime mortgage', the condition in America is getting worst when all the sub-prime loans have been converted (securitized) to become 'Mortgage -backed security'.



Lehman Brothers and Merrill Lynch are the biggest founder for this kind of what so called 'debt trading'. Even AIG, among the giant insurance company also dying and require help from American government. It begin when the properties in America become 'bubble'. Means that the value of the properties have reached to unsustainable level in which the price could not be affordable by most of American resident and this would cause higher 'defaulter' or Non Performance Loan (NPL). Since the NPL in America is getting worst, the above term also highly affected as they have a very strong economical symbiosis. Capital injection done by US government amount USD 700 Billion to 1 trillion to buy all the NPL assets might cause situation to become even worst.

American economist suggest that those investors who took risks to earn profits must also bear the losses.The government can ensure a well-functioning financial industry without bailing out particular investors and institutions whose choices proved unwise.