Infographic: Real Estate Investing - Here are 4 Timeless Strategies to Use
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Real Estate Investing: Here are 4 Timeless Strategies to Use

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For new investors, getting into the business of buying, selling, and renting homes may seem pretty ambitious.

But like any other area of personal finance expertise, real estate investing boils down to some simple basics. With the right strategies, patience, and a willingness to learn, it’s a discipline that can help you make strides on the path to financial independence.

Strategies For Real Estate Investing

Today’s infographic comes to us from Offer Climb and it dives into four timeless real estate investing strategies worth knowing.

Whether you aim to do a quick “lipstick” flip or you’d prefer to generate passive income over time, here are the details and resources needed to execute on each strategy.

Real Estate Investing Strategies

Although buying and holding is the most common and traditional strategy used for real estate investing, there is actually a variety of different strategies used. Some of these are simple and can be executed in just days, while others can be used on an ongoing basis to create long-term value.

How Does Each Strategy Work?

The appropriateness of each strategy below depends on your goals, risk tolerance, and local housing market. For the average investor, it is obvious that some of these strategies would also not likely be suited for booming markets like San Francisco, New York City, Vancouver, or Toronto, where multi-million dollar prices are the norm, and bubble risk is higher.

1. The “Lipstick” Flip
The first impression of a house is incredibly important. The “Lipstick” flip involves buying a house that can be easily improved, and then making minimal cosmetic improvements and repairs to sell for a better price.

For the right property, taking the time to fix small issues with flooring, walls, landscaping, and paint can pay off almost immediately.

2. Buy and Hold
This is one of the oldest strategies in the book, and it’s designed for long-term passive income.

By purchasing a property and leasing it to tenants, it creates a stream of monthly cash flows, and even offers potential tax benefits for the owner.

3. Wholesale
This has similarities to flipping, but involves finding a buyer for a seller and taking a percentage off the sale. If done right, this can be done quickly and with minimal risk.

4. Buy, Renovate, Rent, Refinance, and Repeat
Likely the most complex strategy in real estate investing for beginners to follow, this can ultimately be used to provide benefits in both the short and long term.

It involves four steps: buying a property, renovating it, renting the property out to tenants, and then refinancing the mortgage later on. Then the process repeats itself.

Of course, this strategy works best in places where property values are rising fast.

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Visualizing Global Income Distribution Over 200 Years

How has global income distribution changed over history? Below, we show three distinct periods since the Industrial Revolution.

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Global Income Distribution

Visualizing Global Income Distribution Over 200 Years

Has the world become more unequal?

With COVID-19 disrupting societies and lower-income countries in particular, social and economic progress made over the last decade is in danger of being reversed. And with rising living costs and inflation across much of the world, experts warn that global income inequality has been exacerbated.

But the good news is that absolute incomes across many poorer countries have significantly risen over the last century of time. And though work remains, poverty levels have fallen dramatically in spite of stark inequality.

To analyze historical trends in global income distribution, this infographic from Our World in Data looks at three periods over the last two centuries. It uses economic data from 1800, 1975, and 2015 compiled by Hans and Ola Rosling.

Methodology

For global income estimates, data was gathered by country across three key variables:

  • Population
  • GDP per capita
  • Gini coefficient, which measures income inequality by statistical distribution

Daily incomes were measured in a hypothetical “international-$” currency, equal to what a U.S. dollar would buy in America in 2011, to allow for comparable incomes across time periods and countries.

Historical Patterns in Global Income Distribution

In 1800, over 80% of the world lived in what we consider extreme poverty today.

At the time, only a small number of countries—predominantly Western European countries, Australia, Canada and the U.S.—saw meaningful economic growth. In fact, research suggests that between 1 CE and 1800 CE the majority of places around the world saw miniscule economic growth (only 0.04% annually).

By 1975, global income distribution became bimodal. Most citizens in developing countries lived below the poverty line, while most in developed countries lived above it, with incomes nearly 10 times higher on average. Post-WWII growth was unusually rapid across developed countries.

Fast forward just 40 years to 2015 and world income distribution changed again. As incomes rose faster in poorer countries than developed ones, many people were lifted out of poverty. Between 1975 and 2015, poverty declined faster than at any other time. Still, steep inequality persisted.

A Tale of Different Economic Outputs

Even as global income distribution has started to even out, economic output has trended in the opposite direction.

As the above interactive chart shows, GDP per capita was much more equal across regions in the 19th century, when it sat around $1,100 per capita on a global basis. Despite many people living below the poverty line during these times, the world also had less wealth to go around.

Today, the global average GDP per capita sits at close to $15,212 or about 14 times higher, but it is not as equally distributed.

At the highest end of the spectrum are Western and European countries. Strong economic growth, greater industrial output, and sufficient legal institutions have helped underpin higher GDP per capita numbers. Meanwhile, countries with the lowest average incomes have not seen the same levels of growth.

This highlights that poverty, and economic prosperity, is heavily influenced by where one lives.

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Mapped: The 10 Largest Gold Mines in the World, by Production

Gold mining companies produced over 3,500 tonnes of gold in 2021. Where in the world are the largest gold mines?

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The 10 Largest Gold Mines in the World, by Production

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Gold mining is a global business, with hundreds of mining companies digging for the precious metal in dozens of countries.

But where exactly are the largest gold mines in the world?

The above infographic uses data compiled from S&P Global Market Intelligence and company reports to map the top 10 gold-producing mines in 2021.

Editor’s Note: The article uses publicly available global production data from the World Gold Council to calculate the production share of each mine. The percentages slightly differ from those calculated by S&P.

The Top Gold Mines in 2021

The 10 largest gold mines are located across nine different countries in North America, Oceania, Africa, and Asia.

Together, they accounted for around 13 million ounces or 12% of global gold production in 2021.

RankMineLocationProduction (ounces)% of global production
#1Nevada Gold Mines🇺🇸 U.S. 3,311,0002.9%
#2Muruntau🇺🇿 Uzbekistan 2,990,0202.6%
#3Grasberg🇮🇩 Indonesia 1,370,0001.2%
#4Olimpiada🇷🇺 Russia 1,184,0681.0%
#5Pueblo Viejo🇩🇴 Dominican Republic 814,0000.7%
#6Kibali🇨🇩 Democratic Republic of the Congo 812,0000.7%
#7Cadia🇦🇺 Australia 764,8950.7%
#8Lihir🇵🇬 Papua New Guinea 737,0820.6%
#9Canadian Malartic🇨🇦 Canada 714,7840.6%
#10Boddington🇦🇺 Australia 696,0000.6%
N/ATotalN/A13,393,84911.7%

Share of global gold production is based on 3,561 tonnes (114.5 million troy ounces) of 2021 production as per the World Gold Council.

In 2019, the world’s two largest gold miners—Barrick Gold and Newmont Corporation—announced a historic joint venture combining their operations in Nevada. The resulting joint corporation, Nevada Gold Mines, is now the world’s largest gold mining complex with six mines churning out over 3.3 million ounces annually.

Uzbekistan’s state-owned Muruntau mine, one of the world’s deepest open-pit operations, produced just under 3 million ounces, making it the second-largest gold mine. Muruntau represents over 80% of Uzbekistan’s overall gold production.

Only two other mines—Grasberg and Olimpiada—produced more than 1 million ounces of gold in 2021. Grasberg is not only the third-largest gold mine but also one of the largest copper mines in the world. Olimpiada, owned by Russian gold mining giant Polyus, holds around 26 million ounces of gold reserves.

Polyus was also recently crowned the biggest miner in terms of gold reserves globally, holding over 104 million ounces of proven and probable gold between all deposits.

How Profitable is Gold Mining?

The price of gold is up by around 50% since 2016, and it’s hovering near the all-time high of $2,000/oz.

That’s good news for gold miners, who achieved record-high profit margins in 2020. For every ounce of gold produced in 2020, gold miners pocketed $828 on average, significantly higher than the previous high of $666/oz set in 2011.

With inflation rates hitting decade-highs in several countries, gold mining could be a sector to watch, especially given gold’s status as a traditional inflation hedge.

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