If I decide to deed this property to an associate and they decide to refinance the property I gave them, will their be questions raised later on if (by chance) I am audited by the IRS? I have made NO money off the property personally. but their is value in the home. By me not selling the home will that be a red flag to the IRS???

I doubt the IRS will come after you unless you have some other reason. As long as the new owners have clear title they will be able to get refinancing

What’s Morocco like for Property Investment?
My wife and I have been looking into buying property overseas as a long term investment and I read an article in magazine that recommended Morocco as a good place to invest.

Now, my personal experiences of Morocco as a country are mixed (been there a couple of times and had an up and down time) but does anyone with experience of the country, or experience with owning property out there, have advice on the matter?

I’m specifically after advice on where in Morocco to buy and a guide on what to pay.

Thanks in advance,

John

Hi John,

Yep – Morocco is fabulous. An amazing country! I spent a week there in February and thoroughly enjoyed myself.

I would firstly like to address the ‘up and downs’. I am guessing that this was down to the ‘crazy’ nature of the country – but it really depends on where you go and who you are with. I would have been suprised if you and your wife experienced much in the way of harassment, but I am guessing that if you did, it would have been in the souks and busy ‘tourist’ areas where much of life is focused on the tourism industry.

It is worth remembering that Morocco’s industry is tourism and the country are ploughing more money into tourist, to help boost the countries economy. Also prices have increased by 15-20% per annum over the past two years.

Check out this site, for all that you need to know:

http://www.ready2invest.co.uk/investments-and-opportunities/morocco.aspx

This site has some great investments, buying off plan (before they are built) so you can get them at a discounted rate.

Morocco is also only 3 hours by plane and although in Africa is not as culturally or environmentally daunting as Ghana etc.

The country is going to go from strength to strength as far as the economy and they are welcoming tourism in a big way.

My suggestion would be to utilise the resources on the Ready2Invest site, which will give you all the information that you could need and some contacts.

Good luck – let me know how you get on. I might be your first customer

Alex

also I don’t work but my spouse does and I have the better score between us. I would like to buy a 27,000 house with value of 103,222 and rehab it.

This is a maybe; I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.

Facts
- Conveniently located, the property is just a short 15 minutes drive to Sydney CBD and a short 8 minute drive from Sydney Airport via the M5 motorway
- Sales evidence in Estate of $689,000
- New market sales from $615,000
- Valuation confirmed from $575,000
- Buy from PRE exclusively in the next 14 days for $540,380*(Exclusive price for PRE Clients ONLY)

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Tips for construction of an investment property and what to consider to attract good tenants

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Slovenia property investment may not be as popular as many other well known property investment locations, but savvy investors are buying and making great capital gains, in one of the top markets for capital growth in the world.

With prices starting at just $50,000 and capital growth in excess of 30% per annum combined with the potential for significant rental income, it no wonder more investors than ever are looking at Slovenia property investment.

Capital growth potential

Investors in Slovenian property are currently enjoying capital gains of up to 30% per annum and this growth looks set to continue.

In the next decade capital growth was forecast at 278% by property specialist program “A place in the Sun” which has increased interest from property investors around the world.

Why Slovenia is hot

Since attaining independence from Yugoslavia and joining the EU, Slovenia has seen strong economic growth.

Tourism has been the fastest-growing sector of the economy and this has enabled it to produce the highest GDP of the new EU members.

Slovenia has become popular due to its variety of scenery; good infrastructure and a variety of airlines now offer cheap, frequent flights – making it easy and inexpensive to get to.

Natural Beauty

Slovenia is located between Austria, Italy, Hungary and Croatia and while a small country, it is beautiful and has something for everyone.

Slovenia features forests, vineyards, snow capped mountains, a beautiful stretch of Mediterranean coastline and some great baroque architecture.

Slovenia has a beautiful capital – Ljubljana.

The city has been described as a smaller and less crowed Prague and comes with stunning architecture.

A booming economy

Slovenia’s accession to the EU saw big changes in the economy, as Slovenia opened its doors to overseas property buyers.

Strong growth in GDP has been mirrored by growth in Slovenian property prices.

The capital Ljubljana offers the best returns on investment, with prices predicted to continue rising by around 30% per annum for many years to come.

The limited supply of housing and restrictions on land development are the main driving forces behind this growth.

The economic expansion in the capital which will see rentals soar – giving “buy to let” investors significant income, as well as capital growth potential.

Primorska on the Adriatic coast and the mountain district of Gorenjska are the next most expensive places to buy in Slovenia.

If you are interested in Slovenian property and cant afford these areas there are plenty more to choose from, as this is a market in its early stages of development and offers better risk to reward than the more mature markets that surround it.

Slovenia has a wide range of property investments to suit all tastes and budgets.

Property for sale in Slovenia with good capital growth potential can be bought from under $50,000 in many areas.

You can invest in ski apartments in areas such as the Julian Mountains, or in traditional country houses near the vineyards or finally, in the expanding urban areas.

In Conclusion, Slovenia Offers property investors:

A great opportunity to invest in a stable and growing EU member.

Slovenian property investment offers above average capital growth potential combined with significant rental income from “the buy to let” areas and finally, being an emerging market it’s highly affordable.

In part 2 of this article you will find some of the best new emerging destinations to buy in and also an in-depth look at the buying process.

Discover more about Slovenia and Slovenian property investment and see how it could change your financial future.

Sacha Tarkovsky
http://www.articlesbase.com/real-estate-articles/slovenia-property-investment-one-of-top-10-world-property-investment-countries-139481.html

When investing in property, take care to structure your finances correctly or you could find yourself in a worse financial situation than where you started, especially in times of stagnant or declining property prices.

Example

Take Bob and Sarah Smith as an example. After 10 years of running their own small businesses, they are both now working full time, Bob as a clerk, earning $60,000 (Aust.) and Sarah as a cashier, earning $20,000 (Aust.). Being employed full time gave them the time and impetus to consider property investing.

Their first purchase was a 2 bedroom apartment in the outskirts of town. They borrowed $313,000 against the property which was valued at $303,000, using their own home as additional security. It is rented out at $240 (Aust.) per week.

Their second property was an “off the plan” purchase which wasn’t due for completion for 2 years. They paid the 10% deposit up front by way of a personal loan at the advice of an inexperienced broker.

Both their initial home loan and the loan on their first investment property had been set up incorrectly as Principal and Interest loans over 25 years. Adding the personal loan and a credit card debt to these meant that their outgoings were huge, compared to their income and the loans they were servicing. They were headed for a financial disaster when the time came to settle on the second property. To add to the mix Mrs Smith and her daughter wanted to buy into a small franchise and draw on the equity in their home.

Original Scenario

DESCRIPTION Original Valuation Value of loan Interest Rate Repayments/month

Own home $380,000 $220,000 6.9% $1,547

Property 1 $303,000 $313,000 6.9% $2,198

Property 2 $283,000 (deposit) $28,800 11.5% $637

Credit Cards $15,000 16% $450

TOTAL $576,000 $4,832

Result

Bob and Sarah were facing four possible options if they retained the above loan structure:

1. Being forced to sell the second investment property upon settlement as they couldn’t cope with the repayments.

2. Not be able to obtain finance or even settle the second property and losing their deposit and the $27,000 capital gain.

3. If they had kept going as they were and managed to settle the second property they may have started defaulting on loan repayments and paid more interest through the debt consolidation process by having to apply for a bad credit loan.*

4. Work harder and more hours to cope with the additional financial stress of an additional $1743 per month of outgoings.

Restructuring Issues

In the process of restructuring their portfolio there were a number of issues to consider:

1. There had been a recent interest rate rise and another imminent. Not only did this add to the size of their repayments but also negatively impacted the valuations on their own home and the first investment property, dropping $55,000 and $13,000 in value respectively. The second investment property increased in value by $27,000. This pushed the loan to value ratio (LVR) above 80%.

2. Sarah and her daughter’s intention to purchase the franchise business.

3. Limited incomes to service the loans.

New Scenario

DESCRIPTION New Valuation Value of loan Interest Rate Repayments/month

Own Home $325,000 $235,000 7.29% $1,427

Property 1 $290,000 $338,000 7.29% $2,053

Property 2 $310,000 $279,000 7.5% $1,743

TOTAL $925,000 $825,000 $5,223

Note:

Credit card debts were consolidated into the loan on their own home increasing it from $220,000 to $235,000.

The $28,000 personal loan for the deposit on the second investment property was consolidated to the investment side of the loan on the first property increasing it from $313,000 to $338,000 (the personal loan had reduced over the 2 years from approx $28,000 to $25,000).

These loan figures did not have Mortgage Insurance (LMI) premiums included. The premium was approx. $15,000 and the total LMI was capitalised to the investment portion of the loans. This allowed for tax effective structuring, (established in conjunction with accountant’s advice).

The second investment property was put to a different lender as this lender was able to lend against the recent valuation of the property, not the original purchase price.

New Result

The end result was Bob and Sarah settled on the second investment property with only a $400 per month increase in total outgoings. This was more than offset by a rental return on this property of $1213.00 per month.

Sarah obtained an unsecured business loan to buy the franchise. This eliminated $30,000 from being included in the calculations meaning Bob and Sarah were left with their portfolio being completely property related, apart from the consolidation of the credit cards.

* If you have defaulted on repayments this could have a negative affect on your credit rating. There are many websites that will provide a free credit report so you can assess your situation.

Colin Kidd, is the CEO of The Loan Saver Network a financial services company specialising in helping families who have been turned down by the banks.

Colin Kidd
http://www.articlesbase.com/real-estate-articles/restructuring-for-investment-success-80712.html

Once you have purchased your first home, your next investment should be an income-producing real estate. Income properties aren’t just limited to single-family homes; it can be commercial property as well. Some investors prefer shopping centers, others warehouses. The possibilities are endless.

There are many tax benefits involved in owning your own home. The pride in owning your own property is unequaled. Such homes can be a single-family home, mobile home, condominium, apartment, or even a houseboat.

A basic rule of investing in income property is to never buy for the tax benefits alone. If a property isn’t sound without the tax benefits, chances are it’s not a wise investment. The tax breaks involved in owning income property should be viewed only as an added bonus. These bonuses are a major enough reason for buying income property rather than vacant land. A vacant lot offers almost no tax benefits, and produces little or no income.

Many real estate investors depend on resale profits as another bonus of investing in real estate. Properties that won’t make a return on your investment aren’t worth your time and effort.

Investors are property owners who contribute something to the property such as great management, physical improvements, or cash so someone else can use the property for their benefit. Investors tend to have reasonable property management policies which are fair to tenants. They also have expert financing techniques to use other people’s money to purchase and improve a property. All investors have use of ownership tax aspect to maximize their return on investment.

Real estate helps many investors realize their goals. Some goals include increased cash income, a hedge against inflation, providing a job from owning and maintaining property, opening up profit opportunities through real estate.

One of real estate’s major attractions is its ability to shelter the owner’s ordinary income, such as salary, from income taxes. A profitable example of this is an apartment building that produces rent money from tenants. The property owner uses that money towards operating expenses such as taxes, repairs, utilities, water, and insurance on the property. After you calculate all of these costs, plus mortgage interest, you are left with a positive or negative cash flow from your investment.

Don’t forget about the non-cash tax deduction for the buildings depreciation. Income tax depreciation is a bookkeeping estimate for wear and tear. It requires no cash payment to be entitled to this deduction.

Tax-deferred exchanges are a great way to avoid depreciation recapture and profit taxation when disposing of one property and recapturing another.

In fact the 1981 Tax Act’s anti-churning provisions state clearly that if you make a tax-deferred exchange of business or investment real estate for another such property, your old basis and its old depreciation methods carry over to the newly acquired property. The new fifteen-year, 175 percent accelerated depreciation methods can only be used on the increased depreciable basis of the property acquired in the exchange.

Investment tax credit doesn’t apply to personal property acquired by most real estate investors for use in their properties; however it does apply to vehicles.

Joe And Colleen Lane
http://www.articlesbase.com/home-improvement-articles/real-estate-income-property-a-super-smart-investment-87256.html

I want to buy a new property for more room (family expanding) but I would also like to keep the one I own (condo 1bd/1bath) as an investment for years to come. As of now, I would taking a hundred to 2 hundred dollar loss each month. I also plan on refinancing the current place to hopefully break even. How hard is it to get approved and is there anything I should do before I start trying to make the move? Thanks in advance. use full links are welcomed too!!!!

First ensure the HOA allows rentals. Then you need to search for a commercial lender. You will not get a conventional mortgage on a rental. You also need to get a new insurance policy. Everything for the condo is based on you living there
You still need your down payment for the next place.

The house is a beautiful Georgian terraced ground floor flat (actually a maisonette – bought for £250K last year). We have a fair-sized garden (about 42sq.m.), but only half of it gets the sun. The part of the garden next to the house is not dark, but does not get direct sunlight until the evening. Essentially, we do not use that bit of garden for anything. We have thought of adding a conservatory, which will measure about 7m x 2.5m. We appreciate the need to get it done properly, and expect to spend around £15K to £20K. Is it worth it? We don’t think we’ll be there for very long. It is more of an investment property than anything else. Any advice?

I doubt it will increase the value of your property by 15 to 25 grand. It all depends how long you plan to stay there – you would certainly enjoy it if you were going to be there a few years but I wouldnt do it to increase the property value.