Author Archives: schatzi

Mar
31
2023

Pay Your Property Tax Or Lose Your Property

We have many obligations to face in life. And, one of these obligations is to pay different taxes like income tax, property tax and many others. Since we have many obligations and not just these taxes, we sometimes take paying taxes for granted. This will cause a very big problem to non-payers.

Not being able to pay your taxes, (property taxes in particular) may lead to the following problems:

You may lose your property or house. Unpaid property tax leading to delinquent property tax may lead to losing your property. However, there are still second chances given. So, if ever you are given more time to pay your delinquent property tax, find a solution for this right away or you may really end up losing your property. You may only be given two years to settle your unpaid taxes.

If it happens that your property is forwarded to the county treasury, more interests and fees will be added. There will be a collection of four percent administration fee and one percent interest per month.

Your property may be forfeited. This means you still have one year to settle your delinquent tax or you may lose your property altogether or have it foreclosed. Foreclosed properties mean you will not be able to get it back as it will be auctioned off to recover the pending dues.

Before all these problems occur, you should make an effort to settle all pending property taxes. Surely, you do not want to end up losing your property, do you?

Mar
30
2023

5 Simple Tips In Getting Started With Real Estate Investing

If you had been planning on making your very first real estate investment for some time already, but haven’t put them into action yet, then you’ve come to the right place. Here, I’ll give some simple tips and things you need to consider before making the big move.

Ask yourself what your objectives are.

Always begin with the end in mind. Why do you want to invest in real estate? What goals do you want to achieve in doing so? Is it for passive income and eventually for financial independence? How much do you want to earn from your properties? These are just some of the questions you need to answer before starting your search. Concrete goals translate to a concrete plan of action, and with this, the odds of succeeding increases.

Knowledge is power.

Before getting your feet wet, try to learn as much as you can about real estate investing. We are lucky to be living in a world where a vast range of information is available over the world wide web for free. Learn the taxes involved in acquiring and selling a property, research on the different financing options available, read about real estate laws that may affect your decision in buying a property. Practically everything you need to know can be found on the net, you just have to be diligent and patient enough to learn.

Find your niche.

There are several ways of making money from property investments. Renting, flipping, rent-to-own are just among the most common practices. There are people who have built expertise on finding foreclosed properties. Whatever niche you choose, just remember to be an “expert” in that category so that when an opportunity comes, you’ll be more than prepared to grab it.

Start building your network.

You can accelerate your chances of finding good deals by increasing your visibility in the real estate market. Make the properties come to you and not the other way around. How? Join clubs and communities that share your passion in real estate investing. Participating in auctions is also an option.

Check your budget and start managing your cashflow.

Of course, none of the above will get you to your first real estate investment if you don’t properly budget your finances and manage your cashflow. Despite the fact that you can leverage in real estate through bank loans, you would still need at least some cash to afford the downpayment and you have to make sure that you can continuously pay for the monthly amortizations, unless you want the property to be seized and be put on foreclosure. If you have managed your finances well by having some emergency funds and diversifying your investments portfolio, then I think you won’t be having any problems in this category.

With these tips in your mind, I’m sure it won’t take long before you acquire your first ever property investment. Just remember that in any investment you choose, time and effort are always necessary to ensure success.

Mar
29
2023

History of Share Market Crashes

When one thinks of share market crashes two years spring to mind, 1929 and 1987, hopefully, such crashes on the scale which wiped out life savings are not going to occur in the foreseeable future. It is not guaranteed that it will not happen, but then nothing in this world is guaranteed apart from death and taxes.
There have been other financial meltdowns outside of the two main ones. Asian Financial Crisis of the 90s and the GFC of 2008 wiped billions of dollars off share values.
The next major financial meltdown in the markets could be caused by the very people who will be most affected by it, Baby Boomers.
Why?
Because as more and more of them retire, they will withdraw their savings out of the stock market causing a major selloff.
This has been predicted in the past but there has not yet been any sign of this happening with the markets at record levels, however, who is bold enough to predict which direction the stock exchange will head in the future?
One thing you can guarantee is that there will be another market crash in the future; investors just need to be prepared for it.
Here are the most notable share market crashes within the last 100 years.
1929-The Wall Street Crash
The Wall Street crash lasted for over four years. Investors borrowed money to buy shares and when shares were sold off to repay the money to their creditors investors were left out of pocket. The 1929 crash led to the 1930s Great depression.
1962-The Kennedy Slide
The stock market had enjoyed a steady rise since the 1929 crash with the ten years prior to 1962 being good ones for the stock exchange. This all changed in January when share prices plummeted. President Kennedy attributed the decline as a correction for the rises of the past ten years.
1973-74-Stock market crash
The Dow Jones fell by 45% during the stock market crash which lasted two years between January 1973 and December 1974. The UK markets feared even worse losing 73% of it’s value during this time. The collapse of the Bretton Woods System was to blame. This is a system devised many decades earlier on an agreed fixed currency rate. 44 countries met in Bretton Wood to discuss the currency issue in 1944 hence the name Bretton Woods System.
1987-Black Monday
19th October 1987 will always be known as “Black Monday,” after the biggest one day fall in the stock market in history took place. Leading up to the crash many traders borrowed money to purchase shares and as share prices rose they borrowed more money using the value of their shares as security, however, when the stock market dropped by 20% in one day many investors owed more money than the value of their shares and found themselves in financial turmoil.
1997-Asian Financial Crisis
Many stock markets in Asia fell dramatically between July and October due to an overheated market. Many who bought shares on credit or with borrowed money were hit hard by the crash.
2007-2008-Global Financial Crisis
The failure of several financial institutions in the United States.
2020-The Covid Market Crash
Stock markets dropped 34% in one day on March 23 2020 as Covid-19 was starting to take hold. This started a worldwide recession caused by the Covid-19 pandemic.
Who knows when the next share market crash will occur; one thing is for certain, it will be out of the control of investors. It is up to each of us to plan our finances in such a way as to minimize the effect of a financial meltdown in the markets. This can be done by diversification; that is by having your money invested in a range of industries. This way you are not placing too many eggs in the one basket.

Mar
28
2023

How to Get the Lowest Rate Home Equity Loan

Lending companies, banks, and online companies that offer loans provide home equity loans that come in varying packages inclusive of the elements like allowable amount to be loaned, the interest rate, the payment scheme, the payment agreements, and other matters. To get the best among home equity loan deals both online and around your local area, here are some tips that you ought to apply:

Know everything that you need to know about a home equity loan

Learning all about home equity loans will allow you to make good choices and decisions. So, in order to get the best deals, you have to actually know what a home equity loan is.

Home equity loan (HEL) is different from mortgage loans and refinancing loans. Note that this is the kind of loan that you will get when you use the equity of your home as the collateral.

To add to that, you have to keep in mind that when you get a home equity loan, you will not increase the original mortgage amount that you borrowed. Instead, you are getting a second mortgage. This means, a second mortgage demands a different payment from that of the first one. So, you will have to pay two mortgage bills every month- one is for your original mortgage loan, while the other one is for your home equity loan.

Another thing that you have to know when picking a home equity loan is the basis of its interest rate. Note that home equity loans usually have higher interest rates than that of your mortgage loan. This is because of the fact that a second mortgage is considered riskier that the first one.

Realize that your credit score matters

Despite the fact that most lending companies offer a higher interest rate when it comes to home equity loans, you need to understand that your credit score will still affect the rate that you will get.

Generally, a credit score indicates your capability to pay for the money you are borrowing. It serves as the lending company’s ultimate gauge for your creditworthiness. As such, the higher your credit score is, the more credit worthy you are deemed to be. And as a result, the more “creditable” you are, the higher are your chances of getting a lower interest rate on your second mortgage.

If you have a good credit score, then go ahead and get your home equity loan right away. However, if you are suffering from a low score, make it a point to fix your credit record first before you make a move in applying for an equity loan. Keep in mind that the only way to get a good deal is to provide a good credit track record as well.

Explore your choices

Avoid plunging into the first home equity loan offer that you see. Getting a good deal requires you to look for the best options that are available. Inquire about home equity loans from credible lending companies and get quotes on their loan package such as their interest rates and the service fees that they charge.

Also, be aware that while you are shopping around, most interest rates for home equity loans are not fixed. Almost everything is negotiable now. So, do try to negotiate about the home equity loan packages that you are planning to get.