December 17, 2009
General, Investment
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My grandfather is a collector of coins and bullions. He hides them inside a wooden box, under a loose floor board at this room, just like during the war. He used to tell us stories how he got the different coins and bullions in his collection. At that time, I never thought that those coins had any significant value, that it only reminded him of his childhood days. I mean, it’s not like someone will buy them.
But that was a wrong impression done by a kid who knew nothing about the true worth of such coins and bullions. While browsing one time on the internet, I saw something that surprised me. There was an advertisement of a museum who is willing to buy gold at a price I never imagined. Aside from that , they are also willing to buy bullion at a much higher price! I then remembered my grandfather saying that he used to buy gold coins during the 1960’s, and during the 1970’s, he started to buy gold bullion. And by today, he never expected that the value of these gold coins and bullions will amount to half a million dollars! Maybe I should buy gold coin and save for the future.
June 17, 2009
Business, Investment
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A partnership is a wonderful way to get started in the real estate business. A partner can be a friend or a colleague, someone who’s willing to finance you and possibly work with you on the renovations.
A joint-venture real estate partnership is an arrangement whereby two or more parties with plans, projections, and a budget invest jointly in a property. Upon sale of the improved property, profits are split in a prearranged proportion among the partners. A written agreement, approved by a lawyer, is essential.
Partnerships are great in a home wrecking career. You have someone to share the trials and tribulations, someone to take over if you have the flu and can’t get out of bed, someone to knock heads with over a budget or the latest hardware catalogue.
Another possibility is that you find a partner to be your financial backer. He or she puts up the initial investment while you do all the work. This is an excellent way to get off the ground as a home wrecker.
After one or two successful projects, you and your partner may want to rethink your original financial arrangement. Whoever does more work should get a bigger return—a larger percentage of the profits.
May 10, 2009
Business, Investment
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One of the great advantages of buying and renovating a property, though, is that you can also live in it. If it doesn’t sell right away, you can just stay where you are, enjoying the house you slaved so hard to remodel. Your investment is appreciating annually and at the same time is providing you with a home and a tax benefit. In effect, you’re paying yourself rent plus deducting your monthly interest from your income taxes. Sometimes you may have to wait out a slow real estate season, but lows are always followed by highs in this business.
If you don’t want to live in your renovated house or apartment, you can lease it for six months to a year to help cover your monthly debt service. There aren’t many investments like residential real estate that offer you the versatility of high usage, rental income, tax benefits, and continued appreciation.
March 18, 2009
Financial, Investment
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If you are one of those people who, like me, find it difficult or impossible to put away a little something every month, real estate is the ideal investment for you. Without lifting a finger, you are, in fact, earning additional assets.
Each month, as you write out your mortgage check, your house is appreciating in value. This means that you are gaining equity (the difference between your outstanding loan in and what the house is worth). You own more than you when you started. If that’s not savings, what is it? The four walls around you and the roof over your head are better than money in the bank. They are your guaranteed tickets to financial independence.