Archive for May, 2007
by Sacha Tarkovsky
The baby boomer generation is retiring and facing up to the fact that not only have they not saved enough, their living longer, getting less support from the state than ever and inflation is eating into their savings.
So what can be done to maintain standards of living?
Here we will look at an option that is well worth considering.
Investing
Why?
Quite simply, it offers a quality of lifestyle at a cost that’s far lower than in the US, but is so close to the US it feels like moving states.
It’s just 2 hours away by direct flight and with a huge group of Americans already located here, all the shops, entertainment and recreation, you expect is available.
You can live comfortably for about $2,500 per month, so those social security checks go further.
As An Investment
Beach front property is up to 70% less than in the Southern US — Property is not only highly affordable but can produce big gains as an investment as well.
Many investors are shifting their savings before they retire into Costa Rica property so they can get big gains as well as sample the lifestyle to.
Growth rates that can be achieved can be seen in the following example:
Capital Growth Potential
A property purchased 15 years ago near the town of Jaco is now worth just under $800,000 today.
Not only is it a great investment you can live in it and rent it out for a valuable income.
It is a great investment before retirement and you could actually easily re locate and live in Costa Rica if you want to.
Think about it.
Just a 2 hour direct flight you could be in one of the most beautiful countries on earth — With Volcanoes, rain forest, pristine beaches and crystal blue ocean on your door step.
All this with all the comforts you expect at home and living costs that are far cheaper.
If you decide to buy then it’s easy as Costa Rica encourages foreign investment.
You get the same rights as residents and there are plenty of Realtors to help you buy the right property for you.
Many people are considering moving and investing to countries such as Costa Rica, as they offer the ability to build good solid capital gains into retirement, a holiday home and the option to move and relocate permanently.
Your golden years are important.
You have worked hard all your life and retirement should not mean worrying about the cost and making economies in your standard of living.
For this reason, many more Americans will move and invest
FREE REAL ESTATE ADVICE NEWSLETTERS, PDF, DVD’s AND MORE For more info on all aspects of Costa Rica real estate visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html
Article Directory: Article Dashboard
by Scott James
There is a potential crisis on the horizon in the property market within the United Kingdom and this crisis revolves around the introduction off home seller packs.
For the un-initiated the Home Information Pack (to give the product its full official title) was introduced as part of the 1997 general election manifesto by New Labour.
The proposal was presented as a vote meaning may show to try and end the practice of gazumping.
The idea was that before putting a property on the market, sailors would be required to compile a little book for the home which would then be available for distribution to potential buyers.
The additional aim with this exercise was to try and speed up the buying process in England and Wales, which typically takes around 12 weeks once an offer to purchase is expected.
Government ministers boasted that these information packs would end a process known as gazumping where unscrupulous sellers and buyers hijack home sales by putting in a high bid at the last minute.
Initially, their opinion at to be widespread support and acceptance for the scheme from solicitors, he states agents and mortgage lenders. However support for this scheme has subsequently gone from being extremely positive to extremely Luke-warm at best.
Experts suggest it at the time that the poem information packs should be a slim dossier containing a trough style contract and the legal for him containing basic information about the property such as whether it is freehold or leasehold. These packs would also include copies of any guarantees plus local authority searches detailing any relevant planning applications.
However, a recent House of Lords committee said that this scheme could add up to £1000 to the cost of selling a home. There now appears to be such hostility to this proposal that estate agents have been advising potential sellers to put their properties on the market prior to the June 1st deadline so as to avoid being forced to pay for a home information pack.
Each is now felt by experts within the industry that this project made it to one in five potential settlers from putting their homes on the market with the knock on effect that this will reduce supply and push-up already inflated house prices. Something the Bank of England and the government almost team to avoid.
The final nail possibly in the coffin of this proposal would appear that government officials do not know themselves exactly how much these packs would cost. This, depending on your viewpoint, is a bit of a problem.
We have the potential lunacy over a situation occurring whereby a government is advising its citizens to undertake an exercise that they don’t exactly know themselves how much is going to cost.
Madness.
Scott James writes about a number of Internet Real Estate based issues such asReal Estate Investors , Home Finance and also about Bankruptcy Services UK and Foreclosure Issues too
Article Directory: Article Dashboard
by Feldman Jones
Investing
If you have reached a point in your life where investment property is attainable, getting a professional agent to aid in the purchase of a profitable property is important. Any professional agent is aware that the client needs to make a profit when they purchase the property, not when they sell the property. Looking out for the client’s best interests is a main priority for any professional property investment expert. Most property investors have an idea of their personal property investment objectives, now investors can use property investment agents to find properties where client’s objectives can be met.
One benefit of dealing through an investment property agent is that your chosen agent will generally find motivated sellers. This can be a great benefit in that un-motivated sellers can waste time, even money for any buyer. Expert property investment agents can be invaluable in helping their clients achieve their objectives, offering clients the opportunity to negotiate for undervalued investment properties. Save time by using an investment property agent, which can supply you with a list of all the investment properties that meet your requirements.
Another benefit of using an investment property professional is that these people are qualified, usually have extensive experience and often have industry knowledge which could help you get a profitable investment property. Many expert agents have an “ear-to-the-ground”, where their clients can benefit from industry knowledge such as foreclosures. Many properties can come up for sale at a very reasonable rate for any number of reasons such as missed payments, job interests, divorce and health problems. Get in-depth industry knowledge and experience from top property investment agents and let them do all the hard work for you. Let property be your tool for making money.
Feldman Jones is the online reviewer for Cape Town Investment Properties - www.ctip.co.za
Article Directory: Article Dashboard
by M. Xavier
Online stock trading is a fairly new trend sweeping the investing
The answer to that question is a whole lot of people!
Since online stock trading makes it very easy for anyone to get involved in market investments, cutting costs and red tape, the trend is being used to its advantage by all sorts of people.
From big-time investors who want a little more control over their money in the markets to school-age children that want to learn about the market while investing their allowances, the online market has made it possible for virtually anyone with Internet access to get involved in buying and selling.
Typical investors in days gone by were typically businessmen and women or those with means by birth who could afford to buy in blocks and employ brokers to do the trading for them. Now, the online market has made it available to bypass big brokerage fees. This means that even the smallest of investors can get in early and earn big. With this in mind, some investors today include:
Retirees: Online investing is a great way for retirees to get into the market without having to pay extra fees. Those with Internet access at home can check their investments daily and make adjustments necessary.
Stay-at-home moms: Many women are taking advantage of the benefits of online stock trading to invest
Couples: Many couples that couldn’t afford to invest in the past are now working as teams to look at the different buys and make decisions together on how to invest their money.
Classes: The online stock trading revolution has made it possible for economics classes to literally show students hands on what happens in the market. What better way to learn the ups and downs of the market than hands on through a lesson that doesn’t cost students or schools a ton of money in the process?
School children: Many youngsters are enlisting their parents help to invest allowances, yard mowing money and more. These Internet and stock market
Big-time investors: While many that take advantage of online stock trading don’t have a lot to invest, some larger investors prefer this route, too. Since it offers a lot of hands-on control, it can be a great way for anyone from the pocket change investor to the billionaire to get into the market.
As online stock trading becomes more popular and more and more big firms get into the act the reality is those who get into online stock trading span every imaginable race, class and socioeconomic group. The online stock investor of today looks just like you! While this method doesn’t take away the risks, it does open the doors for more people to get involved.
For more online stocks information please visit http://www.aboutonlinestocks.com - a popular online stocks website that provides tips and online stock resources. Don’t forget to check out our page on online stock trading.
Article Directory: Article Dashboard
by Steve Gillman
With “FSBO” properties, or properties for sale by owner, you can often get a better price. You have to learn to negotiate and to deal with defensive owners, but the rewards may be worth it.
FSBOs, pronounced “fizboes” are properties that are for sale by owner. Most of the time it is a mistake for owners to try to sell on their own. For a variety of reasons these homes sell for an average discount from market value that exceeds what a broker’s commission would have cost.
If the home sells quickly, it was probably priced too low. The seller thinks he has saved the cost of a commission, but probably lost more than that on the low price. As an investor, if you want to profit from this, you have to be quick. Get the newspaper as soon as it comes out.
If a owner doesn’t know how to do a market analysis, he may also price his property too high. Then it sits for month after month while he pays for advertising, and perhaps pays on two loans if he has moved. This is an expensive way to save the cost of a commission as well. You may find some deals with these properties if you can educate the owner on how value is determined.
Even if priced right, FSBO properties are cut off from the biggest source of potential buyers - those who are looking through MLS listings with a real estate agent. When potential buyers do find their house, they often expect to pay less than market value. Add to that the fact that most sellers are not trained to sell, don’t know how to screen potential buyers, or how to fill out a purchase agreement, and you can see why the decision to go it alone is often a mistake.
The goal then starts to change for the FSBO seller. At some point, he realizes he’ll never get the money back that he has spent on advertising, nor the time back that he has spent showing the home. The whole thing starts to feel like a big mess, and he just wants to be done with it, This is where you enter the picture.
Investing
First, you look in the newspaper classified and call on the FSBO ads, to get a feel for which sellers are desperate. Then you go to the library to see the old newspapers. You call on two-month-old “For Sale By Owner” ads. If they haven’t sold, they may be ready to deal. Owners sometimes give up the effort, but still would love to sell. Help them out!
You find a house that is for sale by the owner. You estimate it is worth $110,000, and he is only asking $107,000. It probably would have sold long ago if he had listed it with a real estate agent. He is starting to understand that, but he doesn’t want his months of effort and $1,000 in advertising to all be for nothing. On top of that, he has already moved, and the house is costing him $1,000 per month to hold onto. Secretly, what he wants most of all is just to have the place sold now. He is tired.
After looking it over, you sit down with him at a nearby coffee shop. He tells you that the house is worth $107,000. You ask what he will do if he doesn’t sell it soon. He admits to being tired of trying, and confesses that he will probably list it for sale with a real estate agent soon. He’ll probably list it for $109,000 he tells you.
You explain that you are an investor, and that you really can only pay a price that makes sense as an investment. After hearing that he is expecting a really low offer from you. You point out that the house is empty now, and homes don’t show as well that way. He might get $106,000 for the house. “At this point that doesn’t sound so bad,” he confesses.
A commission of 6% will cost $6,400. You jot this down on a piece of paper in front of him. The house will cost him $1,000 per month to hold onto not just until he gets an offer, but until the deal actually closes. You guess that this will take two and a half months, and jot down “holding costs: $2,500.” Lately most buyers are making offers that have the seller pay up to $2,000 of their closing costs. You write that down.
You show him that under these circumstances, he would clear just $95,000 or so. You can give him $96,500 and close in a week. Make it $97,000 and you have a deal, he tells you. You agree, close in a week and he is happy just to be done with it.
Of course, you can’t make any money just buying property for 10% or so under market value and reselling it. The transaction costs would most likely eat up the whole 10%. Simply buying and selling really only works if you buy properties for 15% or more under their market value.
However, looking at FSBO properties that you plan to use for rentals is an excellent strategy
FSBO fixer-uppers are another opportunity. Suppose a property would have sold for $85,000 with the wider exposure of the MLS, and would have made an investor $15,000 profit when done. A desperate owner selling on his own might let it go for $80,000. That means $5,000 more profit, and a larger margin of safety. Searching for FSBO homes as a strategy works best when combined with other ways to make money with a property.
Copyright Steve Gillman. For a Free Real Estate Investing Course, and to see a photo of the home we bought for $17,500, visit: http://www.HousesUnderFiftyThousand.com
Article Directory: Article Dashboard
by A. Hathaway
Investment Opportunities - How to Enter the Game
Since the arrival of Colombus, Cortes and the subsequent invasion of the conquistadors, Latin America has suffered a difficult past and struggled to establish an open and fair democracy with modern economic policies. Cortes and his men in 1518 led the destruction of Mexico’s Aztec Empire, followed by Pizarro’s brutal annihilation of the Incan Empire in modern day Peru. A similar course of events in Brazil, and other Latin America countries completed the change in history. Unfortunately, nearly 500 years later, corruption and inequality are widespread, arguably as a direct result from the conquest, its poor leadership from the Spanish, the slow healing wounds from the conquest, and the reluctance of the European blood to share the wealth.
In 2007, Latin America shows some promising signs of change, both in economics and government reforms. With this slow social change, comes a rather rapid economic and market change with potential opportunity for foreign investors. First, let’s sort out the good from the bad in terms of economic and investment - based mainly on leadership and the division within Latin America of left and right, or closed and open economies. Major countries with less prospects include Ecuador, Venuezuela, and Paraguay. While those countries in Latin America with a wide margin for growth are Brazil, Argentina, Chile, Peru, Colombia and Mexico.
How to enter this market, diversify your investment, and take part in the growth? Without expanding your business into Latin America, international investors have the opportunity to purchase these shares directly via an ETF (exchange traded fund). We recommend the iShares MSCI Brazil Fund (EWZ) which has a 3 year annualized return of 46.25%. Or, for Mexico, the iShares MSCI Mexico Fund (EWW) with a 3 year annnualized return of 40.15%. Clear signs that indeed the Latin American markets are emerging, and moving at a good pace. For a more diversified and simple approach to enter these markets, iShares offers the Latin America 40 Fund covering several countries and sectors.
Interested in a more direct investment, or expanding your operations into Latin America. We offer some general advice. Make every effort to establish relationships or offices in one or more of Latin America’s major cities: Mexico City, Bogota, Sao Paulo, Buenos Aires or Santiago. It’s safe to say that nearly all of the action is here. Learn the language, hire someone who knows the culture and the language, or hire an outside consultant such as Cinnamond Global to screen opportunity and liason with the foreign business. Be skeptical and approach offers with caution in this market with slack regulation. Understand the risk-reward relationship. Lastly, when dealing with a small or medium-sized firm in Latin America, and especially when dealing primarily with an individual, get a professional background check from a firm like Wymoo who can validate the company and contacts.
Buena suerte,
A. Hathaway
Copyright © 2005-2007 A. Hathaway
A. Hathaway has 20+ years of experience in fraud prevention, foreign markets, international investigations and background checks. His ongoing travel experience consists of over 35 countries and 6 continents. He has worked as a consultant for global firms including Wymoo International and maintains his own blog.
Article Directory: Article Dashboard
by Scott James
Technically property investment by outsiders in the Philippines is a real conundrum. By law, foreigners don’t have the right to acquire land in the Philippines. There have been many proposals to amend the small but at the moment things are not likely to change.
However as in a great many things, there are numerous ways of getting around this. The simplest way around this for a foreigner to acquire real estate properties in the Philippines is to and a Filipino wife or husband purchase the property. Another way around this would be to have a partner who is a Filipino and get them to purchase property. The legal status of this would be that the partner would own 51% or more of the property and the remainder is owned by the foreigner.
The above having been worked around just how valuable is the property market in the Philippines? Well, eight years on after the East Asian financial crisis, the property market in the Philippines would appear to be at last moving again.
In recent months, property prices across most segments of the economy and the Philippines have been rising at a pace reminiscent of the late 1990s. Opinion is divided of course but some economists and market analysts now believe that this latest trend may have signalled a return to the long-awaited property boom.
One of the major influences behind the re-emergence of the Philippine property market would be the emergence of the Philippines as an outsourcing destination. This last fact has boosted the demand for office space virtually everywhere and he is supported by the fact that the vacancy rate for prime office buildings in the Philippines has fallen to around 5%.
With vacancy rates now at a level unseen since the start of the 1990s building boom, the Philippines are poised ready to take off.
The reason for the re-emergence of Philippine property market is quickly best described as a classic confluence of growing demand amid very tight limited supply.
With the construction of property now lacking behind the supply of the property the market itself is looking healthier. With no traditional office buildings having been completed and the cost two years tight supply coupled with a buoyant markets and strong bemoaned continued to push rents and vacancy rates back to where they were before the Asian financial crisis.
The final indication, if ever one was needed, that the property market is back with a vengeance would appear to line with the fact that Free rents for office space are now themselves in very short supply.
Scott James writes about a number of Internet based issues such as Real Estate Investment and Real Estate. A keen proponent of all aspects of free and independent services available, he advises clients to look at the whole mix of online services available.
Article Directory: Article Dashboard
by Steve Gillman
Selling your home and buying a cheap home instead can sometimes be a good way to make a profit. The tax law lets you do this repeatedly. What is the downside of this strategy
The idea here is simple. You sell your house, and move into one that costs less. You get to pocket the difference without paying taxes on the gain, thanks to the tax law that lets you take an exemption on the capital gains from the sale of your home.
There are three basic ways to do this.
1. Downsizing For Retirement
Maybe you don’t need a big house any longer. The kids are on their own, and you are tired of cleaning 3,000 square feet of space. Fortunately, you have paid off the mortgage loan, so when you sell for $355,000 and buy that cute little house nearby for $220,000, you get a nice chunk of cash to play with.
2. Moving To A Cheaper Town
Perhaps you are retired, or you just have a business or profession that can be pursued anywhere (like this internet business that lets us live in the mountains of Colorado). If you don’t have any other big reasons to stay in the city you are in, you have an opportunity. A house just like yours can be bought for half the price somewhere else.
In 2002 we paid just $17,500 for a two bedroom home in a beautiful mountain town in Montana. It had hardwood floors and a full basement, and it would have cost five times that much an hour away in Missoula. We have moved a few times since then, but even the house we are in now would be twice as much in Tucson, Arizona, where we last lived.
The point is that there are great differences in prices of homes around the country. Sometimes the low priced homes are in areas where you wouldn’t want to live. But often they are in great little towns and big cities that you might love to live in. It is easy to research all of this on the internet now, starting with our own web site, HousesUnderFiftyThousand.com.
Find a town you love and buy a house for $60,000 less than you sell your current home for. That’s a $60,000 profit for all practical purposes. You might even live in a nicer home and a nicer town.
3. Moving With The Real Estate Booms
You could use this strategy repeatedly, if you do your homework. Buy in an area just before a real estate boom, then after your home goes up in value, sell it for a tax-free profit. The tax code allows you to do this every two years. Before selling you find the next town that is about to boom, and start shopping for a cheap home there. Do this six times in your life and you might build up a nice little nest egg.
Copyright Steve Gillman. For a Free Real Estate Investing Course, and to see a photo of the home we bought for $17,500, visit: http://www.HousesUnderFiftyThousand.com
Article Directory: Article Dashboard
by Alec
Privacy and identity theft is in the news after a number of high-profile cases of security problems at major companies. Identity theft is a serious problem that can lead to ruined credit, jeopardized assets, lost time from work and considerable stress. In almost all cases, identity theft starts with a security breach or careless act that allows wrongdoers to access personal information such as social security numbers, dates of birth, and credit card numbers and bank account numbers. Thieves can use this information to make credit card charges in someone else’s name or even open accounts by posing as someone else. As a result of privacy concerns, some plaintiffs worry about applying for lawsuit advances. Lawsuit plaintiffs who need cash fast will be pleased to learn that lawsuit advances are very safe for those who turn to a quality provider. As the leading provider of lawsuit advances and an industry leader, LawMax take steps to protect its clients’ personal information so getting lawsuit advances carries virtually no identity theft risk!
Lawsuits often involve highly sensitive information such as medical and financial records, so it is natural to be concerned if such personal information is safe when one applies for lawsuit loans. As the legal finance industry leader, LawMax works pro-actively to keep such data as secure as possible.
* All personal files that LawMax receives are digitized and stored on secure servers. As soon as LawMax receives information from the client, the client’s attorney, public records or any other source, the company digitizes all records and uploads them onto secure servers that have layers of protection to ensure that personal information stays private. The only people who have access to client files are authorized LawMax employees.
* All hard-copy documentation that LawMax receives from any source is shredded as soon as it has been digitized. Rather than keeping information in unsecured storage rooms, LawMax shreds all documents so no piece of paper can fall into the wrong hands, accidentally or otherwise. This ensures that no one can photocopy, steal or even view the original documentation sent to LawMax.
* LawMax only requests information necessary to evaluate the request for a litigation loan. LawMax does not request information from credit bureaus. The only information LawMax requests is documentation pertaining to the plaintiff’s lawsuit such as the original complaint, medical or police records, a bill of particulars and other relevant data.
* LawMax limits access to this data to a small group of underwriting professionals who make decisions about approving lawsuit advances. .
* Once a lawsuit advance is granted, the data continues to be stored on LawMax’s secure servers. Should a lawsuit advance recipient request an additional advance, it is then easier for LawMax to evaluate that request.
* LawMax shares the data it receives and has on file on each client with no one. LawMax does not discuss a client’s case with anyone but the client and the client’s attorney.
* Finally, LawMax does not run credit checks on lawsuit loan applicants, nor does it report any transactions to the major credit bureaus. Since a lawsuit advance is a lien against the lawsuit, not the plaintiff’s assets or income, a lawsuit advance is a transaction that does not show up on the recipient’s credit report. Therefore, it cannot affect the plaintiff’s credit rating or credit score.
LawMax’s privacy policy is designed to provide lawsuit plaintiffs with the highest level of service and the greatest level possible of identity security.
Alec is a well known author and has been writing content for Lawsuit Advancesas a Loan service to fight your legal case for so many years. His content is worth reading as it gives you an insight about different aspects of availing this service. For more information visit “www.fundmycase.com”
Article Directory: Article Dashboard
by Steve Gillman
With equity sharing, you get to make profits without being a landlord. The downside? You will tie up some money and depend on others to protect your investment.
I haven’t seen much about equity sharing since it was promoted and hyped by late-night TV real estate marketers twenty years ago. It was often presented as a way for the buyer to get into a house with no down payment. But from the other side, as the investor putting up the cash, it might still be a decent investment.
How Equity Sharing Works
Suppose a young couple has the opportunity to buy a house for $106,000, and the seller will finance the deal if they can pay just $6,000 down. They have less than half of that in the bank, so they can’t do it. Then they hear that you might be able to help.
After talking to them, and looking at their credit report and their situation, you decide that they are responsible enough, so you agree to put up the $6,000. However, you don’t charge interest. Instead you will take a half of the equity build-up in the home in six years. In other words, they make all the payments, but you get half of the equity.
Why would they do this? Because they haven’t found another way to buy a house with no money for a down payment. In any case their payments, with taxes and insurance, will be close to what they would pay in rent if they didn’t buy. Half of the equity in something is better than none.
If they sell, you get your $6,000 back, plus half of any equity left after closing costs. If they want to keep the home beyond five years, you will get an appraisal, and they will need to refinance to pay you your $6,000 and equity share. How much might that be?
Suppose that the original financing from the seller was at 8%, with payments of $955.66 (15-year amortization). After five years, the balance will still be almost $79,000. That means they have built $21,000 in equity from paying down the loan. If home prices have appreciated at 4% annually, The house will now be worth about $129,000.
The home is worth $129,000 and there is 79,000 owed on it. You are entitled to the return of your $6,000, plus half of the $44,000 remaining equity, or $22,000. They either refinance and pay you $28,000, or the home is sold. In the latter case, if the costs of selling are $8,000, you would get $24,000 (your $6,000 plus half of the other $36,000 in equity), and they would get $18,000.
Whether you get $28,000 back or $24,000, that’s not a bad return on your investment. Meanwhile, the young couple has $18,000 cash they probably wouldn’t have had otherwise. Alternately, they refinance to pay you, and owe $107,000 on a home worth $129,000. You can see that equity sharing can be a win-win proposition.
One cost you will have is for an attorney to draw up an agreement for an arrangement like this. You have to anticipate all possible outcomes (what if they want to sell after a year?), and account for them in the contract. Remember also that if they just never made a payment and lost the house, you will likely lose everything. That risk is why you get paid such a high return on your investment with equity sharing.
Copyright Steve Gillman. For a Free Real Estate Investing Course, and to see a photo of the home we bought for $17,500, visit: http://www.HousesUnderFiftyThousand.com
Article Directory: Article Dashboard
Pages
Admin
- November 2008 (67)
- October 2008 (91)
- September 2008 (48)
- August 2008 (111)
- July 2008 (62)
- January 2008 (38)
- December 2007 (95)
- November 2007 (79)
- October 2007 (83)
- September 2007 (82)
- August 2007 (63)
- July 2007 (79)
- June 2007 (70)
- May 2007 (63)
- April 2007 (44)