The Powertool Shed

A newcomer to the world of investments in the notion of “Virtual Real Estate Investing“. There are many variations on what this term means, encompassing everything from using the internet to aid in real estate investing efforts to participating in online games such as SecondLife.

To separate fact from fiction, I asked Bryan Ellis for comments. He’s the man many consider to be the father of this new form of investing.

When I began using the term virtual real estate investing in the late 1990s, I did so because I saw clear parallels between the strategies used for profiting from physical real estate and those that would create income in the online world, said Ellis.

An example of the similar nature of “virtual” and “physical” real estate Bryan Ellis likes to point out is the methods of making a profit from domain names compared to physical real estate. “There’s a huge difference between a website and a piece of real estate, but the ways you can profit from them are similar: ‘flipping’, rental/leasing, advertising sales, etc…all of these apply to both markets” he states.

I must admit: Its easy to see the parallels. Consider: A valuable piece of real estate is valuable largely due to the interest that other people have in that specific location. Similarly, ownership of a desirable domain name is valuable for the same reasons. In either case, you could sell or lease the asset and turn it into cash.

In our next installment of this series on virtual real estate investing, Bryan Ellis will share the internet analogies to the physical concept of real estate development.

As the price of home heating oil, natural gas, electricity and other forms of energy continue to rise, many concerned people are burying their heads in the sand. Some homeowners however are turning to the installation of the solar power equipment that will allow them to channel the energy of the sun to provide energy for their needs.

When fuel prices were low, it was often difficult to justify the upfront investment of cash required to install photovoltaic equipment, 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.

But that was then. 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 about £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.

Encouragement for our governments is now forthcoming. 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.

Any homeowner considering the installation of a solar system should be sure to check with his or her state and city to determine what types of tax breaks are available. It’s sensible to look into what help your local authorities are willing to provide. Just Google it to find out what help is available to you.

Breakeven point for your outlay may seem far away at today’s prices - but what about at tomorrow’s? However, as the prices for heating oil, gas and other forms of traditional energy continue to soar, so too will the desire for energy freedom.

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

You’ve undoubtedly heard or seen ads for mortgages with very low interest rates such as 1.75%. For example, one mortgage company in the city where I live is advertising a 40-year mortgage with a 1.75% interest rate. That sounds like a pretty good deal, doesn’t it? After all, if you were to buy a house for $250,000 with this rate, your payment (not including taxes and insurance) would be only $632 a month.

Maybe this mortgage would be a good deal for you. But before you leap to the phone or fill out an application, make sure you understand how these mortgages work.

They are called option ARMs. This is because they offer four options from which you must choose: minimum monthly payment, interest-only payment, full principle and interest amortized over 30 years, and full principle and interest amortized over 15 years.

If you choose the minimum payment option, which is at the advertised 1.75% interest rate, you pay nothing towards the principle and less interest than what accrues on the loan. The unpaid interest is added to the loan balance, and you become subject to what’s known as negative amortization.

In other words, as you make the minimum payment, your loan balance will continue to grow. And, if interest rates go up, which they are most likely to do, your loan balance will grow even faster, to a point. For example, depending on your loan, when your balance reaches a level, such as 110%, 115% or 125% of the original balance, the loan is “recast,” and your minimum payment goes up.

There are two dangers to the minimum payment option. The first is that the lower the “teaser” rate (usually 1.75%), the higher the potential increase in monthly payments if the interest rate goes up, as it most certainly will.

The second danger is that you could literally end up owing more than your house is worth, In fact, one economist recently said “They are a lot more dangerous (than an interest only loan) because the borrower is giving away part of his equity, sometimes unknowingly.”

For example, on a $250,000 mortgage if the balance reached 115% due to negative amortization, the total mortgage would then be $230,000.

It’s difficult to compare a minimum payment option ARM with a five-year fixed rate, interest only loan because pf the differences between the two. However, for the sake of the example, the payment on a $250,000 minimum payment option ARM the first year could be as low as $632. However, because of negative amortization, the balance owed on your mortgage could grow to $210,000 or more by the end of the second year.

In comparison, a 5-year, fixed rate, interest only loan on that same $250,000 at 5.50%, would have a monthly payment of $1145.83. This payment would remain the same for all 60 months (five years) and the balance of your loan would still be $250,000.

So, what lesson is to be learned here? It is that option ARMs can save you money but can be very complex. You need to fully understand what you are doing before you sign up for one. Your loan documents will disclose the risks, so read everything carefully. The documents may have to tell the truth, but marketing materials can be misleading. So read, read, read and if there is anything that isn’t clear, make your mortgage broker explain it until you are certain you understand all the details.

Have you heard about HD radio technology? It makes AM sound as good as FM and FM sound almost like you were listening to a CD … and its free! To learn more about this amazing new technology, just go my Web site, http://www.hd-radio-home.com, to get all the buzz. Douglas Hanna is a retired marketing executive and the author of numerous articles on HD radio and family finances.

Land investors from all over the world are looking to invest in land for sale in England and many are making more than 400% in less than 5 years.

You don’t need to be rich to get involved

Land investment is inexpensive and you can start with just $10,000.

Land for sale in England though offers even more advantages.

Buying land for sale in England for profit is simple

With plenty of companies available to give expert advice on land for sale in England in the best locations, and offering buy back options from the developers and its no wonder more investors than ever are looking at investing in land in England.

Average growth of 920% over 20 years

Average growth has been 920% in 20 years. The important point to stress is, this is an average and buyers buying land plots for sale in England in the right location, have made far bigger gains.

Not only does this boom in land for sale in England look set to continue gains could be even bigger in the years ahead.

The boom in English land looks set to continue

Here are the factors that will continue to see land prices rise:

1. 3,500,000 new homes are needed over the next 15 years rising to 4,500,000 new homes are needed over the next 20 years.

2. 90% of towns in the UK are at present unaffordable for 1st time buyers.

3. The UK is the second most densely populated country in Europe and has a fast rising migrant population as well as more and more people choosing to live alone as the marriage rate declines.

4. The UK suffers from some of the oldest housing stock in Europe and a huge shortage of affordable
and mid priced housing which the government is looking to fill

5. Over the last 30 years the demand for new homes has increased by more than 30%, in the same period house building has dropped by more than 50%.

6. Since 1997, the UK Government has increased the average number of new homes built per hectare from 25 to 40 and this trend looks set to continue.

Buying land its all about LOCATION

When buying land for sale in England you need to focus on the right land in teh right location.

There are three types of land:

1. Brownfield land: Generally found within urban areas - land that has had a previous use such as residential, industrial or commercial.

2. Greenbelt Land Green belt forms a buffer zone around urban areas.

3. Open Countryside: Are areas of open country free of development and therefore free of economies capable of supporting development.

Which land is best to buy?

The UK Government figures suggest that a record 70% of all new building is on brown field land.

This figure is seen as unsustainable, to continue to build on brownfield land at current levels will lead to overcrowding in cities and put burdens urban infrastructures and services in these areas.

While opportunities exist in brownfield land, greenbelt land for sale in England for investors who want make big gains quickly are focusing on greenbelt land.

How to BIG make gains quickly

When buying land for sale in England it is important to focus on the potential fro the land being granted planning permission.

Once land has been granted planning permission for development it will soar in value and investors can sell their plots and bank a significant profit.

Expert help and guaranteed buyers

There are plenty of specialist land banking companies that will help investors buy in land for sale in England in the right location to make gains quickly.

You don’t have to tie up your money either, as most land companies offer buy back options from developers to give investors liquidity.

High returns & low risk

Buying land for sale in England, offers investors great capital gains, small initial investments, great capital growth rates, low drawdowns and liquidity.

In fact, for speculators land offers the perfect investment to help them get rich, so discover buying land in England and get in on what is the perfect investment.

More information

For more information on land for sale in England and how you can make huge returns quickly, request your free infopac without any cost or obligation:

http://www.lpgroupinternational.com

You should be able to find several indispensable facts about adjustable rate mortgages in the following paragraphs. If there’s at least one fact you didn’t know before, imagine the difference it might make in your financial well being.

Choosing the right mortgage involves knowing how mortgage rates work. Mortgage rates are affected by several factors. One of them is the type of mortgage consumers take.

There are two types of mortgages available in the market. The first one is a fixed rate mortgage, where the rates are set for the duration of the loan term. The second one is the adjustable rate mortgage.

In an adjustable rate mortgage, the interest rate periodically changes. Interest rates in adjustable rate mortgages may either increase or decrease, depending on how prime rates are changing. This ability of adjustable rate mortgages may lead customers to get cheap interest rates, allowing them to save more on their monthly repayments. On the other hand, adjustable rate mortgages may also work the other way around. Interest rates in adjustable rate mortgages may increase when prime rates of lending companies also increase.

Because of the complexities involved, adjustable rate mortgages are usually restricted to savvy investor types who wish to pay less so that they could channel their extra funds on other investments. If the low interest rates remain steady, adjustable rate mortgages could be inexpensive. This is also why some homebuyers who are more enterprising than others take to adjustable rate mortgages.

How Do Adjustable Rate Mortgages Work?

Adjustable rate mortgages have very low interest rates at the start of a specified loan period. The interest rates of adjustable rate mortgages are even lower when compared to 15- and 30-year mortgages. This is the primary reason why homebuyers prefer adjustable rate mortgages.

The information about adjustable rate mortgage presented here will do one of two things. Either it will reinforce what you know about adjustable rate mortgage or it will teach you something new. Both are to your advantage when considering these type of mortgages.

Adjustable rate mortgages may involve varying monthly payments over a period of time. Because interest rates of adjustable rate mortgages may either rise or fall, it is therefore advisable that only those who are financially secure should get an adjustable rate mortgage.

Cheap rates of adjustable rate mortgages may only last for a specified time period, after which, the monthly payments may increase or decrease. Interest rates of adjustable rate mortgages are changed on a regular basis based on a pre-selected index. There are several kinds of indices used for adjustable rate mortgages. The most common is the yield on the one-year Treasury bill.

Adjustable rate mortgages may have new interest rates which are calculated by adding the index to a set margin determined by the lender. Inexpensive rates are available in adjustable rate mortgage programs for one, three, give, seven, and ten years. The most common adjustable rate mortgage is the 1-year program. This type of adjustable rate mortgages has a low interest rate for a fixed period of one year but after which, it is adjusted to suit the index and set margin.

The interest rates of adjustable rate mortgages are not adjusted every month. On the contrary, interest rates of adjustable rate mortgages are changed regularly every year or every three years. A six-month adjustable rate mortgage is difficult to handle and should only be accepted if the adjustments are stated clearly in the loan agreement.

Adjustable rate mortgages may be converted into fixed rates if it is essential. Adjustable rate mortgages are also assumable mortgages. This means that an adjustable rate mortgage may be transferred to new buyer who would assume the same terms of the said mortgage. The new buyer would have to qualify for the adjustable rate mortgage before he can assume it.

As your knowledge about adjustable rate mortgages continue to grow, you will begin to see how you may be able to take advantage of these type of loans. Just be sure to read and educate yourself with the facts first.

Dean Shainin is a consultant specializing in home loans, strategies for loan financing, home equity loans, and consolidation loan information. To see a list of recommended loan companies, tools, resources, free quotes and articles, visit this site =>http://www.homemortgageloantips.com

Get free valuable online tips for saving money from his: Home Mortgage website.

When someone decides to buy a house, one of the first tasks is to talk to a lender and determine the maximum loan they can get. The max loan will determine the cap on house prices for that the buyer. There’s lots of calculators out there that will help determine this.

But what if you want to have a certain payment per month and you want to know what the max house price would be for that payment? For example, you are renting at $800 per month right now, and you could deal with a couple hundred more per month to be able to have ownership. So, you want to know what house price would be equal to paying $1000 per month.

Well, you still take into consideration a lot of familiar items: 1) Your down payment, which is how much cash you will put down on the property up front. The rest of the sales price will be the loan amount. 2) The number of years the loan will be amortized over. 3) The interest rate for the loan. 4) The tax rate of the area where your property is located. 5) And the insurance rate.

The difference is that you take into account the $1000 monthly payment you want to make and go towards figuring out the house price, rather than the vice versa. This calculator ( http://www.escapesomewhere.com/cgi-bin/real_estate_calculator_html.pl?view=house_payment ) helps you figure out where your ideal house price would be.

Setting your monthly limit first rather than your price maximum puts your home purchase in perspective with your daily life. You know you spend a certain amount on rent, so it’s a good starting point to figure out what price of house you could own by investing the rent you are paying someone else.

If houses in your area are more expensive than what your rent allows, you can work your way up figuring out how much more you can spare per month to raise your house price. There are of course benefits to home ownership like mortgage interest deductions and possible appreciation, but that is a topic for another article… For now, get started thinking about what payments you can comfortably pay per month.

Ki Gray
http://www.escapesomewhere.com
House Price Calculator Link