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Unraveling The Stock Market Puzzle

2009-02-27T02:42:00.001-08:00

I have been hunting around for the best places to invest my money for some years now. You see, I'm not an impulsive person. If anything, I am a little bit obsessive compulsive. I'm moreover a PhD. level student of mathematics. As such, I am interested in the mathematical reasons that underlie investment decisions. I'm also as interested in the mathematical basis behind stock market trends as I am with actually making money from them. Don't get me wrong, once I figure out what the best investments actually are, even if that means high risk stocks and shares, I will go out and make a killing. So it's not that I'm not that interested in making money, it is just that I have this innate desire to discover the underpinnings of the financial products that I am looking at, before I choose to invest in them. It's just the way my mind functions.

For sure, there is no one best spot to invest forever, however there are several reasonable ones. The finest place to invest your money depends on what you're aiming to do. You may perhaps invest in stocks for a variety of assorted reasons. And, if you do happen to get a hot tip, it might even be very sensible to invest in stocks. Though, I ought to point out that if you received some of those email hot tips that appear in a spam-like way in your inbox, just ignore them. The people who've sent them have only bought that stock themselves and are trying to get others to buy it too, after them, so that the share price rises and they can make a quick buck.

Anyway, what few people understand regarding the stock market is that the win-it-all or lose-it-all phenomenon is much rarer than the media makes it seem. Most people who invest in the stock market actually are fairly careful. They've usually placed a lot of cash into a stock, and are in it for the long term. They don't want to be reckless with their futures, so they make conservative investments.

My investigation of where are best places to invest demands me to come up with a definition of what "best" actually means. Since I'm a mathematician, I undertake to define it mathematically. The top spots to invest must possess a mishmash of characteristics. They must provide an investment opportunity that is money-making but, at the same time, as safe as possible. Usually, these attributes work in opposition.

For example, day trading on the stock market is extremely profitable if done right, but also really dangerous. Investing in land, on the other hand, may perhaps take a great deal longer to turn a profit however it tends to be much less risky. Hence, the overall best places to invest are a bit difficult to find. It is hard to find something that combines all of the favorable ingredients equally.

The most important thing to figure out is that the best spots to invest actually change from day to day. One week, the securities market may be in top condition. The next week, it might be the real-estate market. The finest places to invest money in the short-term change weekly, sometimes daily. And even the value of long term investments is subject to frequent change. It has to be said that if you want to invest your money wisely, you really need to do your homework.

You Can Reduce Your Investment Risk

2009-02-27T02:40:00.000-08:00

Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as high as it will go). This is easier said than done. Most investors end up missing out on a continual rise by waiting for a stock to plummet first, or sell way to early by underestimating how high the price will go. In this article, we will focus on the two most popular strategies that you can use to invest without having to worry about market timing.

Dollar cost averaging (DCA) is an investing technique intended to reduce exposure to risk associated with making a single large purchase. According to this technique, shares of stock are purchased in a specific amount on a specified periodic basis (often monthly), regardless of current performance. The theory is that this will lead to greater returns overall, since smaller numbers of shares will be bought when the cost is high, while larger number of shares will be bought while the cost is low.

An example of DCA would be as follows: If I want to buy 1,200 shares of IBM stock using DCA, then I might decide to purchase 400 shares of IBM per month over the course of the next three months. Hypothetically, during month one, the price of IBM may be $105 per share, and then it might drop to $95 per share during month two, and then rise to $100 during month three. If I bought all 1,200 shares during month one, I would have cost me $105 per share. But, by spreading the purchase over a three month period, I managed to buy IBM at an average price of $100 per share.

The primary drawback of using DCA is that you may not be maximizing your overall return. If there is an indication that a certain stock is currently undervalued and might shoot up in price, you would actually make less money using DCA than if you had bought all the shares in the beginning before the price skyrocketed. So, it is not always a winning strategy to spread your purchases over a period of time.

Value averaging, also known as dollar value averaging (DVA), is a technique of adding to an investment portfolio to provide greater return than similar methods such as dollar cost averaging and random investment. With the method, investors contribute to their portfolios in such a way that the portfolio balance increases by a set amount, regardless of market fluctuations. As a result, in periods of market declines, the investor contributes more money, while in periods of market climbs, the investor contributes less.

Here is an example of DVA: I want to invest in Yahoo using DVA. For the sake of argument, we will say that Yahoo is currently $10 per share. I determine that the value of the amount I am going to invest over the course of 1 year will rise, on average, $1,000 each quarter as I make additional investments. If I use DVA, I invest $1,000 to start. If, at the end of the first quarter, the share price has risen to $15 per share, that means that the value of my investment is now $1,500, which means I will only have to invest $500 at the start of the second quarter in order to bring the total amount of my investment for the first and second quarter to $2,000. So, I am investing less as the stock price increases.

Dollar value averaging usually works better than cost averaging because value averaging results in less money being invested as the stock price goes up, whereas with cost averaging you continue to invest the same number of dollars regardless of the share price. But, neither of these strategies are necessarily full-proof. Make sure you know something about the company you are going to invest in before you go forward.

Real Estate Information

2009-02-20T23:21:00.001-08:00

Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate is often considered synonymous with real property (also sometimes called realty), in contrast with personal property, chattel, or personalty. However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property.

In spite of the name, real estate has no connection with the concept of reality (in other words, the law does not consider real property more "real" than personal property). It derives instead from the feudal principle that in a monarchy, all land was considered the property of the king. Thus originally the term real estate was equivalent to "royal estate", real originating from the French royale, as it was the French-speaking Normans who introduced feudalism to England and thus to the English language; cognate to Spanish real.

With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real estate businesses include:

Appraisal - Professional valuation services

Brokerages - Assisting buyers and sellers in transactions

Development - Improving land for use by adding or replacing buildings

Property management - Managing a property for its owner(s)

Relocation services - Relocating people or business to different country

Within each field, a business may specialize in a particular type of real estate, such as residential, commercial, or industrial property. In addition, almost all construction business effectively has a connection to real estate.

Residential Real Estate in Louisiana

2009-02-04T00:17:00.001-08:00

Louisiana is a state rich in cultural heritage and fine architectural traditions hearkening back to the days of its early French residents.

Residential real estate in Louisiana, especially in it Gulf cities like New Orleans, has always been highly desirable because of its cultural heritage as well as its proximity to great Jazz music, annual Mardi Gras celebrations, and life in friendly, traditional neighborhoods.

Yet the wild and unruly Hurricanes Rita and Katrina ripped through the state in 2005, leaving much of the real estate underwater, caved in, or otherwise destroyed. Rebuilding efforts have been slow but they are still moving along.

Soon, the state will get a huge shot in the arm through a grant from the Neighborhood Stabilization Program (NSP), under the roof of the U.S. Department of Housing and Urban Development (HUD). Under the Housing and Economic Recovery Act of 2008, the state is eligible to receive $38 million in recovery funds offered through HUD's Community Development Block Grant.

The money will go towards curbing foreclosures in the hardest hit regions and recreating a stable housing market in Louisiana. The state would receive $34 million to aid troubled residential real estate owners, while both Baton Rouge and New Orleans would get $2 million apiece to help correct the real estate markets there.

With this valuable injection of real estate-targeted funds, the Louisiana government can buy up foreclosed properties that are or may become abandoned and damaged. The state would then redevelop those residential real estate properties and put them up for sale, taking responsibility for the upkeep of them until they find new owners.

Foreclosed homes can often create a myriad of problems for surrounding neighbors, as abandoned properties often invite vagrants, increased crime activity, and falling property values for nearby homes.

The state can also choose to use the grant money to completely demolish existing foreclosed and abandoned real estate buildings or the government officials can put it towards down payment and closing cost assistance for buyers with less than 120 percent of the state or city's median income. This would help make financing available to possible buyers in order to decrease the inventory of foreclosed homes on the market.

As most states around the country have been slammed with rising foreclosures rates due to the housing market crash, a slower economy, and the national credit crunch, HUD has allocated a total of $3.92 billion to be distributed to various states based on their need.

The rate of foreclosure in Louisiana and in Baton Rouge is at 3.9 percent, which is classified as a medium rate, but New Orleans has a 4.4 percent foreclosure rate, a figure that reaches into high territory.

"The housing crisis is one plaguing neighborhoods in states across our country," said U.S. Senator Mary Landrieu. "Here in Louisiana, we have the added challenge of rebuilding properties that have been destroyed by Hurricanes Katrina and Rita, and more recently Gustav and Ike. Homes in Louisiana have been abandoned because the after effects of hurricane after hurricane have left them uninhabitable. I am pleased that this funding will help us uplift neighborhoods across the state and restore value to struggling properties."

Ten Reasons to Love Austin Texas

2009-02-04T00:15:00.000-08:00

Housing is Very Affordable - One of the first reasons why you should take a look at making an Austin move, or what may help you decide that you should move, is that housing is very affordable both in Austin and its suburbs. In fact, compared to most cities in the US, you will get excellent houses with three to four bedrooms for anywhere between the high $100,000's to low $300,000s which is practically unheard of near any other large city in America.

Low unemployment rate - With the unemployment rate rising all over America, and the national average reaching a new high of 6.1%, it is amazing that Austin, Texas has an unemployment rate of just 4.5%. What is even more impressive is that unlike the national average, the unemployment rate in Austin has actually been declining the last few years instead of rising, and is expected to continue to drop.

Weird eccentric spirit - Most places would hate to be labeled weird and eccentric, but people in Austin embrace the label even going as far as to unofficially make their motto "Keep Austin weird." It is not that people are actually odd in Austin, simply that independent and innovative thinking is embraced, therefore thinking outside the box and being yourself is highly valued throughout Austin.

Trail of lights - If you like the Christmas spirit, than you will love the annual Trail of Lights exhibit/celebration that is set up in Zilker Park each December. Over 300,000 strings of lights are strung throughout the park alongside props with over a mile of different scenes for viewers to walk by and see. Or for those from out of town or simply sick of walking a miniature train can take you on a guided tour through the festivities.

Music scene - The individualistic spirit of Austin comes out in full force throughout the burgeoning Austin music scene. In fact, Austin is quickly becoming the actual live music capital of the world, the official label the city has placed on itself. Both the annual South by Southwest and the Austin limits music festival draw in thousands of concert goers and major label bands each year, alongside many local and independent acts.

Young hipster scene - Made possible in part by the nearby University of Texas, in part because of the independent thinking of residents, and partially from the music scene, there is quite a young fresh hipster scene alive and flourishing in Austin.

Organic stores and living - People in Austin value fair trade and organic natural stores, if you like the idea of eating healthy, you will not find an easier way to embrace your values than in activist minded Austin. Austin is home to Whole Foods Market corporate office.

Great education system - It is true, the educational culture of Austin is so excellent with many colleges and universities located in the Austin area that students often dream of Austin admittance. Even at the elementary level people compete to live in some of the best school districts so their child is guaranteed enrollment at some of the notable schools.

Weather - While weather patterns are unpredictable in Austin, outside of rain; for the most part the temperatures never drop below freezing, which means you will not get too much wear out of your winter coat, even in the winter!

Small community in a large city - The Austin, Texas metropolitan area is very diverse and wide offering you many affordable communities to live in that offer you the small town feel while still in close proximity to a very large city scene.

What is Hot and Not in Real Estate

2009-02-04T00:13:00.000-08:00

Whether you are thinking about listing your home or considering the purchase of a foreclosure or condo while the prices are right, find out what's hot and what's not in Tampa real estate.

What's Hot

Personal Spa's & Big Bathrooms. As the economy tightens, people are spending less on spa treatment but still seeking stress relief. The solution is to create a personal retreat right in your very own home. Big bathrooms with personal spa accessories are in high demand but forget unsanitary water jets, today's big soaking tubs use sanitary bubble jets combined with chroma-therapy for an unforgettable experience. Comfort toilets, LED lighting, towel warmers and dry saunas are also high demand luxuries that feel like a million but don't necessarily cost a lot.

Eco-Friendly Yards. Fruit trees are back big-time as are low maintenance lawns. Xeriscaping with native shrubs and trees reduces water requirements and pesticides, fertilizers and other harmful chemicals. Large trees that help shade the house in summer (and reduce electric bills) are also in high demand...with the added benefit of making great natural compost. Outdoor sanctuaries that combine easy to maintain gardens with fire-pits, water and entertaining areas are rapidly displacing show-piece lawns.

Green Building Supplies. Tampa real estate has the advantage of year round wonderful weather so avoid toxic chemicals and expensive carpet replacement by purchasing bamboo wood flooring or ceramic tile instead. Low cost, incredibly easy to maintain and much easier on your health today's green building materials are as beautiful as they are sustainable. Other popular supplies include non-toxic paint, low EMF lighting solutions and natural insulation.

What's Not

Lawns. Pesticide, fertilizer, expensive water bills, costly lawn maintenance or machinery, pollution, noisy blowers and more are making lawns a thing of the past. As the nation turns toward environmentally friendly products, fewer people than ever are interested in pushing lawn mower or edger that causes 4 to 10 times the air pollution as an average family car! Blowers are a major source of noise pollution and also contribute to poor air quality. Pesticides, fertilizers and high water bills are not only bad for your health but terrible for the environment. Worst of all...homeowners are fed up with spending all their free time slaving to high maintenance lawns.

Carpet. More people than ever are switching to tile, wood, bamboo or other sustainable flooring solutions. Not only are they easier to maintain and durable but cost less in the long run since there is no need to replace every few years. Best of all, it is a fast way to improve the air quality in your home.

Incandescent Lighting. Even relatively newer homes may have been built with incandescent lighting fixtures - including recessing lighting. Not only are newer florescent and LED lighting alternatives more energy efficient but the bulbs last longer and look great.

Boston's Seaport District Loft Buildings

2009-02-04T00:12:00.000-08:00

The Seaport District contains some of Boston's most coveted luxury loft developments, such as Channel Center, FP3 Lofts, Dockside Place, & the 21 Wormwood Street Lofts. Channel Center is one of Boston's most coveted new construction loft developments. It is located in the Seaport District, literally right over the bridge from the Financial District in Downtown Boston. There is a concierge, indoor garage parking, and a state-of-the-art fitness center. Condos for sale in Channel Center typically start around $450,000 for a 1 bedroom loft. Apartment rentals typically start around $2,300/mo. for a 1 bedroom condo. Apartments for rent can go up to $6,800 in the building.

The FP3 Lofts are located in the heart of the Seaport District by the Fort Point Channel. This ultra modern new construction loft development is one of the most coveted in the Downtown Boston area. Condos for sale at FP3 start around $375,000 for a studio loft. Apartment rentals typically start around $2500. Units for rent can go up to $10,000 for a 2-bed apartment.

The Dockside Place Lofts are located on Sleeper Street in the Seaport District. Condos for sale at Dockside Place start around $449,000 for a 1 bedroom loft. Apartment rentals in the buildings typically start around $1900 for a 1 bedroom. The Seaport District is booming, and there are plans underway for new restaurants, shopping, & entertainment nearby. The Financial District is nearby, as well as public transportation. The 21 Wormwood Street lofts are located in the heart of the Seaport District. Many of the units are incredibly large, and the largest being up to over 3000 square feet. Condos for sale in the building start around $339,000 for a studio loft. Apartments for rent in the building start around $1750 for a studio.

How to Find a Realtor

2009-02-04T00:11:00.000-08:00

How to find a Realtor? This is one of the first 10 questions going round and round in your head when trying to close the perfect deal in a real estate business. Finding a good, experienced broker, or real estate agent is the number one rule for a successful real estate transaction. Many people find this objective a very difficult task, spending a lot of money just to get some "professional" advices regarding this matter. Is this really a solution? Do we like spending money on things we can do on our own? Well , actually yes we can. We can find a good Realtor, using our own abilities , without having to "buy" others advice.

First of all, let us understand the difference between a real estate agent and a Realtor. Realtors, are licensed professionals in this kind of business, belonging to the NAR( National Association of Realtors), enjoying every single facility this kind of job has to offer. On the other hand , real estate agents, or even brokers are not all Realtors, and some of them may not even own a license in the field.

How do we smell a Realtor in a garden of real estate agents? Simple, track the person's professional history just a bit. See how long has he/she been in the business, and what is his professional record? After getting this information, it should be pretty much clear who is who.

Moreover, try to contact ex-customers of his/her and ask them their personal opinion of the real estate transaction: are they happy with the deal? ; was it the right price?; did they buy it overpriced? A true Realtor does his best to satisfy his client, he must get involved in the transaction, as if he were the one buying it, he needs to analyze different possibilities, present them to the client, and also help him with his advices.

As far as finding one is concerned, the first solution would be the Internet. It provides entire lists of agents in web directories.

The second solution would be to attend some open houses, where you will be welcomed by real estate agents, getting the possibility to interact with them and get used to their methods of making you wish that house was yours. You also get the chance to see how buildings are evaluated and make an idea of how things work in real estate business. Do not hesitate to ask them every single detail related to their work.

If you happen to be in the neighborhood , take a closer look were the "For Sale" sign appears. This is the place where real estate agents wait for their clients.

Home Prices to Fall and Fall and Fall

2009-02-04T00:10:00.000-08:00

I just read an article forecasting more trouble for real estate in 2009. The author seemed to be incredulous about the possibility, saying that some markets were even approaching Pre-Bubble price levels as though that was an organic impossibility.

If you check you will see that the last 2 real estate booms in the 70's and 80's resulted in prices dropping back to pre-boom levels before they took off again. That is what statisticians refer to as a "regression to the mean" falling back to the historic trend line.

There are even more significant troubles for real estate in 2009 and beyond than are perceived by many interested in real estate.

These troubles will continue to drive prices down even further. Although some markets are in fact approaching pre-boom prices, the pendulum may not stop at mid point and may actually swing all the way past pre-boom prices. Have you ever known a pendulum to stop mid way through its swing?

Here are some additional factors to consider:

The credit crisis is forcing banks to husband what little capital they have which is why they will restrict lending to the Very qualified.

How many prospective home buyers have 750+ FICO or Credit scores And 30% in cash for down payment, closing costs and bank mandated cash reserves? Especially since the US savings rate has been hovering around zero for the past decade.

Fewer buyers equal lower demand which means lower prices.

Also, how many more homes will be deserted by home owners who are Underwater, owing more than they owe? It is estimated that nearly 16% of owners with mortgages or about 8 Million home owners are in this situation. These desertions will add greatly to the bloated inventory of homes weighing down the market.

Finally, the only bright spot in housing will probably be extinguished in 2009 as interest rates will skyrocket once China is forced to stop buying our debt because of our dwindling purchases from them.

One report I read said that rental of a typical space on a freighter delivering goods to the US fell from $236,000 for the trans Pacific crossing to $5,000!

Once China stops buying our Treasury Bonds, we will have to lower prices on them to attract other buyers, which will jack up their yields or interest rates as they move inversely to prices.

Our mortgage rates will then soar because they are pegged to the 10 year Treasury Bond yield.

So, despite the optimistic predictions of many rose tinted, shade wearing real estate "professionals" the likelihood of a rebound in housing is probably further away in 2009 than at any time since the real estate bubble burst.

Types Of Real Estate - An Investor's Choice

2009-02-04T00:08:00.000-08:00

There are different types of real estate, and different ways to invest in them. Which way is best is for you to decide, according to your particular needs. Here are a few ways to consider, with their advantages and disadvantages.

1. Rental houses. Advantages: One of the easier ways to get started, and good long term return on investment. Disadvantages: Being a landlord isn't much fun, and you typically wait a long time for the big pay-off.

2. Rent-to-own houses. Advantages: When you buy, then sell on a rent-to-own arrangement, you get higher rent, and the buyer is usually responsible for maintenance. Disadvantages: The bookkeeping is tricky, and most tenants don't complete the purchase (this can be an advantage too, but it does mean more work for you).

3. Low income rentals. Advantages: The same as with any rentals, but with higher cash flow. Disadvantages: The same as with other rentals, but with more repairs and tenant problems.

4. Fixer-uppers. Advantages: A quick return on your investment, and it can be more creative work. Disadvantages: Higher risk (many unpredictables) and you get taxed heavily on the gain.

5. Buy for cash, sell for terms. Advantages: You get a high rate of return by paying cash to get a good price, and selling on easy terms to get a high price AND high interest. Disadvantages: You tie up your capital for a long time.

6. Buy land, split it and sell it. Advantages: It is simpler than most real estate investments, with the possibility of great profits. Disadvantages: It can take a long time, and you have expenses, but no cash flow while you wait.

7. Boarding houses. Advantages: You can get a lot more cash flow renting a house by the room, especially in a college town. Disadvantages: You can get a lot more headaches renting a house by the room, especially in a college town.

8. Commercial real estate. Advantages: Long term triple-net leases mean little management and high returns. Disadvantages: Tough market to break into, and you can lose income on vacant storefronts for a year at a time.

9. Buy, live in it, and sell. Advantages: The new tax law means you can fix it up, and sell for a big tax-free profit after two years, then start the process again. Disadvantages: You have to move a lot.

10. Speculation. Advantages: Buying in the path of growth and holding until values rise can yield large profits, especially if you buy low to start. Disadvantages: Prices aren't that predictable, you have expenses with no income while you're waiting, and transaction costs can eat much of the profits.

Leaders in Commercial Real Estate Charlotte, NC Industry

2009-01-22T00:26:00.001-08:00

If Greensboro and Wilmington were made known like great centers for the commercial real sector in North Carolina, Charlotte is absolutely one of them. This reality was supported per many facts concerning the commercial real estate Charlotte, industry of GOLD. In fact there are several remarkable chiefs in commercial real estate Charlotte, industry of GOLD today. However, in this article, I will treat only the top the majority of the chiefs in commercial real estate Charlotte, industry of GOLD for the reason for which these two first the great commercial real estate Charlotte, companies of GOLD contributed much of assistance to the major part of the commercial real estate Charlotte, customers of GOLD.

So much now, one of these chiefs in commercial real estate Charlotte, industry of GOLD is commercial real estate Charlotte, the GOLD company which bears the name of �Charlotte, BUT� Charlotte, GOLD as a one of the chiefs in commercial real estate Charlotte, industry of GOLD is noted for her distinct commercial real estate Charlotte, execution of GOLD and services. In oneself, this particular commercial real estate Charlotte, company of GOLD has the agents of the purchaser of the Caroline which will facilitate the commercial real estate Charlotte, GOLD customers to classify to the top their commercial real estate Charlotte, GOLD properties to sell to find the special one and the best house. Moreover, this commercial real estate Charlotte, company of GOLD has its own gallery for the list of the commercial real estate Charlotte, GOLD to be sold including/understanding the FSBO autoguident. And as while being one of the chiefs in commercial real estate Charlotte, industry of GOLD, this certain commercial real estate Charlotte, company of GOLD exert their efforts and appraises to help the people by seeking the good commercial real estate Charlotte, properties of GOLD with the price scale of customer. And as soon as the new list struck the commercial real estate Charlotte, market of GOLD, Charlotte, GOLD will send an email to their commercial real estate Charlotte, customers of GOLD concerning the new list of commercial real estate available Charlotte, properties of GOLD to be sold. More thing, this particular commercial real estate Charlotte, company of GOLD can be located at www.charlotte-eba.com if you want more information on nature of this commercial real estate Charlotte, GOLD company.

And secondly, Colliers Pinkard also placed its name at the zenith of re-elected and became well-known as among the chiefs in commercial real estate Charlotte, industry of GOLD. It is for the fact that this chief in commercial real estate Charlotte, industry of GOLD provides the real estate commercial Charlotte, solutions of GOLD customers to their dilemmas of corporation and institutional. In oneself, they provide a full choice of the commercial real estate Charlotte, services of GOLD to the owners, the investors, and the occupants of all the commercial real estate Charlotte, types of GOLD property. Except this, Colliers Pinkard is well-known like principal commercial real estate in North Carolina and Maryland, and one of the chiefs in commercial real estate Charlotte, GOLD industry, they are commercial real estate based, undertaken board of trustees.

Moreover, being a chief in commercial real estate Charlotte, industry of GOLD, Colliers Pinkard are really devoted on developing advisory relationship with owners, users, and companies, and in oneself, that is not any doubt that this commercial real estate Charlotte, company of GOLD is identified in all the real sector.

Toronto Commercial Real Estate Facts

2009-01-22T00:25:00.001-08:00

Do you seek some of the commercial real estate available of Toronto? Do you want to find the real estate commercial of Toronto which is accessible? Then, you try to read the whole article so that you know where and what to seek by treating the commercial real estate of Toronto.

Before anything else, it is important to note that the success of the commercial real sector of Toronto is allotted really largely to the propagation of the companies of commercial real estate of Toronto. It is necessary that you know such facts for the reason for which the commercial real estate of Toronto will not be made well-known today without efforts of best and remarkable companies of commercial real estate of Toronto.

Just like some of the companies of commercial real estate everywhere in the world, the commercial real sector of Toronto continues to make an impact bursting with the majority of the owners and the researchers of commercial real estate of Toronto. In oneself, the majority of the companies of commercial real estate of Toronto developed their best forms of service with their expertise on the heap and of technologies anticipated for the destiny of the commercial real sector of Toronto.
With these great interest and intensity to develop the commercial real sector of Toronto, they continue to attract the people that even those which do not have any certain plan for the commercial real estate of Toronto are surprisingly drawn with the purchase or to seek some of the properties available and accessible from commercial real estate of Toronto.

Thus if you are a researcher of commercial real estate of Toronto or even if you do not have any interest for properties of commercial real estate of Toronto, there is a great possibility that you will be encouraged and drawn one day to obtain some of the commercial real estate of Toronto. Why? It is for the reason for which the commercial real estate of Toronto is a so powerful center for the commercial real estate. With that, it is not astonishing to know that the commercial real estate of Toronto is really chosen by the majority of the people.

To mention, one of the best sites of commercial real estate of Toronto which exerts certainly efforts to help the customers of commercial real estate of Toronto with their aims of commercial real estate of Toronto east On.Virtual-Agent.com. This certain site which provides the lists of property of commercial real estate of Toronto east one of the sites used generally for the commercial real estate of Toronto for the fact that in this site you can certainly seek the multiple inscriptions of the properties of commercial real estate of Toronto and also the residential properties. Except that you can seek the commercial real estate of Toronto to be sold and also apartments for the rent. It is simply important to note that there remain several sites for properties of commercial real estate of Toronto, but this one is the best recommended. Thus try to visit this site so that you find some of the provided properties of commercial real estate of Toronto.

Commercial Real Estate Los Angeles Industry

2009-01-22T00:24:00.001-08:00

Los Angeles is not only acclaimed for its single establishments of building, transport facilities, and other social subjects relative, but also for the creation of the companies of Los Angeles of commercial real estate which affects considerably the development in the industry of Los Angeles of commercial real estate.

It is always noted it that the success of the industry of Los Angeles of commercial real estate, in particular the companies of Los Angeles of commercial real estate, is allotted to large forces and needs for the people who are looking at and far-sighted to buy or sell a property of Los Angeles of commercial real estate. This reason judges always true when it comes on the subjects from Los Angeles from commercial real estate. With such a reality about the source of success in the industry of Los Angeles of commercial real estate, it is simply worthy to put to the top of the companies of Los Angeles of real estate much more commercial to serve the people who caused the fame than the industry of Los Angeles of commercial real estate appreciate nowadays.

Thus for this matter, the industry of Los Angeles of commercial real estate really developed like establishment of rise in companies of Los Angeles of much commercial real estate. And if you ask whether the industry of Los Angeles of commercial real estate to draw the attention and the interest of the people, the answer is number.

It is very interesting to know that the industry of Los Angeles of commercial real estate thrive for the fact that the customers of Los Angeles of commercial real estate found some advantages by appreciating the companies of Los Angeles of commercial real estate. Some of these advantages which them people obtain to appreciate the services of the companies of Los Angeles of commercial real estate can extend from the advantages of appreciation and stockholders' equity, with the advantages of additional income, and the tax incentives.

To mention, such advantages mentioned above which it customer of Los Angeles of commercial real estate obtain in various services of Los Angeles of commercial real estate are regarded as of having created one moreover high level to the reputation of the industry of Los Angeles of commercial real estate. Why? It is for the reason for which such advantages of Los Angeles of commercial real estate were strongly appreciated by the people particularly those who are customers of long run of Los Angeles of commercial real estate. With such a reason, it is not astonishing to know that the customers of Los Angeles of commercial real estate really preferred to buy or sell a property of Los Angeles of commercial real estate because of such advantages of Los Angeles of commercial real estate.

So much today, the industry of Los Angeles of commercial real estate reached at the point to develop several innovations advanced for the fast and better service of Los Angeles of commercial real estate. For much of detail, some of the companies of Los Angeles of commercial real estate provide today multiple services of Los Angeles of commercial real estate with their expertise on the heap and their advanced tools of Los Angeles of commercial real estate. Some of them glance with the field of management and the strategies marketing to help the investors, the owners of Los Angeles of commercial real estate, as well as the two purchasers and salesmen of commercial real estate.

Thus if you come to think of the purchase or by selling a property or you of Los Angeles of commercial real estate must find of the assistance about your goals of Los Angeles of commercial real estate, then you do not need to hesitate over doing what you wished in the sense that the various companies of Los Angeles of commercial real estate are there so that you are useful.

Austin, Texas Commercial Real Estate

2009-01-22T00:23:00.002-08:00

If we know that Dallas and Houston are acclaimed not only for its attractions but for its commercial real sector, it is interesting to note that the acclamation is also true with Austin, Texas. For Your Information, Austin east makes known not only for its attractions and other social subjects but also the commercial real estate for Austin, Texas. In oneself, the commercial real sector of Austin, Texas is not any doubt as prosperous as these other commercial real sectors.

For this matter, the success of the commercial real sector of Austin, Texas, like truth about Austin, the commercial real estate of Texas is held, is allotted considerably to the interest and the intensity the customers of commercial real estate of Austin, Texas which considerably investment companies commercial real estate led to the establishment so much much Austin, Texas today. This reality is even noted throughout the world of virtual reality for the reason for which commercial real estate of Austin, Texas is largely isolated and is necessary largely by those which seek of the assistance the needs and the objectives concerning their commercial real estate for Austin, of Texas.

Provided such an information on the position of Austin, commercial real sector of Texas, it is right like important mentioning one of these companies of commercial real estate of successful Austin and employee usually, Texas which contribute considerably to famous which commercial real sector of Austin, Texas appreciated nowadays. Thus for your interest about Austin, the commercial real estate of Texas, the COMMREX or the exchange of commercial real estate is one of the good places the commercial real estate about Austin, Texas. Thus if you of the services of commercial real estate seek certain Austin, Texas the needs and from the objectives for your commercial real estate of Austin, from Texas, you came to the good place.

To increase the interest further from those which seek some assistances about their Austin, Texas the real estate that commercial need, it is necessary to note that the company of commercial real estate of Austin, Texas COMMREX as the name of such a company implies is really based in Austin, Texas. The company of commercial real estate of this certain Austin, Texas has would be developed by work of media of Internet, and as such this Austin, the company of commercial real estate of Texas could be found at www.commrex.com. Moreover, the COMMREX or the exchange of commercial real estate is the company of commercial real estate of Austin, Texas which was without interruption functioning and functioning property of commercial real estate like Austin on line, Texas announcing the system naturally real sector for Austin, of commercial Texas with an aim of the properties of launching from Austin, of Texas commercial real estate to sell and for the lease since 1995.

Except this information on such an Austin, company of commercial real estate of Texas, it is also important to consider that company of commercial real estate of this Austin, Texas of the products of commercial real estate offered auxiliary Austin, Texas and of the services of sale which these products and services are rendered available the community of Austin, Texas with commercial real estate and the public by their site. If powerful is the company of commercial real estate of this Austin, Texas which it provides 185 mailing lists the commercial real estate of Austin available, Texas so that the user knows the information of sale by types of geographical property of area and the various ones of commercial real estate Austin, Texas.

Thus if you need the assistance about your Austin, the commercial real estate of Texas imports, these sites mentioned are the good place for you.

Melbourne Commercial Real Estate

2009-01-22T00:23:00.001-08:00

Melbourne having gained the reputation like continuous town of garden to becoming well-known not only for its arts and trades, the parks and the gardens marvellous, and their single architecture, but also for the existence of the commercial real estate of Melbourne. It is noted it that the appearance or the establishment of the commercial real estate of Melbourne concluded the successfully in the real sector and in oneself, much of people was attracted to live in commercial real estate of Melbourne for the single environment of commercial real estate of Melbourne.

Today, it is important to note that the commercial real estate of Melbourne becomes one of the centers for the commercial real estate. Several companies of commercial real estate of Melbourne are established to help these customers of commercial real estate of Melbourne with their aims of commercial real estate of Melbourne. Thus with such a truth, people particularly that those which envisage to buy Melbourne easily the commercial real estate plac and will find the properties available and accessible from commercial real estate of Melbourne with the assistance of the Internet.

To mention thus, since there are so many companies of commercial real estate of Melbourne through the Internet, CommercialRealEstate.com is one of the effective channels so that you find properties of commercial real estate of Melbourne. Since the term real estate commercial covers the commercial and industrial properties real estate, it is thus comprehensible that this particular site of commercial real estate of Melbourne offered of the services for the commercial real estate of Melbourne and the industrial services of real estate. With such this distinction, this certain site of commercial real estate of Melbourne is commercial real estate agent authorized of Melbourne a truth with over 20 years of experience of agency of commercial real estate of Melbourne Australia. In oneself, this company of commercial real estate of Melbourne specialized and the professionals of technology information, the originators, and the gifted programmers of Web with their occupational commercial real estate agents of Melbourne truths.

Moreover, CommercialRealEstate.com having the expertise in the experiment of agency of commercial real estate of Melbourne and the best Australian field of Internet, could undoubtedly produce first gate Internet of commercial real estate of Melbourne in Australia. The broader range and the expertise of this company of commercial real estate of Melbourne made them like better and the site more usually employed commercial real estate of Melbourne in Australia.

The outside of the field of such a company of commercial real estate of Melbourne is the territory of others several companies of commercial real estate of Melbourne which considerably exerted the assistance with the customers of commercial real estate of Melbourne. Some of these companies of commercial real estate of Melbourne also made their names popular to the majority of the customers of commercial real estate of Melbourne. Undoubtedly, they placed their titles at moreover high level with their effective and exceptional services of commercial real estate of Melbourne.

Columbus, Ohio Commercial Real Estate

2009-01-22T00:22:00.000-08:00

Columbus being the capital of prosperous Ohio with the rise in the number the investment companies real commercial of successful Columbus, Ohio which contributed a great part in success commercial real sector of Columbus, Ohio. Today, several of the investment companies commercial real estate of Columbus, Ohio were established to continue to serve those which envisage property of commercial real estate to buy or sell Columbus, Ohio.

With the rise in much in the investment companies commercial real estate of Columbus, Ohio, one notes it that the need for the services and assistance for Columbus, of Ohio of commercial real estate also developed. This reality is made obvious by all the number of these people who have goals of commercial real estate need for their Columbus, Ohio. So much today, it is not astonishing that the investment companies commercial real estate of Columbus, of Ohio in the name of the services of warehouse of real estate, of real object of KING, and of the real estate of Columbus create an impact bursting with the general situation commercial real sector of Columbus, Ohio.

Thus for much of emphase, I would like to provide some information on those mentioned three investment companies commercial real estate of Columbus, Ohio which considerably exerted efforts and the expertise right of the customers of commercial real estate to help Columbus, Ohio.

To mention, the warehouse of real estate is one of these investment companies commercial real estate of successful Columbus, Ohio which generally helps the people by finding information sector of commercial real estate for Columbus, Ohio. Like one of acclaimed Columbus, site of commercial real estate of Ohio, the warehouse of real estate obtained with an average approximately 10.000 visitors each month. Such a number of the visitors of commercial real estate of Columbus, Ohio is really simply astonishing. For much of information, the warehouse of real estate having contributed a large part for success commercial real sector of Columbus, Ohio the inventory of the real goods commercial offered complete Columbus, Ohio which them real commercial covered all Columbus, Ohio to be sold in the sector. Except this, the company of commercial real estate of this Columbus, Ohio can help you the commercial real estate by finding Columbus, Ohio to be sold which will match with your personal characteristics.

Of second the company of commercial real estate notable Columbus, Ohio which is the services of real object of KING is really a complete service the company of commercial real estate of Columbus, Ohio which specializes in broking. With their Columbus, service of commercial real estate of Ohio, they can help you the properties of commercial real estate to locate Columbus, Ohio which is available for the sale or the lease. With such Columbus, service of commercial real estate of Ohio, you can of the investments of commercial real estate identify and evaluate Columbus, Ohio with their assistance. Except this, the company of commercial real estate of this Columbus, Ohio also offered the service for plans of negotiation and the commercial real estate of developing Columbus, Ohio project, as well as in identifying Columbus, property of commercial real estate of Ohio.

In conclusion, the third which is the real estate of Columbus bearing the name of Columbus, commercial real sector of Ohio is not any doubt devoted to provide services the commercial real estate for Columbus, Ohio. The site of commercial real estate of this Columbus, Ohio is made to provide information for the individuals who want to quickly find information walked of commercial real estate relating to Columbus, Ohio. If powerful the company of commercial real estate of this Columbus is the power, Ohio which it helped so many people area everywhere of Columbus, Ohio.

Commercial Real Estate Broker

2009-01-22T00:21:00.001-08:00

Do you need a commercial real estate agent for your needs for commercial real estate? Can't you find the real estate agents commercial available and excellent? Then why made not you read some facts on the commercial real estate agent below and can where find the brokers available available and large in the world.

So much here we are. According to some studies, the commercial real estate agent is really an agent which can work for a broker. A commercial real estate agent in general should be responsible for all the transactions which will take place for commercial real estate. In oneself, the commercial real estate agent or an agent should have the specific expertise in commercial real estate, and in a more important way in specific sectors where you need. With such responsibilities, the commercial real estate agents should know all about the offices, of space to the detail, the industrial space of warehouse, the complexes of apartments, and the agricultural surfaces in particular.

Moreover, the commercial real estate agent takes the responsability to find the property of a certain customer of commercial real estate. And it is often considered it that even if the customer of commercial real estate just renting the property, the commercial real estate agent can be of priceless value and if the commercial real estate agent is nice, then a commercial real estate agent will leave and look at the property for the customer. Except these functions, the commercial real estate agent is also responsible to be used as intermediary arm-length to negotiate in the name of the customer of commercial real estate. Such a responsibility for a commercial real estate agent is really entrusted to a commercial real estate agent for the reason for which it can be much more effective if the commercial real estate agent is the person which negotiates that the customer trying to be in talks the business with itself.

For much of interest, each one should maintain in the spirit which a commercial real estate agent works on the similar businesses all the hour. In oneself, the commercial real estate agents know probably what they do. Thus for this matter, the knowledge and the contacts reached by the commercial real estate agents can be worth the cost of a commission well. For Your Information, the commercial real estate agent will help you not only in your business but the commercial real estate agents will also help you with the writings to ensure that you made not something idiot or stupid by tendering.

Today, there are several commercial real estate agents which were operation and assistance of the customers of commercial real estate in their report/ratio of businesses and of the transactions. In fact, much of notable companies on line provide even some services for those which seek the commercial real estate agents. To mention, CityFeet.com and associations of commercial real estate are among these much of companies which offered research of the commercial real estate agents. Thus if you want to find an real estate agnt commercial responsible, you try to visit these sites for your aedvantage.

Commercial Real Estate Phoenix, Arizona Resources

2009-01-22T00:20:00.000-08:00

Do you seek reliable commercial real estate and persons in charge the resources of Phoenixes, Arizona which will really help you in your commercial real estate of the problems of Phoenix, Arizona? Can't you wait to know the commercial real estate available and most recommended resources of Phoenix, Arizona? Well, here what you seek.

But before anything else satisfy consider that these two recommended the commercial real estate Phoenix, of the resources of Arizona are right among the best commercial real estate the resources of Phoenixes, Arizona which are accessible on line.

Real estate of Web

The real estate of Web is commercial real estate the company of Phoenix, Arizona which contributed much to the success of the commercial real estate industry of Phoenix, Arizona. With this commercial real estate Phoenix, the company of Arizona, the commercial real estate of the customers of Phoenix, Arizona will obtain really exact information and the best commercial real estate of the services of Phoenix, Arizona ever offered. Why? It is because, this certain commercial real estate company of Phoenix, Arizona have a broader range of the commercial real estate of the services of sale of Phoenix, Arizona for those which need the assistance with their commercial real estate of the problems of Phoenix, Arizona. Moreover, this commercial real estate company of Phoenix, Arizona is composed of professionals and the experts in the field of the commercial real estate Phoenix, of the subjects of Arizona and them are strongly devoted on helping the commercial real estate Phoenix, the customers of Arizona locate the commercial real estate Phoenix, the properties of Arizona or the industrial properties of Phoenix and guarantee an exceptional service.

For much of detail, this commercial real estate company of Phoenix, Arizona provides an up to date and complete directory commercial real estate of the properties of Phoenix, Arizona, like the capacity to communicate and provide such a service to the people by their advanced gate of communication of email. In oneself, it is good to hear that this commercial real estate company of Phoenix, Arizona have convenient information on the commercial real estate Phoenix, Arizona, the real estate, rental property, executive continuations, as well as of the properties of office.

Properties of Camroad

The properties of Camroad is commercial real estate the company of Phoenix, Arizona which provides the ten commercial real estate of the properties of Phoenix, Arizona with more than one half million of square feet of offices. It is important to note that this commercial real estate company of Phoenix, Arizona, having offered such a range of the commercial real estate of the properties of Phoenix, Arizona, is a long-term investor who tries to reach excellence in all the aspects of the leasing and the offices of management. And in oneself, they are composed devoted members who are really Masters in the field of the commercial real estate.

In conclusion, like owners of the commercial real estate with Phoenix, Arizona, this certain real estate commercial company of Phoenix, Arizona is responsible by providing excellent information and ideas, experiment, service, and analyzes with the commercial real estate the research of the customers of Phoenix, Arizona of the quality of the offices of Phoenix, Arizona. And it is interesting to note that the true cause of the great fame that this commercial real estate company of Phoenix, Arizona appreciated today is the fact that this commercial real estate company of Phoenix, Arizona maintained to a durable relationship with all their tenants. And such a report/ratio create a very good result, which is rates of conservation with an average of more than 80 percent in very of their commercial real estate of the properties of Phoenix, Arizona.

Commercial Real Estate Company

2009-01-22T00:19:00.000-08:00

The investment company commercial real estate becomes one of the common concepts in the world of the commercial real sector. It is because the commercial real sector continues to develop and to affect the lives of the majority of the people. With such a reality, the investment company commercial real estate goes up as many people who need the assistance of the experts as regards commercial real estate, which can only be found at an investment company commercial real estate. Specifically, some of the customers of commercial real estate which needs the services of an investment company commercial real estate usually contacted a certain investment company commercial real estate to help them with the their needs and aims of commercial real estate.

Of this only explanation, it is comprehensible that an investment company commercial real estate is really the good place for subjects of commercial real estate. Acting as a vehicle for the successful position of investment company commercial real estate, the major part of the investment company commercial real estate really exerted efforts on their line of expertise. With this truth, use-and of investment company commercial real estate even provide except theirs appraises on the heap, some advance technologies for a better image of a certain investment company commercial real estate.

For other, information, an investment company commercial real estate being a place for the commercial real estate imports, is composed basically of some professionals and personnel authorized to help those which need their dilemmas of commercial real estate. In oneself, the personnel of investment company commercial real estate must thus know all with the subjects of commercial real estate including/understanding the laws of the commercial real estate. In fact at an investment company commercial real estate of reaching moreover high level of famous must serve the people in a way responsible and right.

As we always noted of an investment company commercial real estate, several factors are placed in order to be used the researchers as investment company commercial real estate. It is right a typical thing so that an investment company commercial real estate has missions and visions for the commercial success of the investment company real. Like some forms of organizations, an investment company commercial real estate also placed some rules for all the operation of a certain investment company commercial real estate. In conformity with that, several services are offered by an investment company commercial real estate which generally includes leasing, the purchases, or the sale of commercial real estate. Except this fact on the investment company commercial real estate, one always notes it that an investment company commercial real estate also offered services of investment company commercial real estate in conformity with the investment, management, financing, and much more.

Today, several services of investment company commercial real estate are offered for good better and the successful service of investment company commercial real estate. You must just exert your effort so that you in find some.

International Real Estate Investors Choose U.S. Properties

2009-01-15T01:28:00.000-08:00

The weakening U.S. dollar and declining home values are largely discouraging for Americans homeowners. For international real estate investors, however, such conditions present opportunity. The National Association of Realtors (NAR) recently released the 2008 NAR Profile of International Home Buying Activity.

"NAR estimates that between 150,000 and 190,000 homes were sold to foreign nationals from May 2007 to May 2008," according to the NAR press release on the findings. "Recent foreign buyers purchased properties in every state and the District of Columbia. The most popular states where international buyers purchased homes are Florida, California and Texas. Arizona, New York, Washington and Nevada were also popular."

Nearly half of the properties purchased by foreign buyers were located in the South; 25.4 percent of all property sales to foreign buyers occurred in Florida alone. (For more information on foreign investment in Florida's real estate market, please see our previous article, Europeans Set Sights on Florida.)

"Foreign exchange rates have helped make U.S. homes more affordable for international buyers," according to NAR's press release. "The euro, for example, has strengthened 24 percent versus the U.S. dollar over the past two years. Home prices are also now more affordable in places such as Florida and Arizona, contributing to those states’ popularity among foreign buyers."

The typical foreign buyer bought a single-family home at $297,400, intended for use as a vacation home, where the buyer stayed 2.6 months of the year, according to the findings. 40 percent of foreign buyers made the purchase in cash, compared to just 7 percent of domestic homebuyers who do so. In the previous report, which covered the period between April 2006 and April 2007, 28 percent of foreign buyers made their purchases in cash. This 12 percent increase in foreign buyers who purchased properties in cash can perhaps be attributed to the weakened U.S. dollar and sinking home prices across the country.

Foreigners who invest in U.S. real estate also differ from their domestic counterparts in other ways. They tend to buy more expensive properties than domestic real estate investors, and are more likely to purchase a condo or townhome than domestic real estate investors. Foreign buyers purchase properties that cost an average of 36 percent more than domestic buyers, and 14 percent of properties purchased by foreigners cost $750,000 or more, according to the findings.

Investors from China were the most likely to purchase properties at $1 million and more, with 14 percent of Chinese buyers doing so. The median price paid by real estate investors from China was $450,000, the highest median of any location in the report.

Nearly one quarter of investors from India purchased properties to use as rentals, the highest found in the report.

"People from North America, Europe and Asia accounted for more than 85 percent of recent foreign home buying transactions. The top six countries of origin for foreign home buyers, in rank order, were Canada, the United Kingdom, Mexico, China, India and Germany," according to NAR's press release. "This year, Canada replaced Mexico as the country with the largest share of foreign buyers in the U.S. The percentage of Canadian buyers doubled from last year, from 11 percent to 23.5 percent."

26 percent of Realtors have worked with foreign homebuyers, according to Inman News; that is down slightly from the 32 percent of respondents in NAR's previous report, which covered the period between April 2006 and April 2007. The drop may be attributed in part to decreased confidence in the U.S. real estate market in the wake of its downturn.

The research included in the study covers the period between May 2007 and May 2008 and was based on responses from about 4,000 Realtors who work with international real estate investors. Such foreign buyers were defined as those who aren't classified as foreign-born residents of the U.S., and who principally reside out of the U.S.

An introduction to investing in international real estate

2009-01-15T01:24:00.000-08:00

It’s easy to take for granted the scope of “international real estate,” which lumps all the real estate markets of the world—193 countries, to be exact—into a single category of three words. While we recognize that a detailed guide to investing in international real estate could easily fill a book, NuWire has managed to summarize some of the basics into a short list of what investors should know before venturing into foreign real estate.

1. International real estate investment can offer excellent diversification of assets

Investment in international real estate offers diversification, which is “a superior investment style,” according to Ross Moore, senior vice president of Colliers International USA. Diversification effectively distributes risk among multiple markets and can optimize potential for return.

Because real estate market trends are cyclic, “we may have a down-cycle here in the United States, but [there may be] excellent opportunities in Argentina or Europe, [which] are in the beginning of an up-cycle,” Tyler Clay, president of FIABCI-USA, or the U.S. Chapter of the International Real Estate Federation, said.

Large, commercial real estate investors usually need a large amount of capital in order to acquire and maintain a global portfolio, according to Moore. However, small investors have the opportunity to diversify their assets on a microcosmic level, such as purchasing residential property in markets that show considerable potential for upward growth.

2. Currency exchange rates can enhance or impede profit margins
International real estate investment essentially combines property two types of assets: property and foreign currency. The value of a foreign currency can profoundly affect the amount of return made on an investment, as it increases or decreases relative to the U.S. dollar.

For example, a small office building in Europe worth €1 million six years ago would have equated to $920,000 U.S. dollars, when the Euro traded at 0.92 Euros to the dollar. Since then, any appreciation in the building’s value might have been compounded or negated by changes in exchange rate. In this case, the exchange rate would have added to the returns: With an appreciation of 10 percent, the newly valued €1.1 million office building would be worth $1.65 million— almost twice its original value in U.S. dollars.

Conversely, a strengthening dollar may slow down appreciation in a European property. Experts intuit that the value of the dollar may be at a cyclical low, and may soon begin to climb again.

“If I buy now at €1.54 on the dollar...but I think the dollar will be a little bit stronger [five years from now], that’s going to eat into my returns,” Clay said.

Investors who would prefer not to deal with the volatility of the foreign exchange market, or forex, at all “can hedge almost any currency and...really take currency out of the picture,” Moore said. “Then you’re investing purely on your expectations for [a] specific [real estate] market.”

HiFX, for example, offers investors services related to the forex market, and can give investors better exchange rates than banks.

However, hedging currency becomes more difficult when investors hold on to an asset for a long period of time, Moore added.

For more information about investment in foreign currency, please read our previous article, Forex Investment Market.

3. Legal technicalities (or the lack thereof) may increase risk

Navigating the legal landscape of a foreign real estate market can be daunting, especially in developing countries that have only recently opened their property markets to limited foreign investment. For markets in China and Southeast Asia, for instance, foreign investment and real estate ownership laws are changed or added rapidly, as their respective governments try to stabilize their growth.

Some countries, such as Vietnam, limit the amount of currency that can leave their borders, Clay said. Furthermore, title insurance is a relatively new product for many countries, and U.S. title insurance companies have only begun to establish a presence abroad in a limited selection of markets. Other locations, such as the United Kingdom, do not require or provide licensing for real estate agencies, which can leave the door open for fraud and predatory practices.

4. Foreign investment opportunities abound in Latin America

American investors can take advantage of a broad range of foreign real estate investment opportunities without leaving the Americas. Latin American real estate markets can be especially favorable, offering affordable property prices, government initiatives meant to attract foreign capital and exotic, beautiful landscapes, without having to traverse more than three time zones.

“I think South America is highly overlooked and underrated,” Moore said. “We produce a global office report...and it’s remarkable to me how transformed most of those markets are in a relatively short period of time.”

In the course of three to four years, for instance, vacancy rates shrank from in the mid-teens to less than 5 percent, Moore said.

In addition, countries such as Mexico and Panama are becoming popular among American expatriates, especially retirees, largely for their lower cost of living, according to Clay. (For more information on this, see our previous article, Beyond Florida.) The lower cost of health care, which fuels the medical tourism industry in many Latin American countries, is an added benefit for retirees.

“Panama City has a John Hopkins hospital right in the middle of town [which is] about three years old,” Clay said.

5. Working with international real estate professionals is an important first step

Regardless of the type of investment in foreign real estate, whether it may be in commercial real estate in an emergent economy or a vacation home in Mexico, investors should seek professionals who are knowledgeable about global markets and are well-connected with a network of localized real estate agents. Embarking on one’s own in unfamiliar territory can be a dangerous move.

“The devil’s in the details, and I think that’s especially true when you talk about global investment,” Moore said.
Colliers International, for instance, specializes in commercial and business real estate, and has 293 local offices in 91 countries. Smaller-scale investors can seek advice from FIABCI or a Certified International Property Specialist (CIPS) based in the U.S.

6. The U.S. real estate market is not necessarily a “bad” place for investment

The state of the U.S. housing market might be unnerving for many investors, but those who follow the traditional “buy low, sell high” mantra might see opportunity where others see cause for concern.

“I personally think that the U.S. real estate is actually a great place to invest, notwithstanding the next six to nine months where it’s going to get pretty sluggish,” Moore said. “Already you’re seeing opportunities today that nobody would even have dreamt of...nine months ago.”

Does this mean that investors can look forward to a potential up-cycle within the next year? At the least, U.S. real estate might seem like a more promising alternative to more expensive markets overseas.

Gambling on Las Vegas Real Estate

2009-01-15T01:20:00.000-08:00

Las Vegas, the neon city in the middle of a desert, has seen its housing market expand and collapse in the blink of an eye. But Las Vegas is a town where millionaires are made overnight and even real estate investors can win big.

Las Vegas’ neighborhoods are still recovering from the slump caused by overbuilding, speculation and subprime lending. Foreclosures line the streets and planned luxury high rise condos on the Las Vegas Strip are incomplete or sitting vacant. Looking ahead, changes to the job market and lending industry are about to put new pressure on Las Vegas’ housing market.

“The change in the market over the last three years has gone from an extreme hyper lack of supply to a severe glut,” Sean Brown, CEO of the National Association of Residential Real Estate Investment Advisors (NARREIA), said. “We’ve gone from [a] market where it was a cash flow positive, below national median house price…to something where you’re going to have negative cash flow...unless you do some bizarrely creative financing on it, which has gone away with the implosion of the lending industry.”

However, with the amount of commercial construction planned on the Strip, thousands of new jobs may emerge after the projects are completed. And with new jobs come demographic—and economic—growth.

Growth

“Taking a conservative approach, we’ve got 20,000 rooms being delivered, which represents 100,000 jobs,” Scott Meservey, Las Vegas real estate agent and NARREIA advisor, said. “Our current job market is sitting at 900,000 positions to service a valley of two million people, so you’re talking about a 12 percent forced increase in the job market.”

A number of hotels, casinos and other businesses are in the works on the Strip, Chris Whittaker, real estate agent with the O’Keefe Whittaker Group, said in an e-mail interview. The Venetian is opening a 3,000 room tower at the end of the year. City Center, a luxury casino-hotel-condo complex, is opening in November 2009 and will create 20,000 to 30,000 new jobs. And Donald Trump is building a new tower. Additionally, Whittaker said he estimates that $30 billion will be spent between Sahara and McCarren airports.

“We have another $15 billion of already approved projects...over the next five years,” Meservey said. “Over the last 15 years, there has been $15 billion [spent] here since the Mirage went up. So we are looking at, in the next five years, as many dollars spent…as has been spent here in the last 15 years.”

“A client of the company...has acquired more than 100 homes in Las Vegas,” Tim Kuptz, owner of a Las Vegas RE/MAX real estate brokerage, said in an e-mail interview. “His strategy is simple. Whenever he thinks there are a good number of construction cranes in the skyline, he buys more homes. Today there are 42 cranes on the Strip alone. He is buying again.”

Housing prices

While Las Vegas may be cheap compared to other global tourism destinations, the city’s housing prices have been mercurial in the last five years.

SalesTraq reported that the median price for new homes in the Las Vegas Valley was $309,241 in August, 13 percent below its peak in April 2006, according to the Associated Press. Economists predict that the housing slump in Las Vegas could last another three years and cause prices to drop 15 percent, according to the Associated Press.

Some real estate experts, taking the job market into consideration, have another opinion on the matter.

“I don’t think it’ll be a housing shortage,” Brown said. “I think, because people will be keeping an eye on it...that as soon as they see any kind of demand come back, they’re going to turn the floodgates on again. But I do think in the next 18 months to two years we’re going to see a very nice turnaround in this market because of the increased demand.”

The current supply of homes is sitting at nearly 24 months, according to Kuptz.

“In April 2004 we had 2,100 homes in the MLS, and every person cashing their equity to buy homes is a crazy market,” Kuptz said. “Four in 10 were investment homes with most of the money coming from California. Today we have 27,400 homes in the MLS. More than 48 percent are vacant on the market.”

With that kind of inventory, builders aren’t building much, and it’s undoubtedly a buyer’s market. (For more information on overbuilding in Las Vegas, see our article on the Top 5 Overbuilt U.S. Markets in 2007.)

Las Vegas Valley Area

The Las Vegas Valley area looks promising for rental property investors. While home prices are less expensive in outlying areas, the valley is where home prices are likely to appreciate most in the future.

“You have to realize that the valley of Las Vegas is surrounded by mountains,” Brown said. “There is a finite amount of land in Las Vegas Valley and all that land has been purchased by builders....Once that stuff is built out...then we have to spill out into the valley up toward Moapa...but you’ll no longer be in the inner ring.”

Within Las Vegas Valley, there are some areas that are better for investing than others, such as Seven Hills, Green Valley Ranch, Southern Highlands, and Summerlin.

“Inside the valley, Summerlin on the west side, is a very popular area,” Meservey said. “It’s a little higher end....A lot of your residential infrastructure is already in place, and now you’re looking at an infill of gaming; Red Rock casino; a nationally renowned five-star resort, and all that it brings with it; movie theaters; lots of commercial office space going in.”

“For the average investor, you still can’t go wrong buying a single family home in a master planned community where families want to live,” Whittaker said. “Summerlin has been a top selling community nationally for over a decade.”

The southwest area of town is the fastest growing, according to Kuptz.

“The Henderson area of the valley will present the best long-term hold,” Kuptz said. “The demographics are good, the city is run great and boasts the best schools and more park acres per capita than anywhere else in the valley...during our boom, the western [ZIP codes] of Henderson had the highest appreciation rates. There is no reason to suspect it would change for the future.”

“Newer Henderson...that’s a very popular area, desirable place to live, a very good longer term hold,” Meservey said.

Staying within Las Vegas Valley, close to the center of the city, will likely be a wise move in the coming years. “It’s a natural progression of things,” Meservey said. “The closer you are to the hub, to the center, the more expensive it’s going to be.”

The Las Vegas Strip

Given that pricing and appreciation are higher closer to the center of the city, what investor wouldn’t want to try their hand at owning a piece of the Strip?

“There’s been great demand for high rise properties since 2005, when the threat of running out of land in Las Vegas caused developers to think about going up instead of out,” Whittaker said.

However, the luxury high rise market may not be the best choice for all investors.

“[With] the cost of holding these units, the cost of buying and selling these units, they’re going to be lucky to break even,” Brown said. “The fact of the matter is that there is a glut of these properties....To go in there and think that you’re going to speculate and buy on the retail side and turn around and flip these things is entirely impractical and actually quite risky.”

Brown isn’t the only one worried about the practicality of investing in luxury high rises.

“Yes, they are beautiful works of art and yes, you ‘own’ a piece of the Strip, but with prices around $1,000 [per square foot], that’s a lot of money," Whittaker said. "Who is the end user for all these condos? What happens when they get built and people need to sell?”

However, it is possible to find less expensive condos that might present a positive cash flow scenario.

“I...like high rises closer to $400 [per square foot]. with views of the Strip,” Whittaker said. “Compared to what the new stuff is selling for, this is more than 50 percent less. I like anything that cash flows positive which requires 10 percent down.”

Investors may need to look into foreclosures to find cash flow positive scenarios.

Foreclosures

The Las Vegas-Paradise Metropolitan Stastical Area has the second highest foreclosure rate in the country, according to RealtyTrac’s statistics for January through June 2007. Nevada posted the highest foreclosure rates in the country for the third quarter of 2007; one out of every 61 houses in the state is in foreclosure, according to RealtyTrac.

With those numbers, strategies such as flipping foreclosed homes and rehabbing are unlikely to be profitable in Las Vegas right now.

“I believe the flip investment is not a broad consideration in our market today,” Kuptz said. “With short sales and foreclosures occupying the bottom of the market already, and our supply of nearly 24 months of homes, it does not make sense....The margins are not enough for the risk.”

“If you buy a distressed home at a good price and add carpet and paint, you still need to hold it for at least a year before you can try to flip it,” Whittaker said. “It’s too risky right now to try a flip because buying has been softened by the lending restrictions.”

Buying multi-family rental property is a hot investment right now, however. Rental property has been a good investment in the past and many investors are now buying it up.

“We have lots of tenants here because of the nature of this city being transient,” Whittaker said. “There’s also a trend of homeowners who got foreclosed on and they still need a place to live. This is a very difficult market in our area because a lot of investors are already here buying these apartment buildings like crazy.”

Long-term outlook

For investors willing to weather the ups and downs of the Las Vegas housing market, the wisest investment may be buying and holding property.

“I think the buy and hold is a great opportunity right now with the status of the market being depressed," Meservey said. "I think you can find some real good deals...I think in the next two years, you’re going to see significant returns if you go in smart now.”

“Own any piece of Las Vegas,” Kuptz said. “The prospects are too good for the opportunity to remain long....Many millionaires have been made here. And many more are waiting in the wings.”

Women in Business

2009-01-15T01:18:00.000-08:00

As president of The Entrust Group, Lisa Moren Bromma has valuable insight into the roles women play in the marketplace. Women may not be wrong in feeling discouraged about entering into what has always been classified as a man’s game based on the salary gap between men and women—women make 76 cents for every dollar men make, according to the U.S. Census Bureau—but as more and more women fight gender discrimination, they are starting to see that their efforts are not in vain.

Because of her personal life experiences, Moren Bromma has a good idea of what it takes to start off on the right foot in business, despite the fact that the cards haven’t always been in her favor. For business owners just starting out, she said she suggests getting letters of reference. She also said women should work with their sphere of influence and network within their local marketplaces to gain contacts they trust and can do business with. Developing that level of trust, and gaining trust with other people, she said, is one of the biggest hurdles women face in business.

Moren Bromma has experienced the difficulties of doing projects on her own. In her books and lectures, she strongly suggests that women create a roadmap for success. Goal setting is one of the most important steps to creating a solid business plan, she said.

Moren Bromma said she believes that one of the biggest challenges women face is meeting likeminded people. By joining business support groups such as NAWBO (The National Association of Women Business Owners) to get support from other female entrepreneurs and business owners, women can do just that.
“Let’s face it, an investor going out and investing in real estate is a business owner, and they’ll get a lot of support from a business perspective, and they’ll meet other women in their area doing what they are doing," she said.
The clearest and most direct path to being a successful female business owner starts with surrounding yourself with the right people; but integral to this step is finding the right kinds of educational resources, Moren Bromma said. In addition to business support groups such as NAWBO, she said women should connect with coaches and business-focused peer groups, many of which have specific sub-groups just for women business owners.
Besides education, learning how to perform due diligence when starting a new business of any kind is paramount to a successful practice. “Don’t believe everything you read,” Moren Bromma said. “Do your own due diligence. Never allow anyone to vote on your money. You can listen to everyone’s advice—you make the final decision."
According to Moren Bromma, the difficulty of being a woman in business is not necessarily the process of owning a business; it’s the confidence that many women lack to be in specific fields or to commit to a business plan. Women are rightfully influenced by negative concerns that they are going to be taken advantage of and perceived as inexperienced, she said, and overcoming those stumbling blocks is a bigger issue than just deciding to start a business.
The advice Moren Bromma gives women investors transcends gender. It is wise for women to both look into the areas where they may face challenges and to discern the ways they can address these challenges, she said.
Moren Bromma said she is optimistic about the future of women in business. “Women are much more sophisticated and [can] roll with the times. That’s what all of us should aspire to do. They have taken the bumps in the road and have made lemonade out of lemons and have moved on. They are creative and confident they can always stay ahead of the game.”

Women Investing in Real Estate

2009-01-15T01:16:00.000-08:00

There are women all over the country who would like to become real estate investors but many don't know how to start. Some lack knowledge; some, aware that they lack the necessary knowledge, in turn lack confidence. Where should women who want to get started investing in real estate begin?

The internet is a good place for them to turn.

Women who want to begin investing in real estate can learn some of the basics of investing in real estate by reading educational materials online, and they can develop a familiarity with the topic by reading about current events and trends in the real estate market.

Lack of knowledge is not the only thing that keeps some women from becoming real estate investors; fear is also a contributing factor, Charita Cadenhead, founder of Bham WIire (Birmingham Women Investing in Real Estate), a group for women interested in real estate investing, said. "They're afraid of losing money, they're afraid of not making the right decisions...and credit issues are also involved." In addition, Cadenhead said, "they don't know how to get started."

Real estate investment clubs

Providing women with industry contacts and education, real estate investment clubs are a good place to start. Dawn Jordan-Wells, a broker/associate for Hodge Homes, said she recommended that women interested in investing in real estate do a simple internet search for "real estate investing" to find local investment groups to start attending.

"Finding other women to network with was beneficial," Jordan-Wells said.

Real estate investment clubs exist in many incarnations; some are larger and more formal than others. The National Real Estate Investment Association (NREIA) has about 40,000 members in its 230 Real Estate Investment Association (REIA) chapters nationwide, according to its website.

Women interested in investing in real estate, and those who are already doing so, "should get into a REIA so they can get a pulse on the market," Lisa Moren-Bromma, author of Wise Women Invest in Real Estate and Real Estate Investing for the Utterly Confused and president of The Entrust Group, said. Additional benefits of joining a REIA, according to Moren-Bromma, include access to educational offerings and details about legislation that could impact real estate investors. By joining a REIA, real estate investors "are going to have up-to-date information, not just on the markets, but also on the law."

Cadenhead said women interested in investing in real estate should "join those clubs [and] sit in on some of the meetings. They have great guest speakers."

Those new to real estate investing should exercise caution, however, and carefully evaluate what guest speakers say rather than simply taking their words at face value. In some cases, speakers at local REIAs try to sell something to the audience, Moren-Bromma said; new members should "just be aware. Be there to learn, and to network with other people who have been doing this a while," she said.

"I would urge women to be extremely careful in [whom] they elect to give their money to," she said.

In addition to REIA chapters, there are also smaller and less formal investment groups. Jordan-Wells said the website MeetUp.com has allowed her to meet and interact with other investors and those who are interested in investing. She posted an event on the website last August, and now attendance at her monthly meetings about investing has increased from an average of five people to an average of 15 people, she said.

"I'm hoping to grow that," she said. The attendees are mostly women, Jordan-Wells said, and "we just share information and we're more comfortable because, you know, we have that common bond."

Cadenhead also used MeetUp.com to reach out to women in the real estate investment world, and Bham WIire has grown from that, she said.

In addition to investment clubs specifically pertaining to real estate, "I would strongly recommend also looking for support from a general business perspective at NAWBO, the National Association of Women Business Owners," Moren-Bromma said. "They'll get a lot of support from a business owner's perspective and from women in their own area."

Networking

No matter what type of real estate or general investment clubs women seeking to become real estate investors choose to join, such groups can provide them with crucial opportunities for networking, education and support.

"The greatest key is knowledge," Cadenhead said, and women new to real estate investing can benefit from "being around other people who do invest to learn the process from those people."

Learning from and working with other women who are experienced real estate investors can also be a good way to gain confidence. Moren-Bromma said she recommended that beginning investors "work with somebody with some experience in real estate investing—get your feet wet a little bit before you go out on your own."

At real estate investment clubs, "there are real estate agents and other investors there for them to network with, there are lenders, there are contractors," Cadenhead said.

"Everybody who's related to the real estate industry can be found right there...so they can form their own network there to get them ready for real estate investing," Moren-Bromma said. After joining a group, women should "put a business plan, or a marketing plan, or a road map together—their checklist of things that they need to do in order to become successful," she said.

Moren-Bromma also said she recommended that women put together a team of experts to work with when investing. "You have your financial team: your accountant, your attorney, a property manager if you're buying to hold property for the long term...people that can assist you and be part of your team so that when you go out to identify and find a deal, nothing is going to stand in the way if the deal makes sense. You've got your people, your money—all your ducks in a row."

"If a woman does that, she's going to be very successful in real estate."

Strategies for women

Considering the credit crunch underway across the country, combined with the potential recession, many women who are interested in becoming real estate investors hesitate because they are nervous about money. More precisely, they are worried about not having enough money to be able to invest in real estate.

"I think [women] think that they need to have a lot of capital up front," Jordan-Wells said. "Or their credit may be bad and they don't think they can get started because of that, either."

Cadenhead said that investors will need some money up front. "It's going to take a little money to get started," she said. "Six to eight months ago, an investor could buy a property with no money down and get it financed for 100 percent. With all the foreclosures going on across the country, that kind of put a thorn in that, and so now [real estate investors need] to come up with money," Cadenhead said. "Whether that's 10 percent or 20 percent, a lot of them just don't have it."

Fortunately, for women just starting out, "There's a lot of different creative strategies, like lease options, that they could do to get into a property," Moren-Bromma said.

Buying pre-foreclosures or foreclosures is another strategy that may suit women in particular well for a variety of reasons. While foreclosure properties tend to be more affordable, they typically must be purchased with cash up front. Pre-foreclosures would be a better option for people without a lot of cash on hand.

Another reason is that, because in many cases women are more nurturing than men, a woman "may be able to talk with homeowners who are in [pre-foreclosure] and get them to let [her] purchase a house below market [price] compared to a man approaching them to do that," Jordan-Wells said.

Cadenhead also said the foreclosure market is a place in which many women investing in real estate could find their niche. "I think women will play a major role in their commitment to revitalize areas hardest hit by foreclosures," she said. "Members of my group, Bham WIire, have made a commitment to buying and rehabbing houses in these areas and then sharing equity with properties that they sell. And by doing this, homes become more affordable....We take a little less profit for it, but something has got to stimulate home sales again, particularly in these areas."

Such a strategy allows the investors to profit not just from the revitalization of a particular property, but from the revitalization of a particular area. Such dedication to a community can improve an area's economic outlook. Cadenhead said this type of investment is well suited to women because "a great advantage that women hold over men is compassion, and empathy."

Outlook

"[Women] are relationship people," Cadenhead said. "We're good at establishing a relationship, we're good at earning trust, and so people want to do business with us. It becomes a lot easier for us to develop a good reputation for delivering a quality product. This is a tremendous advantage [for] women, particularly when it comes to rehabbing property."

Jordan-Wells said she recommended that women who lack experience with do-it-yourself home projects attend classes, such as those offered by hardware and home improvement stores, to learn the basics. Then, if someday they are looking at investing in a property that may require some work, they can make the right decisions about the deal. Do-it-yourself skills could be particularly useful for women who want to rehab properties.

Negotiating can be another important skill for women to concentrate on learning. "[Women should] learn better negotiation skills," Cadenhead said. "Acquire that skill and take control."

Cadenhead said she doesn't think that women are at any inherent disadvantage when it comes to investing in real estate. "I think the major disadvantage is probably internal," she said. "Women only feel that they lack the power and authority. They feel like they can't do it because investing is a male-dominated field."

Moren-Bromma also said that women investing in real estate are not less likely to be successful solely because they are women. "It’s not that it's difficult, it's that women tend not to have the confidence," she said. "Somebody who's persistent and somebody who believes in themselves, whether male or female, will do just fine.".

The Macau real estate market offers high reward potential for risk-takers

2009-01-15T01:11:00.000-08:00

The Las Vegas Convention and Visitors Authority ran some television ads in 2004 with the tagline, “What happens in Vegas, stays in Vegas.”

What has happened in Las Vegas during the past 50 years is the city’s calculated and meteoric rise to become one of the world’s most popular tourist destinations. Las Vegas is most famous for its casinos, but it also hosts conventions, shows and a variety of other events and entertainment.

But what has happened in Vegas has not stayed in Vegas. Halfway around the world, Macau is well on its way to duplicating the success of its western cousin from the Nevada desert.

Background

Like nearby Hong Kong, Macau is a Special Administrative Region (SAR) of the People’s Republic of China. Macau is the only place in China where gambling is legal. SARs have chief executives who oversee the region and its government, but defense and foreign policy is up to the central government. Macau’s current chief executive is Edmund Ho, a Macau native and accomplished businessman who is currently serving his second consecutive five-year term.

Macau was held as a Portuguese colony for 450 years before it was turned over to China as an SAR in 1999. As the last European colony in Asia, Macau has become an important trade center and a unique example of an eastern culture with some western heritage.

It is important to note that China will take complete control of Macau in 2049, especially in light of Macau’s heavy economic dependence on the gambling industry. Gambling is increasing in popularity in China in part because of China’s recent acquiescence to small doses of capitalism; how the Chinese government handles the rising popularity of gambling will be an important part of Macau’s future.

Stanley Ho, owner of many casinos in Hong Kong, was given monopoly of Macau’s casinos in 1962. In 2002, however, Macau’s government rescinded Ho’s monopoly in order to boost the economy. Shelden Adelson, owner and creator of the Venetian in Las Vegas, and Steve Wynn, owner and creator of the Bellagio, Mirage and Treasure Island in Las Vegas, have since been investing heavily in Macau.

Wynn recently opened the Wynn Macau, a $1.2 billion project. Adelson operates the Sands Macau, a $240 million project, and is planning to open the Venetian Macau, a $1.8 billion mega complex. The Venetian Macau, which is scheduled to open in the fall of 2007, will include 600,000 square feet of gaming space, making it the largest casino in world. The Venetian Macau will feature a new Cirque du Soleil show upon its completion.

Macau’s currency is the MOP or Pataca; the exchange rate at publication was around 8 MOP per U.S. dollar. The currency is pegged to the Hong Kong dollar at a rate of 1.03 MOP for 1 HK dollar. The Hong Kong dollar is in turn pegged to the U.S. dollar at 7.8 HK dollars per USD. Most business transactions take place in HK dollars. In Macau, most places accept both MOP and HK dollars.

Macau generated revenue of $21,000 USD per table in 2002, according to USA Today. Las Vegas, in comparison, has per-table revenues of $2,200. Since then, Macau’s per-table revenue has declined with the opening of mega casinos in the area and an increased stream of lower income visitors, but the $7,000 per-table revenue Macau posted in the third quarter of 2006 still substantially outperformed Las Vegas.

Macau recently passed Las Vegas as the number one city in the world in terms of gaming revenue, according to USA Today. Macau eclipsed Las Vegas’ revenue despite having less than half the number of casinos.

“I see Macau right now as being like Las Vegas in the '50s,” Mario Pinedo, an investment, residential and commercial realtor with Intero Real Estate, said. “Macau has such a huge growth potential in front of it, and they’re going to dwarf Las Vegas at some point.”

Macau itself is actually made up of three distinct regions: Macau, which is a peninsula connected to mainland China, and Taipa and Coloane, which are islands.

“Coloane is the countryside, Taipa is the new town and Macau is the old city,” Juliet Risdon, founder of JML Properties, a Macau-based property management company, said. “All of them bring different things to the table.”

In addition, an old causeway of reclaimed land connecting Taipa and Coloane is undergoing a surge of construction; called Cotai, it is also known as the Cotai Strip because of its similarities to the famous Las Vegas Strip. It is estimated that about $20 billion in investments will be made in Macau in the next few years; $12 billion of that is expected to go into Cotai.

Advantages

One of the biggest advantages Macau has is its location; more than half of the world’s population lives within a six-hour flight. Macau’s role as the only place in China featuring legal gambling makes it a huge draw for tourists. “Macau has now become a huge focus for the rest of the world because of the casinos,” Risdon said.

“The opening up of the casino industry [is] bringing in a lot more tourist traffic,” Pinedo said.

The tourism industry is going to bring tens of thousands of jobs to an already crowded area. Land and housing will be at premiums for a long time to come. Older condos are available for less than $100,000 USD, while new luxury condos can go for upwards of $500,000. The average new condo development sells for around $250,000 USD. “You’re probably looking at about a 30 percent down financing in that market,” Pinedo said.

“The financing is relatively easy to get,” David Faulkner, regional director of Colliers International, said.

Nice condos rent for approximately $1,500 USD and up. In 2006, average rental rates increased approximately 28 percent and rental rates for luxury units increased by 50 percent, according to the International Herald Tribune. Rental rates should continue to rise as demand for available housing increases in the coming years.

This will serve investors interested in the buy-to-rent strategy—simply purchasing a property and renting it out—well. This strategy allows investors to capture capital appreciation and potentially achieve cash flow. It is a long-term strategy well suited for Macau. Property values should increase in the coming years because of Macau’s limited land and growing population and wealth, and rental rates should rise along with them.

Hong Kong, for example, has some of the most expensive real estate in the world, with housing prices of more than three times those in Macau. There is already a land shortage in Macau, and with all the new casinos and developments taking up land and bringing in jobs and tourists, demand for the available land will increase.

“With the size of Macau and the density of Macau, it seems kind of an obvious place to invest your money because of the growth,” Risdon said. “I mean, billions are being spent in Macau right now.”

The Standard, a Chinese business news publication, projects that 70,000 to 75,000 new jobs will be created at the casinos scheduled for completion by 2009. With an unemployment rate of 3.8 percent and a population of about 500,000, many employees will need to be brought in from elsewhere.

Casinos have, in the past, typically brought in expatriate management, but that only accounts for about 10 percent of the projected job growth. The influx of expatriate workers and overall strong supply of jobs should both boost the economy and put a strain on the already tight housing market.

Expatriate workers might be drawn to Macau by the cost of living. Macau’s cost of living is approximately 13 percent lower than Hong Kong’s, according to the University of Macau. Macau’s cost of living is comparable to an average U.S. city. In addition, “tax is quite low [in Macau] compared with other countries,” Risdon said.

“There’s need for housing, both temporary housing for people on vacation doing quick trips from China, and there’s also a pretty decent expat population there,” Pinedo said. “And a lot of that requires high end, more temporary housing.”

With the increasing number of residents and tourists, housing and accommodations aren’t the only areas that will see increased demand. “Retail is really underprovided in Macau,” Faulkner said. A retail boom will be necessary to support the gaming and housing industries.

Macau is a relatively small area, “so, right now, when there is the ability to acquire some of the retail...it might be a good choice,” Pinedo said.

Risks

The gaming industry

China will assume full governing authority of Macau in 2049. This is a cause for concern because, while China has made strides toward capitalism in recent years, the changeover could still have a profound and uncertain impact on Macau. If the Chinese government decides to restrict or eliminate gambling in Macau, then Macau will lose its most lucrative feature: legalized gambling.

The gaming industry comprises 80 percent of Macau’s GDP; this over-reliance on one industry marks Macau’s economy as one-dimensional and easily endangered, should the gaming industry for some reason go under, such as by government influence. “It’s very much driven by the gaming and the hotel businesses,” Faulkner said.

Overbuilding

Overbuilding is also a significant risk. While the area available for development is limited, Macau is a hot market right now, and there might not be enough short-term demand to meet all of the projects underway. An oversupply would drive yields on rental properties down. Such yields are low to begin with because property values are climbing quickly while rental rates are rising at a much slower pace.

“You really have to look at long-term growth here in Macau. The rent right now in Macau is still quite low in comparison with the actual cost of a property, so your yield is anywhere between 4 and 7 percent, which is not high,” Risdon said.

“They’re building a lot of residential condos and residential developments [in Macau] and they probably will go through a process of overbuilding,” Pinedo said. “That might mean that the value of those units might come down at some point—they might peak and come down—or the rental rates might come down, but they will probably keep those buildings fairly well occupied.”

The influx of hotel rooms that will be coming on the market as projects are completed mean that condos will likely not be able to compete for short-term or vacation rentals, because hotel rooms will be able to offer lower prices. Condos will thus be best suited for long-term rental opportunities.

Leasehold ownership

Further, property ownership is leasehold in Macau, though some predict that freehold will emerge at some point. Pinedo said he does not consider leasehold a problem.

“The worst-case result [of a leasehold] would be, what if you have to give up the rights to that land and have to walk away from your development? Which is a possibility, I think, but it’s a very, very slim one,” he said. “In China, everything’s leasehold, so again, it’s really a non issue in that everybody’s playing that same game.”

“I think the leasehold interest is not a risk, I think the government is not a risk,” Pinedo said. “Your major issue, which is the major issue with any far away investment, is management.”

An investment in Macau would likely require “going to some meetings every year,” Pinedo said. “Your investment should be of a worthwhile size to merit the travel back and forth.”

Average length of stay

Another potential problem is getting tourists to stay in Macau longer. The average length of stay for Macau visitors is merely 1.2 days, according to USA Today. The hotel industry in particular needs visitors to stay longer in order to be successful.

Adelson, Wynn and other Las Vegas moguls intend to turn Macau into a multi-purpose destination like Las Vegas. Las Vegas is best known for its gaming industry, but it is also a popular business and convention destination. Las Vegas features entertainment and other attractions that appeal to families. As a result, the average length of stay for tourists in Las Vegas is 3.7 days. Turning Macau into a multi-purpose destination in the vein of Las Vegas is still only a goal, not a reality.

Real estate representation

Real estate agents in Macau are not regulated or licensed, so investors must research agents carefully before choosing one. Still, the lack of licensing requirements has not deterred investment in Macau’s rapidly growing real estate market thus far.

“There’s no licensing requirements in Spain, which is another place that I’ve invested,” Pinedo said. “Licensing requirements, to me, are kind of a non issue. In the United States, it’s the mirror test: if you can breathe, you can get a license. It really comes down to finding an agent who’s knowledgeable in that market and who can do the work for you.”

Climate

Macau’s subtropical climate could also be considered a concern. While Macau enjoys temperatures in the 80s year round, it is also susceptible to cyclones and typhoons. The rainy season, which can be very humid, lasts from May to September; June is the wettest month, with an average of 7.11 inches of precipitation.

Typhoon season is July through September. Macau averages six typhoon warnings per year and has an excellent warning system in place. Still, the risk of severe weather must be considered, especially in light of how Thailand’s tourism industry was devastated by the major tsunami that struck southeastern Asia in December 2005.

Conclusion

Macau is an interesting combination of high risk and high reward potential in much the same way that Las Vegas was 50 years ago. It is a market that combines several rare and lucrative characteristics in one place and time. There is, however, inherent risk in investing in Macau. The uncertainty of how the Chinese government will handle Macau when it takes the region over in 2049 is probably the biggest question mark.

“It really comes down to somebody being comfortable with the Chinese government,” Pinedo said. “I think people get rich by doing what other people don’t want to do or other people aren’t comfortable doing.”

Investment in Chinese Real Estate: A Limited Fortune

2009-01-15T01:09:00.000-08:00

The People’s Republic of China rings in the new year—the Year of the Rat—today with festive traditions for good luck and fortune in the coming year. Indeed, it appears that the global superpower has much to look forward to: after an impressive year with GDP growth of 11.4 percent in 2007, increasing economic prosperity almost seems inevitable. However, what goes up usually comes down in a rapidly growing economy, and the rate of growth in the Chinese real estate market poses no exception.

China’s property sector took off in 1998, when Chinese citizens were granted the right to buy their own homes. Since then, China’s property sector has seen an average rate of growth of 22 percent per year, fueled substantially by a large amount of investments flowing into the market, according to an online market overview published by Property Frontiers.

The phenomenon has sparked fears that a property bubble is being created in China. Consequently, the Chinese government placed restrictions on foreign investment in July 2006 as part of an overall effort to control the massive appreciation seen in recent years.

In order for foreign investors to acquire non self-use property in China, they must incorporate and capitalize an onshore entity in China, or foreign-invested real estate enterprise (FIREE), to acquire and hold investment properties, Michelle Gon, senior partner at the international law firm Baker & McKenzie, said in an e-mail interview.

Additional restrictions have been placed on specific segments of the real estate industry, such as development of whole tracts of land, construction and operation of luxury hotels, resorts, office-buildings and exhibition centers and second level-real estate market transactions, Gon said. Such efforts are not prohibited by law, but investors must obtain approval from authorities on a case-by-case basis.

The debt to equity ratio for FIREEs with a total investment of $10 million has also been reduced to 50/50, Gon said. Foreign individuals who work or study in China for more than one year can purchase self-use property, or property for their own use or residence, Gon said. Foreign entities with branches or representative offices in China in operation for more than one year may also purchase self-use property.

Although restrictions have made it more difficult for foreign non-resident private individuals to invest in China’s real estate market, large institutional investors are working within the rules of the system to provide a steady flow of foreign capital to China’s property sector.

“Various institutional investors...such as Morgan Stanley, JP Morgan and Goldman Sachs are actively investing in China’s real estate market via their local vehicles or taking stakes in renowned Chinese development companies through pre-IPO investment,” Marsha Lu, legal consul for Property Frontiers, said in an e-mail interview.

Lagging demand and tighter regulations on the property market may have already started to take effect. The shutdown or downsizing of major real estate agencies and concurrent drop in urban housing sales could be indications of an overall slowdown in the real estate market, according to a press release from the Associated Press last month.

Until China’s real estate market sufficiently “cools down,” it is unlikely that the Chinese government will lift restrictions on foreign property investment, Lu said.

China’s Special Administrative Regions (SARs), Hong Kong and Macau, exercise a high degree of autonomy and are not subject to the restrictions placed on real estate in mainland China.

Real Estate Investment

2009-01-15T01:08:00.000-08:00

Real Estate Investment is now treated as a major case of capital budgeting by using state-of-the-art investment analysis which incorporates the future stream of income it may generate and the associated risk adjustments. It has been the highlight of the investment literature since the 1970’s when investment theorists extended techniques such as probability, time value of money and utility into its analysis.

Real estate is basically defined as immovable property such as land and everything permanently attached to it like buildings. Real property as opposed to personal or movable property is characterized by the right to transfer the title to the land whereas title to personal property can be retained. The investment in real estate essentially depends on the risks associated with it, that is to say, even if the venture succeeds when the future stream of income will accrue to the investor and the alternative investment opportunities. Real estate investment can be attractive if viewed as a business opportunity; it can generate rental income, using it as collateral to secure a loan for a business venture, to offset otherwise taxable income through cash savings on tax-deductible interest rate losses, or simply from the profits garnered from its resale. Notable, in this context is the gains reaped by real estate speculators who trade in real estate futures (by buying and selling purchase options).

Common examples of real estate investment are individuals owning multiple pieces of real estates one of which is his primary residence and others are occupied by tenants from where the rental income accrues. Real estate investment is also associated with appreciation in the value of property thereby having the potential for capital gains. Tax implications differ for real estate investment and residential real estates. Real estate investment is long term in nature and investment professionals routinely maintain that ones investment portfolio should have at least 5%-20% invested in real estate.

A Real Estate Investment Trust (REIT) is a corporation or body investing in real estate that has the property to reduce or eliminate corporate income taxes. In return, REIT’s are required to distribute 90% of their income among the investors. These incomes are often taxable. REIT’s provide a similar function as does Mutual Funds provide for stocks in the share market. The key statistics to study about the REIT’s are the NAV (Net Asset Value) and AFFO (Adjusted Funds From Operation).

The Indian Government is yet to introduce REIT’s in the country. The government and the SEBI (Securities and Exchange Board of India) are planning to bring in legislations for the smooth functioning of the real estate market in India. with Initial Public Offers (IPO’s) streaming in from various listed real estate companies, it will be the best time to have an REIT which can help capture the current boom in the real estate market.
REIT’s provide the opportunity to reap the benefits due to interests in the securitized real estate market. The best benefit that can accrue is the fast and easy liquidation of investments in the real estate market which can be observed in Japan which one of the few economies of Asia along with Hong Kong, Singapore, Malaysia and Taiwan to have REIT legislation in place. J-REIT securities are listed on the Tokyo Stock Exchange and most of the participants are domestic and foreign conglomerates.

The legislation for laying out rules for REITs in UK was enacted by the Finance Act of 2006.they have to distribute 95% of their income and have to be publicly listed on a stock exchange which has been recognized by the FSA (Financial Services Authority). In the USA, the REIT’s are required to pay little or no federal income tax but are subject to legislations put forth by the Internal Revenue Code of 1986 whereby they have to distribute 90% of their taxable income in the form of dividends to its shareholders. Increasing demand for REIT stocks will push up the stock prices and entail growth from internal sources which is evidenced by the figures of 2005 where the combined assets of 200 publicly traded REIT companies totaled $500 billion.

China, India top 2 investment destinations

2009-01-15T01:04:00.000-08:00

Even as the global economy faces a slowdown, emerging markets like China and India have been placed at the top a list of destinations offering exciting growth prospects for privately held businesses (PHBs) in a recently released report. Compared to advanced economies that are forecast to grow at 1.3 per cent in the next two years, the economies of China and India will register a growth rate of over 6 per cent for the same period, the report showed.

Grant Thornton’s report, titled International Business Report on emerging global markets, showed that China and India stood out as emerging markets with the best opportunities. Riding on a wave of positives like their current GDP growth rates, investment climate and substantial trade opportunities, China and India were slotted as the two most favoured destinations for investment and development. Russia trails at number three, Mexico at four and Brazil at five.

The study also reveals the presence of 22 other rapidly growing global economies, which offer immense opportunities for future growth. These include Malaysia, Indonesia, Iran, Pakistan, Thailand and Poland, among others. The emerging markets index is produced using a weighted calculation of key indicators, including GDP, population, international trade and growth projections. Citing the reasons for attractiveness of these countries, Grant Thornton India national markets leader Monish Chatrath said, “Emerging markets offer great potential for growth in a global economic slowdown scenario. Availability of low-cost yet highly educated labour force with strong work ethics, combined with fast industrialisation, technology deployment and a strong focus on infrastructure development is enabling these countries to close the gap with the more affluent and relatively slower-growing mature economies.”

According to recent projections, China’s economy would move ahead of the US by 2027, India would catch up with America by 2050 and BRIC (Brazil, Russia, India and China) nations, as a group, would surpass the G7 by 2032. “India’s position in the second place comes as no surprise.

The Indian economy has consistently been riding high on waves of growth since the 1990s and the current scenario has been characterised by an almost insatiable enthusiasm for technology, openness to global trade and tangible progress towards fiscal consolidation,” Chatrath added. The report also highlights the growing number of challenges in emerging markets. PHBs, in particular, face challenges given that the contemporary business environment is now global in nature and these businesses cannot operate domestically without reference to foreign markets.

NRI Investments in India

2009-01-15T01:01:00.001-08:00

NRI India Investment has been subjected to ample neglect over the years. It is only in the past few years that the Indian Government is paying utmost interest in this matter as NRIs all over the globe are being encouraged to bring fresh funds for the economy.

The population of NRIs have experienced a manifold increase in the past few years which has been made possible by the sharp hike in recruitment levels for overseas jobs. According to a recent Business Standard report, in the last three years, 850,000 people went to West Asia alone. And even as the official figure for Indians living in the US is 2 million, unofficial estimates put it as 3.5 million. The immigration list to Canada and Australia continues to grow as well.

The ministries concerned have made sure that rules and regulations are simplified to make investments from NRI's easier. Investment in bank deposits and company deposits may be made by NRIs. They are subject to different rules and investments both with repatriation and non-repatriation benefits are permitted under various schemes.

Criteria for investments from NRI's

* NRI investment in India are permitted in partnership and proprietorship firms. This can be done by subscribing shares or debentures of Indian companies.
* NRIs can also now place funds in company deposits.
* NRIs who undertake not to seek at any time repatriation of the capital invested in India and the income earned thereon are permitted to invest on non-repatriation basis.
* NRIs also have the option of investing in mutual funds floated by domestic public sector and private sector mutual funds on non-repatriation basis. All they have to do is to make their applications to the Reserve Bank.
* They can also invest in money market mutual funds (MMMFs) floated by commercial banks and financial institutions with authorization from the apex bank or the Securities and Exchange Board of India (SEBI) which is the market regulator.
* Another option for NRIs is to invest in securities of the Central or any state government and National Plan/Savings Certificates by making remittances from abroad or out of funds held in their NRE/FCNR accounts. Thus the road has already been paved for investment in India and what better people to get it from than NRIs.

ATN International

2009-01-15T01:00:00.001-08:00

ATN International Limited, based in India was incorporated as Arihant Consultants Private Limited in 1983. The company became a public limited company in 1987. ATN International dabbles in both fund-based as well as non fund-based business activities.

ATN International, India

Arihant Consultants Pvt Ltd was subsequently renamed as Arihant Credit Capital then as ATN Arihant International Ltd. Finally the company got its new name, ATN International Limited.

ATN went public in 1994. The idea was to garner resources for widening its capital base.

ATN International Limited's business activities include the following areas:

a. Merchant banking services
b. Mergers and amalgamations
c. Consultancy services
d. Corporate counseling

It may be noted that, ATN International is based in Kolkata. The focus of the company, at present is on Satellite TV Channels and Investment Banking.

Equity Shares of ATN International Limited are currently enlisted at BSE, NSE and CSE.

ATN International's Authorized Share Capital amounts to Rs. 40 crores. Paid-up Capital is to the tune of Rs. 15.78 crores.

SEBI conferred the 'category-I merchant banker' title to ATN International Limited in 1994.

After that, AIL (ATN International Limited) has successfully managed over 20 public / rights issues in the capacity of a lead manager. The company has also acted as a co-manager for several issues.

ATN International Limited has successfully commissioned a wind power plant (of 4.1-MW capacity) in Kayathar, Tamilnadu in 1994-95.

AIL aims to enter the arena of financial services. Some of the envisaged categories are described below:

a. Portfolio management
b. Bridge finance
c. Forex advisory services
d. Debt market trading
e. Hire-purchase
f. Securities
g. Bill discounting

ATN International Limited's channel is known as ATN WORLD. The company has Air time sharing pacts with companies like Cygnus Publications & Communications Pvt Ltd and Rainbow Productions.

AIL is a successful business venture with multiple interests. Primary among them being the Entertainment industry and the Electronic Media Software industry.

Indian Stock Market and Investment

2009-01-15T00:58:00.000-08:00

India Stock and Investment in the recent years, shows the overall boom in the Indian stock business. The liberal policies adopted by the Indian government and the recent decision of the RBI to allow foreign investment up to 49% in stock exchanges have encouraged investing in Indian stock market.

India Stock and Investment is becoming increasingly global with the country being the fourth largest country in the world in terms of purchasing power parity. The volume of trade have been experiencing a steady rise with the Indian stock market attracting considerable investment from overseas investors. Nearly, 1,000 foreign institutional investors have found to have registered with market regulator SEBI.

* Investing in the Indian stock market:
The rapid growth of the stock markets in India are attracting many global investors like the Deutsche Boerse, Europe's top stock exchange has signed an agreement to buy 5 percent equity in the Bombay Stock Exchange. The foreign stock exchanges have recently involved themselves in the equity stakes in the Over the Counter Exchange of India. The greater participation of the foreign investors have also encouraged the sharing of the technology and trading expertise with the Indian exchanges.

* Impact of investing in Indian stock market:
There is a need for regional stock exchanges to consolidate for offering a more regulated stock market to the investors. This would make the Indian stock markets more accessible to the foreign investors. So far, nine exchanges have come together and signed a memorandum of understanding with the National Stock Exchange in order to extend their trading platform.

In the recent years, stock watching has become a fixation for those interested in the stock market business in India. The growing participation of the foreign investors have encouraged three national business television news channels in India and another is still in the planning. Moreover, to boost India Stock and Investment and to inform the investors with the current updates of the stock market in India , four national daily business newspapers and dozens of business magazines are published.

Foreign Investment In India

2009-01-15T00:57:00.000-08:00

Foreign Investment in India or more precisely Foreign Direct Investment (FDI) in India is one of the most talked about issues in the entire world economy in recent times. Rated among the top emerging nations, India's liberalization policies are paying rich dividends to the economy as a whole.

Foreign Direct Investment (FDI) is defined as "investment made to acquire lasting interest in enterprises operating outside of the economy of the investor." The FDI relationship, consists of a parent enterprise and a foreign affiliate which together form a Trans-National Corporation (TNC).

India, post liberalization, has not only opened it's doors to foreign investors but also made investing easier for them by implementing the following measures:

# Foreign exchange controls have been eased on the account of trade.
# Companies can raise funds from overseas securities markets and now have considerable freedom to invest abroad for expanding global operations.
# Foreign investors can remit earnings from Indian operations.
# Foreign trade is largely free from regulations, and tariff levels have come down sharply in the last two years.
# While most Foreign Investments in India (up to 51 %) are allowed in most industries, foreign equity up to 100 % is encouraged in export-oriented units, depending on the merit of the proposal. In certain specified industries reserved for the small scale sector, foreign equity up to 24 % is being permitted now.

As the industry progresses, opportunities abound in India, which has the world's largest middle class population of over 300 million, is attracting foreign investors by assuring them good returns. The scope for foreign investment in India is unlimited. India offers to foreign investors a well balanced package of fiscal incentives for exports and industrial investments that includes:
# Complete tax exemptions.
# Investment incentives are offered by both the Central Government and the Government of the State in which the unit is located.
# India has tax treaties with 40 countries.

Moreover, the support of the common man regarding FDI is clearly from the sharp hike in India's gross expenditure in the past few years.

Thus the Indian economy is proving itself highly conducive to Foreign Investment.

Reliance Power IPO

2009-01-15T00:55:00.000-08:00

The Reliance Power IPO has gained substantial prominence in the Indian financial market. The initial public offerings of Reliance Power are expected to be the highest revenue generating stocks in the Indian capital market.

Reliance Power IPO has been one of the most widely discussed issues in recent times. The initial public offering of Reliance Power is expected to yield the biggest ever fund in the capital market of the Indian Territory. The stockbrokers who are operating in Dalal Street are quite hopeful about the Reliance Power IPO.

Expectations about Reliance Power IPO

# The initial public offering of Reliance Power is expected to arrive in the market around the 3rd week of the month of January 2008.
# The price range of Reliance Power IPO is expected vary between the range of Rs.450 - Rs. 480 for each share of Rs.10.
# Anil Ambani Group is expecting to generate around $2- 2.5 billion by issuing the initial public offerings.
# With the Reliance Power IPO, the Anil Ambani Group is planning to offer around 10- 15 percent of the firm's share to the common people within the next few months.

More about Reliance Power IPO

# The IPOs of Reliance Power are supposed to come with 11.5 percent share in the draft of Anil Ambani Group in front of the regulator of market as fixed in the month of October 2007.
# The funds that would be raised through the Reliance Power's IPO will be utilized for a number of projects of the Anil Ambani Group.
# The Group has already selected some of the well-known financial advisors like Enam Financial, ICICI Securities, Kotak Mahindra and UBS for handling the various issues that may come up with the Reliance Power IPO.
# The initial public offering of Reliance Power is going to be the biggest of its kind from the Indian power sector.

Ratings of Reliance Power IPOs

ICRA, the leading credit rating agency in India, has ranked the Reliance Power IPO as Grade 4. This grading has further increased the expectations from the Reliance Power IPO. The ICRA grading has also been indicative of the advantages that are expected to come with Reliance Power IPO.

International Business in India

2009-01-15T00:54:00.001-08:00

The current scenario for 'International Business in India' is more than heartening. With stupendous growth of more than 7% annually, improvement and stabilization of relations with neighboring countries and record setting rise of its stock indexes, India continues to grab international attention. It is destination of opportunity with its high-potential workforce and burgeoning middle class and as an increasingly dynamic competitor.

India being a multi-cultural, multi-lingual and multi-religion state, it is not advisable to formulate a uniform business strategy. The eastern part of the country is known as the 'land of the intellectuals' and is regarded as the cultural hub of the country. The southern part is known for its technology acumen and western part is the commercial-capital of the country. The north is where the political power sits and operates the country. ' International Business Opportunity in India ' exists in ares like -

* Information Technology and Electronics Hardware.
* Telecommunication.
* Pharmaceuticals and Biotechnology.
* R&D.
* Banking, Financial Institutions and Insurance & Pensions.
* Capital Market.
* Chemicals and Hydrocarbons.
* Infrastructure.
* Agriculture and Food Processing.
* Retailing.
* Logistics.
* Manufacturing.
* Power and Non-conventional Energy.

Sectors like Health, Education, Housing, Resource Conservation & Management Group, Water Resources, Environment, Rural Development, Small and Medium Enterprises (SME) and Urban Development are untapped and offers huge scope. With highest numbers of technical, medical, business management graduates and highest numbers of Phd.s coupled with an energetic English speaking mass India offers 'services' with 50-70% less cost from their western counterparts.

For 'International Business in India' b odies like CII, FICCI and different Chambers of Commerce provides a variety of business facilitation services by -

* Closely working with Government and business promotion organizations in India and the respective partner countries.
* Also hosts high-level Government dignitaries and help build close working relationships between Governments and business organizations.
* It also exchanges business delegations, joint task forces and identify bilateral business co-operation potential and make suitable policy recommendations to Governments.

With opportunities galore for ' International Business in India' the trend is mind boggling. ' India International Business' community along with Indian Domestic Business community is steadily emerging as the Knowledge Capital of the world. The World Bank and different rating organizations have forecast that at 7-8% of Economic growth, she will be worlds second largest economy by 2050.

India Real Estate Fund

2009-01-15T00:51:00.002-08:00

India Real Estate Fund is a significant component of the Indian realty market flooded with Indian and foreign financial institutions. The growing increase in the industrial, commercial and residential projects have boosted the real estate market in India. This has thrown open unlimited scope for the incoming of the India Real Estate Funds. The profits have encouraged financial assistance from not only domestic funds but also lured many foreign investors to participate in the India Real Estate Fund.

The cooperating assistance from the government has further encouraged liquidity flow into the India real estate market sector. The foreign contributions in the India Real Estate Fund have been witnessing a steady rise of 40%-45% per year. The domestic financial institutions have also build up their investments like their foreign counterparts. This combined participations from both along with contributions of the corporate houses has accelerated the growth of India Real Estate Fund.

# Leading India Real Estate Fund:

Some of the leading India Real Estate Fund are:

1.HDFC Property Fund- HDFC India Real Estate Fund (HI-REF), the first scheme HDFC Property Fund, invest in all the stages of the real estate projects.

2.DHFL Venture Capital Fund- DHFL Venture Capital Fund, promoted by Dewan Housing, has a focus on developing properties rather than investing in real estate.

3.Kshitij Venture Capital Fund - Kshitij Venture Capital Fund, a group venture of Pantaloon Retail India Ltd., will be deploying funds exclusively in developing malls specially in western and southern India.

4.India Advantage Fund (ICICI)

5.Kotak Mahindra Realty Fund

# India Real Estate Mutual Fund:

The further involvement of the real estate mutual funds have improved the quality of the construction practices. The 10th Five-Year Plan has proposed that Securities and Exchange Board of India would regulate the India real estate mutual funds.

# Real Estate Investment Trusts:

The primary difference between Real Estate Investment Trusts and a mutual fund is that investments made in the former are traded in real estate stocks and not invested in company stocks moreover they provides a heavier liquidity than the mutual funds.

# India Real Estate Foreign Funds-

The significant international investments in the India Real Estate Fund are like:

1.Warburg Pincus
2.Blackstone Group
3.Broadstreet
4.Morgan Stanley Real Estate Fund
5.Columbia Endowment Fund
6.Hines
7.Tishman Speyer
8.Sam Zell’s Equity International

Best Investment in India

2009-01-15T00:51:00.001-08:00

By reaping the benefits of liberalization since 1991 and globalization towards the end of the 20th century, India has become a prospective destination for Foreign Direct Investment (FDI) and joint ventures. This page will inform you about best investments in India.

The Indian economy is well suited to the small and medium American companies which may find it difficult to operate in the saturated western markets. With the vast technical and managerial skills available in India, Indian and American Small and Medium sized Enterprises (SMEs) can join hands both as complementary and supplementary partners to cater to the vast Indian market.

India has emerged as a low cost base, attractive enough for multinationals to open shop in the country. More than 100 of the Fortune 500 companies have a presence in India, as compared to only 33 in China.
Repatriation of profits in India is freely permitted. According to a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) a few months ago, 70% of foreign investors were making significant profits and another 12% were breaking even. FDI policies in India are among the most liberal and attractive among emerging economies.

The policy initiatives taken by the government in specific sectors such as telecom, ports, airports, railways, roads, energy, and construction development aim at improving competitiveness within the Indian economy. Further, lucrative investment opportunities are being offered to investors though tax incentives and customs duty concessions for import of plant and machinery needed for the projects. An Special Economic Zone (SEZ) Act was also in place to facilitate this process.

Slowly but surely, India is competing well with others in sectors like auto-components, chemicals, apparels, pharmaceuticals, and jewelery. More than a dozen Indian companies are among the top five global producers in their respective product categories.

To sum up, best investment in India would be such that would create employment and bring in technology and not just investment that would replace the mammoth labor force of the country.

The Sole Proprietorship

2008-12-21T23:37:00.000-08:00

A sole proprietorship is the simplest form of business to start. Ordinarily, all you need to do is start operating as a business under your own name (or a fictitious name - a d/b/a) and Social Security number, obtain any required licenses or permits, and you're in business.

But there are some distinct disadvantages to operating as a sole proprietorship, which you should consider when determining if this business form is right for you.

By definition, a sole proprietorship has only one owner. If you have a business partner, you may be a partnership or choose a different business form, but you cannot operate as a sole proprietorship.

Selecting a Name

In most jurisdictions you may do business under your own name. However, if you wish to use a variation of your name or a completely different business name, you may register a d/b/a ("doing business as..."), such that you may lawfully conduct business under that fictitious name.Usually, d/b/a's are filed at the County level, but in some cases they may be filed at the state level. When you register a d/b/a, the clerk who processes your application will check to make sure that nobody else in their registry is using the same name you have requested. They will also maintain a record of your real identity for anybody who wishes to find out who is operating under the selected business name.

Unlimited Liability

The biggest potential downside of operating as a sole proprietorship is the lack of protection from personal liability. Most businesses can operate under alternate forms, such as corporations or LLC's, which provide considerable protection of your personal assets in the event of litigation or if your creditors are seeking to collect business debts, such that they can ordinarily only reach the assets of the business entity. A sole proprietorship is not legally distinct from its owner. If you operate as a sole proprietorship, your personal assets may be subject to those claims.

If you are engaged in a business which has a significant chance of being the subject of litigation, you will want to make sure that you carry adequate insurance, and will likely wish to choose a business form which shields you from personal liability in the event of a lawsuit. By way of example, if you are giving piano lessons, you probably have a low risk of liability; but if you are giving swimming lessons or horseback riding lessons, a small mistake by you or a student can result in a significant liability to your business.

Taxation

Another potential downside of a sole proprietorship is that any income to the business is treated as income to the business owner, and all income is reported on your individual tax return, and is taxed in the year it is received. With other corporate forms, it may be possible for the business to have its own income (and to file its own income tax return), and it may be possible to defer income to a different tax year. With a sole proprietorship, even the money you leave in your business bank account is taxed in the year it is earned, even if you are saving it to pay for business expenses in the coming year. It is important to consider tax consequences when selecting the form of your business.

The income you earn from your sole proprietorship remains subject to income and "self employment tax" (your Medicare and Social Security contributions), and you will be responsible to pay those taxes at the end of the year. In most cases, you will also be required to make quarterly payments of your estimated tax liability, to both the state and to the federal government.

You may deduct your legitimate business expenses when you calculate your taxes, and you may report losses from your sole proprietorship on your income tax return.

Should You Incorporate?

As previously noted, if the type of business you are operating has the potential for incurring significant liability and you wish to shield your personal assets from lawsuits and creditors, you may wish to consider a business form which protects your assets. The corporation provides a broad shield against personal liability for business debts.

Also, if you do not wish to have all business income treated as your personal income, or would rather have the business pay taxes on its own income than have that income included on your personal tax return, you may wish to incorporate. While ideally this will lower your overall business taxes, you should be aware that incorporation may increase the total tax obligations of a business even with no change in income, and you will want to calculate any effect on your tax liabilities before incorporating your sole proprietorship. Also, even if you have tax savings, you will want to consider the costs and burdens of maintaining a corporation as compared to continuing as a sole proprietorship.

Waterfront Condos - Tips For Winterizing Your Luxury Condo

2008-12-20T05:37:00.000-08:00

Owning a waterfront condo during the winter can become an agonizing fight against the elements to keep the power bill down. Unless your waterfront condo is in sunny Florida, most other condo owners must deal with falling temperatures and rising electric bills as the colder seasons set in.

To prevent spending too much money on the condo heating bill this winter, try some energy saving techniques that will keep more heat in your house and more green in your pocket. Plus, your family will love the extra cash you have to spend on gifts for them this year!

* Dress warmly inside the condo. While it seems almost too obvious, one of the best methods for reducing the heating bill is to dress warmer inside. Instead of 70 degrees and shorts and a tee shirt, try 65 degrees and a sweatshirt.
* Close vents in unused rooms. If your cousin from Vancouver is in for the weekend, by all means turn the heat on for him. But if your spare bedroom is vacant, close the vents to prevent heat from being circulated into areas unnecessarily.
* Make sure your condo is sealed. Extensive drafts around doors and windows are chief culprits of heat loss. Try to find air leaks and use weather-strips or weather caulking to reduce the airflow through these orifices. This is especially important with waterfront condos, as the drafts coming off of the water are often much more intense and cooler during the winter.
* Use venting fans sparingly. Fans that vent air from the inside to the outside are great at moving bathroom steam or kitchen smoke out of the condo. Unfortunately, they are also great at moving heat out of the condo at a rapid pace. Use room fans to circulate air instead of turning these heat thieves on.
* Let the sun in! If you own a waterfront condo, chances are you have some large windows for viewing the beautiful landscape. Take advantage of the sunny day time period to allow sunlight to naturally warm your home through these windows. Make sure to close the blinds and shades in other areas of the condo to keep heat in.

These inexpensive steps can have your waterfront condo feeling warmer in the winter, giving you more time to spend with loved ones instead of fretting over bills.

Beach Condos Keep Investment Opportunities High

2008-12-20T05:35:00.001-08:00

Anyone who is interested to invest in real estate should consider checking the Miami Beach market. There are already many individuals who are able to do well in this market and you can also have the chance to do so. You can invest in a Miami Beach condo and enjoy what it has to offer.

Compared to other markets, the Miami Beach has a lot to offer. Starting with the different kinds of properties that are available, you can have the kind that you need. You can also have a good market because the area is always full of tourists. Thus, there are many people who come in and out of the area. You can always target this market and find what they need so that you can cater to them.

The location of the Miami Beach condo that you can choose to invest on is one of the best deals that you can have. The tourists enjoy the area and you can also do so. There are many people who demands for a Miami Beach condo so you can supply it to them. You can even make your condominium more desirable by adjusting it and making it more suitable for the people. You can improve its look so that it would be preferred by the people who are searching for a property that they can live.

You should also know that the Miami market is good both in the residential and commercial sector. Thus, you can always point this out to your prospects and they can always find the area right for their needs.

When you think about the prices, you can also find the lower priced properties. You just have to improve the quality of the Miami Beach condo that you have so that it would also have a higher value when you sell them to other people. This would be your way to tap the market and earn through them. You should know when to buy the properties and when you should sell. Knowing the timing will give you the right way of earning enough money. You should find the right strategies and you should also try to learn more about the market so that you will know what you should do.

You can be sure that the Miami Beach market is a place that can give you good investment and the market is even improving. But as a person engaged in the business, there are risks involved but you have to overcome them and find the ways so that you can make the market in favor of you. This can be done by learning and making yourself more familiar with the market. You can also find that there are many Miami Beach condominiums that you can sell but you will just have to know how to make a deal.

Investment Condos Las Vegas

2008-12-20T05:30:00.000-08:00

Striking It Rich - Investing In Las Vegas
Las Vegas has a booming economy and there is no reason why you should not be able to cash in. Everyone knows that real estate is the best investment out there, yet did you know that with the continuous expansion of casinos as well as the burgeoning construction projects that offer bigger and grander luxury resorts and casinos, the rental market is now sizzling hot?

Casino and resort workers usually look for living accommodations off the beaten path yet close enough to work that they will not have to commute for hours on end. Similarly, since so many jobs are becoming available, there is a continuous influx of renters into the area. It is therefore no surprise that Las Vegas just experienced its larges rent increase in a decade! Renters in apartments have to pay out 6.1% more than they had to do last year, and the trend supports the hypothesis that there will be future substantial rent increases on the horizon.

If you are ready to invest in Las Vegas, then an apartment building or two may be the way to go. You will be sure that you will have renters who will be willing to pay extra funds to be close to the downtown area. You know that the job market for casino employees is steady and growing. Imagine yourself capitalizing on this exploding job market as well as on the desirability of rental units, and you know how to strike it rich in Las Vegas!

Real Estate Auction Tips

2008-12-20T05:28:00.000-08:00

Understanding the rules of real estate auction will help you win the bid and save money. The spring selling is coming soon. So if you are interested in real estate investment, you must equip yourself with these powerful tips and knowledge.

On the day of auction, you must be there early to make the last minute inspection on your real estate property. Read the contract of sale and auction rules carefully. These contracts should be on the display for at least 30 minutes before the auction begins.

Here is an important tips to remember. If the real estate property is passed in below the reserve price, the agent of the property will first negotiate the highest bidder for the purchase of that real estate property.

The auctioneer may soon announces that the property is going to be passed in. It is a good strategy. The auctioneer want to make sure you are the highest bidder to secure the option to negotiate.

If the property has passed in, the auctioneer can not re-open the auction for the later bid. If you are securing the right to negotiate, how much time do you have with the owner?

It is all depending on whether you want to meet the owner’s price. In case you are not, the owner may end negotiations with you immediately and start negotiating with other people.

If you are not sure about real estate bidding auction, the reputable buyer’s agent may be for you.

United States real estate investment trust

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A real estate investment trust, or REIT, is a company that owns, and in most cases, operates income-producing real estate. Some REITs finance real estate. To be a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

Qualification

In order to qualify for the advantages of being a pass-through entity for U.S. corporate income tax, a REIT must:

* Be structured as corporation, trust, or association
* Be managed by a board of directors or trustees
* Have transferable shares or transferable certificates of interest
* Otherwise be taxable as a domestic corporation
* Not be a financial institution or an insurance company
* Be jointly owned by 100 persons or more
* Have 95 percent of its income derived from dividends, interest, and property income
* Pay dividends of at least 90% of the REIT's taxable income
* No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year (5/50 rule)
* At least 75% of total investment assets must be in real estate
* Derive at least 75% of gross income from rents or mortgage interest
* No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.

United Kingdom real estate investment trust

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The legislation laying out the rules for REITs in the United Kingdom was enacted in the Finance Act 2006 and came into effect in January 2007 when nine UK property companies converted to REIT status, including the five that were FTSE 100 members at that time: British Land, Hammerson, Land Securities, Liberty International and Slough Estates (now known as "SEGRO"). The other four were: Brixton, Great Portland Estates, Primary Health and Workspace Group.

British REITS have to distribute 90% of their income. They must be a close-ended investment trust and be UK resident and publicly listed on a stock exchange recognised by the Financial Services Authority.

To support the introduction of REITs in the UK, the REITs and Quoted Property Group was created by several commercial property and financial services companies. Other key bodies involved are the London Stock Exchange and the British Property Federation. The Reita campaign was launched on 16 August 2006 by the REITs and Quoted Property Group, in order to provide a source of information on REITs, quoted property and related investments funds. Reita's aim is to raise awareness and understanding of REITs and investment in quoted property companies. It does this primarily through its portal www.reita.org, providing knowledge, education and tools for financial advisers and investors.

Doug Naismith, managing director of European Personal Investments for Fidelity International, said: "As existing markets expand and REIT like structures are introduced in more countries, we expect to see the overall market grow by some ten percent per annum over the next five years, taking the market to $1 trillion by 2010."

Singapore real estate investment trust

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Commonly referred to as S-REITs. There are currently 20 REITs listed on the SGX. Benefit from tax advantaged status.

Pakistan real estate investment trust

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Pakistan's regulatory body Securities and Exchange Commission of Pakistan is in process of implementing REIT regulatory framework that will allow full foreign ownership, free movement of capital and unrestricted repatriation of profits. It will curb speculation in Pakistani real estate markets and gives access to small investors diversifying into real estate as well. The Securities and Exchange Commission of Pakistan following regulatory framework similar to Singapore and Hong Kong REITs.

The Securities and Exchange Commission of Pakistan expects that about six REITs will be licensed within the first year, mainly large assets management companies applying for it. Pakistan is recently seeing a influx of investments by foreign real estate development mostly Malaysian and Dubai based companies.

http://specials-idleshare.blogspot.com/2008/12/pakistan-real-estate-investment-trust.html

Japan real estate investment trust

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Japan is one of a handful of countries in Asia with REIT legislation (other countries/markets include Hong Kong, Singapore, Malaysia, Taiwan and Korea), which permitted their establishment in December 2001. J-REIT securities are traded on the Tokyo Stock Exchange, and most participants are Japanese conglomerates and foreign investment banks.

Since the burst of the real estate bubble in 1990, property prices in Japan have seen steady drops through 2004, with some signs of price stabilization and possibly price increase in 2005 and 2006. Some see J-REITs as a way to increase investment in the real estate market, although notable increases in asset values has not yet been realized.

A J-REIT may be structured as an independent corporation or as a contractual relationship through a trust bank.

In addition to REITs, Japanese law also provides for a parallel system of special purpose companies which can be used for the securitization of particular properties, but not for the maintenance of a real estate portfolio.

India real estate investment trust

2008-12-20T04:23:00.002-08:00

India is currently in the process of formulating definitive legislation for the introduction and smooth functioning of REITs in the Indian real estate market. Once introduced these Indian REITs (country specific/generic version I-REITs) will help individual investors enjoy the benefits of owning an interest in the securitised real estate market. The best benefit being that of fast and easy liquidation of investments in the real estate market unlike the traditional way of disposing real estate. The government and Securities and Exchange Board of India SEBI through various notifications is in the process of easing the norms of investing in real estate in India directly and indirectly through foreign direct investment, through listed real estate companies, mutual funds etc. With the current real estate boom and the market being flooded with Initial Public Offer of various listed real estate companies in India it will be the best time for investors to own a share of the profiting market economy. Legislative framework, revised investment norms, a favourable investment opportunity, and a clear taxation policy will provide the right kind of investing opportunity in India in the time to come.

Hong Kong real estate investment trust

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REITs have been in existence in Hong Kong since 2005, when The Link REIT was launched by the Hong Kong Housing Authority on behalf of the Government. Since 2005, there have been 7 REIT listings as at July 2007, most of which, including Sunlight REIT have not enjoyed success due to low yield. Except for The Link and Regal Real Estate Investment Trust, share prices of all but one are significantly below IPO price. Hong Kong issuers' use of financial engineering (interest rate swaps) to improve initial yields has also been cited as having deterred investors' interest.

Germany real estate investment trust

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Germany is also planning to introduce German REITs (short, G-REITs) in order to create a new type of real estate investment vehicle. Government fears that failing to introduce REITs in Germany would result in a significant loss of investment capital to other countries. Nonetheless there still is political resistance to these plans, especially by the social democratic party ('SPD'). As of June 2006 the ministry of finance has announced that they still plan to introduce G-REITs in 2007. The legal details seem to adopt much of UK-REITs regulations (taxation, public listing, etc.), as far as it is possible to tell yet.

A law concerning G-REITs was enacted 1 June, 2007, and is retroactive to 1 January, 2007.

Qualification

* REITs will have to be established as a corporation "REIT-AG" or "REIT-Aktiengesellschaft".
* At least 75% of its assets have to be invested in real-estate.
* At least 75% of the G-REIT's gross revenues must be real-estate related.
* At least 90% of the REIT's taxable income has to be distributed to its shareholders through dividends.
* The corporation is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends.

Canada real estate investment trust

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Canadian REITs were established in 1993. They are required to be configured as trusts and are not taxed if they distribute their net taxable income to shareholders. REITs have been excluded from the income trust tax legislation proposed in the 2007 budget by the Conservative government. Many Canadian REITs have limited liability.

Bulgaria real estate investment trust

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REITS were introduced in Bulgaria in 2003 with the so called "Special Purpose Investment Companies Act". They are pass-through entities for corporate income tax purposes (i.e. they are not subject to corporate income tax), but are subject to numerous restrictions.

Australian real estate investment trust

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After originating in the United States in 1960, the REIT concept was launched in Australia in 1971. General Property Trust was the first Listed Property Trust (LPT) on the Australian stock exchanges (now the Australian Securities Exchange). REITs which are listed on an exchange were known as Listed Property Trusts (LPTs) until March 2008, distinguishing them from private REITs which are known in Australia as Unlisted Property Trusts. They have since been renamed Australian Real Estate Investment Trusts (A-REITs) in line with international practice.

There are now more than 60 A-REITs listed on the ASX, with market capitalisation in excess of A$100bn.

Australia is also receiving growing recognition as having the world’s largest REITs market outside the United States. More than 12 per cent of global listed property trusts can be found on the ASX.

Real estate investment trust

2008-12-20T04:15:00.001-08:00

A Real Estate Investment Trust or REIT (pronounced /ˈriːt/) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.

Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.

REITs can be classified as equity, mortgage or hybrid.

The key statistics to look at in REIT are its NAV (Net Asset Value), AFFO (Adjusted Funds From Operations) and CAD (Cash Available for Distribution). REITs face challenges from both a slowing economy and the global financial crisis, depressing share values by 40 to 70 per cent in some cases.

Private equity real estate

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In investment finance, private equity real estate is an asset class consisting of equity and debt investments in property. Investments typically involve an active management strategy ranging from moderate reposition or releasing of properties to development or extensive redevelopment.

Investments are typically made via private equity real estate fund, a collective investment scheme, which pools capital from investors. These funds typically have ten year life span consisting of a 2-3 year investment period during which properties are acquired and a holding period during which active asset management will be carried out and the properties will be sold.

History and evolution

There is a long history of institutional investment in real estate both through direct ownership of property and through pooled investment funds. Initially institutional real estate investments were in core real estate, however, market conditions in the early 1990s led to the emergence of opportunistic funds which aimed to take advantage of falling property prices to acquire assets at significant discounts. Private equity real estate emerged as an independent asset class in the beginning of the 21st century and has experienced huge growth in recent years.

Strategies

Private equity real estate funds generally follow core-plus, value added, or opportunistic strategies when making investments.

Core Plus: This is a moderate risk/moderate return strategy. The fund will generally invest in core properties however some of these properties will require some form of enhancement or value-added element.

Value Added: This is a medium-to-high risk/medium-to-high return strategy. It will involve buying a property, improving it in some way, and selling it at an opportune time for a gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.

Opportunistic: This is a high risk/high return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, and niche property sectors. Investments are tactical.

Features

Considerations for investing in private equity real estate funds relative to other forms of investment include:

* Substantial entry costs, with most funds requiring significant initial investment (usually upwards of $1,000,000) plus further investment for the first few years of the fund.

* Investments in limited partnership interests (which is the dominant legal form of private equity real estate funds) are referred to as "illiquid" investments which should earn a premium over traditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to your money as it is locked-up in long-term investments which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made.

* If a private equity real estate firm can't find suitable investment opportunities, it will not draw on an investor's commitment. Given the risks associated with private equity real estate investments, an investor can lose all of its investment if the fund performs badly.

For the above mentioned reasons, private equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by the potential benefits of annual returns, which are often excess of 20% for successful opportunistic funds. Investors in private equity real estate funds tend, therefore, to be institutional investors or high net worth individuals.

Size of Industry

The popularity of private equity real estate funds has grown since 2000 as an increasing number of investors commit more capital to the asset class.

Private Equity Real Estate is a global asset class and in 2007, 46% of capital raised was focused on the US, 26% was focused on Europe and 27% was targeting Asia and the rest of the world.

Duplex (building)

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A duplex house is a dwelling comprising two units either side-by-side or on two different floors. The former often looks like two houses put together, sharing a wall (compare semi-detached); the latter usually appears as a townhouse, but with two different entrances.

The term "duplex" can also be extended to three-unit and four-unit buildings, or they can be referred to with specific terms such as triplex and fourplex [1]. Because of the flexibility of the term, the line between an apartment building and a duplex is somewhat blurred, with apartment buildings tending to be bigger, while duplexes are usually the size of a normal house.

A duplex may be purchased a single piece of real estate, or there can be separate titles for each unit. The latter is more common with semi-detached buildings where the units only share a common party wall, however it is possible for units of a duplex (or triplex or fourplex) to be owned by different owners.

Especially in dense areas like Manhattan, a duplex apartment refers to a maisonette, a single dwelling unit spread over two floors connected by an indoor staircase. Similarly, a triplex apartment refers to an apartment spread out over three floors. These properties can be quite expensive, and include the most expensive property in Manhattan as of 2006 (according to Forbes Magazine), a triplex atop The Pierre Hotel.

Urban planning

In urban planning, the term duplex is used more specifically. Major Canadian cities sometimes use the term duplex to refer specifically to a building with one unit built above another. Edmonton defines Duplex Housing as "development consisting of a building containing only two Dwellings, with one Dwelling placed over the other in whole or in part with individual and separate access to each Dwelling." Calgary defines Duplex Dwelling as "a building which contains two Dwelling Units, one located above the other, with each having a separate entrance." Toronto proposes in their new Zoning Bylaw to define Duplex Building as a building that has only two dwelling units, and one dwelling unit is entirely or partially on top of the other dwelling unit. Halifax defines Duplex Dwelling as "the whole of a dwelling that is divided horizontally into two separate dwelling units, each of which has an independent entrance."

Other major cities use the term duplex, but do not specify the physical relationship between the two dwelling units. Dallas defines the term duplex as "two dwelling units located on a lot." Philadelphia defines a duplex dwelling as "a dwelling occupied as the home or residence of two (2) families, under one (1) roof, each family occupying a single unit."

Other major cities do not use the term duplex in their zoning or Land Use bylaws. San Francisco and Vancouver use the term Two-family dwelling. Winnipeg uses the term Dwelling, two-family. The definitions of these terms do not specify the physical relationship between the two dwelling units in the building. Chicago uses the term Two-flat and defines it as a "residential building that contains 2 dwelling units located on a single lot. The dwelling units must share a common wall or common floor/ceiling."

Where cities do not define the relationship of the dwelling units to one another, units may be built one on top of the other, or one beside the other. The latter arrangement is more specifically referred to as a semi-detached building.

Condominium

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A condominium, or condo, is a form of housing tenure and other real property where a specified part of a piece of real estate (usually of an apartment house) is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights associated with the individual ownership and controlled by the association of owners that jointly represent ownership of the whole piece. Colloquially, the term is often used to refer to the unit itself in place of the word "apartment". A condominium may be simply defined as an "apartment" that the tenant "owns" as opposed to rents.

Condominium is the legal term used in the United States and in most provinces of Canada. In Australia and the Canadian province of British Columbia it is referred to as strata title. In Quebec the term syndicate of co-ownership is used. In England and Wales the equivalent is commonhold, a form of ownership introduced in 2004 and still uncommon in most places.

Technically, a condominium is a collection of individual home units along with the land upon which they sit. Individual home ownership within a condominium is construed as ownership of only the air space confining the boundaries of the home (Anglo-Saxon law systems; different elsewhere). The boundaries of that space are specified by a legal document known as a Declaration, filed of record with the local governing authority. Typically these boundaries will include the drywall surrounding a room, allowing the homeowner to make some interior modifications without impacting the common area. Anything outside this boundary is held in an undivided ownership interest by a corporation established at the time of the condominium’s creation. The corporation holds this property in trust on behalf of the homeowners as a group–-it may not have ownership itself.

The primary attraction to this type of ownership is the ability to obtain affordable housing in a highly desirable area that typically is beyond economic reach. Additionally, such properties benefit from having restrictions that maintain and enhance value, providing control over blight that plagues some neighborhoods. Big cities, including San Francisco, Chicago, New York City, Los Angeles, Miami, Atlanta, Calgary, Seattle, Mississauga, Edmonton, Vancouver, and Toronto, have much condo development.

Overview

Typically, a condominium consists of multi-unit dwellings (i.e., an apartment or a development) where each unit is individually owned and the common areas, such as hallways and recreational facilities, are jointly owned (usually as "tenants in common") by all the unit owners in the building. It is also possible for condominiums to consist of single family dwellings: so-called "detached condominiums" where homeowners do not maintain the exteriors of the dwellings, yards, etc. or "site condominiums" where the owner has more control and possible ownership (as in a "whole lot" or "lot line" condominium) over the exterior appearance. These structures are preferred by some planned neighborhoods and gated communities.

A homeowners association, consisting of all the members, manages the condominium through a board of directors elected by the membership. The same concept exists under different names depending on the jurisdiction, such as "unit title", "sectional title", "commonhold," "strata council," or "tenant-owner's association", "body corporate", "Owners Corporation", "condominium corporation" or "condominium association." Another variation of this concept is the "time share" although not all time shares are condominiums, and not all time shares involve actual ownership of (i.e., deeded title to) real property. Condominiums may be found in both civil law and common law legal systems as it is purely a creation of statute.

The restrictions for condominium usage are established in a document commonly called a "Declaration of Condominium". Rules of governance are usually covered under a separate set of Bylaws. Finally, a set of Rules and Regulations providing specific details of restrictions and conduct are established by the Board and are more readily amendable than the Declaration or Bylaws. Typical rules include mandatory maintenance fees (perhaps collected monthly), pet restrictions, and color/design choices visible from the exterior of the units. Condominiums are usually owned in fee simple title, but can be owned in ways that other real estate can be owned, such as title held in trust. In some jurisdictions, such as Ontario, Canada or Hawaii USA, there are "leasehold condominiums" where the development is built on leased land.

In general, condominium unit owners can rent their home to tenants, similar to renting out other real estate, although leasing rights may be subject to conditions or restrictions set forth in the declaration (such as a rental cap for the total number of units in a community that can be leased at one time) or otherwise as permitted by local law.

Non-residential condominiums

Condominium ownership is also used, albeit less frequently, for non-residential land uses: offices, hotel rooms, retail shops, group housing facilities (retirement homes or dormitories), and storage. The legal structure is the same, and many of the benefits are similar; for instance, a nonprofit corporation may face a lower tax liability in an office condominium than in an office rented from a taxable, for-profit company. However, the frequent turnover of commercial land uses in particular can make the inflexibility of condominium arrangements problematic.

United States

Aqua waterfront condos in Long Beach, California
The interior of a loft condominium
A historic mansion converted into luxury condominiums in Chicago

The first condominium law passed in the United States was in the Commonwealth of Puerto Rico in 1958.[citation needed] English Common law tradition holds that real property ownership must involve land, whereas the French civil law tradition recognized condominium ownership as early as the 1804 Napoleonic Code; thus, it is notable that condominiums evolved in the United States via a Caribbean government with a hybrid common-civil legal system. In 1960, the first condominium in the Continental United States was built in Salt Lake City, Utah.[citation needed] Initially designed as a housing cooperative (Co-op), the Utah Condominium Act of 1960 made it possible for "Graystone Manor" (2730 S 1200 East) to be built as a condominium. The legal counsel for the project, Keith B. Romney is also credited with authoring the Utah Condominium act of 1960. Romney also played an advisory role in the creation of condominium legislation with every other legislature in the U.S. Business Week hailed Romney as the "Father of Condominiums".[citation needed] He soon after formed a partnership with Don W. Pihl called "Keith Romney Associates", which was widely recognized throughout the 1970s as America's preeminent condominium consulting firm.

Although often mistakenly credited with coining the term "condominium", Romney has always been quick to point out that it harks back to Roman times, and that he merely borrowed it.[citation needed]

Nowadays, the leadership of the industry is dominated by Community Associations Institute or CAI.[citation needed]

Section 234 of the 1961 National Housing Act allowed the Federal Housing Administration to insure mortgages on condominiums, leading to a vast increase in the funds available for condominiums, and to condominium laws in every state by 1969. Many Americans' first widespread awareness of condominium life came not from its largest cities but from south Florida, where developers had imported the condominium concept from Puerto Rico and used it to sell thousands of inexpensive homes to retirees arriving flush with cash from the urban Northern U.S.[citation needed]

In recent years, the residential condominium industry has been booming in all of the major metropolitan areas such as Miami, San Francisco, Seattle, Boston, and New York. It is now in a slowdown phase.[citation needed] According to Richard Swerdlow, CEO of Condo.com, "You're not going to see this giant overbuild again. It's hard to imagine that you'd see in the next decade what we just saw. Real estate brokers and the developers were in almost a ticket-collecting mode. They were processing orders because there was so much business to go around. Now that sort of investor phenomenon has gone away." He added, "That phenomenon has stopped."

An alternative form of ownership, popular in the United States but found also in other common law jurisdictions, is the "cooperative" corporation, also known as "company share" or "co-op", in which the building has an associated legal company and ownership of shares gives the right to a lease for residence of a unit. Another form is leasehold or ground rent in which a single landlord retains ownership of the land on which the building is constructed in which the lease renews in perpetuity or over a very long term such as in a civil law emphyteutic lease. Another form of civil law joint property ownership is undivided co-ownership where the owners own a percentage of the entire property but have exclusive possession of a specific part of the property and joint possession of other parts of the property; distinguished from joint tenancy with right of survivorship or a tenancy in common of common law.

Ontario, Canada

In Ontario, condominiums are governed by the Condominium Act, 1998 with each development establishing a corporation to deal with day-to-day functions (maintenance, repairs, etc.). A board of directors is elected by the owners of units (or, in the case of a common elements condominium corporation, the owners of the common interest in the common elements) in the development on at least a yearly basis. A general meeting is held annually to deal with board elections and the appointment of an auditor (or waiving of audit). Other matters can also be dealt with at the Annual General Meeting, but special meetings of the owners can be called by the board and, in some cases, by the owners themselves, at any time.

In recent years the condo industry has been booming in Canada, with dozens of new condo towers being erected each year. Toronto is the centre of this boom, with 17,000 new units being sold in 2005, more than double second place Miami's 7,500 units.For several years now that city's skyline has had a forest of cranes erecting new towers. Outside of Toronto, the most common forms of condominium have been townhomes rather than highrises, although that trend may be altered as limitations are placed on "Greenfields" (see Greenfield land) developments in those areas (in turn, forcing developers to expand upward rather than outward and to consider more condominium conversions instead of new housing). Particular growth areas are in Kitchener, Waterloo, and London. In fact, after Toronto, the Golden Horseshoe Chapter of the Canadian Condominium Institute is one of that organization's most thriving chapters.

The Ontario Condominium Act, 1998 provides an effectively wide range of development options, including Standard, Phased, Vacant Land, Common Element and Leasehold condominiums. Certain existing condominiums can amalgamate, and existing properties can be converted to condominium (provided municipal requirements for the same are met). Accordingly, the expanded and expanding use of the condominium concept is permitting developers and municipalities to consider newer and more interesting forms of development to meet social needs.[citation needed]

On this issue, Ontario condominium lawyer Michael Clifton writes, "Condominium development has steadily increased in Ontario for several years. While condominiums typically represent attractive lifestyle and home-ownership alternatives for buyers, they also, importantly, introduce a new approach to community planning for home builders and municipal approval authorities in Ontario. ...[There are] opportunities for developers to be both creative and profitable in building, and municipalities more flexible and imaginative in planning and approving, developments that will become sustainable communities." (In, A Comment about Condominiums, Community Planning and Sustainability, Forum Magazine, Dec 06/Jan 07, p. 28.)

India

Condominiums are more commonly known as "flats" in India. This type of housing is very common in big cities like Delhi, Mumbai (Bombay) and Chennai (Madras) but not very popular in rural India. Actually, they are registered as "co-operative housing society" rather than condominiums in that the owners actually have a share of the co-op and not the actual real estate itself. Owners can sell the "share" in the open

The "Living Trust" - An Introduction to Trusts

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Introduction

A trust refers to property held by a "trustee", which may be one or more individuals or an institution such as a bank. A living trust does not become effective until you die, so that during your lifetime you may modify or revoke your trust. When you die the trust takes effect and is managed by trustee you chose, pursuant to the instructions you left in the trust instrument. A living trust is a powerful tool to avoid probate, as trust assets are normally distributed independently of the probate court.

The person who creates a trust is known as the "grantor" or "settlor", and the people who receive income or assets under the terms of the "trust agreement" or "declaration" are known as "beneficiaries". Ordinarily, once assets are placed within a trust, the terms of the trust dictate how those assets will ultimately be distributed even if there is a separate will.

Note that every complete estate plan also includes a will. No matter how much property you transfer into your trust, it is possible that you will forget to transfer something in, and your will ensures that it will go to your heirs as you intend. Also, you will have items of personal property, even if just your clothing and personal effects, which will fall into your probate estate.

Terminology

A "grantor", sometimes called a "settlor" or "trustor", is somebody who has created a trust.

The property placed in a trust is known as the principle or "corpus" (a latin word for "body") of the trust.

A testamentary trust is created by a will;

A"living trust" or "inter vivos trust" is created by a person who is still alive.

If the trust can be changed or terminated after it is created, it is a "revocable" trust. If it cannot be changed or terminated, it is an "irrevocable" trust.

A Word of Caution

If you intend to place assets within a living trust while you are alive, make sure that the transfers are made. There have been many cases where people set up detailed living trusts, but neglected to fund them, with the result that they paid for a trust they did not use and their assets passed according to the laws of intestate succession instead of as they intended.

When Trusts Are Particularly Useful

Trusts can be a valuable estate planning tool for parents who are concerned that their children are not sufficiently old or mature to manage a full inheritance. A trust can provide for the inheritance to be passed to them when they are older, even well into adulthood, and can provide for such things as educational expenses. There are also a variety of trusts, including "special needs" trusts, which can be set up to benefit somebody who is dependent upon public assistance due to a disability

A living trust can also provide for the management of your assets while you are alive, and can help prevent the necessity of having a guardian appointed to manage your affairs in the event of incapacity.

With large estates, living trusts can provide a valuable means of avoiding gift and inheritance taxes, and for taking care of even generations of heirs.

Your "Last Will and Testament"

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The Simple Will

A will sets forth the manner in which you want your assets to pass to your heirs.

There may be legal restrictions on what you can do in a will under the laws of your jurisdiction, such as restrictions on disinheriting a spouse or, in some cases, children. There are also assets that aren't covered by a will, such as the proceeds of an insurance policy which will pass to the designated beneficiary named in the policy, certain joint property, joint bank and brokerage accounts, and retirement plans and death benefits.

Terminology

A "testator" is a person who has made a valid will.

A "testamentary will" establishes a trust for some or all of the assets in the estate.

A "pour over will" places some or all of the assets of the estate into a trust that is created during your lifetime (an "inter vivos" trust, or "living trust").

A "holographic will" is written, dated, and signed in the handwriting of its author. In some states, a holographic will can be probated once it has been authenticated, even if it isn't witnessed. It is best to have a will properly witnessed, as your jurisdiction may not accept holographic wills, and there may otherwise be unnecessary difficulty authenticating your will.

What A Legal Will Can Do

A properly executed will may:

*Provide for heirs who would not be able to inherit based upon the laws of intestate succession, such as a step-child;
*Provide for contributions to charities, churches, or causes you believe in;
*Designate a guardian for your minor children, and designate custodians or conservators to manage their assets;
*Designate an executor, sometimes called a "personal representative", for your estate, and depending upon the laws of your jurisdiction may permit you to waive the requirement that the executor post a bond, or help you avoid court supervision for the distribution of your estate's assets;
*Designate a successor custodian for assets held for children under the Uniform Gifts to Minors Act, or Uniform Transfers to Minors Act.

Execution of a Will

Wills are ordinarily signed in the presence of witnesses, and sometimes in the presence of a notary. In some states, the proper execution of a will in front of a notary will make the will "self-authenticating", meaning that it will be accepted by a court without any further proof of its authenticity.

An estate planning professional can help you figure out which of your assets and property won't be covered by your will, and help you provide for those assets to pass in accord with your wishes. A professional can also help you determine what taxes will be owed by your estate (including such mundane tax expenses as your last year's income taxes), and what expenses will be associated with the administration of your estate, to help you make sure that you don't end up with any unfunded bequests. Please note that no matter what you put in your will, it will not change the distribution of assets outside of the probate process. For example, if you have an insurance policy or annuity which specifies a beneficiary, that beneficiary will receive the proceeds upon your death even if you designate a different beneficiary in your will.

Why A Will Makes Sense

It makes sense to execute a will even if you believe all of your assets will pass to your heirs through other estate planning vehicles, such as trusts or insurance policies, "just in case". This can be a "pour over" will, which simply ensures that any assets accidentally left out of your estate plan are put into a living trust.

An Introduction to Estate Planning and Administration

2008-12-20T03:41:00.000-08:00

The Purposes of Estate Planning

Estate planning has several purposes, which include

1.Having your wealth transferred to your heirs in the manner of your choosing;
2.Planning for Taxation;
3.Providing for the future care and needs of your children; and
4.Planning for business succession.

Estate planning professionals who are familiar with your estate can help you fashion an estate plan which works to effect your wishes and goals. Most estate plans are structured around either a will or a trust, or a combination of the two.

What If You Don't Have A Will or Estate Plan?

If you die intestate, there are laws of "intestate succession" which govern the distribution of your estate. In most states, this means that if you do not have an estate plan your assets will be distributed to your spouse and children, or if none, to other members of your family.

Even if you are young and have few assets, and thus have no real need for a detailed estate plan, it is wise to have a will. This becomes even more true if you marry, or have children. Please note that depending upon the laws of the jurisdiction where you live, your will may become fully or partially invalid upon certain major life events such as divorce or the birth of a child.

Also, most estate plans now include power of attorney forms, which provide for people to attend to your financial and medical needs in the event that you become incapacitated. If you do not execute powers of attorney prior to becoming disabled by accident or illness, it may be necessary for your loved ones to go to court to get permission to manage your finances and health care.

Probate and Estate Administration

In its narrowest sense, probate refers to the determination that your will represents your final testamentary intentions. In its broader sense, probate is the process of putting the terms of your will into effect, including the gathering of all of your assets and the payment of any outstanding debts and taxes, the payment of the expenses associated with the administration of your estate, and the distribution of bequests to your heirs. The executor you named in your will has the responsibility to manage this process. The executor is entitled to a reasonable fee for performing these services.

In a formal probate, the executor's actions are conducted under the oversight of a probate court. In an informal probate, the court may do little more than sign a final order approving the distribution of assets and closing the estate.

There is a popular perception that probate is something to be avoided, and living trusts are often sold with the notion that they will help people avoid probate. As probate laws vary between jurisdictions, the effect of the probate process on your estate will vary depending upon where you live. However most jurisdictions have updated their probate laws and processes to reduce the length and cost of the process, and a will that is properly drafted and executed can remove many of the burdens of that process. Also, avoiding probate will not eliminate some of the more complex or time-consuming aspects of administering an estate, including the preparation and filing of final tax returns. As the cost of probate can vary significantly between jurisdictions, this is something you should discuss with an estate planning professional.

While challenges to wills ("will contests") are rare, they can happen. Some jurisdictions permit an estate plan to include a "no contest" clause, whereby if somebody unsuccessfully challenges a will that person will be excluded as an heir.

Also, while it is typically permissible to disinherit certain people, such as one of your children, a court may modify your will if it appears you accidentally omitted mention of a person to whom you otherwise would have left money, such as a child who was born after you drafted your will (a "pretermitted heir"). Thus, if you do intend to disinherit an heir, you should expressly state that intention in your will.

Most jurisdictions have provisions to protect a spouse, which provide that they can choose between the bequest you have made and a share of your estate as defined by statute. If they determine that their statutory share is larger than the bequest, they may "opt against the will" to take the larger share. Thus, if you intend to give your surviving spouse less than approximately half of your estate, you should consult with an estate planning professional to see if that is permitted in your jurisdiction.

Recall also that the probate process is a public process. It is possible for somebody to examine the court records to determine what assets you had and how they were distributed. If this concerns you, you should consider setting up a trust or implementing other estate planning measures that won't end up as part of a public court file.

Estate Taxes

Despite the hype associated with estate taxes, due to the size of the exemptions for federal estate taxes, few estates will owe taxes to the federal government. Federal estate taxes are scheduled to be phased out over the next few years; however, if you have a large estate you should anticipate the possibility that estate taxes will return in the future, and should plan for that possibility.

Also, every estate may be subject to certain other taxes, including state estate taxes, and state and federal income taxes.

Revising Your Estate Plan

Certain events or changes in your life justify revisiting your estate plan. While an estate plan may anticipate the possibility that you will have children, it often will not contemplate divorce or remarriage. Similarly, as you get older, you may have cause to provide unequal shares of your estate to your children and grandchildren, or to provide for stepchildren. Also, you may acquire assets which are not described in an earlier estate plan.

You should periodically review your estate plan to make sure it is consistent with changes in your estate, and with your present desires.

Eight Tips On Buying A Vacation Home

2008-12-14T02:59:00.000-08:00

1. Many speculators are out of the market, so the playing field is a bit more stable. Vacation home/investment home sales accounted for 40 percent of all existing and new residential transactions. That means part of the equation has fallen—and that part is investment home sales.

"Investment home sales are actually down 28.9 percent since 2005," she notes. "That's good news for vacation home shoppers. Why? Because speculators tend to drive up prices and muddy the water. If you're buying a second home for your personal use, you don't want to compete with speculators. You want to take your time and make a thoughtful purchase you can feel good about."

2. Home prices have dropped slightly. Interestingly, according to NAR, in 2006 the median price of a vacation home was down 2 percent from the previous year—falling from $204,000 to $200,000.

"The significance of this drop is not that you can pick up a bargain, but that the market is normalizing," says Karpinski. "I think it's always best for buyers to have a clear, realistic picture of what a home is worth. I've always viewed real estate as a solid, blue-chip long-term investment, and that means going into a purchase with the right expectations."

3. Sure, you must be financially comfortable to buy a vacation home—but you don't have to be wealthy. The NAR study found that the typical vacation property buyer in 2006 enjoyed a median household income of $102,200. While this is up significantly from the previous year's median income of $82,800, it still falls solidly in the "middle class" range.

"The perception that you have to be rich to own a vacation home has fallen by the wayside," says Karpinski. "Even if you can't comfortably afford two mortgages, it's not difficult at all to offset the cost of your vacation home. Just rent it out part-time and you're set. As I point out in my books, if you rent out your home only seventeen weeks out of the year, you can still break even."

4. No need to put off your purchase until you're older. People are buying vacation homes at younger ages than ever. "The typical vacation home buyer in 2006 was only forty-four years old, according to the NAR survey," says Karpinski. "In 2005, the median age was fifty-two. That is a significant change, and it's interesting to speculate on why more people are exhibiting this 'seize the day' mindset. I do think children of Baby Boomers are more inclined to live for the moment, so maybe that has something to do with it. Or maybe it's a result of the 'nesting' phenomenon Faith Popcorn predicted back in the '80s."

5. Remember that real estate is almost always a good investment. Here's another possible reason why the age of vacation homebuyers has dropped: maybe people in this age bracket view real estate as an alternative to the stock market. Although the NAR report doesn't frame it that way—indeed, it points out that 79 percent of buyers want to use their home "for vacation or as a family retreat" and only 34 percent say it's to "diversify investments"—Karpinski says people in the forty-something generation don't have a lot of faith in Wall Street.

"Look at the stock market's track record over the last decade or so—it's all over the map," points out Karpinski. "I think people of my generation have been burned by bad investments. NAR reports that 25 percent of vacation home buyers paid for their properties with cash. I think that makes a pretty significant statement about what people feel is a 'safe' place for their money."

6. Don't feel that you have to buy close to home. The NAR survey found that the typical vacation home buyer purchased a property that was a median of 215 miles from his or her primary residence. (In 2005 the typical vacation home buyer purchased a property that was a median of 197 miles from his primary residence; however, 47 percent of vacation homes were less than 100 miles and 43 percent were 500 miles or more.)

"Last year's median distance represents a good three-and-a-half-hour drive," notes Karpinski. "This makes sense given the younger ages of buyers; they're not intimidated by a long drive like older buyers would be. But I think it's also indicative of the fact that the whole vacation home 'lifestyle' is becoming more mainstream. Globalization has made a 'mobile' life seem normal. You may be traveling overseas for work, you're connected to the rest of the world via the Internet ... so driving four, five, even six hours to get to your second home seems reasonable."

7. Don't assume you have to dig deep and buy in pricey primary vacation markets. NAR reports that 2006 brought with it a definite shift away from more expensive markets (Florida, Nevada, Arizona) and into more affordable locations (Georgia, Tennessee, the Carolinas). Obviously, houses will cost less in these areas, which means more buying opportunities for less affluent individuals. And if you're worried that you won't be able to rent out homes in these secondary markets, Karpinski says you can relax.

"I personally own several vacation homes in the South, where 38 percent of all vacation homes were purchased in 2006, and I have no trouble keeping them rented," she says. "Buy where you want to buy. Do the right things and the renters will come."

8. If you don't want to rent out your vacation home, you're in good company. (But don't be surprised when you change your mind.) Of course, all this talk of renting out vacation homes assumes you're even interested in going that route—and if you're like most people who answered NAR's survey, that's the last thing on your mind. Only 18 percent identified "to rent to others" as a reason for purchasing their vacation home. But according to Karpinski, you might change your mind later.

"I've found that there's usually a honeymoon period of two to five years between the time people buy a vacation home and the time they decide to rent it to others," says Karpinski. "But I've also found that when people do decide to start renting it out, they are delighted to discover how easy it is and how profitable it can be."

12 Tips for Buying Waterfront Real Estate

2008-12-14T02:46:00.000-08:00

You probably already know this, but buying any land can be a significant decision. But what you may not know is that there are a few twists that come with purchasing a waterfront lot that make it very different from buying a lot in any old subdivision. I've put together a few tips that you should keep in mind when you're looking for the perfect waterfront property.

1. Don't buy land without setting foot on it first. You should take the time to look it over closely and inspect it yourself. Locate a copy of the site plan so you can determine exactly where the property lines are.
2. Study the history of the land development for the area. Was the development a friendly undertaking or was there a lot of controversy from the community? What was on this land before?
3. Talk to the neighbors. Ask them what they think of the developer and the area. Are they happy with how their house was built? Were the amenities completed by the developer as promised? If they love living there, they'll tell you - if they hate it, they'll tell you that too.
4. If you're looking at lakefront property, you need to determine if the lake is constant level or not. If it's not a constant level lake, then the water levels could change drastically.
5. Check to see if there are any flood plain restrictions. If you build or buy in a flood zone you may have a tough time getting insurance.
6. Make sure the lot you're looking at will support a house of the size you want.
7. Don't limit your search to a single waterfront development - no matter how "in love" you are with it. If you're not familiar with other developments, ask a local realtor for help.
8. Find our how the property will change in the different seasons or when the weather conditions change. When was the last drought and what happened to the water levels then?
9. If you're interested in building a boat house, make sure that there aren't Restrictive Covenants preventing you from doing so. Many lake areas limit the building of new boat houses and docks.
10. If you're planning on building, make sure that you will have access to electricity, water, sewage and other utilities. Never assume that you can just "hook up".
11. If the property is remote, make sure you know who is responsible for maintaining the road. Many banks require a Road Maintenance Agreement before they will lend on remote property.
12. Lastly, before you make the purchase offer, consider making it conditional on an inspection of the land or on another specific item. For example, if you don't have access to sewage lines, make the offer conditional on your ability to obtain permits for a septic system. Plus, you should always make your offer contingent on your ability to obtain financing.

OK, armed with these tips, you should be ready to start your search for the perfect waterfront lot. Remember, investing in waterfront real estate requires common sense and due diligence, just like any other investment. Go put these tips to work for you!

Million Dollar Luxury Homes No Longer An Impossible Dream

2008-12-03T02:56:00.000-08:00

Remember the day when just owning your own home seemed like a faraway dream?

Times have changed and so has the city's real estate market. It's no longer unusual for people going house hunting in the G.T.A. to come across places that are selling for more than a million dollars.

And equally surprising is this - many of us are buying them.

According to a survey released Wednesday by Re/Max, sales of so-called luxury homes are up 31 percent from last year. Agents sold 225 high-end residences in Toronto alone in 2005. They've helped to move 289 so far this year, with an average asking price of an eye opening $1.5 million.

Realtor Joy Verde maintains it's a trend that's been emerging for a while. "In the last three years They have sold more luxury homes than in the previous 15 years combined," she relates. "It's been quite unbelievable."

And while you'd think it might be older people with nest eggs buying up all that ritzy real estate, Verde claims most of them are young families looking to invest in the long term with the sure fire item that never really loses its value - property.

What are these modern day yuppie-types looking for? "They love wine cellars, they love pools that they can use and have a cottage in the city," Verde lists. "They love spa baths. They love to entertain, so they're looking for a type of luxury that maybe their parents didn't allow themselves."

Re/Max figures show the most expensive house in the G.T.A. is located in Oakville. It's a waterfront estate worth an astounding $45 million. And even at that price it may not last.

"In a lot of ways it's almost mind-boggling," admits Re/Max's Michael Polzler. "It's very much a product of great economy, low interest rates, combined with great consumer confidence."

And while realtors expect sales to soften a bit, they're sure the demand will continue to exceed the supply, keeping prices high.

"I think that the stock market people are more comfortable cashing out, putting the money in their homes," Polzler contends.

And in their pockets - another new survey out this week shows there are more millionaires in Canada than ever before. And now it's apparent just what they've been spending all that cash on.

Million-dollar luxury homes continue selling well

2008-12-03T02:54:00.000-08:00

While South Florida real estate inventories are still high across all price ranges, there is some good news surfacing at the upper end of the market.

According to recent Miami-Dade County MLS data, single-family home and condo inventory priced at $750,000-plus is leveling out. Real estate agents report high-end sales gaining momentum despite an overall declining market.

Case in point: Fortune International. The Key Biscayne-based real estate brokerage and property management firm recently inked two multi-million-dollar penthouse deals on the beach in one week. The projects were valued at $26 million in total.

Meanwhile, Nicole Persley, owner of Homage Real Estate of Florida in Boca Raton, reports the recent sales of an $18 million home in Highland Beach and another $1.5 million home in Boca Raton. From her perspective, "The sale of these properties was completely unaffected by the soft market conditions in 2007."

So why are million- and even multi-million-dollar home sales finding stability in what could be called a roller-coaster market that shot down so hard and fast it made stomachs drop?

There are several factors working together to create the kind of perfect storm that realtors welcome: foreign dollars, the availability of "cheap" money, and the ability of high-net-worth individuals to invest large sums up front.

"With European money, buyers are basically paying 50 cents on the dollar," says Beth Butler, a realtor with Esslinger-Wooten-Maxell Realtors in Miami Beach. "Now is a great time for Europeans to buy a $5 million condo, and many have the wealth to do it."

Robert Marley — a mortgage industry expert who's been in the field for 20 years, 11 of them working for major wholesale lenders such as Countrywide and Bear Stearns — says that upper-end home sales haven't slowed due to the availability of cheap money.

"Most people buying these homes today were not affected by new wealth tied to real estate," says Marley, president of Coral Springs-based Einstein Process, a new company that helps consumers decide what type of financing best meets their needs and how to get it. "Lenders in this Super Jumbo space are very aggressive as they are mostly tied to wealth management and can offer the lending services as a bonus to their clients."

Justin Miller, president of JB Mortgage Services in Coral Springs, credits the net worth of buyers who can afford a million-dollar-plus monthly mortgage for stabilizing the upper-end real estate market. Financing problems don't impact high-net-worth individuals the way they do middle-class Americans.

"If you are looking in the $417,000-or-less range, then you have appraisal, income and asset issues," Miller explains. "In the higher end, it isn't as big of a deal if the appraised value comes in $20,000 less than you thought because the percentage is much smaller than on a $200,000 home."

For all these economic reasons — and for all the reasons Florida attracts buyers of second and third homes — the high-end market is as healthy as it's been in years, Butler says. Meanwhile, inventory at the more affordable bottom end of the market is still swelling.

"I don't expect the market to change for multi-million-dollar homes," she adds. "We haven't seen real price increases in the market, [but] the dollar is unsteady, the value still exists, and we have beautiful winters here."

Castlewood offers luxury homes in Hungary, US

2008-11-28T23:15:00.001-08:00

Castlewood Investment Properties has tied up with Singapore-based HomePlace International and their Indian partner, Land Solutions, to offer properties in Hungary, the US and the UK, among other places.

The company says it is betting on Non-Resident Indians and Indians of high income group wanting to invest more in global properties.

“Indian investors are always on the radar of any international developer,” said Mr Christopher Comer, Managing Director, Castlewood International in a release.

It is also looking to tap corporates, developers and banks, among others.

The company is offering 300 houses in South Carolina in the US, and in Budapest in Hungary at prices starting at $250,000.

The project in Budapest, Károlyi István City Centre, is a waterfront gated community consisting of condominiums and luxury apartments.

While the Fairways by Castlewood, at the Myrtle Beach in South Carolina offers two level and four bedroom Heritage town houses.

The company promises to provide consultancy and also arrange 70 per cent of the cost through bank loans.

Singapore realty co woos rich Indians

2008-11-28T23:14:00.001-08:00

SINGAPORE: Fearing a crash in local real estate prices, many well-heeled Indians are buying properties in Singapore. While such purchases could be pure investments, the lure of permanent residentship offered to certain investors under the Singapore law may have also influenced the decision. Many are drawn by the sheer ease in buying a house in Singapore.

The Far East Organization, one of Asia’s largest real estate groups, is among the real estate developers looking to pull in Indians to invest in the Southeast Asian country. The group will soon complete the development of Silversea, a premium residential seafront property, aimed at foreign buyers.

“People from across Asia are looking to buy properties in Singapore attracted by its urban infrastructure. The number from India has only been increasing,” says Far East’s chief operating officer, Mr Chia Boon Kuah. Along with a stunning sea view of the east coast, Silversea also promises a window to the country’s rapidly rising financial district, which houses properties like the New Downtown, Marina Bay Financial Centre and Gardens by the Bay. The apartments are priced at about $1.5 million each.

While Far East will have a Silversea exhibition in Kuala Lumpur soon, it is targeting other markets, such as Indonesia, India, China, and the Middle East. Mr Kuah expects to sell around a half of Silversea apartments to foreign buyers.

Singapore has attracted real estate investors for many years now. Thanks to a stable, business-friendly administration and a safe and multicultural environment, most buyers believe that prices would appreciate from hereon. However, Mr Kuah admits that the global financial market turmoil has caused a small price dip.
Officials from Far East Organization said the Singaporean government will provide various facilities for prospective property buyers; for instance, exempting them from the sales profit tax and providing them with permanent resident permits.

The government is expected to grant permanent resident permits to 40,000-50,000 expatriate residents every year. Around 14% of non-local property buyers in Singapore are Indians, according to government data. The Singapore government has targeted a population of 6 million, from 4.6 million at present, in the next three years.

The height of luxury

2008-11-28T23:13:00.001-08:00

Now, see the view from India’s most expensive condominium from a hot air balloon.

To help sell what is billed as India's tallest and Noida's most premium residential property, real-estate company Assotech is offering hot air balloon rides to a height of 120 metres. Undeterred by the global credit crunch, Assotech is spending on free balloon rides to market its most unique selling proposition, the view from the 35-level towers, touted as among the priciest in India.

“We offer a 360-degree panoramic view from the buildings. Your condominium will have views of both the Noida golf course and the bio-diversity garden to one side,” said Rajeev Rai, vice president (corporate), Assotech. Called Celeste Towers, among its other firsts will be helipads on the roof of the twin towers, besides an infinity swimming pool and “the best of luxury in each condominium”.

In all, there will be 60 condominiums, each occupying an entire floor. The remaining five levels in each tower are reserved for a spa, gymnasium and the pool. The most expensive value is reserved for the 30th floor, which is a penthouse and is said to cost upwards of Rs 7 crore. The other floors, with an area of 4,750 sq ft, are priced between Rs 4.35 crore and Rs 4.43 crore based on a Preferential Location Charge (PLC) formula.

Rai waved off concerns that the global financial crisis might affect his bookings. He claimed the project had a “soft-launch” in February 2008 and as of today “30 per cent of the capacity has been booked”. The project is penciled for delivery by March 2011. “We are only looking at a select 60 buyers. The address, Noida Sector 44, is coveted. Anyway, the luxury segment is not affected by a slowdown,” he insisted.

Each condo is designed to suit the lives of “a couple and two children”. The views are emphasised with large scale use of plate glass windows and large balconies with wooden decks. The landscaping for the project is being done by Belt Collins of Singapore, who are said to specialise only in “seven-star properties”. There is guaranteed parking for three “large luxury sedans” and, of course, you can use your personal chopper. Also thrown in with ownership here is a tie-up with private jet leasing firm Club One Air, who will offer a free privilege card worth Rs 35 lakh.

There is a 13 per cent discount on offer for those willing to fork up a massive downpayment at booking. But Rai denied it had anything to with a credit crunch. If Assotech delivers on its promise, the only hot air coming will be from the balloon.

NRI Corner

2008-11-28T23:10:00.000-08:00

Under the Foreign Exchange Management Act (FEMA), a 'person resident in India' includes a person residing in India for more than 182 days during the course of the preceding financial year but does not include a person who has gone out of India or who stays outside India (for employment, business, vocation, or for any other purpose) or a person who has come to or stays in India (other than for employment, business, vocation in India, or for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period).
All other persons are non-resident Indians (NRIs).

Rules of purchase

NRIs are permitted to buy and sell property in India but acquisition and transfer of immovable property by them should be in accordance with the FEMA.

Property should be purchased through a registered conveyance deed but can also be purchased on Power of Attorney. In the latter case, an agreement to sell and a power of attorney are executed by the seller in favour of the buyer. However, the same is not formally registered with the office of Registrar and as such no stamp duty is to be paid for the purchase.

NRIs do not require permission of the Reserve Bank of India (RBI) to acquire residential/commercial property in India, as RBI has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bonafide residential purpose.

However, the purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India. Foreign citizens of Indian origin, purchasing residential immovable property in India under the general permission, are required to file a declaration in form IPI 7 with the Central Office of RBI at Mumbai within a period of 90 days from the date of purchase of property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

Sale of property

RBI has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

In respect of residential properties purchased on or after May 26, 1993, RBI considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties.

The balance amount of sale proceeds if any, or sale proceeds in respect of properties purchased prior to May 26, 1993, will have to be credited to the ordinary non resident rupee account of the owner of the property. Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final instalment of consideration amount, whichever is later.

Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of RBI at Mumbai within 90 days of the sale of the property. RBI has also granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

Moreover, RBI also permits non-resident persons (foreign citizens) of Indian origin to transfer by way of gift immovable property held by them in India to relatives and charitable trusts/organisations subject to the condition that the provisions of any other law, including Foreign Contribution (Regulation) Act, 1976 are complied with.

In addition to the above, properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of RBI in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration. They can also dispose of such properties.

Renting out property

RBI has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.

Hiring a Personal Injury Lawyer

2008-11-07T07:36:00.001-08:00

Why do I need a lawyer?

When you or your loved one suffer an injury as the result of somebody else's action, perhaps it seems natural that the person would offer to compensate you for your injury, or that their insurance company will do the right thing and offer a fair settlement. Unfortunately, that rarely happens. Many people will not take responsibility for their actions, and insurance companies profit from undercompensating injury victims. Insurance companies and their lawyers also know the governing law backwards and forwards, and they know that most non-lawyers have no idea what legal rights and remedies they possess.

An experienced personal injury lawyer knows how to build your case, how to negotiate your case with an insurance company, and, if necessary, how to take your case to trial. While it is possible to negotiate your claim with an insurance company yourself, insurance companies will typically do everything they can to take advantage of you and to effect the lowest possible settlement, while attempting to elicit statements from you that will damage your position if you ultimately decide to sue.

A lawyer is in a good position to help you obtain a favorable settlement that, even with the attorney fee deducted, significantly exceeds what you can obtain on your own.

How much does a personal injury attorney cost?

Personal injury lawyers almost always accept cases on a contingent fee (or "contingency fee") basis, meaning that they if they win they receive a percentage of the award as their fee. If they lose, they do not receive an attorney fee. (Please note that attorney fees are different from costs, and you may be responsible for certain costs associated with your case, such as the filing fee for your lawsuit, even if you lose. While this is rarely an issue, as most civil litigation settles short of trial, you may wish to clarify the issue of costs with your lawyer.)

The amount of the contingent fee your lawyer will charge will vary somewhat from state to state. In most states, the attorney fee will be between one third and 40% of a personal injury award. Attorney fees for workers' compensation cases are more tightly regulated, and are typically lower than for regular personal injury matters. If your case is potentially worth a lot of money, you may be able to negotiate a reduction of the attorney's contingent fee - however, the best personal injury lawyers are usually not willing to negotiate their fees. They know that they are often able to recover substantially more money for their clients than attorneys with lesser skills, resulting in a greater award to you regardless of the percentage taken by the attorney.

Where Can I Find An Attorney?

You can find the names of attorneys from a variety of sources. You may seek advice from friends, or from your doctor or another health care professional. You may look in the Yellow Pages or an online lawyer directory. You may contact a State Bar lawyer referral service. There are many ways to seek a personal injury lawyer, but there are no magic answers to finding a good lawyer.

Go To An Attorney You Trust, And Seek A Referral

One of the best ways to find personal injury lawyer is to consult an attorney you trust. If you do not know any attorneys, ask your friends for names of attorneys they trust. It is not important that they give you the name of a lawyer who can handle your case - what is important is that the attorney is likely to comprehend the issues of your case, and is well-positioned to know which attorneys in your community have the skills to handle your case. Even if the attorney cannot personally take your case, he will often be able to refer you to a lawyer who can.

You should note within this context that attorneys frequently receive "referral fees" when they send personal injury cases to other lawyers or law firms. The amount of this fee can be significant - it is usually about a quarter to a third of the fee received by the personal injury lawyer who handles your case. This gives the attorney an incentive to refer you to a good personal injury lawyer - but if this possibility makes you at all uncomfortable you shouldn't hesitate to ask if the attorney referring your case expects a referral fee.

Referral Services & Membership Organizations

Many state bar organizations offer referral services to help people find attorneys. Usually, any member of the organization can list with its referral service, and you can't know just from the referral that the lawyer is truly qualified to handle your case.

There are also a number of specialty organizations, such as the American Association For Justice , which offer online directories of their membership. Most lawyers with significant personal injury practices are members of the AAJ. However, most legal organizations are open to all attorneys, and membership means only that the attorney has paid the membership fee.

Internet Lawyer Directories

A number of commercial on-line directories claim to screen their attorneys, or claim to list only highly qualified attorneys. Most are not being completely honest. Regardless of their promises, most on-line directories will list any personal injury lawyer who pays the required fee, and there is absolutely no guarantee that the listed attorneys are qualified to handle your case.

There are also a large number of websites on the Internet which look informational, but in fact are owned by law firms. Be wary of any "injury information" site that lists law firms or offers lawyer referrals, particularly if it does not make obvious the identity of its sponsor.

Advertising

The issue of attorney advertising is addressed in the next two questions:

o Should I hire the guy with the 1-800 number, and all of the ads on TV?
o Should I hire the guy with the big "yellow pages" ad?

Should I hire the personal injury law firm with the 1-800 number, and all of the ads on TV?

Generally speaking, television and radio advertisements are a bad way to find an attorney. Many advertisements are paid for by referral agencies, which collect large numbers of calls and then divide them up between member attorneys. Even when the advertisements are paid for by a law firm, often many of the cases are referred out to other firms who share the enormous cost of advertising. Most of the time, the attorney with the big advertising campaign will not have an office near you. Unless your case is worth a lot of money, you may well find that you are quickly referred to a different firm or that you can't get much attention for your case.

Please note that, when it comes to hiring a personal injury lawyer, many of the best personal injury attorneys do little or no advertising. They get their cases through "referrals" from other attorneys, due to their reputations for doing good work and getting good results.

Should I hire the lawyer with the big "yellow pages" ad?

If you look at the "full page" ads in the yellow pages, you will likely find that there are two types. The first type is an ad for a local attorney, who has chosen to pay for the full page. The second type is an ad for an attorney from outside the area, sometimes from the same attorney who runs the huge television ad campaigns.

Many of the biggest ads will be from personal injury law firms, who anticipate that their large advertisements will bring them large numbers of injury cases. Many of the better personal injury lawyers and firms do pay for full-page ads. However, as was previously noted, some of the best personal injury lawyers do little or no advertising at all. Also, there are many attorneys who buy the largest ad that they can afford in order to make their practices appear better than they really are.

If you look through the yellow pages, you will see that most lawyers claim to specialize in "personal injury" cases. Many of these lawyers have handled very few personal injury cases, and some have never had even a single injury case. The yellow pages can provide some degree of confirmation that a particular law firm is established, but even a big advertisement does not certify that a firm is qualified to handle your case.

Are there special types of personal injury lawyers for different types of cases?

Yes. When you are seeking a personal injury lawyer, you should consider that most personal injury lawyers do not practice medical malpractice law, and many do not handle workers' compensation cases. Just as you would seek a specialized doctor to provide a special type of medical care, the practice of medical malpractice law is very specialized and in seeking a lawyer it is almost always best to seek out a lawyer or law firm which has significant experience in that area of law. Some lawyers specialize primarily in workers' compensation law, which is typically handled through a special system of administrative courts.

Further, beyond workers' compensation and medical malpractice, certain law firms specialize in particular types of injury or cause of action. There are personal injury law firms which focus primarily on burn injuries, or brain and spinal cord injuries. There are personal injury firms which concentrate primarily on car accidents, construction accidents, or litigation over defective products. You will benefit from asking whether a lawyer you consult has experience with your type of injury before you make your hiring decision.

If I meet with an injury lawyer, do I have to hire him?

No. Although personal injury attorneys rarely charge for an initial meeting with a potential client, before your meeting you should ask if there is a fee for an initial consultation. If there is, you will be obligated to pay that fee even if you do not hire the attorney. However, even when the consultation is free, you have every right to take some time to think before you hire a lawyer, and you have every right to decide not to hire the lawyer. Hiring a personal injury lawyer is a big step, and there is nothing wrong with consulting several lawyers to find one who makes you comfortable.

What should I ask the attorney before I hire him?

The questions you should ask will vary with your case. Consider the following list to be a starting point:

* What are your areas of specialization?
* Have you handled cases like mine before? How many? What was the outcome?
* Will you be the only attorney who works on the case? If not, who else will work on it?
* How long will it take for this case to be resolved?
* Will you take my case on a contingent fee basis?
* Are there things I should do to improve my case, or to help you?
* How will you keep me informed about the progress of my case?
* If I contact your office with questions, how long will you take to return my call?
* If you are unavailable or on vacation, who can I speak to about my case?
* How often do you go to trial?
* If I am not happy with a settlement offer and you want to settle, will you go to court anyway?
* If I am happy with the offer but you think we can win more at trial, will you follow my wishes?
* Have you ever been disciplined by an ethics committee, or been suspended from the practice of law? If so, why?
* What "continuing legal education" courses have you attended during the past few years? Have you taught any?

Please note that, as desirable as references may be, it is usually not possible for personal injury lawyers to give references from past clients due to attorney-client confidentiality. However, you may wish to ask for references from other attorneys.

Should I ask for a written retainer agreement?

Yes. A written retainer agreement is the best way to ensure that your rights are protected, and in many jurisdictions is required for a contingent fee agreement to be valid. Many personal injury lawyers use a relatively short fee agreement, but even if it looks short and simple you should take your time and read the whole agreement before signing. If there is something you don't understand, ask for clarification before you sign.

What if I hire an injury lawyer, but I don't like the work he does?

Your lawyer works for you, and you have the right to terminate the attorney-client relationship. Please note, however, that your lawyer is still entitled to compensation for work performed on your case. If the lawyer was representing you on a "contingent fee" basis, the lawyer will often be entitled to a portion of the proceeds of your case once it has been resolved.

Usually, before you fire your lawyer, you will want to first talk to a different attorney. Sometimes the new attorney will tell you to try to work out your problems with your lawyer. If you choose to hire the new attorney, the new attorney should be willing to work out the details relating to any fees you may owe to your prior lawyer.

If I want to appeal my case, does my attorney have to represent me?

Generally not, unless your retainer agreement requires your attorney to take on the appeal. Your lawyer will ordinarily only have to represent you on the matters specified in your retainer agreement. Once a final judgment has been entered, your lawyer ordinarily has no further responsibility to represent you or to appeal your case.

What if a dispute arises?

In the event that a dispute arises between you and your lawyer, many state bars offer dispute resolution services. These services can be of particular benefit in the event of fee disputes. If you feel that your lawyer has acted in an unethical manner, each state has a "grievance" procedure where you can file a complaint against your lawyer and have your complaint investigated.

Hiring a Criminal Defense Lawyer

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Do I Need A Criminal Defense Lawyer?

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Any person who is facing a criminal charge, no matter how minor, will benefit from consulting a competent criminal defense lawyer. Even if the lawyer is not retained to provide representation in court, a consultation will help a criminal defendant understand the nature of the charges filed, available defenses, what plea bargains are likely to be offered, and what is likely to happen in the event of conviction.

For serious charges, it will be a rare defendant who does not benefit from having a competent criminal defense lawyer assist with the negotiation of a plea bargain, or to prepare a case for trial.

A criminal defense lawyer should also be able to identify important pretrial issues, and to bring appropriate motions which might significantly improve a defendant's situation, or even result in the dismissal of charges.

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How Much Will My Defense Cost?

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The cost of a criminal defense lawyer can vary significantly depending upon the jurisdiction, and the nature of the charges which have been filed (or which are expected to be filed) against the defendant. A lawyer will typically require a greater retainer for a complex case than for a simple case. The amount of a retainer will also typically increase with the severity of the charge filed against a defendant. Sometimes, though, a relatively minor charge can require a higher retainer, where the attorney expects to have to engage in extensive motion practice, or where it will be necessary to utilize expert witnesses.

In a misdemeanor case, although as previously noted the typical fee will vary significantly between cities, counties, and states, it is not unusual for a lawyer to request a retainer of several thousand dollars. For felony cases, retainers often start at $5,000 - $10,000, and can be $25,000 or more for serious or life felonies, such as sexual assault cases or homicide. The anticipated cost of expert witnesses can also significantly increase a retainer.

Be wary of entering into a retainer agreement which calls for additional payments if the case will go to trial. It is not unusual for appellate lawyers to hear clients recite that they entered into guilty pleas after they were unable to come up with the necessary funds to pay their lawyers to proceed with a trial. If you do decide to enter into an agreement whereby you will pay an additional retainer if your case goes to trial, make sure that it is an amount you can afford.

Contents

Finding a Criminal Defense Lawyer

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It is unfortunately not always easy to find a good criminal defense lawyer. Here are some suggestions:

Referrals - It may be possible to find a criminal defense lawyer from somebody who is familiar with the lawyer's practice. For example, if you regularly work with a lawyer or law firm, that lawyer may be able to suggest a competent criminal defense lawyer in your area. If your county is served by a public defender's office, sometimes a defender's office will be willing to suggest a competent are defense lawyer. If you have a friend or family member who has been in trouble with the law, that person may be able to make some suggestions.

Courtroom Observation - You may wish to sit through some public sessions of court while criminal cases are being argued. If you find a particular lawyer's performance to be impressive, you may take note of the lawyer's name and later contact the lawyer about the possibility of representing you.

Professional Organizations - Each state, and some major cities, have organizations of criminal defense lawyers. Some of those organizations offer referral services or online directories, which you can use to find a defense lawyer in your area.

Directories - There are a number of online directories which include criminal defense lawyers, including Lawyers.com and FindLaw.

State versus Federal Charges - There are additional factors you may wish to consider when hiring a federal criminal defense attorney.

After you have located one or more attorneys whom you wish to consult about your case, call them to schedule appointments. (Find out at that time if they offer a free initial consultation, or if you will be charged for the meeting.) Try to speak with the criminal defense lawyer over the phone before scheduling the appointment. Ask about the lawyer's general experience with criminal defense, and any specific experience with cases like yours.

Trust your instincts - if you aren't comfortable with an attorney you consult, try a different office. You do not have any obligation to hire a lawyer merely because you consulted with that lawyer. If your lawyer is promising you that your case is easy, or makes promises that you won't go to jail, speak to other lawyers before signing a retainer agreement - some lawyers misrepresent the gravity of a defendant's situation or the complexity of a case in order to entice the defendant to pay a retainer, and then blame the judge or prosecutor when the rosy scenario they initially promised turns out to be a nightmare.

Read the entire fee agreement with the lawyer before you sign it, and make sure you get a copy for your own records.

Contents

Private Defense Counsel or Appointed Counsel?

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People who are charged with felony offenses, and many individuals who are charged with misdemeanors, may be eligible for appointed counsel or for assistance through a public defender's office. When a defendant petitions for a court-appointed lawyer, the trial judge will typically make an assessment of the defendant's resources to determine if the defendant will qualify for an appointment of a criminal defense lawyer. When an appointment is made, although the defendant may be ordered to repay certain attorney fees following a guilty plea or conviction, there will not ordinarily be any fee in the event of acquittal or dismissal of the charges.

Some people assume that a court appointed criminal defense lawyer will offer services which are inferior to a privately retained lawyer. While it is certainly true that some public defenders, some appointed lawyers, and some private attorneys will prove to be insufficiently skilled or dedicated to their work to provide an effective defense, it is generally asserted that the average public defender will provide better representation than the average private criminal defense lawyer. The primary reasons for this include experience, as a professional public defender will typically have much more experience with criminal cases than a private lawyer, the ability to collaborate with other experienced lawyers within the office, and also due to the resources and systems available to a typical public defender's office. Many private criminal defense lawyers take appointments - meaning that if you are charged in a jurisdiction that appoints private lawyers to represent criminal defendants, many of the lawyers you might otherwise retain will be among those to whom a court might assign your case. And even if you are ordered to repay legal fees, the cost of an appointed lawyer is almost always significantly lower than the cost of a retained lawyer.

In short, if you can hire an effective criminal defense lawyer you should not hesitate to do so. But, if your means are limited, you should also not hesitate to request an appointed defense lawyer, and should not fear that you will receive inferior representation just because your lawyer was appointed.

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Changing Lawyers

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It is important to note that your constitutional right to effective assistance of counsel relates almost exclusively to the performance of appointed counsel. It is virtually impossible to convice an appellate court that the incompetence of counsel of your own choosing constitutes an error requiring reversal. If you are not comfortable with the competence of your lawyer, retained or appointed, consult with a second lawyer to have your situation reviewed. It may well turn out that your lawyer is competent - but it is you who could go to prison, not your lawyer, if the lawyer is inept.

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Family Law

2008-11-07T02:41:00.000-08:00

Family law issues usually arise in the context of divorce proceedings, child custody disputes, and child protective proceedings. Child protective proceedings arise when the state, acting to protect minor children, attempts to place children into foster care, or to terminate parental rights and to place the children for adoption.

When you are filing for divorce, or if a divorce has been filed against you, you will find that there are a wide range of attorneys who practice family law, and that the fees can vary enormously between law offices. The cheapest attorney is rarely the best, but in an amicable divorce you may find that all you really need is an attorney who won't stand in your way while you negotiate a settlement. You usually will not need to spend a lot on legal fees if you are in agreement on custody and property issues.

When there are disagreements, choose your attorney carefully. If possible, get references from people you know who have recently divorced. As family law is very stressful, a great many attorneys do not practice in the area, and as a consequence it is relatively easy for attorneys with little skill or experience to develop a family law practice. While the most expensive option is not necessarily the best, when faced with contested divorce or custody litigation there is some truth to the old saying, "You get what you pay for." If you try to save money by hiring the cheapest attorney you can find, you may well learn that you gave up more in property, spousal support, or rights to retirement benefits than you "saved" by hiring the wrong lawyer for your case.

Most people do not need to hire the "best" divorce attorneys, or the most expensive. However, if you have a large marital estate, if you have issues of abuse or domestic violence, if the marital estate includes a family business, stock options, or shares in a "closely held" corporation, or if there are other factors which will complicate the evaluation of your fair share of the marital estate, you should consider a specialist.

Credit Card Debt in Divorce

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While divorcing couples frequently carry credit card debt, often little attention is paid to these debts beyond their being assigned to one spouse or the other in the divorce judgment.

Care must be taken that a spouse will not be held responsible for additional credit card debts incurred by the other, and that each spouse is protected to the maximum extent possible if the other fails to make payments and ultimately to pay off their share of any joint credit card debt.

Remember: Creditors are not obligated to respect the terms of your divorce judgment.

Assigning Responsibilty for Credit Card Debt

Often the parties to a divorce will assign to each spouse the responsibility for specific credit cards and their associated debt. To help ensure that all joint debts are identified, including any credit cards which may have been taken out by one spouse without the other's knowledge, it may be beneficial to get copies of the credit reports of the divorcing couple, and to make sure that the debt from any creditor not paid off in full is assigned to one spouse or the other.

Cutting Off Your Liability For Additional Debt

When you divorce, you should make sure that you either close any joint credit cards, or that at a minimum you have your name removed from any joint accounts which will continue to be used by your spouse. This will not end your liability for debts incurred up to that point, but should end your responsibility for any new debts incurred on those accounts by your spouse.

Similarly, if you hold any accounts in your own name for which your spouse is an authorized signer, you should revoke the authorization.

Protecting Yourself From Default or Bankruptcy

It is not unusual after a divorce for one spouse to fail to pay off a joint credit card debt which predates the divorce. If appropriate steps weren't taken to cut off liability, sometimes a joint account will remain open with both spouses liable for the new charges, even though the new charges are made after divorce. The debt load on these cards, delinquent payments, and any default or referral to a collection agency, will appear on the credit reports of both account holders. The creditor will also be able to pursue either or both account holders for payment, including interest, penalties, and possibly legal fees. The creditor does not have to be fair - if it wants, it can direct all of its collection efforts at the innocent spouse.

Thus, a divorce judgment should include a deadline by which the joint credit card debts allocated to each spouse will be paid off in full, and provide for appropriate remedies in the event that repayment does not occur. Note that refinancing credit card debt is often as simple as applying for a new credit card and requesting a balance transfer.

There should be a "hold harmless" clause in the divorce judgment which prevents the spouse who is responsible for the debt from trying to shift any responsibility back onto the other spouse, and an "indemnification" clause which requires the spouse who is responsible for the debt to repay any losses suffered by the other spouse, including any payments made toward the debt by that spouse, or legal fees incurred in defending against a collection action or returning to court to compel compliance with the terms of the divorce judgment.

There is also language which can be included in a divorce judgment, which can help protect an ex-spouse from being left without recourse if the other spouse declares bankruptcy before paying off the credit card debts. Ask your lawyer if it is possible to include language which will make the spouse's obligations under the divorce judgment non-dischargeable, or significantly less likely to be discharged, based upon the manner in which the debt and repayment obligation are characterized in the divorce judgment, for example by characterizing the timely payment of the debt as being necessary for the support of the other spouse.

Catastrophic Personal Injury Cases

2008-11-05T04:31:00.001-08:00

The purpose of this article is not to suggest that injuries that are not "catastrophic" do not justify substantial compensation. Instead, the purpose of this article is to highlight the long-term effects that can be associated with particularly severe injuries, and the importance of obtaining quality legal representation for those injuries.

By "catastrophic," I mean to refer to injuries which require significant medical treatment, and which usually have a long-term or permanent effect on an injured person's life. Some injuries are catastrophic, but with good medical attention the injured person can make a good or excellent recovery. Others cause permanent disability, significant suffering, and may substantially shorten an injured person's lifespan.

It is often a good idea to seek specialized legal assistance with catastrophic injury cases. For example, some personal injury attorneys have a much better understanding of closed head injuries or burn injuries than others. A catastrophic injury can necessitate a lifetime of medical care, or repeated reconstructive surgeries. It is helpful to have an attorney who understands the treatment and recovery process. A severely burned child may require repeated surgeries to accommodate growth, in addition to various cosmetic surgeries. A child with a bone fracture that affects a growth plate may face difficult bone-stretching procedures, and may never have normal use of an affected limb. If an attorney understands the long-term effects of an injury, the attorney will be better able to argue for just compensation. If you wish to hire a personal injury lawyer, you may find this article on "How To Hire A Personal Injury Lawyer" to be helpful.

When a person suffers a spinal cord injury, the person may face a life of disability and dependency. An active person can suddenly become an invalid, with injuries that cannot be treated by even the most advanced medical treatments. While there is always hope of a future medical advance which will ameliorate or even cure spinal cord injuries, at present medical science is limited. A parent whose child suffers a brain or spinal cord injury may suddenly find that the child requires full-time care. A brain injury may cause a personality change, causing a spouse, parent or child to suddenly seem like a different person.

One of the true tragedies of life is that many people are catastrophically injured, but cannot recover adequately for their injuries. Legislatures throughout the country have imposed caps on "non-economic" damages, which can be ridiculously low. Ironically, studies indicate that huge jury verdicts are rare, and that most injury victims are undercompensated. By misrepresenting the exceptional case as the norm, insurance companies have successfully protected their wealth at the expense of society's most vulnerable injury victims.

The worst and most dangerous drivers often carry the lowest possible amount of insurance that the law allows, or carry no insurance at all. Few people would voluntarily allow themselves to suffer even a simple fracture of a bone, even for tens of thousands of dollars. The amount of suffering that results from living a lifetime with disfiguring scars, or with a spinal cord or brain injury, is inconceivable. Our society really should do more to take care of its own -- to make sure that people who suffer catastrophic injuries do not effectively lose their right to a reasonably normal life, just because an insurance company successfully lobbied for damages caps on personal injury or malpractice actions.

If you or a loved one face recovery from a catastrophic injury, seek assistance from an attorney who has experience with your type of injury, and who knows how to find every possible source of recovery. Even if you don't have a legal cause of action, an attorney may be able to assist you in obtaining government benefits.

Car Accident Lawsuits

2008-11-05T04:11:00.000-08:00

Despite significant safety improvements in automobile and in the design of roads, car accidents remain quite common. It is likely that any given person will be involved in at least one serious automobile accident during his or her lifetime. This article explores when a car accident may result in litigation.

If you are involved in a car accident, you may benefit from reviewing these suggestions about what to do after a car accident, and from consulting a personal injury lawyer.

Litigation After Car Accidents

Not every car accident will result in litigation. Where nobody is injured or injuries are minor, it may be possible to resolve all claims for medical care and property damage directly with the drivers' car insurance companies. The greater the damage or injury that results from a car accident, the more likely it is that a lawsuit will follow.

Causes of Car Accidents

There are a wide variety of possible causes for automobile accidents, including:

Driver Error - The most common cause of car accidents is driver error. Common errors which contribute to accidents include failure to yield the right of way, following too closely, driving at excessive speeds, unsafe passing, and disregard of traffic control devices.

Distractions - When the driver's attention becomes diverted from the road, the chances of an accident increase. Distractions may occur from outside of the car, such as when something at the side of the road draws a driver's attention. Distractions also occur inside cars, such as where the driver attempts to read or put on makeup while driving, change CD's in the CD player, dials a cellular phone, or attempts to parent an upset or unruly child.

Intoxication - Motorists whose ability to drive is impaired as a result of the consumption of alcohol or drugs are more likely to cause car accidents.

Bad Weather - Sometimes, bad weather conditions will contribute to an accident by interfering with visibility, diminishing traction on the road surface, or otherwise making it more difficult to drive a car. A driver should take the effects of the weather, such as strong cross-winds or slippery roads, into consideration when driving. Sometimes the weather will cause an unexpected hazard, such as black ice or flash flooding, which may not be detected by a driver until it is too late to avoid the hazard.

Road Design - A poorly designed roadway, intersection, or means of controlling traffic can at times cause or contribute to an accident. Poorly placed and poorly designed road signs or barriers can cause unnecessary injury when vehicles collide with them. At times, such defects will result in liability by the governmental agency responsible for the design and maintenance of the roadway, although governmental immunity may apply.

Road Conditions - The conditions of a roadway can be bad for a number of reasons, including weather, poor design or maintenance, or the presence of objects or debris on the roadway. Such factors can cause or contribute to accidents.

Vehicle Defects - At times an accident will result from a defect with a driver's vehicle, such as a tire blowout, brake failure, or other mechanical failure. Sometimes the injuries suffered in an accident will be made worse by a design or manufacturing defect with a vehicle, such as a design defect which makes an SUV more susceptible to rolling over in an accident or a gas tank more likely to ignite in a collision, or a manufacturing defect which causes a seatbelt to fail or an airbag to deploy improperly.

Most automobile accident litigation involves two vehicles, with a driver or passenger from the first vehicle claiming that the driver of the second vehicle caused the accident through negligent driving. Sometimes the litigation will involve the driver and passenger of a single vehicle, with the passenger claiming injury as a result of the driver's negligence. At times, litigation will be against a governmental agency which is alleged to have failed to properly design or maintain a roadway or intersection. Car accident litigation may also include a product liability claim against the manufacturer of a vehicle or part of a vehicle, alleging a design or manufacturing defect which contributed to the accident. A claim might also arise against a mechanic or service center whose work left a vehicle in a hazardous condition.

Special Issues

Special issues can arise in automobile litigation which make it more difficult to litigate a car accident claim, which make additional parties potentially liable for injuries, or which must be considered during the course of litigating a case. Special issues arising from the accident itself include:

Hit-and-Run Accidents: Where the driver who causes an accident fails to stop at the accident scene, it may be difficult for the victim of the accident to later identify the at-fault driver so as to bring a lawsuit.

Car-Pedestrian Accidents: Where a motor vehicle collides with a pedestrian, the pedestrian will often suffer catastrophic injury. Pedestrians often have difficulty making claims against drivers, with accidents frequently attributed to the conduct of the pedestrian.

Car-Motorcycle Accidents: Motorcycle drivers are susceptible to serious injury, even in collisions which would be relatively minor had they occurred between cars. Some suggest that motorcyclists suffer from a predisposition by juries to blame them for causing an accident, even where the driver of a car was clearly negligent.

Car-Bicycle Accidents: Bicyclists are vulnerable to serious injury when hit by cars, and are aslo susceptible to having drivers open car doors in front of them - a hazard which can cause them to be caterpaulted over the car door in a collision. Drivers often report that they did not see the bicyclist until after the collision, or that they misjudged the bicyclist's speed. Some bicyclists engage in very hazardous actions, such as ignoring traffic signals or riding on the wrong side of the road, making an accident much more likely. The most severe and lasting injuries to bicyclists tend to be head injuries, so helmet use is encouraged.

Bus Accidents: Bus accidents can be quite serious, given the size and mass of a typical bus, and the fact that passengers are usually unrestrained. Special issues can arise in accidents involving school buses, and in the context of loading and unloading passengers.

Semi Truck / Tractor-Trailer Accidents: The drivers of "big rigs" are subject to state and federal regulation, governing how many hours a day they can drive, how much sleep they are to get each night, and the condition and maintenance of their trucks. Drivers typically get paid by the mile driven, and thus have a strong incentive to ignore rules which limit their driving time. Obviously, when a semi truck causes an accident, the consequences to any smaller vehicle and its passengers can be devastating.

After-Market Vehicle Modifications: Where a vehicle has after-market modifications, such as being raised or lowered, having powerful or tinted headlights or foglights intalled, or window tinting, those modifications may affect both the safety of the vehicle for its occupants and the hazard posed by the vehicle to other drivers.

Accidents Caused by Road Debris: Where road debris causes an accident, whether in the form of objects or parts which have fallen off of vehicles, or debris that is kicked up from the roadway and collides with another vehicle, it can often be difficult to determine who was at fault for the presence of the debris on the road. States may also limit liability based upon how long the debris was on the road.

Special issues which may affect liability include:

Governmental Immunity: States may limit an injury victim's ability to sue when the driver of the vehicle that causes an accident is a governmental employee who is working at the time of the accident, or where the accident involves a government-owned vehicle.

Owner Liability: Where the driver of a vehicle has the owner's permission to operate that vehicle, many jurisdictions will hold the owner jointly liable for injuries caused by the driver's negligent operation of the vehicle.

Employer Liability: Where an employee is driving a vehicle "on the job", or as the lawyers might say "within the course and scope of employment", the employer may be jointly liable for injuries caused by the employee's negligent driving conduct.

Cellular Phone Usage: In a number of states, courts are increasingly receptive to the argument that where a driver who causes an accident is talking on a cellular phone, the call was work-related, and the driver's employer expects employees to handle work-related phone calls while driving, the employer may share liability for an accident caused by the employee.

Insurance Coverage

The insurance problems car accident victims have with insurance coverage typically fall into three categories:

Uninsured Driver - Where the at-fault driver is uninsured, it can be difficult for a person who is injured in a car accident to obtain appropriate compensation. Where the injured person is uninsured, states are increasingly modifying their laws to limit the uninsured accident victim's right to sue for pain and suffering damages. Many drivers carry "uninsured motorist coverage" through their own automobile insurance policies, so that they have a source of compensation in the event that the other driver fails to carry insurance or cannot be identified.

Underinsured Driver - Similar to the uninsured driver, some drivers carry inadequate insurance coverage, often at the minimum level required by state law. Many states have very low insurance requirements, which unfortunately means that some of the worst drivers on the road carry inadequate coverage due to the high cost of insurance which results from their bad driving records. Some carinsurance companies offer underinsured motorist coverage, so drivers can protect themselves in the event that they are in an accident caused by somebody who carries inadequate coverage.

Insurance Company Bad Faith - When people make claims with their insurance companies, they sometimes run into difficulty with the insurance company's refusal to negotiate the claim fairly. For example, an insurance company may refuse to offer fair value for a "totaled" car. In "no fault" states, where drivers insure for their own accident-related medical care, it can involve the improper denial of coverage or reimbursement by the insurance company.

Statute of Limitations

Anybody who is considering bringing a legal claim as a result of a car accident should note that their ability to pursue their claim will be limited by the statute of limitations of the jurisdiction where the accident occurred.