Friday, October 10, 2008

Are you considering investing in a home business?

The reason I thought I’d ask this question is prompted by my attendance at an investors meeting recently. Although the meeting was targetting a specific commercial property ownership , I found myself comparing that opportunity with the home business venture that I’m involved in.

As we all know the financial systems of the world are currently in such turmoil that radical measures are being sought to avoid a deep depression – similar or worse than that of the 1930’s. As I write this article I’m aware that in the past few days alone, Iceland became bankrupt over night, $700+ Billion is being injected (on top of at least $160 Billion earlier) into the American economy, European and Asian countries are following suit in an effort to ‘stem the flow’.

We’re entering a period where “cash is king”. Yesterday’s market is gone todays market has new values. For instance in the past 2 days I’ve heard that:

• Many Cash Funds in the USA / Canada, having experienced huge losses in recent weeks are now diverting their funds into property.
• Co-incidental with this was the news (on talk-back radio yesterday) from a New Zealand lady whos offspring were working in Australia, discovered that their savings – invested with a government pension scheme, had disappeared – due to current financial crisis.

“So with all this going on around us, which traditional options are performing and which are not? “That’s the question I had in mind as I listened to the presenter.
Now let me be clear, I am not a Financial Advisor – nor will I ever attempt to be one. I have had the experience of “Losing everything I had” at age 56 which disrupted my whole life for ten years – but now I’ve learned a lot since then and more importantly, I’ve made some good decisions that are the foundation to my recovery.

Here’s a few example presented that I thought worth mentioning. If nothing else, they may prompt you to think more deeply about hwat you may or may not do with your investment money.

Managed Funds
It important at times like this to differentiate between Lifestyle Liabilities and Assets e.g.
Lifestyle Liabilities Home Business , House, boat, car, furniture, beach house
Assets - Cash, Shares, Investment properties,
For instance lets look at SHARES:
$1.00 plus growth………………… = $1.06
Less tax …………………. = $1.04
Less CPI ………………… = $1.00


Rental Property
$1.00 rent at 5% = $1.05
Capital Gain 7% = $1.12
Less fees (Property management) = $1.11
Less tax = $1.11
Less CPI = $1.07

Investment Trends?
Well as mentioned earlier it looks like in the USA at least, Cash funds previously invested in Shares are now being diverted to Property! Does this mean it’s never been cheaper to invest? Some points here
• In New Zealand we’re selling houses slower than homes can be built
• Investment rates are reducing worldwide.
• Construction materials costs and the NZ $ are increasing – by the week!
• Property is a long term strategy- know what to buy- where to invest
• whatever you invest in it should be an ASSET - Cashflow neutral or positive!

o Location
o Demand – quality
o Must be Freehold

But for me, I need a higher return and a solid business where I can grow my money. A home business for me is the best choice. By working from home I escape many of the huge costs I faced in Real Estate, I work from the comfort of my own home, have contact 24/7 with people world-wide and enjoy the time freedom that I always yearned for in later years. But here’s the crunch – why would I accept returns of 7%, 8%,9%10% etc when, by investing is a unique , home business with an exceptional business model – proven over 8 years – I can achieve much Higher returns along with an ability to compound the growth exponentially?

To cut a long story short, I’ve been doing business on the Internet, in MLM and Network Marketing companies for more than 12 years. I ‘ve learned the hard way what to look for and how to choose a home based business . The business I now operate allows me to do something that no other business- to my knowledge- allows : It allows me to BUY CUSTOMERS ! Just think about that for a minute! When customers buy I (and you if you join) get paid!

Sounds interesting? Sure it does. So here’s where to go: Tomorrows Home Business

Frank Heath, 2-Star BA
THE ULTIMATE TEAM
Telephone: 1-925-476-7480
Cell:+64 21 334569
Email: morecontacts@gmail.com
Good Business To Start
next blog

No comments: