Things The Rich Do Every Day That The Poor Don't!
February 28, 2013
By Thomas Corley
"My name is Tom Corley. I am the author of Rich Habits - The Daily Success Habits of Wealthy Individuals (www.RichHabits.net). I spent 5 years studying the daily activities of 233 wealthy people and 128 poor people. What I discovered was that wealthy people have vastly different daily habits than poor people. In fact, I tracked 140 daily activities that separate the wealthy from the poor and in this article I will highlight 20 of these activities. These Rich Habits are the financial equivalent of the Holy Grail. Because there is no research like this of any kind, these discoveries are revolutionary and will challenge everything you thought you knew about becoming wealthy......
Read entire Article here...
10 best places to buy a vacation home
May 27, 2013
By MarketWatch
The economy is improving, banks are beginning to ease standards for lending, and mortgage rates are near their record lows. These factors are making it easier for Americans to wade into the real estate market again. For those who can afford it, even vacation property, either as a second home or as an investment to rent out, is increasingly in high demand. Based on data provided by real estate listing service Trulia, 24/7 Wall St. reviewed the 10 most searched places for vacation homes on Trulia’s website between April 2012 and March 2013. A place was considered a vacation area if 25% of the housing stock was used seasonally or occasionally, as measured by the U.S. Census Bureau. 24/7 Wall St. looked at the median asking price in the area, also provided by Trulia. These are the most popular towns in which to buy a vacation home.........
Read entire Article here...
2012 Vacation Home Sales Up, Investment Dips but Stays Elevated, Prices Rise
April 2, 2013By National Association of Realtors®
WASHINGTON (April 2, 2013) – Vacation home sales improved in 2012, while investment purchases remained elevated for a second consecutive year, according to the National Association of Realtors®.
NAR’s 2013 Investment and Vacation Home Buyers Survey,* covering existing- and new-home transactions in 2012, shows vacation-home sales rose 10.1 percent to 553,000 from 502,000 in 2011. Investment-home sales declined 2.1 percent to 1.21 million from 1.23 million in 2011, but those sales had been well under a million during the market downturn. Owner-occupied purchases jumped 17.4 percent to 3.27 million last year from 2.79 million in 2011..........
Read entire Article here...
5 Tips for Buying the Right Vacation Home
24 Jun 2013By: Dolly Lenz, CNBC Contributor
Speaking from my own experience, owning a vacation home can be a rewarding experience—both personally and financially. I purchased my first vacation home when my children were very young because I wanted a place for them to spend summers and the holidays as they were growing up. Born and raised in bustling New York City, I wanted them to experience nature, fresh air and freedom to roam.
They're all grown up now and on their own but the memories of wonderful times spent there are priceless. Whatever your reason for wanting a vacation home, here's what you need to know before you take the plunge...........
Read entire Article here...
How to invest in vacation rental properties
May 15, 2013
By Simon Campbell
Renting out vacation property can be a fun way to supplement your income and provide a fun experience to others on vacation. To buy and rent out vacation property you must first lay out your plan of action, anticipating variables along the way. Let’s look at some ways to make the most out of your vacation rental property investment........
Read entire Article here...
Considering a vacation rental property
September 29, 2013|
By Ilyce Glink & Samuel Tamkin
Real Estate Matters, Tribune Media Services
Q: I am trying to figure out if the numbers would make sense for my wife and me to buy a vacation rental house near our home.........
Read entire Article here...
Rental Property: A Great Retirement Vehicle
Posted on May 10, 2012
by Bill Cook
When Kim and I were in our thirties, we knew we needed to start preparing for our retirement years. We both had family and friends who were in their mid-sixties and had to keep working because they couldn’t afford to retire. (Social Security is no substitute for a retirement plan!)..................
Read entire Article here...
BUILDING GENERATIONAL WEALTH, PROPERTY BY PROPERTY
12/11/2012
People invest for an array of reasons, but chief among them is the desire to secure comfortable and stable futures for their families. Wealth secured for future generations—one’s children and children’s children—is known as “generational wealth,” and it allows one to shape the quality of the educational, economic, and social opportunities available to future generations. Building generational wealth, however, takes prudent and careful investing. For many, real estate is an enticing investment option for its unique and lucrative benefits such as cash flow, appreciation, and leverage.
Unlike other investments, such as stocks, bonds and CDs, where quick returns are rare or nonexistent, the returns from a real estate investment property are immediate, steady and build wealth over time. In real estate, it’s called cash flow, the return on investment in the form of rent after the mortgage and expenses have been paid. Today’s market provides incredible investment opportunities with great cash flow potential. In fact, rent prices increased 5.1% nationwide from 2011 to 20121, while interest rates and the median existing home sales price remained low, providing investors with even greater cash flow returns.
While one should always invest for cash flow, appreciation is still a very lucrative benefit of real estate and an incredible opportunity for investors looking to secure long-term, generational wealth. The real estate market has long operated in cycles of rapid and slow appreciation, and even with the recent fluctuation in the housing market, median home prices have still risen at a rate of 5.2% every year when adjusted for inflation. That means a home purchased in 1969 for $21,800 (which was the median sales price that year), would have been worth $172,900 at the end of 2010.
With real estate, investors also maximize the power of their investment dollars by leveraging their money. Generally speaking, leverage is any technique that increases gains. In real estate, an investor leverages her investment dollars as a down payment for a property, so as the property appreciates, she earns money on the full value of the property, not just the original payment.
For example, if you leverage $20,000 as a down payment on a $100,000 property, as the property appreciates, you’re earning a return on the full $100,000, rather than just the $20,000 invested. Leveraging this way allows an investor to get as much as four to five times the buying power of each dollar.
Considering all the advantages, real estate is one of the best investment vehicles for building generational wealth. However, when considering investing in real estate, it is crucial that you partner with an agent who has the knowledge, experience and tools to find the property that suits your specific needs and goals.
By investing carefully and for the long-term, you can build a financial legacy and ensure that future generations of your family have secure, comfortable futures and increased opportunities available to them.
SECURE YOUR FUTURE—INVEST IN REAL ESTATE
6/25/2012
There are a number of reports and studies circulating on the internet and in the media about Americans’ lack of retirement planning. A survey conducted by LIMRA, a financial services trade association, showed that approximately 49 percent of Americans say they aren’t contributing to any retirement plan.1 While this trend isn’t exactly new, it’s still a concern considering that retiree health care costs have increased an average 6 percent a year since 2002, according to a study by Fidelity Investments.2 Additionally, according to a new Gallup survey, Americans’ expected retirement age has increased from 60 to 67 over the last decade and a half.3
It’s clear that saving for retirement has become more important than ever, but many pre-retirees wrongly assume that when they reach 65, Medicare will be able to cover most of their health care expenses. Unfortunately, this just isn’t the case, and many Americans are forced to continue working past age 65.4
Of those who are saving for retirement, the vast majority invest their money with banks, brokerage firms, mutual fund companies and insurance companies. The reality is that investing in real estate can give you a much greater return on investment (ROI) because it factors in a unique type of return: cash flow. Cash flow is an immediate return and adds significantly to a property’s overall ROI. For example, the S&P 500 Index from 2000-2011 decreased 23.8 percent. If you were to invest $100,000 dollars in a rental property during the same time period, however, the cash flow you would receive (based on Census Bureau average rent prices) would provide an ROI of 101.8 percent.5
When you consider appreciation rates, real estate has shown less volatility than the S&P 500 Index over the last 40+ years. Real estate has only had 4 years of negative appreciation, the result of our recent housing collapse. The S&P 500, on the other hand, has had 11 years of negative appreciation.6
Real estate investments perform better than bonds and certificates of deposit (CDs) as well. The average bond yield from 2000-2011 is 4.22 percent.7 The average yield of a 6-month CD from the same time period is even less at 2.84 percent.8 Despite the housing market crash, the median sales price of existing homes from those same years, 2000-2011, increased 19.2 percent.9
Unfortunately, many people have shied away from investing in real estate because of the housing market’s activity in recent years. Savvy investors, however, have taken advantage of the new opportunities and continue to find great deals. Many have even invested their retirement funds in real estate and are slated for a secure, comfortable future, while building generational wealth. The little known self-directed IRA option allows for this, and as its name implies, allows the investor to direct his or her investment account activity—real estate included!
In times of increasing retirement living costs and widespread retirement planning oversight, it pays to research your options and take control of your finances—and secure your future.
1 CNNMoney (http://money.cnn.com/2012/05/10/retirement/saving-retire/index.htm)
2 USA Today (http://www.usatoday.com/money/perfi/retirement/story/2012-05-09/rising-retirement-health-care-costs/54863320/1)
3 Gallup (http://www.gallup.com/poll/154178/expected-retirement-age.aspx)
4 USA Today (http://www.usatoday.com/money/perfi/retirement/story/2012-05-09/rising-retirement-health-care-costs/54863320/1)
5 MSN (http://investing.money.msn.com/investments/market-index/?symbol=%24inx)
6 Ibid
7 Federal Reserve (http://www.federalreserve.gov/releases/h15/data.htm)
8 Ibid
9 HUD Historical Data (http://www.huduser.org/portal/periodicals/ushmc/ushmc.html)
February 28, 2013
By Thomas Corley
"My name is Tom Corley. I am the author of Rich Habits - The Daily Success Habits of Wealthy Individuals (www.RichHabits.net). I spent 5 years studying the daily activities of 233 wealthy people and 128 poor people. What I discovered was that wealthy people have vastly different daily habits than poor people. In fact, I tracked 140 daily activities that separate the wealthy from the poor and in this article I will highlight 20 of these activities. These Rich Habits are the financial equivalent of the Holy Grail. Because there is no research like this of any kind, these discoveries are revolutionary and will challenge everything you thought you knew about becoming wealthy......
Read entire Article here...
10 best places to buy a vacation home
May 27, 2013
By MarketWatch
The economy is improving, banks are beginning to ease standards for lending, and mortgage rates are near their record lows. These factors are making it easier for Americans to wade into the real estate market again. For those who can afford it, even vacation property, either as a second home or as an investment to rent out, is increasingly in high demand. Based on data provided by real estate listing service Trulia, 24/7 Wall St. reviewed the 10 most searched places for vacation homes on Trulia’s website between April 2012 and March 2013. A place was considered a vacation area if 25% of the housing stock was used seasonally or occasionally, as measured by the U.S. Census Bureau. 24/7 Wall St. looked at the median asking price in the area, also provided by Trulia. These are the most popular towns in which to buy a vacation home.........
Read entire Article here...
2012 Vacation Home Sales Up, Investment Dips but Stays Elevated, Prices Rise
April 2, 2013By National Association of Realtors®
WASHINGTON (April 2, 2013) – Vacation home sales improved in 2012, while investment purchases remained elevated for a second consecutive year, according to the National Association of Realtors®.
NAR’s 2013 Investment and Vacation Home Buyers Survey,* covering existing- and new-home transactions in 2012, shows vacation-home sales rose 10.1 percent to 553,000 from 502,000 in 2011. Investment-home sales declined 2.1 percent to 1.21 million from 1.23 million in 2011, but those sales had been well under a million during the market downturn. Owner-occupied purchases jumped 17.4 percent to 3.27 million last year from 2.79 million in 2011..........
Read entire Article here...
5 Tips for Buying the Right Vacation Home
24 Jun 2013By: Dolly Lenz, CNBC Contributor
Speaking from my own experience, owning a vacation home can be a rewarding experience—both personally and financially. I purchased my first vacation home when my children were very young because I wanted a place for them to spend summers and the holidays as they were growing up. Born and raised in bustling New York City, I wanted them to experience nature, fresh air and freedom to roam.
They're all grown up now and on their own but the memories of wonderful times spent there are priceless. Whatever your reason for wanting a vacation home, here's what you need to know before you take the plunge...........
Read entire Article here...
How to invest in vacation rental properties
May 15, 2013
By Simon Campbell
Renting out vacation property can be a fun way to supplement your income and provide a fun experience to others on vacation. To buy and rent out vacation property you must first lay out your plan of action, anticipating variables along the way. Let’s look at some ways to make the most out of your vacation rental property investment........
Read entire Article here...
Considering a vacation rental property
September 29, 2013|
By Ilyce Glink & Samuel Tamkin
Real Estate Matters, Tribune Media Services
Q: I am trying to figure out if the numbers would make sense for my wife and me to buy a vacation rental house near our home.........
Read entire Article here...
Rental Property: A Great Retirement Vehicle
Posted on May 10, 2012
by Bill Cook
When Kim and I were in our thirties, we knew we needed to start preparing for our retirement years. We both had family and friends who were in their mid-sixties and had to keep working because they couldn’t afford to retire. (Social Security is no substitute for a retirement plan!)..................
Read entire Article here...
BUILDING GENERATIONAL WEALTH, PROPERTY BY PROPERTY
12/11/2012
People invest for an array of reasons, but chief among them is the desire to secure comfortable and stable futures for their families. Wealth secured for future generations—one’s children and children’s children—is known as “generational wealth,” and it allows one to shape the quality of the educational, economic, and social opportunities available to future generations. Building generational wealth, however, takes prudent and careful investing. For many, real estate is an enticing investment option for its unique and lucrative benefits such as cash flow, appreciation, and leverage.
Unlike other investments, such as stocks, bonds and CDs, where quick returns are rare or nonexistent, the returns from a real estate investment property are immediate, steady and build wealth over time. In real estate, it’s called cash flow, the return on investment in the form of rent after the mortgage and expenses have been paid. Today’s market provides incredible investment opportunities with great cash flow potential. In fact, rent prices increased 5.1% nationwide from 2011 to 20121, while interest rates and the median existing home sales price remained low, providing investors with even greater cash flow returns.
While one should always invest for cash flow, appreciation is still a very lucrative benefit of real estate and an incredible opportunity for investors looking to secure long-term, generational wealth. The real estate market has long operated in cycles of rapid and slow appreciation, and even with the recent fluctuation in the housing market, median home prices have still risen at a rate of 5.2% every year when adjusted for inflation. That means a home purchased in 1969 for $21,800 (which was the median sales price that year), would have been worth $172,900 at the end of 2010.
With real estate, investors also maximize the power of their investment dollars by leveraging their money. Generally speaking, leverage is any technique that increases gains. In real estate, an investor leverages her investment dollars as a down payment for a property, so as the property appreciates, she earns money on the full value of the property, not just the original payment.
For example, if you leverage $20,000 as a down payment on a $100,000 property, as the property appreciates, you’re earning a return on the full $100,000, rather than just the $20,000 invested. Leveraging this way allows an investor to get as much as four to five times the buying power of each dollar.
Considering all the advantages, real estate is one of the best investment vehicles for building generational wealth. However, when considering investing in real estate, it is crucial that you partner with an agent who has the knowledge, experience and tools to find the property that suits your specific needs and goals.
By investing carefully and for the long-term, you can build a financial legacy and ensure that future generations of your family have secure, comfortable futures and increased opportunities available to them.
SECURE YOUR FUTURE—INVEST IN REAL ESTATE
6/25/2012
There are a number of reports and studies circulating on the internet and in the media about Americans’ lack of retirement planning. A survey conducted by LIMRA, a financial services trade association, showed that approximately 49 percent of Americans say they aren’t contributing to any retirement plan.1 While this trend isn’t exactly new, it’s still a concern considering that retiree health care costs have increased an average 6 percent a year since 2002, according to a study by Fidelity Investments.2 Additionally, according to a new Gallup survey, Americans’ expected retirement age has increased from 60 to 67 over the last decade and a half.3
It’s clear that saving for retirement has become more important than ever, but many pre-retirees wrongly assume that when they reach 65, Medicare will be able to cover most of their health care expenses. Unfortunately, this just isn’t the case, and many Americans are forced to continue working past age 65.4
Of those who are saving for retirement, the vast majority invest their money with banks, brokerage firms, mutual fund companies and insurance companies. The reality is that investing in real estate can give you a much greater return on investment (ROI) because it factors in a unique type of return: cash flow. Cash flow is an immediate return and adds significantly to a property’s overall ROI. For example, the S&P 500 Index from 2000-2011 decreased 23.8 percent. If you were to invest $100,000 dollars in a rental property during the same time period, however, the cash flow you would receive (based on Census Bureau average rent prices) would provide an ROI of 101.8 percent.5
When you consider appreciation rates, real estate has shown less volatility than the S&P 500 Index over the last 40+ years. Real estate has only had 4 years of negative appreciation, the result of our recent housing collapse. The S&P 500, on the other hand, has had 11 years of negative appreciation.6
Real estate investments perform better than bonds and certificates of deposit (CDs) as well. The average bond yield from 2000-2011 is 4.22 percent.7 The average yield of a 6-month CD from the same time period is even less at 2.84 percent.8 Despite the housing market crash, the median sales price of existing homes from those same years, 2000-2011, increased 19.2 percent.9
Unfortunately, many people have shied away from investing in real estate because of the housing market’s activity in recent years. Savvy investors, however, have taken advantage of the new opportunities and continue to find great deals. Many have even invested their retirement funds in real estate and are slated for a secure, comfortable future, while building generational wealth. The little known self-directed IRA option allows for this, and as its name implies, allows the investor to direct his or her investment account activity—real estate included!
In times of increasing retirement living costs and widespread retirement planning oversight, it pays to research your options and take control of your finances—and secure your future.
1 CNNMoney (http://money.cnn.com/2012/05/10/retirement/saving-retire/index.htm)
2 USA Today (http://www.usatoday.com/money/perfi/retirement/story/2012-05-09/rising-retirement-health-care-costs/54863320/1)
3 Gallup (http://www.gallup.com/poll/154178/expected-retirement-age.aspx)
4 USA Today (http://www.usatoday.com/money/perfi/retirement/story/2012-05-09/rising-retirement-health-care-costs/54863320/1)
5 MSN (http://investing.money.msn.com/investments/market-index/?symbol=%24inx)
6 Ibid
7 Federal Reserve (http://www.federalreserve.gov/releases/h15/data.htm)
8 Ibid
9 HUD Historical Data (http://www.huduser.org/portal/periodicals/ushmc/ushmc.html)
Please contact me for turn-key investment and management services of positive cash-flow properties at the shore!
Fabian E. Kulynych, P.E.
609-575-4335
fabbeachhouses@gmail.com
Fabian E. Kulynych, P.E.
609-575-4335
fabbeachhouses@gmail.com
