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Thursday, March 12, 2009

Installment Sales - Real Estate Tax Tips



An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. If you dispose of property in an installment sale, you report part of your gain when you receive each installment payment. You cannot use the installment method to report a loss.

General Rules
If a sale qualifies as an installment sale, the gain must be reported under the installment method unless:

  • You elect out of using the installment method
    You are not a qualified accrual method taxpayer

Precaution While Buying Properties In Thailand

Some precautionary measures need be taken while investing in Thai real property sector. These hold true for both the native investors and foreigners, though expatriates will have to overcome more hurdles to buy property in Thailand.

Gathering Local Knowledge
One need spend sufficient time in Thailand to form an idea about good value real estate in Thailand. Familiarizing oneself with the local people and with the expatriates and consulting expert realty agents and lawyers will develop the local real property knowledge in you. Then you can easily avail big investment opportunities in Thai realty market.

Survey of property
To learn the actual market value of a real property in Thailand, you will have to receive the service of a certified appraiser. If the chosen real estate is brand new, looking at other properties built by the same developer will satisfy your queries. Some companies offer land title checking service of real properties which should be taken. One can easily find the required contact information of surveyors in local yellow pages.

Handling lawyers
Special precaution should be taken while choosing a lawyer and later when utilizing her service. In Thailand, it’s much easier to set up a law practice than in UK and US. So you need select a lawyer who is recommended as an expert by someone you trust. While working with a Thai lawyer, always give instructions in written form so that if the need arises you can refer to the document. And don’t employ a Thai lawyer on hourly basis.

Dealing with agents
Real estate agents are available in Thailand to help you invest in Thai realty market. Select someone experienced who can work well with you and can deal on your behalf with other agents if required. Don’t forget to check your agent’s work permit and also verify which organization s/he is a member of.

More Benefits of Real Estate Investing

People frequently claim that investing in Real Estate is an extremely easy way to make profits.
That may be true, in a way.
With a decent amount of sweat equity and a reasonable financial investment, properties may be bought and sold for a nice portion of money, and the future will still look very bright. However, easier is hardly equal to easy, and you may have to cross many barriers before you can experience the benefits of real estate investing.
Possibly the biggest obstacle to succeeding in real estate investing for those who are just beginning is that it has a rather steep learning curve. Regardless of where one lives, Real Estate investing is a multi-faceted business, and one stands to lose a lot of money faster than one can say ’stock market crash’ if one hasn’t done the homework on this subject. Thus, to make things easier, here are some facts to think about when beginning.

Financial planning is the most important thing you can do. Instead of running head first to invest your money, it would prove smart to invest your time into doing some research beforehand.
Proper financial planning depends on thinking about what your goals are and what you wish to achieve in any specified time frame. The key is to be realistic. When the prices for homes have been on the rise and show no slowing any time soon, that is easier said than done. Real estate values may go down and when they do it is usually a very big drop, so thinking ahead can help insure you reap the benefits of real estate investing.
Part of your plan should be to know how much capital you’ve got to invest. This will differ, depending on what funds you will use as your first investment.

For example, if you have less than $10,000 to start with you will need to think about buying a fixer upper or even use your own home to get you started. Some banks might lend you money for a secondary property with little out of pocket expenses to you, but you must have excellent credit in order from them to consider this. Also, the market would have to appreciate quickly, and you would have to sell quickly in order to make a good profit.

Such investments may prove risky and have legal ramifications. Another approach is to make higher monthly payments and spend more on home repairs, but this too is very risky and might backfire. The end result could be a disastrous one, as you will be held legally accountable not only for your initial investment, but also for any additional expenses that you have incurred.
Knowing how much risk you are willing to take is a crucial part of the plan. This depends on your own personal preferences. Some investors may favor security over higher profits while others lean towards quickly maximizing their return even though the stakes might be much higher. It is important to know your own tolerance and comfort level for risk before entering into the real estate investment market.

Investing in the real estate market is a great opportunity, now more than ever! As an investor you will be involved in the oldest and most solid investments in history. You can make extra money or you can make a full time living.

You must consider making friends with lenders and securing contracts. You must deal with insurance, legal, and tax issues including rights requirements and consequences. If you are still interested then good for you! You may be well on your way to reaping the benefits of real estate investing!

6 Benefits of Real Estate Investing

Real estate investing involves a lot of work and research. However, there are numerous benefits to enjoy as a result of all this work.

1: Successful investing creates multiple streams of income. You can purchase a property and hold on to it. One of the more lucrative scenarios includes bringing in renters. Another way to create income is from flipping: buy a property, perform a rehab and sell it for a profit. Savvy investors are making huge profits right now by simply buying rundown homes.

2: Tax Shelter and Deductible Benefits. Real estate investing offers significant tax shelter and deduction advantages. Interest paid on mortgages is deductible as are the profits from a Roth IRA if you use one to handle your real estate investments.

3: Profit. There is an enormous earning potential from investing in real estate. The current market is ripe for rehabbing and flipping. Even at a conservative estimate, a real estate investor could stand to bring in 30% or 40% profit.

4: Portfolio Diversity. Diversifying your portfolio is a safe way to secure your profits. This way when one of your investments isn’t working out, there are other, stronger investments to carry you until things even out. Investing in real estate is a great way to diversify.

5: Continuous Income. If you choose to rehab a property, you can choose to hold on to it and rent it out. This is a great option for individuals who are retired and are looking for ways to supplement their income.

6: Appreciation. Real estate has a natural way of increasing in value – even if the only thing you do is mow the lawn. This is because real estate traditionally appreciates at an annual rate of 9%.

So, real estate will always offer profitable opportunities - these benefits prove that it is one of the safest investment vehicles around.

Dubai likely to house 90,000 new housing units in 2 years

Dubai property market will see the advent of about 90,000 new housing units over the next two years, despite the global economic turmoil.

Nearly 32,000 new housing units were completed in 2008, touching the total number of residential stock in Dubai to 253,000.

The Jones Lang LaSalle Report, however, mentions that construction delays and project cancellations will reduce the total announced residential supply by more than 50 percent. About more than half of the announced residential and commercial projects due for completion, during the two years, have been halted or cancelled, due to lack of available funding and ease of demand.

Even top developers, including Nakheel and Meraas have either rescheduled or cancelled few of their major projects. Since the last quarter of 2008, there has been a drop in prices and rentals, by up to 50 percent, depending on the area.

Prices are expected to plummet further ,for residential properties, throughout the year, hitting the bottom at 2010, said Craig Plumb. In the meanwhile, the Managing Director of Memon Investments, Ahmad Shaikhani, had mentioned that he expects UAE property sector to spring back to normalcy within next 8 to 12 months, due to the fall in construction costs.

The report agrees for the need for increased financing options, and the need for implementation of few 'radical measures' by the government, such as removing the link between residency status and employment, clarification of law regarding residency for expatriate buyers of housing units. Such measure may be required to help the market emerge stronger.

Several people are opting to rent out, rather than to buy, as the people are hesitant to buy in a declining market. "It is like catching a falling knife. Nobody knows when the market will stabilize, so it is hard to predict the bottom," Plumb concludes.

Dubai Real Estate

Dubai.. a great place to live! The Dubai Properties and Real Estate Blog is a resource center for property investors. You will find a wealth of information on topics including property selling, buying, rentals, real estate agents, Dubai housing market updates, mortgages / home loans, Dubayy freehold properties, relocating, Dubai real estate investing, trends, financial analyst, Middle East real estate news and professional reviews. Find property buy and sale information for all of UAE including Abu Dhabi, Sharjah, Ras Al Khaima, Ajman and Umm Al Quain.

Real Estate in England

Buying a house is very often a difficult task. It is a lengthy and complicated business, which while exciting is often fraught with stress and worry especially in Britain because it could be notoriously drawn-out business.

It is very important to known the process of home buying in England, understanding the laws and regulations in use that will help you avoid some of the most common hazards. But one the best ways to make your decisions buying a property or a home is consulting to Estate agents who will give you the best options for your needs.

Consider that Estate agents provide advice and property details to buyers, but the first thing that they do is to get the best deal for the seller, who is the agent's client. As a buyer, you are the agent's client only if you are paying the agent to find a property for you.

sure what are you buying or renting, the Estate agent can provide a written description of the property (known as property particulars) to give you an idea of what a property is like.

You may see these terms in property particulars:

  • Freehold - the seller has full ownership and the right to sell the property. Most houses are freehold;
    Leasehold - the seller has a lease on the property for a set time period. The seller can sell the remaining time on the lease but the property is actually owned by a freeholder. Most flats are leasehold.

Once you have decided for any property the next step is go and see it. If you have interested to purchase the property you will have to make an offer first through the Estate agent and this must to pass it to the seller promptly and in writing. Although the seller has accepted the offer, that do not means contract is binding. The buyer can still receiving and accepting other offers, or both you and the seller can renegotiate the price and any conditions of the sale right up to the point when contracts are exchanged or accepted. If your offer is accepted and both parts buyer and seller agree then the Estate agent will give you help and make the next procedures to complete the transaction.