September 5th, 2010 at 01:10am
Under Lake Articles
* Lake Amistad Texas (TX), Located on the Rio Grande River, it is 12 miles NW of Del Rio in Val Verde County Texas.
* Surface area is 64,900 acres. Maximum depth is 217 feet
* Lake Amistad was impounded in 1969
* Conservation Pool Elevation is 1117 feet
* Lake Fluctuation: Depends on area rainfall and downstream irrigation needs. Annual fluctuations can be as much as 5-10 feet. However, historical fluctuations have dropped as much as 50 feet below conservation pool. Normal Clarity is slightly stained to clear.
Known for it’s great bass fishing. Fisherman come from far and wide to fish Lake Amistad. In addition to great Bass fishing, there is an abundance of Catfish, White and Striped Bass. Smallmouth Bass are also stocked, which makes it the perfect fishing trip for the whole family.
Predominant Fish Species: Largemouth bass, Catfish, White & hybrid striped bass.
Largemouth Bass are more active during the fall, winter and spring months due to the cooler weather. Fish are active much longer during daylight hours and are normally found in shallow water early morning and late afternoon For active fish, spinner baits and crank baits are most fisherman’s choice. A variety of watermelon green plastic worms seems to work well during the hotter months fished in grass. Early morning top water baits are just about anything that floats. Normally Poppers, Prop Baits or Flukes.
Recommended Guides:
* South Texas Fishing Guides
* Reel’n Ray Guide Service
* Jerry’s Fishing Guide Service email
* Palmetto Guide Service
Recommended Camping and RV Parks:
* American Campground
* Broke Mill RV Park
* Amistad RV Park Ph. 830/774-6578
In Conclusion: Lake Amistad is one of the most popular bass fishing lakes in Texas.
By 12oclock
August 25th, 2010 at 04:35pm
Under Lake Articles
A short visit to East Lake Village in beautiful Yorba Linda, California is all it takes to show why this community is one of the most talked about in region. Situated around a beautiful lake and home to a slew of amenities, East Lake Village is sure one of the best places to settle in Southern California.
For home buyers in the market for luxury homes in a family friendly community, it doesn’t get much better than Eat Lake Village. With premium homes located in a number of attractive locations around the lake, many individuals are attracted to the Village for its stunning natural beauty. Others prefer to take advantage of the junior Olympic pool and spa made available to residents. Or perhaps it is the excellent school districts that bring in residents. Whatever the reason, homes located here don’t stay on the market long.
Far from the fast paced life of the city, it is more of a a relaxing, serene environment. Whether you’re retiring and looking for to enjoy some comfort or looking to start a family somewhere traditional, this community is perfect for taking the stress out of your life. Many residents enjoy a quiet afternoon fishing or boating around the lake or simply walking the streets and taking in the quiet beauty that surrounds this neighborhood.
Yorba Linda itself is often one of the main draws for buyers in East Lake Village. With both fine dining and family restaurants as well as parks, movie theaters, and other forms of entertainment. The community also offers its very own shopping center, featuring coffee shops, supermarkets, movie rentals, and other comforts.
For anyone looking to turn the page on the old, East Lake Village offers the perfect start to a new chapter. This luxurious community features all the natural beauty of a lake without sacrificing any of the comforts of suburban living. Anyone looking to enjoy the finer things in life will agree; East Lake Village is the full package.
By 12oclock
August 14th, 2010 at 05:00pm
Under Lake Articles
Lake Huron is a popular rod and reel spot. The Walleye is a popular game fish. Combine them both, and you have paradise for an angler.
Trips in the great outdoors are a perfect way to rest and relax. Many areas of the United States offer perfect places for that camping, hunting or angling trip; with climates and scenery that’s sure to please any outdoors person. Lake Huron, located in the Midwest portion of the US, offers many different kinds of activities for people who enjoy the water, and angling is definitely one of those activities. Lake Huron walleye angling is one of the most popular in the area.
The walleye is a species of fish (scientific name Sander vitreus vitreus) that is native to Canada and the northern United States. The name “walleye” comes from the fact that the eyes of this fish reflect light, the way the eyes of a cat do. It is olive or gold in color, with the maximum size ever recorded of a walleye being 42 inches long and 25 pounds in weight. Walleye is considered by many people to be the best tasting freshwater fish, and sport fishermen seek it out as well as commercial angling companies.
Lake Huron walleye angling is some of the best available in the US, maybe even the world. Saginaw Bay, a bay located in Michigan, is the best location on Lake Huron to find walleye, and July and August are considered the best months of the year to find the fish. According to some of the most experienced walleye fishermen, there are several specific areas to check out if you really want to find some great fish: the first of these is the islands and inlets in Lake Huron, and reefs surrounded by deep water. Other places where the walleye collect are Tawas Bay (in the north) and the Kern-Wedock Hot Ponds (this area is a good place to find walleye year round).
Saginaw Bay has its own club devoted to this fish, the Saginaw Bay Walleye Club. Lake Huron walleye angling is so popular in this area that there is even a Michigan Walleye Tour led by this club. These angling tours can be a great way to get acclimated to angling in a particular area or for a certain fish, so it’s definitely worth looking into. Additionally, there are even private guides who can help you plan your trip. Lake Huron walleye angling can be a rewarding and delicious hobby, and worth the trip to this area to find a good angling experience.
By 12oclock
August 6th, 2010 at 09:25pm
Under Real Estate Articles
Is it my imagination, or did I hear somebody out there complaining about real estate commissions?
Anyone who complains about real estate commissions now, is not going to be thrilled if banks have their way and are allowed to sell real estate, something that the American Bankers Association (ABA) has been tried to do by lobbying, pressuring Congress – and paying millions of dollars in the process by way of special contributions – for the past seven years. And it does not matter if banks are not allowed to share commissions. All banks simply need to do, once they are permitted to step into real estate, is to buy brokerage firms and they can share all the commissions in the world without ever once breaking the law. They do not even need real estate licences.
In fact, since we are on the subject of commissions sharing, let’s do a little numbers crunching to find out the ‘commissions’ banks are charging consumers today. They do not call them ‘commissions’ – they call them ‘interest charges’, but fact of the matter is that a fee computed on a percentage basis in payment for a service is a commission. So therefore, the user’s fee charged by a bank to a borrower on a percent basis for the use of a certain sum of capital is nothing other than … a commission.
Banks base mortgage rates on a variety of indexes. Among the most common indexes are the rates on one-, three-, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations. A few lenders use their own cost of funds as an index, which gives them more control than using other indexes. To determine the interest rate on a mortgage, bankers add to the index rate a few percentage points, cumulatively referred to as the ‘margin’. The amount of margin may differ from one lender to another, but it is usually constant over the life of the loan. The formula therefore, is: Index Rate + Margin = Mortgage Interest Rate. Most banks use a 2 percent margin minimum. When they offer ’special packages’ to consumers, they typically apply a 3 percent margin, and then offer a 1 percent ’special’ discount or rebate.
But let’s take the 2 percent typical margin. To all those readers who think that 2 percent sounds better than the 6 percent commission commonly charged by real estate brokerage firms, let me point out that the 2 percent margin charged by the banks is per year! So, if it is true that the average consumer keeps his property for seven years, the ‘commission’ charged by the banks is really 14 percent. The only difference is that the margin applies to the principal of the mortgage, i.e. the amount borrowed as opposed to the real estate brokerage commission, which applies on the full sale price. But this is of little solace if one considers that almost fifty percent of all mortgage transactions involve 95 percent financing.
Banks have come to the realization that the U.S. real estate brokerage market amounts to some $61 billions, a sum that, if attached to a single firm, would rank 19th on the Fortune 500, ahead of Boeing, Microsoft, Morgan Stanley and JPMorgan Chase. To paraphrase Scarlet O’Hara in Gone With The Wind, this is a market that’s ‘worth fighting for and worth dying for’. To be sure, the tactic adopted by ABA is that of nonchalance. ABA is trying to convince Congress that banks are not really interested in pursuing this line of business even if they were legally able to do so, but that they would like to be able to pursue it … just in case.
The truth, of course, is much different and deeply rooted in the economics of real estate. Brokerage firms charge commissions to Sellers, the recipients of the money proceeds in a real estate transaction, and only when Sellers have received those proceeds. Banks, conversely, charge interest rates to Buyers. What ABA is aiming and attempting to do now, is to charge both Buyers and Sellers. Sort of like eating from two dishes at the same time, so to speak. Give the money to the Buyer to complete the transaction, and charge the Seller for completing it.
So again, how much is the real estate commission ABA would like its members to charge, were they allowed to get into real estate? Let’s see: there is the 14 percent from the Buyer over seven years, there is the 6 percent from the Seller at the time of closing, and then, of course, there are ‘minor’ commissions like appraisal fees, set-up fees, administration fees, loan initiation fees, loan cancellation fees, front-end fees, and then, of course, there is the loan insurance.
Boy, that’s a lot of commissions!
No wonder that Consumers Union (http://www.consumersunion.org/), publisher of Consumer Reports, the independent, non-profit testing and information organization serving only consumers, is strongly lobbying Congress to conduct further studies on this issue.
But besides the added cost to consumers, letting banks into real estate would not only be bad for the industry and bad for consumers – it would be bad for the economy at large. In fact, the notion of a ‘free market’ where all economic decisions regarding transfers of money, goods, and services take place on a voluntary basis, free of coercive influence, is commonly considered to be an essential characteristic of capitalism. But in the eventuality of banks dominating the real estate industry, how free would consumers really be to choose, for example, how to sell their homes, or to negotiate a commission, or to counter an offer to purchase, or to change agent if they do not like one, or to even try to sell their properties themselves?
Did anyone ever attempt to negotiate something – anything at all – with a bank? I have, several times. And I have witnessed personally and can report first-hand on a variety of responses from bankers, ranging from the amicable “no .. no .. no”, to the tap on the shoulder and nod of the head, to the sarcastic smile, all the way to the glacial look and the beyond-the-grave silence. However, I still cannot report a single ‘Yes’ from a bank, after nineteen years in the business. Banks understand negotiating not as a give-and-take, two-way process but, rather, as a one-way street – going their way, that is, only their way. And this is today, when consumers still have the option to walk away. What will happen to consumers when that option will be taken away from them?
Banks getting into real estate? Do not let that happen to you.
Luigi Frascati
By 12oclock
August 3rd, 2010 at 06:05am
Under Lake Articles
To decide on Lake District as your holiday spot is the best decision you can make. There is so much to explore and the beautiful scenario of the atmosphere will never get you tired of it. If you are an adventure lover and want to experience a whole new expedition, then fun activities at Lake District will never cease for you.
Below is a series of concise information about activity holidays in Lake District that might interest you;
Ambleside
Among the numerous Ambleside hotels, Rothay Manor Hotel is a luxury hotel located just a few miles distance away from the Ambleside centre that is a marketplace often crowded with tourists from all around the world. It is also an ideal place for sightseeing due to its ideal location near Lake Ambleside and Lake Windermere.
Camping may catch attention of you and your family if you are seeking adventure at Lake District. Many Ambleside hotels arrange such campsites but the best campsite adventure is offered by Ambleside Tarn Foot Campsite.
It is a place where you can relax completely, do fishing and take the beauty of nature with every breath. Take your family or spouse and enjoy a complete feel of peace and tranquillity.
Keswick
Located just a few miles distance from many of the Keswick hotels, Armathwaite Hall Equestrian Centre offers riding experience to you no matter you are new to this or experienced. Alongside great areas like Skiddaw Mountains and the Lake of Bassenthwaite, a riding experience will be equally enjoyable to you and the rest of your family.
Among other Keswick hotels that arrange nearby sightseeing and activity holidays, is Keswick Country House Hotel. The hotel arranges rock climbing and hiking on the mountains of the Lake District with the stay package you select. There is also a facility that takes you on a Viking style boating experience, depending on the weather. Other facilities include visits to mines, caves and mountains.
Keswick Climbing Wall and Activity Centre is another gateway to your world of adventure. The climbing is arranged according to the people belonging to different age groups. The climbing is safe and fun to go through. Even if you are totally new to any climbing experience, to help you out they have professionals that can guide you and teach you how to climb.
Windermere
Windermere is all about lakes too. Many Windermere hotels might take you to a whole new expedition of lakes, but Outdoor Activities and Pursuit Centres will outclass them all. Ranging from peaceful activities like fishing boating to highly adventurous activities like windsurfing, this place will serve all your needs. You can learn to sail, experience kayaking, hill walking and climbing all here from professional instructors.
Appleby Manor is one of those Windermere hotels who can cater your requirements of an activity holiday. The hotel takes you around in forms of small groups all around the Lake Windermere. You can experience riding lessons, cub carting, human bowling, Stalwart All Terrain vehicle and Argo Cat.
By 12oclock
July 30th, 2010 at 11:55pm
Under Real Estate Articles
The CIA world factbook clearly states that in its opinion Costa Rica is a ‘Central American success story’, and the government of Costa Rica is keen to expand on the country’s success and have announced the implementation of a seven year plan for the economic expansion of the country.
To this end they are actively encouraging international real estate investors and those looking for a retirement or second home overseas to come to Costa Rica and explore its exciting and affordable property market.
The Costa Rican real estate market is one of the most exciting in Central and South America right now as a direct result of the Costa Rican government’s commitment to promoting the property sector. With the implementation of a series of tax breaks and investment incentives available to overseas real estate buyers the success of the Costa Rican property market is practically guaranteed.
For those looking purely for real estate investment opportunity, Costa Rica offers two main angles for property investors to explore: -
Firstly as the natural beauty of Costa Rica proves an irresistible draw for more and more travelers and those in search of the perfect getaway, so the demand for rental and hotel accommodation in Costa Rica is on the increase. The supply of quality accommodation in Costa Rica cannot meet current demand and this situation is likely to deteriorate as the popularity of the country increases. The government is well aware of this fact and is keen to attract those wishing to develop specifically for the tourism market.
Secondly Costa Rica is becoming increasingly popular with the soon to retire US baby boomers who are actively seeking an affordable and attractive location in which to retire. Because Costa Rica enjoys relatively low crime, is neutral, has a relatively high standard and low cost of living it is gaining a reputation among pre-retirees as a must-consider destination. There is therefore room for the development of real estate to suit this particular market or for the purchase and long term lease of real estate to this market. This particular group of people also represents a strong resale demand for those who buy now, improve property and intend to resell in the medium term to release gains accrued.
The real estate investment climate in Costa Rica is hot right now with the government working flat out to attract sustainable foreign direct investment – those interested in making a move should consider committing to the market sooner rather than later while it remains a buyer’s market and before opportunities for the strongest investment gains are eroded by increased levels of investor awareness and interest.
By 12oclock
July 10th, 2010 at 10:45am
Under Real Estate Articles
Predicting future events is never an easy job, and more often than not, a futile exercise of vanity over reality. However, that has never stopped me from sticking my neck out! Further complicating the issue this year is the fact that we will be installing a new administration on January 20th, 2009. Also, due to the strange peccadilloes of the electorate in general, we have managed to re-elect virtually every member of Congress, (leastwise those who were up for re-election). Please bear in mind, that this was a congress whose popularity rating has never, ever been rated at a lower percentage, since records have been kept. This means that they very same congress-critters who got us into this mess, will be the ones who will be attempting to fix it! Encouraged-I am not!
I believe that the volume of sales will remain steady, or increase slightly, during the course of 2009. Here, in the Valley of the Sun, we have a great deal of affordable housing, which attracts out of state buyers. If the economy remains constant, or improves slightly, there will be a commensurate increase in sales. Notice I said “increase in sales”- not increase in prices. Big distinction. I still believe that the majority of sales will be some kind of distress sale, i.e. REO’s, short sales or people losing money personally to close the deal. However, it is absolutely vital for these properties to be absorbed into the market in order for normalcy. Whatever that may be, to eventually return.
In the more affluent neighborhoods, Cave Creek, Carefree or Fountain Hills for example, I think we will see fewer sales. This is because in those areas, many of the homes are owned by retirees or wealthy snowbirders. Often, they do not have to sell, so the decision to stay in the property and ride out the storm is a relatively easy one.
So, is it going to be a good year, or a bad one? Well, it all depends on your perspective. For buyers, I think it will be all good–especially first-time buyers. For homeowners, who purchased in 2005 or later, who have to sell, there will be some degree of pain. For those who don’t have to sell, or bought before 2004, it’s a wash. Although, the growth they initially experienced has gone away, I think we will return to low single digit appreciation in late 2009, early 2010. Which will mean, as ever, that a home is always a good Long-Term investment.
More importantly than all of the above, however, is to stay healthy and enjoy life.
By 12oclock
July 9th, 2010 at 09:25pm
Under Real Estate Articles
I saw the ads in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. It might be a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments.
A friend started doing the same thing and explained the process to me. It was a way to get a great return on capital. It was the opposite of buying with no money down. You bought for cash.
A Real Estate Investment Formula
It is simple, really. When you buy for cash, you often get a much better price. A house that needs a little work might be worth $75,000, for example. By offering $65,000 cash, you negotiate your way to a $68,000 purchase price. If not, you walk away – there are always others.
Then you put few thousand into high-return repairs and improvements. Paint, carpet, and maybe asphalt for the dirt driveway. For our example, we’ll say you put $5,000 into it.
Now it’s worth $85,000 perhaps, but you target those who can’t get financing easily, and you finance it yourself. By making it easy for the buyer, you can get $90,000 for the home – and do it without a realtor’s commission. Whatever the sales price, you let the buyer put 5% down, and make monthly payments of 1% of the purchase price. Of course, you get higher than market interest too.
The buyer is thrilled that they can buy instead of renting, and you get a capital gain of perhaps $14,000 after expenses, plus good interest. Your total rate of return is somewhere over 25%!
The first to do this cosistently in our town were a father and son. They were both lawyers, and saved money by doing their own foreclosures when necessary. After forclosing, they just raised the price and sold it all over again, of course. By the way, if you can get an average return of 18% on your money, you’ll turn $75,000 into more than one million dollars in about fifteen years.
By 12oclock
July 9th, 2010 at 06:15am
Under Lake Articles
One of the most spectacular and unspoiled places on earth, which attracts tourists worldwide, is lake Baikal, the deepest lake in the world.
This lake is considered to have the purest and most tasteful water known to man. The water in the lake is so clean and clear that one can easily catch sight of fish some forty meters down (120 feet).
There is a legend, which tourists enjoy, that a boater lost his watch to the lake which can still be seen on the bottom.
There are thousands of lakes on this planet but we are speaking of no ordinary lake, but rather about one of nature’s miracles. One of the few unique places left of unspoiled beauty.
Here are some interesting facts about this lake:
1. Baikal’s basin is made up of three underwater depressions, which together holds more water than all five of the Great Lakes of North America. It holds one fifth of the earth’s supply of fresh water.
2. This Siberian miracle of nature is the deepest lake (1,700 m ) in the world.
3. The lake is so large that all of the rivers on the Earth combined would take an entire year to fill it.
4. At 25-30 million years old, it is the oldest lake in the world.
5. Baikal also hides a mystery.
The lake is home to the world’s only fresh water seal. It is still a great mystery how the nerpa (seal) appeared in the center of the Asian continent, when it’s relatives live in the northern arctic regions.
When standing on the top of any of the mountains surrounding Lake Baikal, the view affords you breathtaking scenery, especially the blue mirror of water that stretches as far as the eye can see.
This wondrous lake reflects the azure of the sky and the billowy white of the clouds.The view is so spectacular that one could not even imagine it in one’s wildest dreams.
The lake and the entire surrounding area is truly a paradise for tourists and an ideal area for engaging in an array of outdoor pursuits, including hiking, skiing, nature photography, climbing, and whitewater sports.
Baikal is one of the most attractive vacation spots in all of Asia; a place where people can reach out and feel the synergy of Mother Nature as well as enjoy the majestic and unearthly beauty.
It is a place where you can sit back and relax, listening to the soothing music caused by the waves lapping on the shore or swim in the crystal-clear water. Nowhere else will you feel so much at one with the nature.
By 12oclock
May 30th, 2010 at 04:00pm
Under Real Estate Articles
I invite you to take the next few minutes to learn the truth about the real estate market, how it compares to other methods of building assets and why it is such a lucrative form of investing. Many potential investors will say, ‘I need to get into the Florida Investment Property market’, especially taking into account current stock market fluctuations and the HOT market for investment properties, but simply don’t know the facts about Orlando property investing and how to use sale and leaseback method of property management.
When is the last time your financial advisor or stockbroker tried to convince you that moving a portion of your assets into the Florida Investment Property market might be a good idea? Never Right? The ‘why’ is simple. They don’t earn commissions when you buy Florida Investment Property. It is also likely that you have probably never had an ‘apples to apples’ comparison of stocks versus Florida Investment Property quite like the one you will see here.
Reason 1:
Leverage: Banks will not typically loan money to buy stocks. Banks will however, compete fiercely to loan money to buy Florida Investment Property. Your first question should be, ‘why is that’? It has to do with risk management, which we will discuss later. The fact that banks want to loan you money to buy Florida Investment Property creates a situation which we will call LEVERAGE.
Let’s assume that you have $10,000 to put into some type of investment. If you choose to buy $10,000 worth of stocks, you will own exactly $10,000 worth of stocks. Pretty straight-forward. However, suppose you choose to invest that $10,000 into Florida Investment Property using a 90% mortgage (which in many cases can go up to 95-100% mortgages in today’s market), you will own $100,000 worth of Florida Investment Property. If both of your investments were to appreciate by 10%, your actual gain with your stocks would be $1000 where your actual gain with Florida Investment Property would be $10,000. That equates to an actual 10% return on investment vs. a 100% return on investment. That’s what we call leverage.
Leverage: Florida Real Estate vs. Stocks
The traditional argument against Florida Investment Property Investing (mainly from Stock Brokers) has always been ‘I can get an average of 10% from stocks with little effort so why would I invest in Orlando Investment Property that only appreciates 6-7% per year’? This point-of-view is not taking leverage into account.
If you take the above statement to be true and compare the REAL numbers, the stock investment gained 10% of the initial $10,000 value (or $1000) and the Orlando Investment Property investment gained 6% of the initial $100,000 value (or $6000). That is still an actual return of 10% versus 60%. It is not hard to see which investment provides a greater immediate return on investment. Additionally. these numbers do not take into account any income from your property during the course of the year, or the substantial tax advantages to owning property, which we will discuss later.
Reason 2:
Value: As we mentioned previously, if you invest $10,000 into purchasing stocks, you own $10,000 worth of stocks (a fairly obvious point). If you invest $10,000 into purchasing Orlando Investment Property using the leverage of a 90% mortgage, you own $100,000 worth of Orlando Investment Property right? Well, only if you paid retail for your property. Any savvy investor will tell you that there are excellent deals to be had in Orlando Investment Property, you just have to find them.
What if you purchased a $100,000 property that happened to be worth $110,000 the day you bought it? Does it happen? The answer is yes, all the time. If you have your eyes open and are willing to ‘go through the numbers’ to find good deals, they are all around you. You may be asking yourself, why would anybody sell a $110,000 property for $100,000?
Value: Making money when you buy.
The reasons are endless as to why a quick sale is desired, but just to name a few: job relocation, divorce, an estate is being settled or maybe a current appraisal on the property simply wasn’t done prior to selling. By ‘finding this deal’ you have accomplished two things.
You have added $10,000 to your asset column in the form of equity.
You have created additional LEVERAGE for yourself as the value of your property increases (a 6-10% gain on $110,000 is better than a 6-10% gain on $100,000!) Remember, you make money in Orlando Investment Property when you buy, not when you sell.
Reason 3:
Control: Let’s take our assumption one step further. When you buy your $10,000 worth of stocks, what can you do to increase its value? If we follow the previous assumption, you have invested $10,000 using a 90% mortgage to purchase a $100,000 property that has an actual value of $110,000 because you ‘found a good deal’. So what can you do to further increase the value of your new $110,000 property?
It is amazing what a cleanup, a little landscaping and a paint job can do to increase the value of a property. Only a few hundred dollars well spent can result in huge value gains in Orlando Investment Property. Your $110,000 property with a little effort could easily be worth $115,000, $120,000 or more virtually overnight! Do you have to do any of this work yourself? Absolutely not! If you like to do that sort of thing then have at it, but if not, simply hire it done and accept a little lower net gain.
Reason 4:
Superior Tax Position: The tax code in the United States is geared to reward Investors who make housing and other property available to the population. When you invest in stocks, you are taxed at some of the highest rates in the tax code. When you invest in Orlando Investment Property, you put yourself in one of the best tax positions in the business world. Remember the wealthy that hold substantial portions of their assets in Orlando Investment Property? Tax advantages are one of the main reasons this is true.
Continuing with the above example, let’s say that you have completed your ‘deal’ with the $10,000 invested with a 90% mortgage to purchase the $100,000 property that appraised for $110,000 (because you ‘found a good deal’), which you improved to say, $115,000 by spending another $1000 on cleanup etc. Assume that one year passes and the Orlando Investment Property market grew by 6%, your property would now be worth $122,000. So far, so good right? If you are like most people, you may want to spend some of your hard earned money.
Let’s do the numbers. You have a mortgage at current rates that started at $90,000 and after a year worth of payments (the majority of which are tax deductible) you still owe approximately $89,000. However, your property is now worth approximately $122,000. If you were to refinance at 90% once again, you would take out a new mortgage of approximately $110,000. This will leave you with approximately $21,000 in cash in your pocket. Now, the BIG question; do you have to pay tax on that money? Absolutely Not! You have not sold the property or realized a ‘capital gain’. You have simply borrowed money from yourself. You are able to do what you wish with that money, free from any tax whatsoever. Obviously, a good strategy might be to purchase two more properties just like your first deal!
Also, we have not taken into account the fact that ALL of your interest payments on this property are tax deductible. In addition, you are also able to depreciate the property itself and all of its contents for additional tax advantages if you choose to do so.
Let’s be fair and compare the Orlando Investment Property tax position with the stock scenario. Assume that the $10,000 initial stock investment grew by 10% in the first year, creating a gain of $1000 and you wish to access it. If you draw it out, you will pay from 20-28% (or higher) in capital gains tax in order to have access to this money. This reduces your net gain to $800 (actual 8%) or less, depending on your tax situation. Compare that to Orlando Investment Property and you are beginning to get the picture.
Reason 5:
Limit Your Exposure To Risk
Risk Management: Do you remember at the top when we said that banks would compete fiercely to loan you money on Orlando Investment Property? The answer to the ‘why’ is very simple. Low Risk. Banks incur little if any risk when loaning money on Orlando Investment Property due to the steady, solid growth rate of the property market, as well as the fact that if you default on your payments they will simply sell the property to somebody else. This is in direct contrast to the volatile stock market, which can vary daily with sharp increases and decreases in value. Furthermore, banks realize that a property isn’t going anywhere, whereas many investors know all too well about .com and other types of companies that were there yesterday and gone today.
This is all not to say that Orlando Investment Property markets don’t go down from time to time, however the dips are much less dramatic than that which can take place in the stock market, proven out by the banks’ willingness to loan money on property.
Reason 6:
Protecting your peace of mind.
Finally, Now that we understand the value of leverage and risk management we realize that a 6% Orlando Investment Property gain ‘beats the pants off’ a 10% stock gain in actual return on investment by a wide margin (approximately 50%, not taking into account several factors that can increase this number such as tax advantages, income on property etc.) Owning good, solid Orlando Investment Property allows you to sleep at night, or go on an extended vacation without worrying about your asset column. This is directly opposed to holding a substantial percentage of your assets in stocks.
By 12oclock
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