Category Archives: Wellness, mind, body and spirit

Things can only get better. Hold on. Go check out the National Credit Act

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DontPanic1So the interest rate is down by 100 basis points and Tito Mboweni says we mustn’t expect any further major rate cuts. Our president, Jacob Zuma admitted that we are in for tuff times with the global recession. Now I understand that everything is looking dark and bleak but this is the time when we should stand up, take our lives by the rains and start moving in the right direction.

If you have unmanageable debt and it looks like you are going to lose your house, go speak to someone. If you need to find out what you can do and how to get help go to the NCA site http://www.ncr.org.za there is a lot of information available there. I know it is never easy to ask for help but rather do it sooner than later. Your other options are to go to your bank, write a letter to them as well, but go to them and talk to a HUMAN BEING, and see what they can do for you.

I always say you should try whatever you can and brace yourself for what could happen. As soon as the markets turn, and they will, if you managed to keep your real estate, you will be smiling again.

Increase your homes Green status.

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We are all hearing about Green this and Green that, but how will it affect us and how can we implement these changes effectively in our homes? Here are some tips on how to go Green.

  • One tip we are all aware of is to install solar panels on our home instead of relying on Eskom and the coal burning that they practice. They may seem expensive to install but they should pay for themselves over the years.
  • Don’t waste water! This means fix all your leaky taps and pipes.More water is lost by a slowly dripping tap than you would think. Some people will go so far as to advise you to urinate outside in your garden so as to save water by not flushing the toilet. But I think very few people would actually go that far.
  • Choose finishes in your home carefully. Bamboo grows incredibly fast and is easily renewable. Many homeowners and designers are using it alot as flooring because of this and it is actually pretty fashionable at the moment. Don’t choose rare woods or species that take hundreds of years to grow
  • Select carpeting that is made from natural fibres, like cotton or wool, that have not been chemically treated by things like pesticides.
  • Insulate your geyser to decrease your electricity consumption.
  • Plant water wise plants in your garden instead of those that need alot of water. Also choose to plant indigenous species instead of alien species from other countries. Plants that evolved for our climate should be easier to maintain and they usually use less water.

If we start building these ideas into homes from the beginning rather than ripping out all the old stuff and installing new eco-friendly products it will be easier to live with. It is a new era where we are encouraged to think about how every action we take and every product we buy is going to effect future generations.

Many of us may feel as though we don’t have a choice in the matter and all this Green stuff is a bunch of nonsense, but if we make a decision to accept that change does happen and that we don’t want to be left behind it may make the transition easier.

Money tips: 6 to 10

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Today we are going to look at a few tips that deal with investing in the stock market and similar investment products. As a real estate investor you are  probably always looking for ways to further increase all the money you are making in real estate :) . So here are a few tips to help you invest that extra cash lying around.

6. Effective and nominal interest rates

You need to know what the difference is between effective and nominal interest rates. Banks quote you a nominal interest rate when you borrow money from them and a higher effective interest rate when you invest your money. The nominal rate is a simple rate while the effective rate is calculated by compounding the interest rate earned.

7. When is your interest rate paid?

You need to find out when your interest is paid. Id it credited monthly, quarterly or annually? Why? Becuase let say you invest R 10 000 for 10 years at 10%. Your interest is paid out annually so your total return is R 25 937 but if it was credited every month you would receive R 27 070 so it does matter.

8. Should you invest directly in shares?

If you are interested in the progress of companies and you have the time to learn how to invest go for it. If on the other hand you don’t really care about what companies are doing and the thought of the stock market makes you feel a bit bored you probably need a financial advisor or invest in unit trust funds or life assurance endowment policies. These have shares as the underlying investments. But always consult a financial advisor if you are not a financial guru yourself. Yes the costs are higher but not as high as losing ALL your money.

9. So you feel you can invest directly in shares, so what now?

I am sure you’ve heard of the saying “Diversify, diversify, diversify” (please revisit our previous article “Money tips: 1 to 5″ and look at “4. Diversify, diversify, diversify.”). This will decrease the risk of losing all your money and you should do this across the stock market sectors. Another thing you should do is to rebalance your portfolio. When some of your shares prices rise you should consider selling some to make a profit and then if the share price keeps rising you can still make more money. Investing directly in the stock market does come with a warning. You will have to do some learning and research to make sure you know what you are doing. I would suggest that you go to seminars,l do a course etc. to get as educated as you can.

10. Is the investment product too complicated?

If you don’t understand an investment product and it seems too complicated you might want to avoid it. Sometimes some financial advisers will try to impress (actually confuse) you to buy their product. If you’re smart, you’ll walk away. I ask as many questions as it takes and if it takes too many, I go else where. Remember, it’s your money, they want it, so be “dumb” and question, qouestion, question.

Please feel free to give us your feedback. Our goal is always to provide as much, usefull info as possible.

Money tips: 1 to 5

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This is our new section called “Money Tips“. We are going to look far and wide for the best money tips out there and bring them to you. Our goal with this is to provide you with as much information as possible so when it comes to your real estate investing, personal finance and general money decisions, you make well informed decisions.

So let’s get started.

1. Pay yourself first.

I am sure you have heard of the “pay yourself first” mentality. Well if not let me explain. You should always take at least 10% of any money you make and save it. If you can keep yourself disciplined regarding this you will find yourself having a nice nest egg for all those real estate investments you would like to make.

2. Stay ahead of inflation.

When you get a raise put 10% towards saving. If you do this with your long-term savings like retirement plan, your contributions will increase automatically in proportion to your pay increase. This will help ensure you stay ahead of inflation.

3. Can you sleep at night?

When making investments you use the “Can I sleep tonight” test to make sure that the investment is in-line with your risk tolerance. If you lie awake at night thinking (worrying) about the investment, you probably should not have any money in the investment.

4. Diversify, diversify, diversify.

If you want to manage your investment risk you need to diversify or as the saying goes: “Don’t put all your eggs in the same basket.”. By doing this you limit any damages that might occur if one of your investments goes bust. Now some people will argue that you can not become rich if you diversify, but I must say I like having more than one type of investment, but still like to keep most of it in real estate.

5. Too good to be true.

There is a saying that goes: “If it is too good to be true than it probably isn’t true.” Now there are two sides to this one. One, it’s a scam or two it really is an opportunity of a life time. So how do you know which is which? My advice is research, research and then more research. Find out as much as you can. If the deal is of such a nature that you have to decide then and there I found then the deal is usually “dodgy”. Just don’t dismiss everything as being “too good to be true” before you did some homework but be careful at the same time.

Until next time.

“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.”
- Maya Angelou quotes (American Poet,1928)

Compost your waste.

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As the movement towards Green technology picks up speed we might take a moment to consider things besides solar energy and riding a bike to work.

With the South African government’s increasing steps towards all things Green we might see many things water related become mandatory aswell just like what’s happening in the electricity sector.Homes and houses equipped with the latest Green Technology will surely become increasingly popular as the world seems to be keeping its focus on global warming.

Not only is energy conservation a major concern when it comes to the environment but so is water conservation. The idea behind water conservation isn’t just to use less water for it’s existing applications but also to eliminate water use where possible. This is especially necessary in the context of raw sewerage removal.Clean water is used to allow your toilet to function, it serves no purpose other than to transport your waste from the toilet to the sewerage treatment plant. Although it works very well at doing this it seems like an incredible waste of a limited resource we desperately need for the future survival of the species and planet.

One way to combat this problem is to consider alternatives such as composting toilets.Many peoples first reaction will be to think it’s gross and that the human race has progressed far beyond the need to utilise our own waste, but it is always best to make an informed decision about such matters and not go with the initial “eeww gross”  response. If people didn’t try new things we would never have realised how delicious weird looking things can taste or how important colonoscopies are.

You get different kinds of composting toilets.They are totally self-contained and are not connected to any septic or sewer system. The toilet is used in the normal fashion and the waste collects in the composting chamber below where it is broken down, sanitized and then dehydrated. They need to be emptied at different intervals depending on the amount of use they get and the model, it can range from 2 to 12 month intervals. The resulting waste is then used as compost as the owner sees fit.

Some utilise a small amount of electricity to aid in the decomposition process by creating heat, others use a rotating drum to achieve this. Some are considered “full-time” and others “part-time” depending on the amount of use the toilet will get.You can purchase the appropriate kind when you know where you will be using it.

Any correctly installed composting toilet should not give off any unusual or excessive unpleasant odours.

What could you do if…

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What could you do if you had passive income were financially free and wealthy? Well let me tell you what I would be doing…this is a good exercise you should do as often as possible if you are serious about getting to this point.

Firstly I think of ALL these things as if they already happened and I am doing them. This way I feel inspired to keep trying even when times are bad. So let’s start…

:) I am driving the latest Mercedes Benz 4×4, and it is black…and chrome.

:) I own a beach-front property and every xmas my family and I spend time here enjoying the festive season.

:) Every year my family and I go on a trip to a country where we have not been yet.

:) I have a charity that I donate money to. I help out whenever I can.

:) I have interests in multiple real estate developments and buildings across the world.

:) I own multiple successful businesses. My businesses are managed by the best people in their various fields so I don’t need to be there everyday.

My list is very long, how about you add some…

Is Real Estate for you?

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I am sure that there are many people out there currently out there trying to figure out if they did the right thing when they got into the real estate market. The current housing market is rather dull and frustrating but you need to remember that ALL markets turn.

The only encouragement I can give is that you need to try to hold on to that property, now is not the time to sell, now is the time to buy. Obviously if you can not buy right now don’t, rather save your current property portfolio.

Most economists feel that the first half of 2009 might still be “bad” but then it is going to turn and we will all dance in the wonderfulness of real estate again. Until then we need to buckle up, stay strong and fight with every last breath.

Some people find me a bit over powering when I speak about real estate and wealth, the reason being is that I know I am right and I know most people can achieve this if they only decide to.

So come on, be positive and strong, tomorrow will be here quicker than you know.

Hidden health hazards in your home.(Part 1)

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We all want the cleanest healthiest home possible, but there can be many potential dangers in our homes that are hidden from us.

Most people will know how dangerous asbetos can be.It was mainly used for a variety of building applications before it’s dangers were uncovered some decades back and is therefore usually only in older homes.Products containing asbestos, when in excellent condition, usually pose very little threat, it is when they begin to get old and degrade that they release their potentially deadly fibres into the home environment.Asbestos fibres are inhaled and get lodged deep in the lung tissue where they eventually lead to scarring of the lung and a myriad of diseases.These include lung cancer, asbestosis and mesothelioma.These diseases may only present themselves 10 to 40 years after exposure to asbestos.It is for this reason that you should be perfectly aware of what your home is built from and if it contains asbestos that it is in good condition, disturbed as little as possible and checked by a professional if you suspect any problems.

Most people view mould as an annoying problem that makes your bathroom look yucky, however it can have more serious implications for some.Asthmatics are particularly sensitive to certain kinds of moulds but the mycotoxins that are released by some moulds can effect anybody.Different mycotoxins are released by different moulds and some can be harmful.Symptoms of inhalation of mycotoxins can include fatigue, flu-like symptoms, birth defects, skin rashes, cancer and lung inflammation. All very serious. So maybe it is time for you to have that mouldy linen cupboard inspected, and the rest of your home too.

Then there is everyone’s favourite, the cockroach.While we all know they are super gross and scurry into your dustbin and then over all your food spreading bacteria there is another threat you may be unaware of.Cockroaches have what is known as a cockroach antigen, this is protein found in the discarded body parts and droppings of the roach.This antigen can be extremely harmful to asthmatics and children who are sensitive to allergens.Think about how many things are possibly in your home’s air, cockroach antigens, tobacco smoke, dust-mites and their droppings and pets with fur. All of these could cause respiratory problems and should if necessary be eliminated from the home. Hopefully your child is not allergic to your favourite pet.

There are more hidden health hazards in your home and I will write a follow up article within the next week.

The Waterfall Method…

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The world is in an economic crisis, everywhere you read that real estate is going down and banks are going bankrupt. Well, after speaking to my mother and father the other night about all these influences in the world and how it affects our lives, I decided it is time to spread a positive message and tips & tricks on how to become balanced as a property investor, or just as a human being. If you are not balanced, it’s difficult to be positive and healthy.

So I will start by telling you a story my mom told me about how she deals with stress.

The Waterfall Method of dealing with stress.

Everyone has stress at some level, your boss irritates you, you have a “bad” tenant or everyone is just plain ticking you off. All these factors can cause you to not sleep properly and that in turn leads to you being in a bad mood.

When you go to bed, close your eyes and imagine a great vast open field with green grass. At one end there is a magnificent waterfall that rumbles. Make sure you spend adequate time imagining this waterfall in all it’s splendor, smell the air, fell the spray and hear the wonderful sound of the water as it falls to the bottom (please note the key here is to imagine a HUGE waterfall).

When you have the vision clearly in your mind start imagining that you are standing at the top of this waterfall. Right next to you are the people and problems you face during your day that cause you sleepless nights. One by one take each of them and toss them down the waterfall watching as they plummet into the misty abyss. I assure you before you reach the end of the “stress line” you will be fast asleep, stress free :) .

So Tito, what’s the interest rate going to do, would you like to come for a “swim”? ;)