Why Down Economic Times Create Multi-Family Investment Opportunities
There is a common rationale used in the world of real estate that human beings need four fundamental things to survive: air, food, water, and shelter. As a dedicated investor in multi-family real estate, I can tell you that the housing crunch has created a mass migration of consumers. The options available to consumers who need a place to live include:
· A new single family home/condo that they purchase
· A new single family home that they rent
· A multi-family apartment unit that they rent
Given the current housing crunch and that many displaced home owners are now credit challenged, you should be able to see that being an owner of multi-family real estate makes you a source of housing, at a time when many people desperately need it.
Family Investing Tips
Even though investing refers to accumulation products in the strictest sense, a family would necessarily have to invest in financial protection. Household income would have to be used to provide for the unemployed within the family.
HEALTH COVERAGE
Some insurers offer health plans that can cover the entire family. The cost of these plans is often lower than the aggregate cost of taking out a health plan for each family member.
FAMILY PROTECTION THROUGH LIFE INSURANCE
Income earners within the household should invest in life insurance. Primary earners should have five times their annual income in coverage, at worst.
EMERGENCY FUNDS
Creating an adequate emergency fund is also important when investing in financial security. The accumulated household debt should not exceed 40% of household income.
FINANCIAL GOALS AND OBJECTIVES
An important investing tip would be to set common financial goals for the family. These may include retirement, business objectives, helping members of the household start their own family or covering future education costs. Major financial goals should be divided into short, medium and long term goals. Short term goals can be met with savings accounts and money market funds. Long term goals can be financed by higher risk income and growth funds for example. For the more conservative family, long-term fixed rate investments are available
Retirement is a major family issue. The best advice for primary income earners in a household would be to maximise contributions to an employer’s pension plan. Consistency, financial discipline and considerate financial decisions are pillars of family investing.
very useful information and i have found it for a long time,thanks so much.
[...] children must be made strong, knowledgeable and have the wisdom to understand conflicts and in solving them. In fact, in common causes of conflicts, the children are the only ones who can [...]
[...] The Child Trust Fund was introduced by the British Government with the aim of ensuring every child has savings at the age of 18, helping children get into the practice of saving whilst teaching them the advantages of saving and helping them grasp the benefits of personal finance and saving. [...]
[...] primary responsibility for looking after the child may need a break from care-giving. Home care and supported living includes occasional respite services to enable the carers to do [...]