Business, economic development - the unofficial Chamber of Commerce

As the price of carbon based fuels continue to increase, many concerned people are burying their heads in the sand. Some homeowners however are considering the installation of the solar cells that will allow them to harness the power of the sun to provide energy for their needs.

When electricity prices were low, it was unnecessary to justify the upfront expense of money required to install solar panels, solar water heaters and similar equipment. The reason was simple to understand - it would simply take too long to recoup the cost of the equipment in the form of lower energy bills.

Things have changed though. As energy prices continue to go up, the amount of time required to recoup the upfront cost goes down. In addition, a number of state and local tax incentives make it even easier for homeowners to go solar and save money right away.

Solar power has already proven itself and its ability to lower energy costs substantially, and more and more homeowners are taking a serious look at converting their residences to solar power. The costs of installing solar panels is still high, with a typical two kilowatt installation of OVR Solar solar panels costing at least £10,000 / ($20, 000) in most cases, but special tax incentives and long term energy savings can help homeowners recoup those upfront costs faster than ever before.

Subsidies are also now available. This tax savings can help eligible homeowners recoup some of the costs of installing solar panels and solar water heating systems up front, in addition to the energy savings they will enjoy down the road.

Some states will offer homeowners who install qualifying solar panel or water heating systems to write off a portion of the cost against tax liability, while others will provide a standard tax credit based on kilowatt usage. Still others provide tax relief in the form of property tax reductions or elimination, and many states provide businesses, government agencies and commercial enterprises with special tax breaks as well.

The factors affecting how long it will take to break even will vary from case to case.. However, as the prices for heating oil, gas and other forms of traditional energy continue to soar, so will demand for alternatives

Take the first step to energy self sufficiency with OVR Solar.

Have you ever heard the term REO? Or bank owned before? These terms refer to the bank foreclosure list kept by any bank and lists all properties the bank owns due to mortgage note defaults. This list could be a great place to find inexpensive, fixer upper type properties for the budding flipper; but beware, flipping homes is a risky business and if you do not do it properly the bank will just end up owning that house again, and that certainly would not make you any money now would it. All you have to do is a little research on the internet to find these lists.

I recently completed my first house flipping investment and made money! I started by calling area banks and obtaining a copy of their bank foreclosure list. I then viewed prospective properties and bid on one. My bid was accepted by the bank and we were able to close the deal ten days later. I was then able to remodel the house, add an attached garage and landscape the entire property. I spent approximately $35,000 on renovations and sold approximately six weeks later for a profit after fees and mortgage payments of $125,000! Now that is a very nice pay day!

Erdogan Bayraktar, president of government housing institution TOKI, announced today that hey reached an agreement with the public banks that will move from Ankara to Istanbul along with the Central Bank of Turkey.

Vakifbank and Halk Bank will be provided with 37,500 sqm and Ziraat Bank will be provided with 40,000 sqm of land in Istanbul. The complete agreement will be made public after it is approved by the related ministry. The land prices in Istanbul (Atasehir and Umraniye) increased immensely after many news about the banks moving to the region were published in the media.

Banks were insisting on purchasing the land from the government using the previous prices as a basis on the agreement. According to Bayraktar, parties agreed on terms that were much closer to what the banks were looking for. The details of the agreement was disclosed to the Prime Minister and as soon as the approval is obtained from the ministry, the agreement will become official.

The majority of the payments will be made in cash and TOKI will allow some banks another 6 months to pay the balance. Land and property prices at Atasehir, a comparatively new residential area on the Asian part of Istanbul, increased by 20% in the last 2 months of 2007. The region is most likely to become a financial center for the whole city and the relocation of these public banks into the area will continue to have a strong impact on the prices.

There has been speculation in the media recently about the fact that real estate will begin to fail and implode as it can only handle so much growth. In my humble opinion these theories don’t hold a lot of merit and here is why. First, understand that there are three basic things that undercut the validity of saying that there is a real estate bubble that people are operating in.

1. There is no “international” or “national” real estate market.

2. The real estate market doesn’t explode or crash.

3. The market has limited impact on the seasoned investor.

The Real Estate “Market” is an overall view of micro markets nation wide.

When people talk about real estate economics they are usually referring to national or international statistics which in truth are made up of thousands on micro or local real estate markets. So even though you might find a North America wide trend there are still many, many markets which will be completely at odds with the overall numbers.

Real Estate Markets do not “Crash.”

We all remember October 19, 1987, known as “Black Monday.” The stock market lost 22% of its value in one day - what investors call a “crash.” History points to times which real estate values have taken 22% hits in certain cities and in pockets within cities. However, no real estate market dropped 22% in one day, one week or even one month. In fact, the real estate “crash” of the late 1980’s took several years to bottom out in most markets.

Keep in mind too the overall performance of the real estate market you are investing in. Those of you who have been active in the Edmonton market the last few years might think that the market is in a slump or downslide, when in reality the numbers they are recording are far above what the average of the last decade show.

The market has limited impact on the seasoned investor.

No matter if you are holding properties long term or doing a quick flip, the local market changes will not affect you in a major way if you are careful. For example if you are doing long term hold revenue properties there is little to no chance that the market will not increase over the term of your holding period. If you are on the other hand flipping properties then you will buy at a higher price in a strong market and will move the property quickly, or get a better price which will help you in higher holding costs in a softer market.

Now, just as a side note for those of you looking at holding properties for future value considerations. If you are buying negative cash flow properties with the expectation of equity increase over 2-3 years then, in the words of a recent article that I read, SHAME ON YOU! If you are using investor’s capital to close these deals and the value doesn’t increase what are you going to do? What if the value decreases in that time? You are putting investor’s capital at risk and as far as I am concerned are acting as an irresponsible speculator, not a seasoned real estate investor!

Steele Tolman teaches people how to successfully invest in real estate through the “Zero Down In Canada Real Estate Investing Home Study Course,” web mentoring and seminars. http://www.motivagroup.com

It’s hard to think about selling a home while you are in the middle of searching for a home. Most often, you plan on living in your new home for quite some time. But actually, most people will buy and sell their home within five to seven years. So if you are looking for a home in Phoenix, you need to carefully consider the homes resale potential before you even make an offer.

Many owners may purchase up to 7 homes in their lifetime. Typically, a buyer finds a house that meets their current needs - enough bedrooms and baths, in the right school district, easy commuting potential, close to shopping, etc. But, long term our needs tend to change. Many owners use their first home as a leverage to buying their next home. Usually, the next home is a step up, either in size or location.

When your goal is to eventually move in to another home, you should consider a home purchase carefully - you want to meet two goals: a home that offers you the greatest potential to build equity; and a home that has the best ability for resale.

There are a number of factors that contribute to a homes resale value. One of the first considerations is the location. While many areas of the Phoenix metropolitan area have been active in terms of real estate purchase, as the market slows there are definite areas that continue to grow in popularity. Examine neighborhoods carefully to see how active the current real estate is and also what plans are made for the community in the future.

Also, consider buying trends. Are most of the buyers for real estate young buyers, families, or retirees? There are districts of Phoenix that are better suited to certain lifestyles. For instance, the downtown core of Phoenix is ideal for young professionals looking for easy access to work - while other neighborhoods are better for family communities with excellent school systems.

Last, consider what changes (if any) you feel are necessary to make to a property. Many buyers look at homes that are “fixer uppers” as a way to make substantial equity. While it’s true that some changes can make a big difference to a homes value, make sure that you aren’t considering changes that are outside of your scope, either in abilities or in budget.

The Phoenix market is in the perfect position for careful examination - it’s slowed down enough that you can really take your time and think about the future potential for a property, rather than feeling pressured to buy.

You can find the perfect home in Phoenix — it just takes a little time to search and patience to find the gem among the rough stones.

Reg Gustin is a senior loan officer with Sun American Mortgage and specializes in helping families and their financial lending needs. Get a FREE mortgage rate quote from a reputable Arizona mortgage company at Central Arizona Homes. Search the Arizona MLS at Central Arizona Homes Click here and get a FREE copy of The Greater Phoenix Area Housing Appreciation Report, as compiled by Arizona State University with your free subscription to his monthly ezine, MARKET NEWS.

You are buying the house of your dreams with an interest-only mortgage. You’ll get a low mortgage payment, and you’ll maximize your tax deduction, all on your current income! Everything seems to be going good. But have you really understood the concept of interest-only mortgage and how it functions.

So What Is An Interest-Only Mortgage?

Well it may break your bubble but there is no such thing as an interest-only mortgage - because eventually you’ll have to pay the loan principal as well. In other words, with an interest-only mortgage loan, you pay only the interest on the mortgage in monthly payments for a fixed term. After the end of that term, usually five to seven years, you pay the balance in a lump sum, or start paying off the principal. Net Net! What you’re really getting is an interest-only payment method which can be combined with any type of traditional mortgage.

For What Types Of Borrowers Are Interest-Only Mortgages Suitable?

An Interest only mortgage can be an excellent choice for some borrowers, who have a valid use for a lower initial required payment. For most homeowners, paying down mortgage debt is the most effective way to build wealth. Nonetheless, some may build wealth more rapidly by investing excess cash flow rather than paying down their mortgage. Of course for this to hold true, their return on investment must exceed the mortgage interest rate.

The interest only product was originally designed for individuals whose income is cyclical. Borrowers with fluctuating incomes may value the flexibility the IO mortgage gives them. When their finances are tight, they can make the IO payment, and when they are flush they can make a substantial payment to principal.

Financial advisers don’t recommend interest-only residential mortgage to regular wage earners who take out moderate-size residential mortgage loans and don’t have a strategy for investing the savings.

An interest-only mortgage might be a good fit for:

• someone whose income is mostly in the form of infrequent commissions or bonuses;

• someone who expects to earn a lot more in a few years;

• someone who truly will invest the savings on the difference between an interest-only mortgage and an amortizing mortgage, and who is confident that the investments will make money.

Again, an interest only mortgage is not the right choice for everyone, but it can be a very effective choice for some individuals.

The Deception You should Watch Out For

By remembering one critical fact the borrowers can save themselves against most deceptions. If two mortgages are identical except that only one has an interest-only option, lenders view that one as riskier. The reason is that, after any period has elapsed, the loan with the IO option will have a larger balance.

Deception 1:

An interest-only loan carries a lower interest rate. Lenders usually charge a higher rate for an identical loan with an interest-only option. Most interest-only loans are adjustable rate mortgages (ARMs), and ARMs have lower rates than fixed-rate mortgages (FRMs). ARMs with the IO option have lower rates than FRMs because they are ARMs, not because they are IO.

Deception 2:

An interest-only loan allows the borrower to avoid paying for mortgage insurance. Any IO loans with down payments less than 20% that don’t carry mortgage insurance from a mortgage insurance company are being insured by the lender. The borrower is paying the premium in the interest rate rather than as an insurance premium.

Pitfalls of Interest-Only Mortgages - Risks a borrower should take into consideration

Interest-only payment options began to be offered to the masses not as a way to leverage their money, but rather as a way to borrow more money while not increasing the monthly payment. In turn they are using this method to be the high bidder, or to buy a somewhat larger home. Borrowers employing this method aren’t “cash-flow” or “income-leveraging” borrowers. What they’re doing is buying more debt.

One always has to remember that with increased leverage comes increased risk. And if you are a sophisticated investor, you should take into that as a borrowers who “debt leverage” into a more expensive home, with a larger mortgage, you are expecting that your income and the home both will appreciate. That may not be a big gamble when homes are appreciating, but it could certainly play differently in a down real estate market.

There is a danger in not reducing the balance. If prices should fail to increase during the interest-only period, and if you should find a need to sell the home, you could potentially be on the hook for thousands of dollars in sales costs which would need to be paid out of whatever equity (in the form of the down payment) you started out with.

Let’s look at the more extreme side, prices actually decline during the mortgage holding period. If you finds yourselves in that situation, coupled with a low down payment, you could easily going “underwater” — a descriptive term that means you are selling the property for less than the remaining balance of the mortgage.

Not only is house selling for less, the borrowers - that is you - would be required to somehow coming up with rest of the money to fulfill the mortgage balance as well as any sales charges (commissions, inspections, etc).

Interest Rate Risk

Unfortunately, most of the interest-only loans being made today feature only short fixed interest periods, if any; some features adjustable rates which can change each month. Thought the rates are low today, these low rates will inevitably rise.

The Final Analysis

Interest-only payments do have a place in the world, at least with the practical users. There are borrowers who can utilize a mortgage with interest-only payments to their fullest. However, it would require careful financial planning on behalf of the borrower to avoid going underwater.

Don’t rule out interest-only mortgages. Consider its pro and cons to your particular situation and the lender you would be working with. On the hind side also remember to question yourself that interest-only payments may be working for friends or family but does it work for you?

A mortgage calculator is a pretty interesting tool. It is used on the websites of many lenders to show what the various options are in the loan products that they can offer. The hope is that an individual will come to the website, punch in the numbers to the loans they would like to have and see how much of a home they can afford to pay for each month. But, this little tool can do many more things for you as well. In home buying, you need every advantage that you can get to get the best interest rates, the best terms and the most highly affordable home loan that you can get.

The good news is that the mortgage calculator can provide all of these things to you. One of the best ways to use it is to compare the various types of loans that are out there. One of the comparisons you will want to make as a new home owner is to compare the two most common types of loans out there. These are the FHA which is backed by the Federal government and the standard conventional loan. This tool can help you to do just that.

These two types of loans are by far the most commonly used. They allow for individuals to secure the home that they want when they may not otherwise be able to purchase it. When you are considering which one of these two (or any other for that matter) is the right choice for you, take your time to consider what these loans offer. Use a mortgage calculator to help you to determine the cost of them too. This tool will allow you to see what will actually happen if you select the FHA or the conventional.

It will tell you how much the home loan will cost in total. It will tell you how much you are spending on interest as well. It will also help you to see how much you will have to pay in monthly payments. This is just some of what the mortgage calculator can provide for you. Because these two types of loans often have different interest rates, some have different terms and fees; you will want to see what all of that means to you in dollars and cents. This tool can provide just that for you. You will simply input the different information from the loans, click a button and have the answers. Go back and do it again to see what the other loan will provide.

This is the most ideal of ways to see the benefits of your home loan purchase. You can compare what the benefits of going with FHA are to that of going with a conventional style loan. Remember, this tool is free to use, offers no obligation to you and is a simple, easy to use product. What’s more is that the mortgage calculator can provide you with information about how to save money on the purchase of your home.

Maksim Fisher is a freelance writer, specialising in finance subjects such as loans, banking, mortgage calculator, etc. He recommends use of a mortgage calculator for calculations at http://www.mortgagecalculatorplus.com.

Real Estate Investing - How to Coach Yourself Author: D. S. Peter

Some people are not in a position to work with a coach right
now. Some are stretched financially, while some are still using
the “lone ranger” method. Other people might be uncertain about
trying something new. So here is a brief, simple process you can
apply to your own situation i.e. “coach” yourself!

1. Clarify your goal Some of us are not moving forward simply
because we have not set a goal that inspires us! Make it
specific e.g. I will by one property by December 10. And you can
stretch yourself, but keep it realistic. If you’re blocked,
schedule creative time to play with ideas. Ask someone who is
where you want to be for advice.

2. Plan What overall strategy(s) will you use? For example, to
buy residential properties will your strategy be area specific,
fixer uppers, foreclosures, price range, or a combination? To
increase profit will you increase your knowledge (to learn more
on real estate investing
http://www.buying-investment-property.info and
http://www.realestate-investinginfo.com ), switch your real
estate investing area or even state, network, or improve
performance. For this stage you will also set your milestones to
achieve along the way, with deadlines attached (say every 2-4
months). Also list the tasks to achieve along the way in between
milestones.

3. Action Once you have the overall plan in place, it’s time to
get down to specific action. You might like to list the action
steps you will take in the next week, or the next 30 days. When
you have completed these actions, it’s time to evaluate, and
write the next list of action steps.

4. Self check Having an idea, or desire is one thing. But many
of these do not get achieved. This is probably one reason you
are reading this article - because there is something in your
life you would like to achieve or change, but it hasn’t happened
yet. Change rarely occurs without “action”. If you want to be a
real estate investor, surround yourself with real estate
investors. Talk a friend into doing your goal with you. Set
constant diary reminders for the next month, and/or encouraging
visual displays on the wall. Announcing your commitment to the
world (all your friends) is also a great method to achieve your
goal. And if you’re really serious about your goal, it’s hard to
find anything more motivating than doing one successful deal.
Learning is a lifetime journey.

Good luck! Copyright © D. S. Peter This article can be published
by anyone as long as the reference box remains intact and all
links are kept live.

The Basics of Real Estate Investing By: David Neese Real estate
investing may not be everyone’s cup of tea, but some people who
have already tried investing in real estate know that it can be
highly profitable and lead to much better quality of life. There
are several keys to making significant profits in real estate
investing deals. And when the deals are profitable, you will
certainly be well on your way to success.

For real estate investing newbies, don’t be afraid of the
challenges and pitfalls you may encounter along the way. There
is definitely a lot to learn, but in the long run after you have
gained some experience, you’ll hopefully become a master at
closing profitable real estate deals.

There are 5 core skills that are necessary for building a real
estate investing business. These will be the key factors in
creating a profitable real estate investment portfolio.

These are the 5 core skills of real estate investing:

1) You must learn when and where to find the right kind of
sellers.

2) You must learn the art of being a master negotiator when it
comes to closing your real estate investment deals.

3) You must be able to quickly and accurately analyze each real
estate investment deal so you’ll know exactly when to proceed
and when to pull the plug.

4) You must become an expert in all areas of real estate
investing and understand such terms as lease options, cash
sales, wrap mortgages, short sales and other terminology common
in the real estate investing trade.

5) You should totally understand the meaning and concept of
investing in real estate, including all of the financial risks
and benefits.

Now is a great time to consider investing in real estate. There
are great potential rewards and the effort you put forth can
yield enormous monetary returns on your investment.

Your confidence level will grow when you’ve gained some
experience and closed on your first few real estate deals. But,
don’t stop there…

Continue to learn about real estate investing and to develop
your investment skills. In a short time you may find yourself
managing a profitable and growing portfolio of investment
properties.

Continue to follow your real estate investing “game plan” and
always keep an eye out for the hidden investment opportunities.
The opportunities are definitely out there and with a little
knowledge and desire can be yours for the taking. So, why not
get started in what might be a new and exciting (and profitable)
career today?

Trump Towers have been known as the pinnacle of luxury condo
living, but now the Trump name has come into the Miami condo
market. The first Trump Tower condo to be complete will be the
Trump Palace located in Sunny Isles directly on the ocean. The
Trump Palace is a 55 story condominium tower that offers both
ocean and intracoastal views and is set to start closings in the
beginning of 2006. The Trump Palace condos have units that range
in size from 1200 to well over 3000 square feet, and prices
range from $600,000’s to over $2.5 million. The Trump Palace
will have the highest level of amenities for its residents to
enjoy along with a convenient location in the heart of Sunny
Isles.

The Trump Royale is the sister building of the Trump Palace and
will also rise 55 floors with similar pricing, floor plans and
amenities. The Palace and Royale will be angled to offer
unobstructed ocean and intracoastal views in each building. The
Trump Royale, which has already started construction, is set to
be complete by the end of 2007. The Trump Royale condo is the
final piece to complete the Trump Grande Ocean Resort and
Residences in Sunny Isles, Florida.

Trump Towers I, II and III will also rise in Sunny Isles. These
three Trump Towers will all be the height of 45 floors with 271
condos in each building. The Trump Tower condos will range in
size from 1469 to 2928 square feet with two and three bedrooms.
The condos of Trump Towers in Sunny Isles will offer every view,
from ocean to intracoastal, bay and city. All three of the Trump
Towers will feature Italian cabinets with granite or marble
counter tops in the kitchens and bathrooms, Miele and Subzero
appliances, floor to ceiling glass and designer fixtures through
out the condos. The amenities of the Trump Towers will include
250 linear feet of ocean frontage, beautifully appointed three
story lobby, 24 hour concierge and valet, state of the art
fitness center and health spa as well as beach front cabanas.
Trump Towers in Sunny Isles have experienced phenomenal sales,
and resales should be starting very soon.

Just a little north of these Trump projects is the new and
exciting Trump Hollywood project. The Trump Hollywood is the
newest and most luxurious of all the Trump projects. The
finishes and views will be second to none, with one of the last
locations on the beach that still has much room for
appreciation. The Trump Hollywood condo tower will be 40 floors
with a modern glass design that will make it a landmark on
Hollywood Beach for many years to come. The Trump Hollywood will
offer 200 units that range in size from 2070 to 4350 square feet
with pricing expected to start at about $1.5 million and up. The
Trump Hollywood is now taking reservations and expects to be
going to contract within the next few months.

There is no doubt that all of the Trump Towers will offer the
finest in luxury oceanfront condo living. The hard part is
deciding which Trump Tower to choose. Each of the Trump projects
has its own unique design and style to suit every desire. For
more information on all of the Trump Tower condos, please visit
http://www.hansenhomesaventura.com or contact Paul Hansen
786-586-4778.