Financialstocks

Investing in Spanish Property is it still an attractive proposition?

For many years now, investors and those looking to live the dream, have nominated buying property in Spain as a favoured profit-making destination. But, in more recent times, the general consensus is that prices are stagnating
at best or even falling slightly in some areas.

So is buying a property in Spain still an attractive proposition?

From our experience, it still can be; but it is now more difficult to generate a good return. Whilst some lower end, especially re-sale, Spanish property is becoming increasingly difficult to sell OR rent, larger more luxurious specification property continues to be in high demand.

None more so than Spanish Golf course property. Demand for detached golf property, alongside the palm lined fairways of water filled courses, remains exceptionally strong and we cannot see this changing for the foreseeable
future. Indeed, this appears to be the focal point for many Spanish developers as many exciting, high quality Golf Resorts continue to emerge from often barren, yet usually stunning locations.

Morning tea to first green in minutes

The attraction of buying Golf Property in the Costa Blanca region of Spain comes from the exceptional quality and location of the developments. The ability to almost guarantee your own green belt, even drive your own golf buggy to the course, is a big draw for those looking to acquire golf property as either an investment or for personal use.

Although they are still abundant, the predilection for buying on council estates in the Sun is on the decline and the average purchaser of Spanish investment property has now set their sights much higher. And this can only be good for the future of property investment in Spain.

Most developers have very much upped their game and its not just the quality of golf property we now see coming to market that has increased dramatically. Golf courses are now designed as high-class resorts, complete with health clubs, spas, restaurants and commercial centres; with the emphasis on quality rather than quantity.

The results are staggering for both investor and second homebuyer alike, but only if you get in quick an eighteen-hole golf course only has so many superb properties on its perimeter. Thats not to say the surrounding,
second line homes are not fantastic, rather the best plots on these developments really are Hot Property.

Investing in realty is a safer option than buying a share

As BSF Sensex danced furiously, many questions were raised as to what are the safe and less volatile options for investments. Questions were also asked whether the real estate market, which has witnessed potential jump in past couple of years, would undergo some kind of correction.

Some of the large-cap real estate stocks such as Mahindra Gesco and Ansal Properties fell by almost 50 percent from their peak levels. Other stocks like Unitech and Lok Housing did not fall much since they hit the filter on 5 percent movement.

Some industry players feel that there are pocket of tier 2 and tier 3 cities in north India, which have seen massive escalation of price over the last six to twelve months, which may not be sustainable in the long run. Whether the stock market meltdown triggers a correction in these markets remains to be seen.

On the whole, rising real estate prices may take a breather in certain areas but there will be no holding them back.

Consultancy firm Cushman&Wakefield study says Urban India alone requires 12 million housing units with scope for 400 townships in 5 years across 30-35 cities, each with five lakh population.

Prices of homes in India hqave on average tripled in the last two years and will probably expand fourfold in the next three to four years.

In fact, Real Estate benefits in either case whether the sensex booms or tumbles. The profits booked in scripts are invested in real estate as a safe investment and when the stock tumble, investments are diverted to real estate market to square off losses.

Terrorist attacks threaten the security of nations and create an atmosphere of uncertainty. These threats impact stocks and commodities markets around the world and make investment decisions very difficult, even for the experts.

So what can average investors do? First, they should ask themselves what the likelihood is of a major terrorist attack. Then, they should determine whether their portfolios are hedged sufficiently with oil-related investments that would increase in value should a major terrorist attack disrupt oil production and distribution.

“One of the critical issues we face with oil security is its transportation,” said Roger L. Cory, president of Mammoth Resource Partners Inc., a Kentucky-based oil and gas exploration company. “Our oil transport system is a worldwide network. It’s practically impossible to secure it all and one soft target for terrorists can create significant disruptions.”

Mammoth Resource Partners released a lengthy report detailing the vulnerability of this industry to terrorism. The report warns that the “oil transportation system provides an endless array of possibilities for the terror networks to exploit.”

Oil wells, drilling platforms, loading terminals, ports, tanker ships, storage tanks and refineries are all prime targets. The 200,000 miles of pipeline in the U.S. and the 10,000 miles of pipeline in Saudi Arabia are particularly vulnerable, especially as most of the pipelines are above ground and poorly guarded, according to the report.

Straits and canals around the world also can be terrorist targets. More than 6,000 oil tankers travel through the Bosporus annually, and 80 percent of all Persian Gulf oil – 40 percent of the world’s oil production – travels through the Strait of Hormuz.

The Ras Tanura complex in Saudi Arabia is an example of the precariousness of the situation. According to the Mammoth report, “Experts estimate that a single aircraft flown into the Ras Tanura could disable it indefinitely and create an instant oil price spike of $80 to $100 per barrel.” Current prices are around $60 per barrel.

What does all of this mean for those who want to invest in the oil industry? Investors should be cautious, Cory says. Buying stock in multinational companies may not bring much return because you are investing in a company, not in oil. Since natural resource mutual funds are diversified, their oil holdings may not be sufficient to return a decent profit. With oil futures and options, there is greater risk. Timing is everything; being off in your calculations by just a few days could cost you dearly. And, the professionals know that 80 percent of all options are worthless when they expire.

Oil and gas partnerships – in which investors own a percentage of the resources extracted from the wells they funded – provide a middle path between low- and high-risk investments.

The first known coins were minted in the mid-seventh century B.C. Coins revolutionized the conduct of commerce.

Alexander the Great introduced a regulated and universal coinage throughout his empire. Coins were typically engraved with the likenesses of rulers and deities, providing a historical snapshot. Coin collecting started in Renaissance Europe. Wealthy

Europeans collected Greek and Roman coinage.
The United States minted its first gold coin in 1795. From then until 1933, U.S. mints produced hundreds of styles and denominations of gold, silver and other coins. Dazzling pieces of artistry and history, collectible rare coins and bullion are among the most prudent additions to any quality investment portfolio.

A collection of coins and bullion could add value and stability to a portfolio. Investing a percentage of a diversified portfolio in gold, silver and platinum could act as a hedge against inflation. Gold can be viewed as an alternative asset class. Tangible assets are usually not as susceptible to the same market pressures as stocks and bonds. Typically, gold is not correlated to either the stock or bond markets.

Gold often trades inversely to the U.S. dollar, making it a useful hedge in times of dollar depreciation. The gold supply is limited all the gold ever mined would fit into a storage room about 55 feet long, 55 feet tall and 55 feet wide.

Bullion is a term for coins, ingots, private issue, and so on that trade below, at, or slightly above their intrinsic metal value. Only the precious metals (gold, silver, platinum, and palladium) are included as bullion. A bullion coin is a legal tender coin that trades at a slight premium to its melt value.

Examples of bullion: U.S. Gold, Platinum and Silver Eagles, Canadian Maple Leafs, South African Krugerrands. A rare coin can be determined by several factors: mintage, grade, series. Values of coins are determined by both scarcity and grade.

Set building is the practice of collecting a complete series of coins representing all the different designs of a certain U.S. coin, for instance. It provides a systematic path for the collector.

Investors have frequently found that a carefully assembled set of coins is worth substantially more than the total of its individual pieces. Well-compiled sets have also tended to be more liquid than comparable accumulations of random coins. It can provide an exciting historical treasure hunt, as well as an investment instrument.

Set building provides the investor with the opportunity to define objectives and formulate strategy. Set building can be a life-long adventure. Sets can be collected by: type (which can be any particular design or denomination), series (all dates and mints struck of a denomination) or design type, commemorative issues, and more.

A key date coin is generally considered to be the most important coin in a particular series, usually the lowest-mintage and/or the most expensive. Rarity is based on the number of specimens extant of any particular numismatic item.

For protection, investors and collectors should only buy rare U.S. coins that have been graded and certified by the three leading independent coin-grading firms: professional Coin Grading Service (PCGS), numismatic Guaranty Corporation (NGC), independent Coin Grading Company (ICG). These organizations are recognized industry-wide for their accuracy, objectivity and high standards.

These services help to make the market in numismatic coins safer and more liquid. When a coin is graded, it is immediately encased in a tamper-resistant slab and sealed with its certification number and grade displayed.