Investing In Timeshares - 8 Facts Buyers Must Learn
Investing in Timeshares can be beneficial and a source of money for some people. It is also a very profitable investment for most people. But there is more to the story. Though some people reap the immense benefits that timeshares provide there are many others who have had their dreams crushed and lives turned into nightmares because they bought timeshares. Hence, timeshares should always be bought with a high level of caution and alertness. Before you sign the contract papers, make sure that you are aware of the risks and benefits involved. If appropriate safety measures are not taken, this money making venture could incur a huge loss. Do not forget to read the fine print before signing the contract.
Timeshares are broadly divided into deeded plans and non-deeded contracts. In a deeded contract, a person buys the ownership of a real estate property or land. The property owner gets full rights to the property, including title and the property may be inherited by his heirs. But in a non-deeded plan, the person buy the license or lease or club membership that allows you to utilize the property for a particular number of years for a specified time each year. However, in both cases, the price of the unit depends on the season and time period for which the individual wishes to buy the property. The owner's rights will expire when the lease becomes outdated, in the case of right-to-use timeshare.
People tend to take sufficient care when they are making an important investment. This is applicable to timeshares also. You must ensure that you read each and every document carefully and thoroughly understand what you are gaining through the investment prior to signing of agreements and payment of fees. Taking professional advice is recommended when making large timeshare investments. You can take professional advice from your attorney or from your peers. Mentioned below is a list of things that people must consider carefully before buying a timeshare.
1. When you are planning to invest in a timeshare that comes from a resale company, check if they have a license. A simple way to do this is by noting the broker's license number. You can use this number at the State Department that handles such transactions and find out the past of the broker. If you buy timeshares from non-licensed firms, your money is at a greater risk level, you would have too much at stake and the chances of a scam are higher.
2. Timeshares are used for personal competitive uses, and you must be fully aware that its resale may or may not give good returns.
3. If you are investing in a non-deed plan timeshare, you must be alert because you are likely to lose your privileges if the sponsor claims bankruptcy.
4. You must insist on a written assurance from the seller when you are investing in a property whose facilities are not completely installed. The undertaking must specify the time limit required for completion.
5. If the seller makes any claims or assumptions about the profits of a timeshare investment, question his statement thoroughly, because a timeshare’s future value is based on various factors.
6. Do not buy timeshares impulsively. Thoroughly study every paper that you have to sign. Spend enough time on research, analysis, and decision making before buying a timeshare.
7. Do not take oral promises or ones made on the phone, or even face-to-face. Ask the seller to give you everything in writing.
8. Check whether you have a guaranteed exchange program. In certain cases, it is not. Investing in timeshares which does not give you an exchange facility is not of much use, because it lacks schedule flexibility.
Thursday, January 28, 2010
Real Estate Investing – An Easy Way to Get Rich
Real Estate Investing – An Easy Way to Get Rich
If you try to browse the internet, you will see a lot of topics on how to acquire wealth. Getting rich is probably what many people desire but very few get what they want. Do you agree with what experts say that an easy way to get rich is to through real estate investing?
Entrepreneurs are always looking for ways to attain extreme wealth but they are also struggling to manage their finances and the business. There is never really an easy way to earn extreme wealth. You should work hard for every penny you earn and that also applies to real estate investing. Even if other investors are quite successful in the real estate business, there is no guarantee that you will have the same fate.
To ensure your success in the real estate business, you should master proper leverage. You should learn about different systems such as automation, duplication, and delegation. You should be creative to multiply the results of your resources and effort. This is very important to ensure that you get enough profits in the future. Try to set realistic goals.
About 90% of the rich people are into real estate investing. Again, you need to keep in mind that it’s not really easy to gain wealth even in real estate. Don’t believe in what infomercials claim. You must learn about the different processes involved in real estate. When pursuing your business, you will encounter many income generating opportunities like lease options, foreclosures, rentals, commercial properties, tax liens, short sales, being a loan officer or agent, investing in mortgages or in notes, and many others. Investing in mortgages promises high gains but you need you study how it works.
When entering the real estate business, you should choose between purchasing single families or condos. To some, purchasing multi-unit properties is a great advantage because they can have the property rented. While they are paying for the mortgages, they will also earn income from the rental rates every month. There are those who purchase properties who are hoping to gain profits by reselling them at a much higher price.
You see, there are a lot of things to consider when purchasing investment properties. If you don’t have the right knowledge, you will not last long and you’ll end up wasting your money. You need to ensure that your capital is protected. True enough, the first few years can be very tough because you have very high expenses but in the later years, you will see money rolling.
There isn’t exactly one way to be extremely rich. Well, if you’re born rich, then you’re lucky because you already inherit wealth. What about those who were born as ordinary individuals? You should not be discouraged even if you were not born with a silver spoon in your mouth. If you try to learn about the foundation and basics of real estate investing, you too can become rich.
Start real estate investing now. You will be rich in time especially if you’re hardworking and knowledgeable. Gather all the possible information resources you can find online and offline. Read and understand the facts you obtained and apply them in your investment decisions. Even if it may take some time, you’re guaranteed to have wealth through real estate investments.
Test your luck in the industry but try to ensure your success as well.
If you try to browse the internet, you will see a lot of topics on how to acquire wealth. Getting rich is probably what many people desire but very few get what they want. Do you agree with what experts say that an easy way to get rich is to through real estate investing?
Entrepreneurs are always looking for ways to attain extreme wealth but they are also struggling to manage their finances and the business. There is never really an easy way to earn extreme wealth. You should work hard for every penny you earn and that also applies to real estate investing. Even if other investors are quite successful in the real estate business, there is no guarantee that you will have the same fate.
To ensure your success in the real estate business, you should master proper leverage. You should learn about different systems such as automation, duplication, and delegation. You should be creative to multiply the results of your resources and effort. This is very important to ensure that you get enough profits in the future. Try to set realistic goals.
About 90% of the rich people are into real estate investing. Again, you need to keep in mind that it’s not really easy to gain wealth even in real estate. Don’t believe in what infomercials claim. You must learn about the different processes involved in real estate. When pursuing your business, you will encounter many income generating opportunities like lease options, foreclosures, rentals, commercial properties, tax liens, short sales, being a loan officer or agent, investing in mortgages or in notes, and many others. Investing in mortgages promises high gains but you need you study how it works.
When entering the real estate business, you should choose between purchasing single families or condos. To some, purchasing multi-unit properties is a great advantage because they can have the property rented. While they are paying for the mortgages, they will also earn income from the rental rates every month. There are those who purchase properties who are hoping to gain profits by reselling them at a much higher price.
You see, there are a lot of things to consider when purchasing investment properties. If you don’t have the right knowledge, you will not last long and you’ll end up wasting your money. You need to ensure that your capital is protected. True enough, the first few years can be very tough because you have very high expenses but in the later years, you will see money rolling.
There isn’t exactly one way to be extremely rich. Well, if you’re born rich, then you’re lucky because you already inherit wealth. What about those who were born as ordinary individuals? You should not be discouraged even if you were not born with a silver spoon in your mouth. If you try to learn about the foundation and basics of real estate investing, you too can become rich.
Start real estate investing now. You will be rich in time especially if you’re hardworking and knowledgeable. Gather all the possible information resources you can find online and offline. Read and understand the facts you obtained and apply them in your investment decisions. Even if it may take some time, you’re guaranteed to have wealth through real estate investments.
Test your luck in the industry but try to ensure your success as well.
Monday, January 25, 2010
Ways to Increase Your Savings
Ways to Increase Your Savings
Business earn income investment savings stock market
One of the biggest problems that people face in life is inability to save part of whatever they earn as their income. Some people are guilty of owing huge debts even before they receive their salaries and wages. Some other people can save a little, but lack the necessary skills needed to increase their savings, while there are some other people who falsely believe that all the available ways to increase their savings are too risky to be considered. This article is designed to help those who are willing to increase their savings through simple steps that will be analyzed in the discourse that follows immediately.
First of all, you must discipline yourself to develop a daily, weekly, monthly or yearly savings plan. If you really wish to increase your savings you should try as much as possible to save a part of what you earn on a daily, weekly, monthly or yearly basis which should be a minimum of 10% , depending on individual’s preference and goals. Please, do not spend all your earnings and avoid being in debt before your salary or wage arrives.
You should avoid being on a high spending spree. One of the things that put people in debts is the way they spend without looking back, once their salaries or wages arrive. You should endeavor to minimize your spending, and buy only the things that are very important to you. You should buy things according to your needs and not according to your wishes and desires. If you do this, you will be in control of your spending, and it will also help you to avoid being on a high spending spree.
In order to increase your savings, you should commit your money to businesses and investments you really understand. Investments help to increase personal savings by wider margin, but it is very important to know your risk appetite before going into any form of investment you choose, and you should be able to acquire the necessary skills needed for the business or investment you wish to embark on. There are different forms of investments which include investing in shares, bonds, real estate, FOREX etc. The most important thing you should consider when choosing any form of investment is the necessary skills needed to excel in such investments.
It is very important to diversify your investment. What this means is that you should invest your money in different forms of investments and not just restricting yourself to one or two out of numerous investment plans. Even when you are picking the stock market as one of your investment plans, you should avoid putting all your money only in one company or sector. The reason for this is that putting all your money in only one form of investment is suicidal. It will be difficult to bear it, if all your savings disappear in a twinkling of an eye due to collapse of one investment.
I strongly believe that you will increase your savings, if you will adhere to these simple steps mentioned above, and combine them with other effective steps that are already in your possession.
Business earn income investment savings stock market
One of the biggest problems that people face in life is inability to save part of whatever they earn as their income. Some people are guilty of owing huge debts even before they receive their salaries and wages. Some other people can save a little, but lack the necessary skills needed to increase their savings, while there are some other people who falsely believe that all the available ways to increase their savings are too risky to be considered. This article is designed to help those who are willing to increase their savings through simple steps that will be analyzed in the discourse that follows immediately.
First of all, you must discipline yourself to develop a daily, weekly, monthly or yearly savings plan. If you really wish to increase your savings you should try as much as possible to save a part of what you earn on a daily, weekly, monthly or yearly basis which should be a minimum of 10% , depending on individual’s preference and goals. Please, do not spend all your earnings and avoid being in debt before your salary or wage arrives.
You should avoid being on a high spending spree. One of the things that put people in debts is the way they spend without looking back, once their salaries or wages arrive. You should endeavor to minimize your spending, and buy only the things that are very important to you. You should buy things according to your needs and not according to your wishes and desires. If you do this, you will be in control of your spending, and it will also help you to avoid being on a high spending spree.
In order to increase your savings, you should commit your money to businesses and investments you really understand. Investments help to increase personal savings by wider margin, but it is very important to know your risk appetite before going into any form of investment you choose, and you should be able to acquire the necessary skills needed for the business or investment you wish to embark on. There are different forms of investments which include investing in shares, bonds, real estate, FOREX etc. The most important thing you should consider when choosing any form of investment is the necessary skills needed to excel in such investments.
It is very important to diversify your investment. What this means is that you should invest your money in different forms of investments and not just restricting yourself to one or two out of numerous investment plans. Even when you are picking the stock market as one of your investment plans, you should avoid putting all your money only in one company or sector. The reason for this is that putting all your money in only one form of investment is suicidal. It will be difficult to bear it, if all your savings disappear in a twinkling of an eye due to collapse of one investment.
I strongly believe that you will increase your savings, if you will adhere to these simple steps mentioned above, and combine them with other effective steps that are already in your possession.
Real Estate investment
Real Estate Investing Benefits
Believe it or not, taxes are our biggest expense in our lifetime and it is better for us to choose our source of income wisely. In USA, real estate has some of the best tax break among other investments and probably in other countries as well.
Income tax is design to punish hard workers and to reward investors. The more you earn through your job, the more you get taxed. Please check at the bottom of your paycheck and see how much the government steals from you. It is a lot right? While real estate has so many tax advantages and wage income never got such privileges.
What are those advantages?
i. Low Capital Gains Rates
Capital gains in real estate requires that you hold that property for at least 12 months before selling and you may hold it for productive use (i.e., as a rental, no a long-term fix and flip). For every dollar gained in your own real estate, federal government only manage to tax maximum 15%, it is relatively low compared with wage income (around 35%). Anyway, there's state taxes too, but some states offer further discounts on capital gains income.
ii. Exemption for Principal Residence
Government is very generous to give tax exemption of the first USD250,000 gain on the property that you sell (or $500,000 if you are married). But it is comes with condition, it requires that the residence was used as such for two of the last five years.
iii. 1031 Exchanges
Under Sec 1031 of IRC, the profits from a rental property can be tranferred into buying more real estate. You could defer to pay tax but with condition the exchange must be completed within 180 days and the exchange property must be indentified within 45 days of the sale of the sold property. Still not clear? I found a very useful site to help you in this, please visit here for more information.
iv. Interest Rate Deduction
There will be interest deduction for the debt that you used to acquire a property. While, such privilege is not available to other purchased items such as car and so forth.
v. Tax Deduction in Depreciation
Government won't give any tax deduction on the depreciation of your car but it does in real estates. For rental properties, even if the property increases in value, you still get a tax deduction for the “wear and tear” on the structure.
vi. No FICA Tax
All wage income will be imposed FICA (Federal Insurance Contributions Act, introduced in 1930's) tax but not applicable to investment income (such as from real estate). Regular wage-earner income will be taxed 6.2% on the first $102,000 of the gross wage. While self employment income is subject to 15.3% tax.
The greatest disadvantage of being employee is your income is taxed even before you able to spend it (for business men, tax only will be imposed after you spend). What good as an investor then? The money is working for you, and you got tax advantages as well. Read carefully, government is never encourage people to become employee. Who influencing government the most? Sure they are business men and investors. Am I right? Think about it.
Believe it or not, taxes are our biggest expense in our lifetime and it is better for us to choose our source of income wisely. In USA, real estate has some of the best tax break among other investments and probably in other countries as well.
Income tax is design to punish hard workers and to reward investors. The more you earn through your job, the more you get taxed. Please check at the bottom of your paycheck and see how much the government steals from you. It is a lot right? While real estate has so many tax advantages and wage income never got such privileges.
What are those advantages?
i. Low Capital Gains Rates
Capital gains in real estate requires that you hold that property for at least 12 months before selling and you may hold it for productive use (i.e., as a rental, no a long-term fix and flip). For every dollar gained in your own real estate, federal government only manage to tax maximum 15%, it is relatively low compared with wage income (around 35%). Anyway, there's state taxes too, but some states offer further discounts on capital gains income.
ii. Exemption for Principal Residence
Government is very generous to give tax exemption of the first USD250,000 gain on the property that you sell (or $500,000 if you are married). But it is comes with condition, it requires that the residence was used as such for two of the last five years.
iii. 1031 Exchanges
Under Sec 1031 of IRC, the profits from a rental property can be tranferred into buying more real estate. You could defer to pay tax but with condition the exchange must be completed within 180 days and the exchange property must be indentified within 45 days of the sale of the sold property. Still not clear? I found a very useful site to help you in this, please visit here for more information.
iv. Interest Rate Deduction
There will be interest deduction for the debt that you used to acquire a property. While, such privilege is not available to other purchased items such as car and so forth.
v. Tax Deduction in Depreciation
Government won't give any tax deduction on the depreciation of your car but it does in real estates. For rental properties, even if the property increases in value, you still get a tax deduction for the “wear and tear” on the structure.
vi. No FICA Tax
All wage income will be imposed FICA (Federal Insurance Contributions Act, introduced in 1930's) tax but not applicable to investment income (such as from real estate). Regular wage-earner income will be taxed 6.2% on the first $102,000 of the gross wage. While self employment income is subject to 15.3% tax.
The greatest disadvantage of being employee is your income is taxed even before you able to spend it (for business men, tax only will be imposed after you spend). What good as an investor then? The money is working for you, and you got tax advantages as well. Read carefully, government is never encourage people to become employee. Who influencing government the most? Sure they are business men and investors. Am I right? Think about it.
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