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Good Long Term Investment

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Barcelona Travel
Being the capital of Catalonia and one of the most important Mediterranean ports, Barcelona is considered a very interesting an attractive city for the tourists and for investors in real estate market. That is why apartments in Barcelona represent a big popularity for all the investors. The real estate consultants in Barcelona offer all kind of services, form legal consulting until the best mortgage rates. Buying real estate in Barcelona is not easy, so from this perspective it is better to consult a realtor bureau, in order to be sure that you are on the right path.



Barcelona apartments offer you a great range of styles, designs and prices. Being a new comer in Barcelona, without any information to consider, of course the most experienced agents will be an exceptionally precious resource to offer you all the necessary market information. They will help you to reach a conclusion regarding the property estimation and a correct asking price for the property you want to purchase or to rent.

Be convinced that you will find a lot of offers were the prices of the apartments in Barcelona are really above the normal market estimation. The Spaniards are not very likely to bargain with their clients, but since you are the boss of your money, you decide what is the best for you, as a purchaser. You should estimate the apartments’ value according to the local market information. Do not think that the asking price is the last price and you will not be able to negotiate it.

Due to the fact that Barcelona is the second large city in Spain and an important commercial, economical, marine and cultural center it is very attractive for the investors. Apartment prices in the Spain have risen 9 percent to 18 percent a year over the past 6 years. The rise will be likely to keep on growing even if not with such an intensity but gradually. It is important to keep in mind that apartment prices in Barcelona have never fallen. Therefore, apartments in Barcelona represent a good investment for your business.

What really makes Barcelona attractive for investment is the interest rates which are currently very low. This makes it relatively inexpensive to take out a mortgage. If the interest rate is lower, you will pay less for your apartment and you will also pay off your mortgage sooner. You can also get tax deduction due to your taxable income rate. This calculation allows recent buyers to pay off less of their mortgage rate and in this way to have a benefit.

When you sign the contract for purchasing Barcelona apartments, you should advice first with a lawyer. Design the contract in such a way for you not to regret later on that you did not introduce some articles or that there are some omissions in the contract. Do not hesitate to ask a legal copy of the contract in your mother tongue or if you have a good knowledge of English, to set the contract in English. You should understand each point of it, in this way you will be sure that your property rights are secured.

When you become the owner of your proper apartment in Barcelona, you can get profit out of it. If you do not plan to move to Barcelona, you can rent your apartment for a good sum of money. Renting Barcelona apartments is a very profitable business, especially in summer time. Long term renting is also very profitable if you intend not to settle in your apartment for a long time.
Good Long Term Investment
There was a great article in the June CFA Institute publication Expected Rates of Return: Back to the Future by Jim O'Shaughnessy. Mr. O conducts solid research, writes clearly, and makes recommendations. This unusual combination of talents first came to my attention when I read What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time. Although the book discusses stocks, Mr. O's research and conclusions are applicable to mutual funds. The article published in by the CFA Institute is a synopsis of his work.

Mr. O reminds us that most money managers lack the discipline to consistently execute strategies. That's true for us investors - we tend to change our strategies, following the hot idea in the market - as it is for professional money mangers. Note to self: make sure your fund manger follows their stated investment strategy. The corollary to disciplined investing is not to expect to outperform the market every quarter. Even Warren Buffett doesn't. Adhering to these principles alone will make us better investors. Chasing quarterly results and/or changing investment strategies only guarantees one result in a bad performance.

Mr. O uses rolling 20 year periods (i.e., 1945 to 1965, 1946 to 1966), and went back fifty years to measure performance and draw his conclusions. He first published his work in 1996. Ten years later (as discussed in the article and the newest edition of his book) he looked at the performance of the strategies recommended in 1996. They worked! Investors can find many strategies predicted by historical data but it's far less frequent to be able to test actual recommendations. (Correlations can change over time and sometimes extrapolations from past data don't hold up.)

One of his more interesting observations is how many times over twenty year periods investors lost money owning long term corporate bonds. Rising interest rates (falling bond prices) from the 1950s into the 1980s had something to do with this, but Mr. O says that the twenty year bond rally (starting in the 1980s) is over and I agree with him.

How should we invest for the next twenty years? Drum role, please. Your equity portfolio should be 40% big cap value, 25% big cap growth and 35% small and mid-cap funds. Your fixed income component should be invested in intermediate term bond funds. Sounds like good advice (don't forget to invest some of your equity money in foreign funds) for any investor with a reasonable time horizon.
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About Author
Both Ken Wilson & Bill Byrnes are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ken Wilson has sinced written about articles on various topics from Software, Cars and Shopping. Whether you choose to buy or rent Barcelona apartments, you should get informed about all the legal processes in order not to end up losing.. Ken Wilson's top article generates over 45500000 views. Bookmark Ken Wilson to your Favourites.

Bill Byrnes has sinced written about articles on various topics from Financial Planning, Currency Trading and Financial Planning. Bill Byrnes is co-founder of MUTUALdecision, a website providing mutual fund data, and the author of the MUTUALdecision Blog. He's been an investment banker with Alex.. Bill Byrnes's top article generates over 6600 views. Bookmark Bill Byrnes to your Favourites.
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