When planning to buy a new home, one of the decisions you have to make is whether you will buy a brand new house or one which has been previously owned by someone else in the past. The differences between these two must be carefully considered when you want to buy home where you and your family can spend your life happily and comfortably.A Matter of PriceBefore anything else, the price is one thing you have to consider when looking for homes for sale. In today’s real estate market, there are foreclosures and short sale homes in the market which are better priced compared to a new house. It seems a bit strange that a brand new house located in the same neighborhood of one which is several years old is going to sell for more compared to a previously owned house. New houses are not considered comparable so these sell for more, not to mention that there are also no issues on appraisal. Somehow, it doesn’t seem right if a previously owned house have ceiling fans, window treatments, landscaping, or even a spa or pool which a new house often doesn’t have.On the other hand, a new house is exactly that, new, in an ideal move in condition and under full warranty. You have to add to the equation the price of things which are not in the house already, or that no backyard landscaping is present. Still, a lot of people find that they prefer a new house compared to others, and builders sell really well even in today’s real estate market.LocationOne more factor you have to consider is the location. There is a chance that you will not find a house in a place close to work and other major amenities such as downtown or the airport. Places around these areas are long gone, and you won’t be able to find builders of new homes near these areas. When a city grows, this grows outward, with new commercial developments and homes which are newer should go outward. It is a crucial consideration for most homebuyers. The daily traveling time to work can also add up with the prices of gas and the time required for traveling both directions.Add-ons and UpdatesAnother thing you have to consider when checking homes for sale is that a used house may still require some updates that can offset the price of adding new things to a brand new house. A fresh coat of paint might be required, or you might have to change the appliances or update the granite counters. You have to calculate all the things which will be added or changed to a new house and a used one.Make sure that you consider every factor before you decide to buy home for sale. Both a new house and a used home have their own set of pros and cons, so ensure that you check everything before you settle for the best choice for you.
Home entertainment system means the things which are a complete entertainment package in any home today. Buying of home entertainment today has become a regular job and today most of the families can afford a home entertainment system.In this world where people do not have time to relax by going out for a movie or just for the purpose of relaxing, the home entertainment system provides a wide range of relaxation for these people. Home entertainment includes a home theatre which is no less than a theatre screen. DVD players are also included in this home entertainment system. Plasma television has a great demand today. Home entertainment is now in the grip of most of the families as the price of this has come down a lot in the recent years. People today can enjoy the surround sound, digital picture quality just like the theatres sitting at home by paying only once while buying the home entertainment. But the home entertainment model has to be chosen very carefully so that the person buying it does not get cheated. Before purchasing a Home entertainment system one must decide which brand to buy, which brand is good. One should always consult a person who has knowledge about the Home entertainment system before buying one; this will help in choosing the right system and making the correct decision that too in budget.To choose the model one must follow certain things. The Home theatre should be one which can be adapted to new technologies. This includes audio as well as video mediums. The stereo system is a nice choice. The speaker system allows having the sound in any part of the house. The power should also be checked before buying the thing. A Home entertainment must be chosen in such a way that it matches the person’s entertainment preferences. The Home entertainment system should be able to handle the old methods like tapes.The most important thing which must be kept in mind before buying a Home entertainment package is that one must purchase the best he can afford; it is useless to buy a system which costs less and is of inferior quality, it is simply wastage of money. It is better to buy an expandable system and then the features can be added continuously and it can be updated with time. This will also serve the budget purpose. People with limited budget can try this method as it will be of great advantage. Cheap Home entertainment systems if purchased will incur loss. One part after the other will stop functioning and will require frequent service. Servicing will demand more money and it will cost even more than the price with which the whole system was purchased.There are many such Home entertainment systems which come in low costs. Cinema-in-a-box is system which is available with DVD player and surrounds sound at an affordable cost. The cost of Plasma and LCD TV has gone down dramatically in recent years. Big systems should be avoided in small rooms. CRT TV’s are the most mature technology in television today but are often bulky although they are far cheap than other kind.
Investors are increasingly forced to choose from a proliferation of investment options. They also have to deal with contradictory advice on how to achieve their financial goals and how to invest the savings they have accumulated during their lifetime. If you consider that there are more than 7000 mutual funds available in the United States alone, and thousands of insurance products worldwide, making the choice that will satisfy them ever after is daunting, to say the least.No wonder people so often ask the rather general question: Which investment is best? The first part of the answer is easy: No single investment is ‘the best’ under all circumstances for all investors. Personal circumstances, goals and different people’s needs differ, as do the characteristics of different investments. Secondly, one asset class’s strength in certain circumstances could be another’s weakness. It is therefore important to compare investments according to relevant criteria. The art is to find the appropriate investment for each objective and need.The following are the most important criteria:
the goal of the investment
the risk the investor can handle
taxability of the investment
the period until the financial goal is reached
last but not least, the cost of the investment.THE GOALGoals determine the characteristics sought in an investment. You will be in a position to choose the most appropriate investment only when you have decided on your short-, medium- and long-term goals. The following generic goals are normally involved:Emergency fundEmergency fund money should be readily available when needed, and the value of the fund should be equal to about six months’ income. Money market funds are excellent for this purpose. While these funds do not perform much higher than inflation, their benefit is that capital is saved and is easily accessible.If you already have a ready emergency fund covering more than six months’ income, you could consider a more aggressive mutual fundCapital protectionIf your primary aim is capital protection, you will have to be satisfied with a lower growth rate on the investment. Those above 50 are normally advised to be conservative in their investment approach. While this may for the most part be sound advice, you should also keep an eye on the risk of inflation, so that the purchasing power of your money does not depreciate. It is not the nominal value of the capital that should be protected, but the inflation-adjusted one. At an annual inflation rate of 6%, $1 million today will buy the same as $174 110 in 30 years’ time. A 50 year-old with $1 million would therefore have to lower his living standard substantially if he only retains the $1 million until he was 80.Conservative investments like those listed above should form the normal basis for providing an income. Because of inflation risk, investments should be structured so that they can at least keep up with inflation. This means that at least a percentage of the investment source providing the income should be made up of other asset classes like property and equity mutual funds. The percentage would differ according to individual and economic circumstances.Investors fortunate enough to have their basic budget provided for by a conservative fund could consider increasing their income with commercial property funds and tax-free income from dividends paid out by listed shares.Capital growthIf an investor’s primary goal is to achieve capital growth, the real rate of return should be higher than inflation. This implies greater risk to capital in the short term. Investors aiming at capital growth should not be apprehensive, as they will reap the rewards in the long term.The history of equity prices over the past 100 years proves equity investments to be the best performer, followed by property. This does not mean you should buy either of these investments blindfolded. Wait until the quality shares in which you are interested are trading at inexpensive price levels.RISKThe investment with a history of the highest growth is not necessarily the one to choose. The Standard Bank’s Gold Fund increased by 178% during the period 13 August 2001 – 24 May 2002 (284 days). Judging only on the growth of the fund during this period, it performed exceptionally well. But would it be the right investment for a retiree? During the 805 days following this, the same fund experienced a negative growth rate of 44%! The problem with an investment that decreases by this percentage is that it will not reach its previous peak by increasing again by 44%. This is because the growth this time will take place from a lower base, so in fact the investment would have to increase by approximately 80%.LIQUIDITYHard assets like Persian carpets, works of art and antique furniture may be good investments in the long term, but unfortunately they are not very liquid. The same is true of certain shares in smaller companies. Money market funds, on the other hand, are very liquid, but the returns may not always be as good as those from other investments. The need to liquidise the investment quickly is therefore also a criterion to consider when evaluating investments.TAXABILITYThe taxability of an investment has a considerable impact on its value to the investor. When comparing the returns on different investments, the return after tax has been deducted should be used. The investor should always ask what will be left in his pocket after tax deduction.PERIODConservative investments with no potential for high returns are suitable for shorter periods, while investment-objectives with longer time horizons aspire to achieving higher returns. Money market funds are suitable for periods of one or two years. Income and conservative asset allocation funds for three or four years and flexible asset allocation funds, commercial property funds and value equity funds may be chosen for longer periods, dependent on the economic and interest cycle and the propensity of the investor to accept risk.COSTSThe costs involved in an investment are normally things like administrative cost and commission. The percentage of the costs to the investment amount directly affects the value of the investment. Many of the currently available investment products are structured in such a way that investors can negotiate commission.CONCLUSIONNo investment strategy blueprint is going to be perfect for everyone’s circumstances. Investment opportunities should therefore be examined critically before any decision is made. It should also be kept in mind that there are different companies managing specific funds under the investment categories referred to above. Some are more effectively managed than others. Investors should therefore research investments as well as the managers thoroughly before investing. Otherwise, they could appoint professional asset managers to do so on their behalf. Time spent determining the type of investment you really need is time invested in your future financial well-being.