Investment

The crucial role of technological input in modern business

February 5, 2020 by Reporter Leave a Comment

When it comes to running a successful business, there is no getting around the fact that it is a job that demands constant attention to detail and intricate involvement on every level possible. These days, modern businesses are functioning and thriving at an all-time high, and a massive part of the reason why that is comes down to the fact that technological innovation has well and truly impacted the modern business landscape for the better. Of course, the goal of technological influence is always to improve an aspect of life as we know it, but the simple truth is that sometimes certain technological innovations have more of a profoundly positive impact across the board than others.

Today, the landscape of business is one of the most tremendously impressive landscapes in the world. There is an incredible amount of determination and hard work that goes into bringing these landscapes to vibrant life. There is something to be said about the businesses that are willing and able to take their approach to the next level by introducing and embracing modern marvels like technological influence. More than ever, technology is present in business in fresh and exciting ways that are challenging, if not near impossible, to come to terms with otherwise.

Respecting the balancing act of entrepreneurship

The art of entrepreneurship is one that is well and truly involved in a tremendously impressive inclination towards the ongoing evolution and improvement of a business model. Being an entrepreneur is never an easy job, and it is so incredibly important that all entrepreneurs, no matter their background, are entirely dedicated towards the cause. It is a balancing act that never seems to come to an end, and it is a balancing act that is significantly important when it comes to successful and long-lived business in this modern era.

Introducing technological input into a business

The key to longevity and success for modern businesses is to work with technological innovations (among other aspects and points, of course). This was mentioned earlier, but the importance of including and embracing technological influence in a modern business cannot be overstated. The rest of the world is moving increasingly in the direction of a digital future. What that means for businesses specifically, is that they are now in a position of essentially having to transform the way they approach growth, by means of technological advancement.

Consistently thriving and elevating the business

Thriving and consistently elevating a business takes a lot of determination and hard work. This much is glaringly obvious, and it is also incredibly important to not that the influence of technological power in modern businesses is making this task easier than ever. Whether it is incorporating an automated novated lease calculator for company vehicle utilisation, or expanding a business by creating and building upon an online presence, the point is always, and without exception, the same: success in business these days is at least partially hinged on the business in question’s willingness and capability to embrace technological innovation.

Top 10 Tips For First Home Buyers

July 29, 2018 by Reporter Leave a Comment

Buying your first home in any of Australia’s major cities is a difficult task. From getting your finance approval, finding a home that will suit your needs, competing with other buyers and investors at auction and most importantly not paying too much for a property.

For an inexperienced buyer, it is normal for the buying process to take up to six months to a year. We look at the top ten tips to shortening your time on market and getting your weekends back, to save you money.

Tip 1. Finance Pre Approval.
Having your finances in check empowers the buyer to not spend time looking at the wrong area in the wrong price range. It also gives you a negotiating ceiling so you know when to walk away if things get too heated.

Tip 2. Do Your Research.

Understanding what a similar property sells for in a similar area is vital to knowing the market value. When you see something you like, check a similar spec property that has sold in the last three months. This will help you spend your time wisely, on the right property.

Tip 3. Building Inspection.
Once you have successfully completed step 1 & 2 and you have found a house you like. It is important to do a building and pest inspection to make sure your not buying a maintenance nightmare. A typical building inspection can cost anywhere between $550 to $850. It is a worthwhile investment and will help reduce the chance of buyer’s remorse once the property negotiating is done.

Tip 4. Seek assistance in negotiating.

Real estate agents are negotiating pros. An average agent will sell one property each week where an average buyer might only purchase a house once every ten years. Different negotiating tactics apply to different real estate markets.
Buyer’s agents (https://wiserealestateadvice.com.au/home-buyers-agent/) are real estate agents for hire, they serve only the buyer and are employed to get you the best price and selling terms. To save a few dollars, find a buyer’s agent that offers a negotiating-only plan rather than a fully serviced plan. This should save you thousands.

Tip 5. Compromise your criteria for success.

If you keep losing auctions, it is better to adjust your criteria to give you more buying power. For instance, choose a property that may need a light renovation, a three bedroom property instead of a four bedroom property, smaller land allotment or peg back a suburb away from the CBD.

Tip 6. Government Grants.

First homeowner’s grants are a great help to minimizing some of the overheads when it comes to buying a property. To check if you are eligible, visit the state revenue office website for more information.

Tip 7. Conveyancers
You will need to hire a conveyancer to complete your sale. They will ensure all the conditions in a contract are fulfilled and make sure everything is legally signed over into your name. Normally they cost around $1000 per property purchase.
It is wise to get the contract of sale read over by your conveyancer prior to signing any contact of sale. A good conveyancer will provide this service free of charge and warn you of any risky conditions.

Tip 8. Add Clauses To Your Written Offer.
When submitting an offer on a property, every buyer has the right to add protection clauses to reduce their risk when buying. For instance, a ‘subject to finance’ clause or a ‘building-inspection clause’. These clauses can be like a ‘get-out-of-jail-free’ card if something goes wrong.

Tip 9. Don’t give agents verbal offers.
Always negotiate in writing using a Contact of Sale and Section 32’s. This process makes sure the vendor / seller visually sees your offer and responds back in writing using a counter-offer tactic rather than trusting the real estate agent’s story.

Tip 10. Never disclose your budget.
Keeping this secret is your key to saving money on a property negotiation https://wiserealestateadvice.com.au/negotiating-property-price/

Real estate agents highly skilled with negotiating strategies and know how to increase an offer if they know how far they can go. If the agent is kept in the dark they are less likely to empty an unsuspecting buyer’s pockets.

Real Estate Investment: Why You Should Opt for a Preferred Equity

April 18, 2018 by Reporter Leave a Comment

Real estate is considered as one of the best investment sectors. It’s because the property values usually stay stable for long and you can earn a good return on your investment. If the country is economically strong, you’re likely to earn big profits with time.

Preferred equity is another way of investing in real estate sector. You may have heard of the term ‘preferred’ in the stock market where investors are allowed to buy preferred shares of the stock. Although these stocks are relatively expensive, they offer a good ROI.

When it comes to preferred equity in real estate, you can go for a project that has a low priority in terms of mortgage debt but possesses a higher priority in terms of the equity of project sponsor.

The project financers usually offer a loan within the range of 60-70% of the original commercial property’s value. This way, they’re able to earn profits without risking their investment. Therefore, most mortgage debts are usually funded by the investors. However, when investors are willing to invest even more funds, preferred equity comes into play.

Why Investors Go for a Preferred Equity

Preferred equity is more expensive than mortgage debts or senior debt. Although it offers more revenue, the investment encounters more risks. If the property value suddenly drops, the investors can lose their entire investment in no time. But the probability of higher profits attracts investors.

Also, preferred equity holds capital repayment priority. It depicts that even if the commercial property is unable to generate the expected revenue, you can claim your original investment once the property is sold. It reduces the risks to your investment.

Be it real estate or any other investment sectors, you can’t earn a good return unless you’re ready to take risks. By opting for the preferred equity, you can claim benefits from property appreciation, get tax deductions and earn rental income benefits.

A majority of preferred equity investors choose a fixed return on their investment as well as of their investment. It aids them in protecting their original investment and increasing their profit.

A preferred equity usually involves a fixed term of 2 to 3 years. The sponsor can upgrade the interest rate after this term on the basis of the unreturned capital.

How to Invest in a Preferred Equity

Investing in a preferred equity can help you earn a good income over time without risking your savings. However, it’s recommended to get in touch with a professional commercial property advisory service to make the most of the investment opportunity. You can visit http://www.stamfordcapital.com.au/ to know more about preferred equity.

Stamford Capital is a reliable name when it comes to financial advisory services. They can guide you about the most suitable real estate projects that will work for you. Since they have contacts in the industry, they can suggest investment opportunities on the basis of your financial needs and goals.

All in all, a preferred equity is a feasible way of investing in commercial real estate. With professional guidance of Stamford Capital Australia, you can further increase the return on your investment.

What Do You Know About the History of Australian Gold Coins

August 31, 2017 by Reporter Leave a Comment

If you’ve been born and raised in Australia, you would be familiar with the tales of the infamous gold rushes and the “diggers” who worked in these gold fields.

The Australian gold rush began in the nineteenth century. It is something that has become an integral part of the national history. A walk through the pages of the Australian culture and heritage would be incomplete without the chapters on gold.

So, who discovered gold in Australia? Where was it found? And how did we get the Australian gold coins?

When you’re out buying Australian gold coins, seldom does it happen that you make an effort to find out the history behind them. Thankfully for you, we are outlining the entire timeline right here for you!

The Gold Rush

It all began during the early nineteenth century. The colonial settlers had begun settling into the country and with them came the development that laid the foundation for the modernised nation that we are today. The immigrants that came to Australia included shepherds, European pioneers, and explorers.

It was between the 1820 and 1841 that these foreign settlers found gold reserves in the Blue Mountains and the quartz reefs of Australia. However, it was not until Edward Hargraves located gold near Bathurst in New South Wales in 1851 and made a public announcement about that, that all hell broke loose.

There were several other gold discoveries made during the same year and migrants started pouring into the country to get their hands on the gold. The influx of enthusiastic miners was so strong that the colonial authorities had to impose taxes.

The First Gold Coins

What followed was a revolt and the Battle of Eureka Stockade, which once ended, led to the production of Australia’s first ever gold coin. In the year 1854, Sydney became home to the first gold mint in Australia. It was a branch of the Royal Mint – the first one outside of England – opened to produce the very first sovereign coins crafted out of Australian gold.

It’s indeed safe to say that it was the British who introduced the concept of independent gold coins down under.

More Mints More Gold

From there on, Australia never looked back. There were several remarkable discoveries of gold reserves in the country, like the ones at Coolgardie and near Kalgoorlie over the next four decades. In 1872, the Royal Mint opened its second branch in Australia – this time in Melbourne. In 1899, Premier Sir John Forrest succeeded in gaining permission for a third branch of Royal Mint in Perth. By 1957, the Perth Mint had effectively begun refining gold up to 999.999 level of purity as per the standards of the Worshipful Company of Goldsmiths – which soon became a benchmark for all gold sold under the Royal Mint seal.

The Official Australian Bullion

In 1976, the Australian Commonwealth removed all restrictions on Australian residents over the buying and selling of gold. It wasn’t until 1985 that the Commonwealth rallied for a sovereign gold bullion coin program to encourage the trade of Australian gold in world markets. The program was eventually launched in 1987.

In case you’re wondering when the iconic Kangaroo design theme was introduced to these gold bullions – it was in the year 1989!

Advantages of Access Anywhere Investment Software

October 13, 2013 by Reporter Leave a Comment

When you are looking to build the most “successful investment portfolio” via a systematic approach, you will have many factors to consider, as well as actions to take.

You will need to determine your investment strategy, for example, considering whether you are a conservative or aggressive investor, while your asset allocation will also need to be figured out. Your asset baskets will then need to be filled with specific investments, with portfolio rebalancing also needing to be done periodically.

Clearly, it’s understandable that individuals managing such a portfolio – whether they are high net worth investors, stockbrokers, IFAs or fund managers, to name just some possibilities – would decide to make use of suitable investment management software incorporating a wide range of functionalities to make their lives easier.

Such functionalities could include everything from comprehensive reporting encompassing transaction, valuation, contribution and regulatory data to portfolio modelling and rebalancing consisting of strategic/dynamic modelling and blended modelling/asset allocation. But what is access anywhere investment management software, and why should wealth managers choose it?

Explaining ‘access anywhere’ investment software

In today’s world, the traditional ‘9 to 5’ is collapsing, with more and more individuals working from home and/or in all manner of remote environments. The top finance staff of major corporations, CFOs and MDs, CEOs involved in finance issues, IFAs, stockbrokers and high net worth investors alike are spending an ever-decreasing proportion of time chained to their desk in the same office, instead being constantly ‘on the go’.

This trend of an increasingly mobile, remote working corporate world has coincided with the rise of ‘cloud computing’, with more and more functionalities and technologies that might have once involved the installation of software on one local device now being delivered ‘as a service’ over the web.

The world of investment management software has not been immune to this trend, with the leading software solutions offering full interface functionality either via web services, or involving the importing of files from multiple locations.

Web based software of any kind allows its users to access it from any location in the world with an Internet connection, and from any device that is capable of the same, which is why a tablet friendly portal is another priority for many of those considering investment management software. This is why the terms ‘access anywhere software’ and ‘web based software’ are largely synonymous.

Why should you prefer access anywhere investment software?

Access anywhere investment software is used over the Internet with a web browser, with no CDs needing to be installed, or software downloaded. Nor is the client required to leave space on their own systems for upgrades, or even think about them – instead, the company behind the software can be entrusted with evolving it in line with a changing business landscape, meaning that the client always benefits from the most up-to-date version.

Users of access anywhere investment software don’t need to take the software with them in any form for their constant foreign business trips, as the data is centralised, being available over the Internet from any computer, at any time. Clients can access information about their investments and get to work on the management of their portfolio from anywhere, also not needing to worry about the theft, damage or loss of data.

Traditional software, after all, involves data being saved in all manner of locations, from USB drives and laptops to portable hard drives. Particularly as far as such a sensitive matter as one’s investment portfolio is concerned, it is a considerable reassurance to have that data securely stored on the most up-to-date, state of the art enterprise-class servers. It makes the latest backups and security patches and updates for one’s own devices just slightly less critical, which is invaluable, given how often they are also completely forgotten.

If you are looking to manage your investment portfolio, in a 21st century corporate environment, you will want to be able to quickly access the full range of investment management software functionalities, encompassing order management, real time performance measurement, client relationship management and more, in a truly fuss-free and efficient manner.

You are not likely to want to get bogged down with technical requirements. Instead, you’ll want to be able to leave such responsibilities to the directors, project managers, technology developers and business analysts who conceived the software and are therefore best-placed to incrementally modify it in line with the current business landscape and the common needs of clients.

The right access anywhere investment software gives you precisely this convenience and peace of mind, allowing for your focus to remain firmly on your investments.

Making your retirement money work harder

July 7, 2013 by Reporter Leave a Comment

Falling interest rates have hit retirees hard, and according to forecasters even more cuts may be in the pipeline. Particularly for self-funded retirees, it is now more important than ever to make retirement funds work harder.

Making smart choices about personal savings and savings products is vital, according to Greg McAweeney, Executive General Manager of RaboDirect Australia and New Zealand.

“Take the first step by moving excess money from your transaction account into a high interest savings account,” McAweeney says. “Aussies are losing out on billions of lost interest by leaving their money in low interest accounts. Take control of your money by doing the simple things.”

Generating higher returns

Chasing higher returns can be a dangerous game, particularly when you don’t have another 20 to 30 years of working life to cover any losses.

Instead, set an investment strategy with diversified investments while ensuring optimum tax and social security outcomes. A typical portfolio might comprise 50 per cent Australian shares, with the remainder made up of overseas managed funds, property and fixed interest.

Shares

“Blue chips” such as bank stocks have been popular with investors recently due to their high yields and fully franked dividends. According to a recent study by the Australian Securities Exchange, shares outperformed other investments including residential property, fixed interest and cash over the 20 years to December 2011.

Bonds

Gavin Madson, Director of Infrastructure and Fixed Income Research at FIIG Securities, says the latest cut to official interest rates made most short-term rates unattractive.

“Investors should be out of short-term fixed investments, be they bonds or term deposits, which will reflect the drop in rates fully, and instead invest in bonds around the five-year maturity mark, which are offering stronger returns on the higher base rate,” Madson says.

As well as inflation-linked bonds, he suggested indexed annuity bonds that offer an annuity-style payment stream from infrastructure projects at attractive rates.

Property

It is possible to extract wealth from your home using a reverse mortgage. Generally, the older you are the more you can borrow, with a 70-year-old likely able to borrow around 25 to 30 per cent of the property’s value.

The 2013 Federal Budget also introduced an incentive for retirees to downsize. Under the scheme, retirees can invest up to 80 per cent of the profit to a maximum $200,000 in a special account for 10 years and still receive the pension.

Government incentives

Even if ineligible for the pension, the government offers a range of benefits for retirees covering travel and medicine costs. There are also incentives for working past the pension age, including the mature age tax offset and transition to retirement.

Make sure you don’t run out of money in retirement by maintaining a mixture of income and growth assets. By maximising returns, it can be possible to enjoy the lifestyle you deserve.

This article is presented to you by Australian Business Times in conjunction with RaboDirect. For more information about investing in term deposits or utilising self managed super funds, visit RaboDirect.

Top Australian stock broking websites and information links on the internet

Bell Direct (www.belldirect.com.au)

Directors’ Transactions
Directors’ Transactions tells you who’s buying, who’s selling and who owns what amongst Australia’s company directors.
» www.directorstransactions.com.au

CMC Markets Stockbroking (www.cmcmarketsstockbroking.com.au)

Educated Investor Bookshop
A specialist bookshop located in Melbourne offering same day postage Australia wide and a 10% discount for subscribers to The Intelligent Investor.
» www.educatedinvestor.com.au

Australian Shareholders’ Association
Established as a not-for-profit organisation in 1960 the Australian Shareholders’ Association protects and advances the interests of investors.
» www.asa.asn.au

Grant’s Interest Rate Observer
This fortnightly newsletter is US-centric, highbrow and bears little relevance to the Australian market, but we like his style.
» www.grantspub.com

Income Investor
This site offers information on both upcoming and historical ex-dividend dates, including dividend amounts and franking.
» www.incomeinvestor.com.au

E*Trade (www.etrade.com.au)

New2Shares.com.au
Confused by investing but want to learn more? New2Shares offers five education modules covering everything from telling you why you should invest to reading annual reports and choosing a broker.
» www.new2shares.com.au

Outstanding Investor Digest
It’s expensive and it’s infrequent but the interviews in this US publication are more eagerly anticipated than anything coming through The Intelligent Investor’s mailbox
» www.oid.com

Platinum Asset Management
Australian based fund manager Platinum provide some refreshing words of wisdom in their quarterly reports.
» www.platinum.com.au

The Australian Stock Exchange (ASX)
The ASX website includes market and company news, share prices, ASX education centre, ASX/Dymocks Book Shop, information on derivatives and a directory of stock brokers. For those who would love to attend the lunchtime lectures, a timetable is now available online.
» www.asx.com.au

D.J. Carmichael (www.djcarmichael.com.au)

The superinvestors of Graham and Doddsville
This is a highly recommended extract from a lecture given at Columbia University in 1984 by Warren Buffett.
» www.tilsonfunds.com/superinvestors.php3

Tilson Funds
It could almost be described as the value investor’s homepage (second only to The Intelligent Investor of course), this website has it all and is a fantastic starting point.
» www.tilsonfunds.com

Warren Buffett
The Intelligent Investor’s dedicated site to the one of the world’s most successful investors, Warren Buffett.
» www.warrenbuffett.com.au

Overseas Stockbroker Website links

Berkshire Hathaway
This site contains Warren Buffett letters to shareholders for every issue since 1977. Essential reading for all value investors.
» www.berkshirehathaway.com

Third Avenue Funds
Martin J. Whitman (Marty Whitman) is a legendary investor and author of a book titled Value Investing: A Balanced Approach. He’s also a regular to the pages of Outstanding Investor Digest (www.oid.com). Whitman founded Third Avenue Management in 1974 and its website contains many gems. Most are to be found in the ‘Shareholder Letters’ section.
» www.thirdavenuefunds.com

The Motley Fool

If you know what you’re after then this ‘all things finance related’ website probably has it. The regular email bulletins are informative, but with a UK slant.

» www.fool.co.uk

Australian Stockbroker Links

» ABN AMRO Morgans (www.abnamromorgans.com.au)

» Wilson HTM Investment Group (www.wilsonhtm.com.au)

» HSBC Stockbroking (www.broking.hsbc.com.au)
» Intersuisse (www.intersuisse.com.au)

» Andrew West (www.andrewwest.com.au)
» Austock (www.austock.com.au)
» Baker Young (www.bakeryoung.com.au)
» BBY (www.bby.com.au)
» Burrell Stockbroking (www.burrell.com.au)
» Commonwealth Securities Ltd (www.commsec.com.au)
» Delta Securities (www.deltasecurities.com.au)
» Direct Shares (www.directshares.com.au)
» Gillion Securities (www.gillon.com.au)
» Joseph Palmer & Sons (www.jpalmer.com.au)
» Maquarie DirecTrade (www.macquarie.com.au)
» Morrison Securities (www.morrisonsecurities.com)
» Netwealth (www.netwealth.com.au)
» Sanford Securities (www.sanford.com.au)
» Smith Barney Citigroup (www.smithbarney.com.au)
» Taylor Collison (www.taylorcollison.com.au)

Investing in mutual funds

August 17, 2012 by Reporter Leave a Comment

Mutual funds are an investment fund that pools the financial resources of a variety of investors and buys a diversified portfolio of stocks and bonds. At inception, the board of directors for the fund set the goals and strategies for the fund. Then, a fund manager is hired to ensure that their directives along with the fund manager’s expertise work in sync for the best returns possible for the fund. Investors have the ability to enter the fund for relatively low up-front investments and have the flexibility to add additional financial resources or sell shares as they desire.

Mutual Funds: What Are They?

The fund manager allows for investors to relax and let a highly qualified expert do the buying and selling as needed for the fund without having to worry about individual stock and bond purchases and sales.

The mutual fund manager is responsible for the buying and selling of bonds and other securities and reports to the board of directors of the fund. Mutual funds area available both as an “Actively Managed” and “Passively Managed” fund. A passively managed fun is one where the fund manager sets the investment criteria with direction from the board and then buys and sells investments to match the strategy. A passively managed mutual fund is the most reasonable type of fund for an investor to own as the costs associated are less than those of an actively managed fund.

In an actively managed mutual fund, the fund manager is much more intricately involved in the research of companies, markets, industries, and the economy to more fully manage the fund on a day-by-day, and hour-by-hour basis. Actively managed funds have highly educated and experienced fund managers that focus their energies on analysis and keep up-to-date with industry and economic news. While the annual expenses of an actively managed fund may be significantly higher than a passively managed fund, often times, greater returns are seen.

Advantages of Investing In Mutual Funds

1. Experienced fund manager trades stocks and bonds as market, industry and economy requires.

2. Diversified portfolio as many mutual funds contain hundreds of different stocks and bonds.

3. Investors don’t have to invest in individual securities which can be cost prohibitive for some investors.

4. Low up-front minimum investment requirements for mutual funds can be as low as $500.

5. Shares can be sold for cash.

Investors can sell all or part of their shares in mutual funds at the Net Asset Value (NAV) rate. This is the actual mutual fund price that is set at the end of each trading day and is the buy/sell price until the following NAV rate is set.

There are tens of thousands of mutual funds for investors to choose from; in fact, there are actually more mutual funds in the United States than there are individual stocks or securities. Well-balanced mutual funds tend to own a balance of bonds and stocks, often times with stocks slightly outweighing the bonds. Analysts agree that mutual funds are one of the best ways to invest money with minimal risk while enjoying moderate and good returns. For a truly balanced portfolio, experts agree that investments in mutual funds provide the right balance of risk and reward.

About Us: When you are searching for information about retail investments and funding choices, you will find that there are a few choices that can really help to improve your portfolio performance. When you have questions about your investments, you might consider turning to Trustnet, Hong Kong’s premier site for information about fund investment.

Guest Post : Visit their website at www.trustnet.hk for more information.