Published by Allan 1 year, 1 month ago
in Housing and Investments.
Wow! That’s what Richard Branson gets for his island in the caribbean called Necker island. I guess you wouldn’t have to rent it out for very long to get your invetment back. But that’s not the only place the wealthy are dropping big bucks. An article by Maya Roney of Business Week Magazine says it’s not that uncommon for wealthy renters to drop $20,000 a month for the right apartment. Now, I don’t know about you, but I can’t see where spending $20K a month has advantage over buying. I don’t really see a tax advantage or anything else. Maybe that’s why I don’t have $20K to spend on rent.
If you want to expand your horizons by seeing what the other one tenth of one percent is doing with their money, click here.
Published by Allan 1 year, 2 months ago
in Housing and Investments.
Forbes has done a piece on the predicted recovery rates in some major markets. At the end of the article is a chart predicting when the recovery will start and how much rebound is expected. The most interesting thing I noticed was the way recoveries occur. They talk about a “V” shaped recovery, where there is a sharp decline, followed by a sharp upturn, with very little time spent in the trough. Then there is a “U” shaped recovery, with a sharp decline, followed by a more significant time on the bottom, and then a fairly sharp upturn. Finally, there the “L” shaped pattern, where things drop sharply and stay down.
This article talks about recoveries that started in 2006 and are well on their way. It also talks about markets that won’t start their recovery until 2009. This one is worth the read. Click here to get the full story.
Published by Allan 1 year, 2 months ago
in Finance and Investments.
Almost nothing occurs in a vacuum, and that’s certainly true of the foreclosure situation mortgage lenders are facing. While there are those who say, “Too bad for the mortgage industry. Good thing I stayed in the stock market,” the truth is that this situation will affect all of our economy. If you don’t understand completely how the mortgage industry can affect the stock market (and vice versa) you need to click here and read the article by Jim Jubak of MSN Money. This piece gives a clear explanation of how and why things interact the way they do. This is a must read!
In a related story, Reuters is reporting that the dollar is at a 26 year low against the pound sterling, based largely on the mortgage crisis. You can read that story here.
Published by Allan 1 year, 3 months ago
in Housing, Real Estate, Construction and Investments.
Ocean-front property is at a premium, mainly because there’s so little of it. Well, a finite amount of beach didn’t stop developers in Dubai, the capital of the oil-rich middle-eastern country of United Arab Emirates. They simply decided where they wanted to be, and created more beach — a lot more. Their development idea was to build up the land in the existing ocean by dumping millions of yards of sand, creating and island in the shape of a palm tree. Each branch of the palm has two rows of homes (back to back) each facing the ocean. The result is an island that will one day be home to an estimated one million people. To read the story, and see the photos of the island, click here.
Published by Allan 1 year, 3 months ago
in Housing, Real Estate and Investments.
With a strong economy, and more disposable income than a generation ago, many people are investing in a vacation home. Is it a good investment? That depends — on several things. What is your motive? Are you trying to save money on vacations? Are you looking at retiring there in a few years? Are you hoping the market will strengthen so you can re-sell? The answer to those questions will help you decide if a vacation home might be right for you.
Then, there’s a second set of questions. How much will you really be able to use the place? Do you think you might want to use it as a rental when you’re not there? Are you prepared for being an absentee landlord, with all the challenges that come with that?
To help you decide whether a second home might be a good investment for you, MSN has done a piece on owning a vacation home. It is insightfully written and will cause you to examine thoroughly your motives. If you have considered a second home, I’d say you owe it to yourself to click here and take the quiz. It might just save you a lot of grief and a lot of money.
