Property Taxes - A Quandry

According to the New York Times, real estate taxpayers in several states, including Florida and New Jersey, are looking for ways to reform the way those taxes are levied. The common complaint is that the amount levied and how it is determined is unfair, resulting in taxes that are too high. We all want services and government benefits but hate paying for them. Citizens complain to elected officials, who enact reforms and laws and, for the most part, make matters worse. Florida serves as a case in point.

There is no personal income tax in Florida so revenue that the state and localities collect is from sales taxes, real estate taxes and use fees. Fifteen years ago, people were complaining that they were being driven from their homes due to rising property taxes. The solution was the "Save Our Homes" amendment to the Florida state constitution which limited the annual amount that actual property taxes could increase to the CPI or 3%, whichever is less. This applied to residents who were living in their homes full time and had filed the necessary paperwork to qualify for the homestead exemption. Part time residents, businesses and renters could not take advantage of this provision.

Further, whenever there was a sale of a home, the new owner was assessed on approximately 75% of the price he/she paid. For example, if I buy 905 East 5th Street for $400,000, my taxes will be based on an assessed valuation of $300,000. If the mill rate is 1.3% then my real estate taxes for the year after I buy and take occupancy would be $3900. If I am a full time resident, then my taxes will be capped at that number with yearly increments of never more than 3%.

Several years go by, and 903 East 5th Street, a house identical to mine, is sold for $800,000. My new neighbors assessed valuation is will be $600,000. To allow for an ease in comparison, let's assume that there has been no increase in inflation or any need to raise the mill rate due to government spending. Under this scenario, I would be paying the same $3900 and my new neighbor would be paying $7800. But, if the owner of 903 East 5th Street is only a part time resident, he/she would also be ineligible for the cap. If, in several years, the market value goes to $1,000,000, he/she would now be paying on an assessed value of $750,000, resulting in taxes of $9750.

The "fix" did what it was intended to do. It did allow people to remain in their homes even when the home increased substantially in value because property taxes for those residents remained artificially low. The problems that the state is having now are directly attributable to the consequences of the "Save Our Homes" amendment. Existing residents, especially the elderly, are penalized for moving. If a couple who has owned a large home for many years decides to downsize to a smaller home or a condo, their new tax bill is likely to be higher than what they were paying for their larger home. This will occur because the property tax advantage for homesteaded Florida residents is not portable to their new home. The new property taxes will be based on 75% of the market value of the new residence and then capped going forward from the purchase date of that home. And, a young couple just starting out can't buy a house -- not because they can't afford a mortgage but because they cannot afford the real estate taxes.

Second home buyers are now looking in other states because they can no longer afford to have a part time Florida home that costs more than their full time residences to maintain. Businesses and renters are being forced to pay outrageous rents because of the inequitable way real estate taxes are calculated. Further, local governments have no incentives to limit spending since the amount of any increase spending is borne by the non-voting real estate owners.

The Florida governor and legislature are debating all types of complicated schemes and ideas to keep this system afloat. Swap the tax on homesteaded properties for an increase in the sales tax. Portability of the assessed amount from property to property in the state or within an existing county. Roll back local government spending to 2006 or 2004 or 2000 levels with percentage increases for the future. The politicians are proposing everything but a common sense solution.

Florida should once again begin assessing all property within the state by the value of the asset alone. Real estate taxes are supposed to be "ad valorem" taxes. This concept goes back thousands of years. Real estate is assessed and its value is taxed equally. It doesn't matter if the owner is old, young, rich or poor. The state could, however, provide some relief for low-income residents. For example, Florida could keep a $25,000 exemption for full time residents. This means that their assessed valuations would be reduced by $25,000. If you meet certain economic guidelines, you could receive further exemptions which would decrease the amount of tax owed. However, anything more than the initial exemption given to all residents should be needs tested -- not based on age or veteran status or being a widow. There are many wealthy widows, seniors and veterans that do not need the help.

While taxes certainly would rise for those in residence the longest, it will result in lower tax bills for the vast majority of real estate tax payers. Further, by making all voting residents fully responsible for the spending of their elected officials, government budgets will be more closely monitored.

Sometimes the easiest fixes are the best. Simplicity has its own rewards.

Risk Management in Residential Real Estate Investing

Have you seen some of the profits people are making from residential real estate investing and you are interested as well? If that is the case then you need to do your homework up front and learn all there is to learn about risk management in order to make sure you are making a good investment. Taking a real estate investing seminar is always an excellent idea because it will educate you on the basics of investing and help you make good decisions. Most everyone who has made a lot of money in real estate investing has taken a real estate investing program and you should follow their lead if you want to do the same.

What is most important when it comes to residential real estate investing is that you know how to manage your risk. There are potential problems that could arise and if you don't have a strong plan in place and know what you are going to do then you could face major financial loss. However when you make a plan and account for all potential problems then you will likely be able to overcome them and make money despite them.

One of the first things you should consider when it comes to risk management is financing. You need to know up front what type of risk you are willing to take and how much you can afford. You need to know if you have enough money coming in to support the money going out. That includes rental income as well as property expenses. There are lots of property expenses including maintenance, taxes, repair, insurance, and of course mortgage payments. When you add all these numbers up you need to have at least that amount coming in or else you might have some financial problems. Don't make the mistake of just subtracting your mortgage payment from your rental income because you will really lose in the long run.

Another important thing to consider what commercial property is right for you. You must consider what you are good at as well as your time commitment is before investing. For example, if you have enough money to invest in an apartment complex with 10 apartments but you simply don't have enough time to devote to managing the complex and its tenants then perhaps you should consider a duplex. This is just a suggestion to help you manage your risk when investing.

There are a lot of risks when it comes to investing and a lot of ways to minimize them. You just have to sit down and make a plan and consider all the angles before investing to ensure you have reduced your risk as much as possible.

Savings Account Calculator Variables You Need To Know

It does not take one having psychic capabilities to see that our global market is progressing towards greater technology. The ease of online banking as well as its low overhead is creating more banking institutional options online. One such option is the internet savings accounts.

While savings account calculators are a great financial tool, there are many that create variables in the results presented.

The first variable that needs description relates to how much money will be invested including the starting amount and any additional contributions over time. The initial deposited amount or starting balance entered in a savings account calculator describes the amount first invested or saved.

Additional contributions describe the amount of money that is to be added to the savings account over a defined amount of time. Savings account calculators that use additional contributions as an option when calculating the final amount of money earned typically assume that the additional contributions will be added at the beginning of the stated period.

The second variable that needs to be defined is the amount of time that the investment will be earning interest in the account.

The rate of return is the third variable of interest when using a savings account calculator. The rate of return is influenced by the unique annual interest-bearing rate associated with the account.

A fourth variable that is highly controversial and differs from account to account addresses the issue of compounding interest. If offered, compounding interest can rapidly build the balance of the account over time, generating much more money earned that previously thought. Knowing the rate of compounding is essential knowledge to have when using a savings account calculator because it helps to accurately predict how much interest will be gained or given to a consumer over a certain amount of time.

In the case of savings account calculator, years is the total number of years that a person plans to make savings or the investment. Using a savings account calculator can help estimate gains on an investment based on the initial investment, the period of time saving, and the annual percentage yield.
Thus, the savings account calculator demonstrates to a person how exactly his savings strategy would work and how he can make the best use of it. The savings account calculator can always be found at the websites of financial institutions or banks etc.

Using a savings account calculator can be a helpful tool when comparing rates of different financial institutions to find the most lucrative source for maximum savings contributions.

While you are doing a research on savings account calculator, try to get to the essence of what you are trying to find out. It is true of mundane areas as well. As you search for information about this subject, try and reach the best value, definitions and clarity.

Check the links below for more information on Savings Account Calculator and other related information.

Online Tax Filing - How Do I Know It's For Me?

Online Tax Filing - How Do I Know It's For Me?

There are many benefits to filing your taxes online, especially speed. Filing online will allow you to get your tax refund in as little as 10 days. There are also numerous tax software programs that can help get you through the process of filing your return. You can file your 1040 tax form, plus with electronic tax filing, it's very low cost or even free. When it comes time to actually fill in all the boxes on a return to send to the IRS, one of the best tax filing tips is to use one of these tax perparation programs to keep track of everything. Developed for do-it-yourself taxpayers like you, these software programs prepare both your federal and state tax returns, often including FREE e-filing. Plus, they may offer the option of paying your online tax filing fee with PayPal, as well.

What's So Great About Filing Online?

Online filing eliminates the need for going through the tiring steps of rushing to the local IRS offices and post offices and waiting in never ending lines to mail the documents before the due date. Online tax filing has also reduced the time gap prior to receiving your tax refund, and papers can be printed on demand to maintain precise records for future reference. Online tax filing also facilitates tax payments using credit cards, which can give additional bonuses such as free travel points. Online income tax filing is generally free if individuals file tax returns themselves, and millions of people file taxes online each year. It's easy with so many online tax filing software applications to choose from. One statistic states that during the first quarter, nearly 39 percent of respondents to a survey said they planned to file their federal taxes online this year, up from 37 percent last year and approximately 28 percent three years ago.

What's This Free File Program All About?

The IRS has partnered with 19 tax software companies for what's called the Free File program. The Free File program is free for qualifying taxpayers to prepare and electronically file their federal income taxes. The software programs available to complete the returns are much easier to use than they used to be, and they can keep you from making simple mistakes. Such programs often include helpful tax-filing hints based on the information you enter, and most tax preparation software companies have updated their programs to account for the deductions and necessary notations that change every year. The costs of these tax filing programs vary, depending on what program you use, and many programs offer extra audit protection for a fee, though it's not quite the same as going to an accountant.

The Bottom Dollar About Electronic Tax Filing...

There are many free tax filing options available with varying eligibility requirements. Why not join the millions of people who have discovered how easy online tax filing can be? Instead of hiring an accountant, give online tax filing a try this year.

Cannot Afford The Whole Tax Amount, Pay Back Taxes In Installments

Worried about being unable to pay taxes in full after filling in your return? Never resort to the option of not filing your return at all. Whatever the problem file your return and inform the IRS about your inability to pay your taxes as lump sum. There is an option as far as Federal taxes are concerned you can request the IRS to accept the back taxes as EMI, or equated monthly installments. In the case of state taxes, you will have to determine whether the state allows this option. Or, you will have to make arrangements to pay state taxes in full.

Here is what you can do:

• Complete the tax return and sign it.

• Get a Form 9465, Installment Agreement Request if you owe taxes up to USD 25,000 or less. And, if you owe more than USD 25,000 in taxes you need Form 433F. See: http://www.irs.gov/businesses/small/article/0,,id=108347,00.html . There is also an option to complete the agreement online if you owe USD 25,000 or less as taxes.

• Complete the requisite form accurately.

• Be sure to enter details like the form number used, the assessment year or tax year, and the amount of tax owed.

• Write a check for the amount you can afford to pay and establish that you do intend to pay the taxes.

• Calculate the maxium amount you can pay each month. Include penalties, interest, and any other charges the IRS may levy. Try and pay back in the shortest possible time and within one year.

• Commit to the exact day in which the money will reach the IRS each month. There is the option of instructing your bank to pay the amount to the IRS every month automatically.

• Make sure the form is signed and dated . In case it is a joint filing both spouses must sign the agreement.

• Attach the form on top of the income tax return.

• Send in or submit the form online.

It is important never to miss a payment. Send in the money even if you do not receive a statement from the IRS. If you delay or miss a payment, the agreement will be immediately terminated by the IRS.

If you are in deep trouble and there is no way you can pay the taxes even in installments you must consider an "offer in compromise". To do this you will need the help of a tax attorney or CPA. The tax professional must be experienced in handling tax debt matters. He or she must be able to negotiate the most feasible terms with the IRS. It is important that the person you consult has in depth knowledge of the laws governing the IRS, laws concerning tax debt, laws specific to the place you reside in, and how the IRS evaluates installment payment requests.

This option for tax payers is quite recent and came into practice only in January, 2005.

Vanishing Low Interest Rates and Sioux Falls, South Dakota

Many often wonder why their credit card bill comes to you from the likes of Sioux Falls in South Dakota. This is because the state of South Dakota is the home of many large credit card issuers who naturally take advantage of the state's lack of concern in credit card consumer protection laws. Also this may be due in part to a lack of a state corporate income taxes. Still, the state of South Dakota benefits greatly from the jobs and revenues generated by these businesses. There are many financial service companies located in South Dakota including Great Western Bank, Total Card Inc., BankFirst, Capital Card Services, HSBC, PREMIER Bankcard, and Wells Fargo.

Credit card fees over the years recently have skyrocketed from $2.6 billion in 1980 to over $22.5 billion in 2006. The kicker that has most ticked off consumer advocates is a practice called "universal default". In this sytem when you find yourself late paying the bill, the card company might raise your interest rate to something that is well over 20 percent. There have been many criticisms of this structure including the concept of one lender charging a higher price when their customer defaults with another lender has been compared to having a cartel, or price fixing structure. A major concern to many folks is the possibility that the credit card shown as being in a state of default may not simply be so. It very well could be the result of an error on the part of the credit card issuer. In cases such as this, the consumer may have full legal rights to have their credit report corrected to reflect the truth of the matter, the credit card issuers are under no obligation to revert the interest rate back to what it was before the mistake occured. It simply goes without saying that this sort of position leaves many credit card holders in a state not unlike that of anger. Simply put, this is not right.

Over the last few years there have been several attempts by concerned congressmen to simply have the practice of universal default outlawed. One such congressman was Sen. Chris Dodd, D-Conn. Yet, many credit card firms are some of the largest contributors to the various political parties. So seeking changes that will only benefit the rank and file noncontributing citizenry is not something that our congress is most famous for. It can be argued that in Washington money talks, as subtle corruption has been a part of legislative procedure for years. "I've never been able to get a bill passed of any major significance because they're so big and so influential," says Dodd.

The American Bankers Association, a free-trade and professional association that advocates issues deemed important by the banking industry in the United States has systematically been on the front of protecting the practice of universal default via it's Political Action Committees which use lobbyists to work for laws that are advantageous for the banking industry.

What Will An Individual Retirement Account Do For You?

You've been working for a while now, and the people where you work keep talking about these ira things. What are iras, and how will an individual retirement account benefit you now and in the future? Well, I've given you a partial answer already, an ira is an individual retirement account, which is something you set up through your employer, and make contributions to ready for your retirement. These contributions may help you now, but they will certainly help you in your retirement years. We shall take a brief look now into how this is possible.

First of all, any contributions made to your individual retirement account are made before you receive you wages, and are made with pre- tax dollars. This means that you will pay less tax each month you make a contribution. (There is an exception to this, of course, and that is a Roth IRA, in which you do pay tax on your contributions so that when retirement comes you have funds that you do not have to pay tax on.) If you are just above a tax bracket, this could move your rate down to a lower bracket.

However, the bigger benefit is that you will have some funds for when you retire. I don't think that many people nowadays think they will be able to live a good life just on Social Security payments that they receive when they retire. These payments are just not going to do much for your retirement plans. However, if you open an individual retirement account while you are young and make regular contributions, this account will grow at a good rate, just from your input alone, never mind the investment income.

Investment income, what's that all about? When your funds are placed in that individual retirement account, they do not sit idle, they are invested into stocks, bonds or mutual funds so that the funds will grow faster. The extra amount you receive is an unknown of course depending on how well the investments do, and you can have some say in this. If you prefer to invest in low risk stocks or bonds, this can be done on your behalf. Many companies prefer to offer a diverse portfolio, which means they do not invest in only one stock or bond, they prefer to invest in many, so that the risk from any one stock doing badly will be reduced, hopefully, by at least one stock doing well. In other words, not all your eggs are in the one basket, and since you definitely will want these funds for retirement, this is probably the route you will want to go with too.

Now, you should know that once you have funds in an individual retirement account, it is not easy to withdraw funds. In fact, you will be penalized by 10% for doing this. However, if you suddenly discover you are in extreme financial hardship, then you can get access to your funds. What are these hardships? If you are suddenly disabled and unable to work, or you need funds to pay for the funeral of a loved one, or... Well, there are a few more situations when you can access your funds, but there is a lot more information in the website listed below. Needless to say, it is far better that you contribute as much as possible to your individual retirement account so that you have financial choices for your retirement.

Can a individual retirement account invest in real estate. Certainly, provided it is set up properly to begin with. There are some rules and regulations you need to be aware of first though, but I am not able to cover this here. It's all in my website.

So to summarize, you need to open an individual retirement account as soon as you can, to give the account chance to grow substantially before you need the funds for your retirement. Those funds will appreciate in value, and hopefully will give you enough money for you to enjoy your retirement in a happy and fulfilling way.

Buy Slovakian Property – For Outstanding Investment Returns & Low Risk

Buying property in Slovakia offers excellent returns coupled with low risk.

Savvy investors are snapping up property in the capital Bratislava and other property hot spots and making excellent long term gains.

Buying Slovakian property is cheap and being an emerging market, it offers far better risk to reward than many other popular property investment destinations.

There are a number of reasons to consider investing in Slovakia.

1. EU Membership

Slovakia joined the EU in 2004.

EU legislation ensures political and economic stability that inspires confidence for people to invest in the Slovakian Property market.

It guarantees EU citizens legal rights to all investors and there no restrictions on buying property in Slovakia for EU citizens.

This is not the case in many other new member states, where foreign investors have to form a company in order to buy property and get approval from local authorities.

2. Excellent Location

Slovakia has an excellent location at the hear of Europe and has borders with:

Austria, Czech Republic, Poland and Hungary and the Ukraine.

The capital Bratislava is the most obvious location for foreign investors wanting to buy investment property in Slovakia.

Bratislava is centrally located and is close to the 3 major capitals however property prices are significantly cheaper.

Bratislava is just 30 miles from Vienna, around 2 hours from Budapest and 3 hours from Prague.

Prices in Bratislava are far cheaper than in Prague or Budapest and the city has charming baroque architecture and a lively cosmopolitan atmosphere.

The city offers prices in the best areas from just $60,000 and offers excellent potential for those property investors looking for capital growth, or income from "the buy to let market"

Bratislava property growth will be a by product of the economic expansion of the country and the outlook for the Slovak Republic is rosy.

3. Economic growth

The property market is linked of course to economic prosperity and now Slovakia is established in the EU, Many companies are re locating their operations to Slovakia. to take advantage of the lowest labor
costs in the EU.

GDP was is in excess of 8%, for 2006 2006 and a similar level of growth forecast for 2007.

Slovakia has made numerous changes to foster economic growth.

These reforms have made the country much more attractive for foreign property investors.

For example, the auto industry in Slovakia is now emerging as the highest producer of cars per capita in the World.

Another area of expansion is in tourism.

Slovakia lags behind neighboring countries such as Hungary and the Czech Republic, but the country is affordable and beautiful.

It offers lively towns, rolling hills, forests and snow capped mountains.

Buying property in the Slovakian countryside outside of Bratislava is cheaper, but potential for growth is excellent.

The mountainous regions of the country make excellent affordable second homes and are great to tap into the lucrative "buy to let" market for the growing skinning industry.

The ski resorts are popular with foreign buyers in around Ruzomberok in the central Velka Fatra range, Jasna in the Low Tatras and also the towns of the high Tatras - Zilina and Poprad.

Buying property in Slovakia – An emerging market with potential

The Slovakian property investment market is new, affordable and offers good solid long term gains.

For those investors looking for solid growth over the medium terms with low risk. - Slovakia property investment has a lot to offer.

Japan Current Account Surplus Widens to Record (Update4)

Japan's current account surplus widened to a record in March, as exports to Asia and Europe helped counter slower growth in shipments to the U.S.

The surplus expanded 36.9 percent to 3.32 trillion yen ($28 billion) from a year earlier, the Ministry of Finance said in Tokyo today, more than the 2.95 trillion yen median estimate of 28 economists surveyed by Bloomberg News.

Today's report supports comments made this month by Asian finance ministers that growth in India and China will help the region withstand a slowdown in the U.S. and Europe. Japan's exports to China, which overtook the U.S. as its largest trade partner last year, surged 15 percent to a record in March.

``Strong growth in Asia proves Japan's economy can withstand a U.S. slowdown,'' said Mamoru Yamazaki, chief Japan economist at RBS Securities Japan Ltd. in Tokyo. ``The current account surplus will keep expanding as exports and overseas investments remain solid.''

The yen traded at 120.19 per dollar at 1:37 p.m. in Tokyo compared with 120.11 before the report. The Nikkei 225 Stock Average rose 1 percent, led by exporters such as Sony Corp.

The trade surplus surged 62.1 percent, the fastest pace in three years, to a record, the Finance Ministry said.

Exports rose 9.6 percent, as a weaker yen increased the value of shipments. Japan's currency has fallen 8.5 percent against the dollar and 13 percent per euro in the past 12 months.

Weaker Yen

``Yen depreciation has been a major support for Japanese corporations and, together with gradually strengthening domestic demand, is helping to underpin Japan's economic expansion,'' said Takuji Aida, chief Japan economist at Barclays Capital in Tokyo.

Imports fell 1 percent, the first drop in three years, as oil prices were lower than a year earlier and Japan received fewer shipments from countries that observe the Lunar New Year.

The current account tracks the flow of goods, services and investment income between Japan and its trading partners. It includes trade not shown in the customs-cleared trade balance, which the Finance Ministry also compiles.

Exports to China and Europe rose to a record in March on a customs-cleared basis, the ministry said last month. Shipments to Europe climbed 14 percent, while those to the U.S., Japan's largest export market, rose 2.4 percent, the slowest pace in two years.

The U.S. slowdown will probably begin to bite more later this year. Toyota Motor Corp. last week forecast the smallest profit gain in a decade because of waning demand in the U.S.

Income Surplus

The income surplus, or the difference between money earned abroad and payments made to foreign workers and investors in Japan, increased 13.2 percent to a record in March, today's report showed.

Revenue from direct investment rose to a record as Japanese companies' overseas units distributed dividends at home at the end of the fiscal year, Masami Oka, special officer for balance of payments, said at a press briefing today.

``Companies are investing overseas because of a low interest rate in Japan,'' said Noriaki Haseyama, an economist at Dai-Ichi Life Research in Tokyo. Revenue from foreign equities, bonds and debt securities accounts for about 80 percent of the income gap.

The Bank of Japan will keep the overnight lending rate at 0.5 percent at a two-day meeting ending on May 17, according to the median estimate of all 48 economists surveyed by Bloomberg News. The key rate is the lowest among major economies.

Japan's wholesale inflation accelerated in April as the cost of oil and other commodities rose, the Bank of Japan said today. An index of energy and raw materials prices paid by companies climbed 2.2 percent in April from a year earlier after increasing 2 percent in March, the Bank of Japan said.

Bank of Japan

``We are starting to see signs that price pressures are slowly emerging,'' said Seiji Adachi, a senior economist at Deutsche Securities Inc. in Tokyo. ``There aren't any major hurdles for the Bank of Japan to raise rates. They will probably move in August or September.''

The current account surplus rose to a record in the 12 months ended March 31, a fifth straight year of gains, the Finance Ministry said. The income surplus exceeded the trade surplus for a second year.

``Japan's economy depends more on revenues from overseas investment than earnings from exports,'' RBS's Yamazaki said.

To contact the reporter on this story Toru Fujioka in Tokyo at

Profitable Real Property Market

Real estate market finds tremendous changes over the period with advancement and improvements in the real estate market. Nowadays more number of sellers and buyers finds good entrance and exit for their real estate property. More number of properties is listed in the market for sale for a reasonable price consideration. Today, real estate market satisfies the needs and requirements of their buyers and sellers. When a real estate property is listed for sale by the seller, then he should sell the real property for a reasonable price consideration with profit. This way, the buyer should also buy the property from the market for a fair consideration. Real estate market fetches profit for both the buyer and seller of the real property.

When the real estate property fetch profit to the buyer and seller, then only the real estate transaction made is said to be profitable. To fetch profit for the real estate property, the real estate market is found out. Without any profit, the real estate transaction will not be valuable. With the advancement of technology, more number of seller and buyers are coming forward to buy and sell the property in the market. Nowadays, trends have been changed and people started realizing the need for the real estate property and market. Though the real estate market finds frequent fluctuations, real estate markets also finds good demand for the real properties listed. The main reason for this fluctuation is that, real estate properties are sold for good price consideration in the market.

When a real estate deal takes place for the properties, either the seller or the buyer will obtain profit for the real property. This way either the buyer or the seller obtains profit for the real estate property sold. When real estate property is list out with adequate and relevant information regarding the property, then the seller can sell the real property with hassle free. Nowadays, real estate investing finds a good demand in the market and more people tend to invest in real estate property. When more number of people started investing in real estate investment, then surely the economy attains finite position in the market.

when real estate properties is listed for reasonable price, desired location, spaces and so on, then that particular real estate property finds a good demand in the real estate market. When real estate investing process carries on profitably, then only the buyer and seller come forward to the real estate market. Commercial and residential real estate properties are listed in the real estate market with advancement and increment in price consideration. In the real estate property market, both the buyer and seller have to fetch profit for the property bought and sold.

Canada's Flaherty Backtracks on Plan to End Corporate Tax Break

Canadian Finance Minister Jim Flaherty, pressured by companies such as Alcan Inc., backtracked on plans to scrap a corporate tax break valued at as much as C$2 billion ($1.81 billion) a year.

Flaherty told the Globe and Mail newspaper in an interview yesterday he'll narrow the scope of a pledge made in his 2007 budget to end companies' ability to deduct interest on debt that they incur to finance operations abroad.

Only companies investing through ``tax havens'' or limited- liability business structures will lose the deduction, Flaherty said, according to a transcript of the interview provided separately by the finance department. ``Most'' foreign transactions, including Thomson Corp.'s efforts to acquire Reuters Group Plc, won't be affected, he said.

``Clearly, they've addressed some important improvements,'' said Mike Murphy, executive vice president for policy at the Canadian Chamber of Commerce. The group wrote to Flaherty last month saying the tax change would cost businesses about C$2 billion annually.

Businesses said losing the right to deduct interest expenses would make it more costly to expand overseas, at a time when corporate Canada is facing a barrage of takeovers by foreign competitors. The initial proposal, part of what Flaherty says is a strategy to make corporations pay their ``fair'' share of taxes, also sparked the second clash in six months between his minority Conservative Party government and key supporters.

Overshadowed

In October, the government announced plans to tax the nation's income trusts, causing the popular, high-yield investments' value to plummet.

``This Conservative government has to make sure it doesn't convey an image that it's not pro-business,'' said Nikita Nanos, a pollster with SES Research in Ottawa. ``It undermines part of the core franchise,'' he said. ``It's going to make people question, `What's going on?'''

Flaherty, 57, also told the Globe and Mail he will extend a planned two-year grace period to five years and appoint a panel that will look at international tax issues for Canadian businesses for future budgets. Details of the plan will be released Monday in a speech to the Toronto Board of Trade.

Boost Its Fortunes

The controversy overshadowed a budget designed to boost the Conservative Party's fortunes -- ahead of a possible election later this year -- through tax breaks for families and more funding for the French-speaking province of Quebec. The party's support hasn't moved much since Flaherty released his fiscal plan on March 19, with recent polls showing Prime Minister Stephen Harper's government still wouldn't win a majority of parliamentary seats.

Opposition parties' attacks on the measure got new life this week when Alcoa Inc. said it will make a $26.9 billion takeover bid for Montreal-based Alcan, Canada's 10th-largest public company and biggest metals producer. The offer came less than two weeks after Alcan Chief Executive Officer Dick Evans told the Globe and Mail newspaper that Flaherty's tax proposal would make the company easier for foreign rivals to acquire.

The main opposition Liberal Party introduced a motion on May 10 calling on the government to repeal the tax measure.

The last significant budget reversal by a Canadian finance minister came in 2004, when Ralph Goodale repealed a decision to limit investments by pension funds in investment trusts.

To contact the reporter on this story: Theophilos Argitis in Ottawa at
.

Japan's Notes Halt Two-Week Rally on Concern Rates to Increase

Japan's five-year notes fell this week
on speculation the central bank will increase interest rates again
this year to prevent excessive investment and asset bubbles.

Notes halted a two-week rally after Bank of Japan Governor
Toshihiko Fukui yesterday said borrowing costs are ``very low''
given the economy's strength. Next week, BOJ board members will
vote on rates at a two-day policy meeting and the government will
announce figures for first-quarter economic growth.

``Fukui's comments this week made it clear that the bank
hasn't weakened its determination to increase rates,'' said
Akitsugu Bandou, a senior strategist at Okasan Securities Co. in
Tokyo, one of the 25 primary dealers that are required to bid at
government auctions. ``Selling pressure is hitting the short-dated
debt hardest and people can't get bullish about bonds.''

Yields on five-year notes, which move inversely to prices,
rose 4 basis points this week, according to Japan Bond Trading Co.,
the nation's largest interdealer debt broker.

The yield on the 1.2 percent note due in March 2012 today
declined 2 basis points to 1.225 percent. It yesterday touched
1.25 percent, the highest since April 23. Ten-year bond yields
increased 2 basis points this week to 1.645 percent. A basis point
is 0.01 percentage point.

Central Banks

``If we neglect to implement needed rate adjustments, that
may accentuate risks to the economy that may not be so prominent
otherwise,'' Fukui said at meeting of business executives in Tokyo
yesterday. The BOJ raised its target for overnight lending rates
by a quarter percentage point to 0.5 percent in February.

The Bank of Japan bank may lift rates again between July and
September, Okasan's Bandou said.

Five-year notes yesterday fell for a fifth day, the longest
decline since December, on speculation a Federal Reserve decision
this week to keep borrowing costs at a six-year high will make it
easier for the Bank of Japan to raise rates.

The spread between 10-year government bonds in Japan and the
U.S. was 296 basis points, near the average for the past year. The
gap in yields is likely to stay near 300 basis points next week as
Japan's bonds track U.S. Treasuries, said Akio Kato, an investor
in Tokyo at Kokusai Asset Management Co., which runs the world's
second-largest bond mutual fund.

Japanese benchmark bond yields had a correlation of 0.88 with
U.S. 10-year note yields in the past year, according to Bloomberg
data. A value of 1 means the two moved in lock step.

Spread Narrows

Five-year notes fell at a faster pace than did longer debt as
traders priced in the probability that rates will rise this year,
said Akio Kato, an investor in Tokyo at Kokusai Asset Management
Co., which runs the world's second-largest bond mutual fund.

The spread between five- and 10-year debt narrowed to 41.8
basis points earlier today, the tightest gap since Dec. 27,
flattening the so-called yield curve.

An index of Merrill Lynch & Co. showed bonds maturing in 10
years or longer returned 0.33 percent in the past month, while
shorter tenors returned 0.04 percent.

Ten-year yields near 1.7 percent may attract buyers, said Jun
Fukashiro, a bond fund manager in Tokyo at Toyota Asset Management
Co., which holds the equivalent of $10 billion in assets. The
yield hasn't risen above 1.7 percent since April 18.

A sale of 10-year debt on May 8 drew the highest demand since
February 2005 and a Ministry of Finance report yesterday showed
overseas investors purchased more Japanese bonds than they sold
for a third week.

Five-Year Auction

Traders may try to push up five-year yields before an auction
of the securities next week, according to Akihiko Inoue, a market
analyst in Tokyo at Mizuho Investors Securities Co.

The Ministry of Finance will sell 2 trillion yen ($16.6
billion) of the notes on May 15. Yields in pre-auction trading
yesterday suggested the ministry may set a 1.3 percent coupon, the
highest since January.

``Investors may demand higher yields before buying as the
economic figures in the coming weeks may show signs of a
recovery,'' said Inoue, whose company is one of the 25 primary
dealers that are required to bid at government auctions.

To contact the reporter on this story:
Issei Morita in Tokyo at .

Softbank Default Swaps May Drop, Morgan Stanley Says (Update2)

Investors may make more bets on the
improving finances of Softbank Corp., Japan's third-largest
mobile-phone company, by selling credit-default swaps, Morgan
Stanley Japan Securities Co. said.

Sellers of the derivatives, which provide buyers with
protection from a firm's inability to repay debt, are attracted
by a price that overstates the chance Softbank will fail to meet
its obligations, said Hidetoshi Ohashi, a Morgan Stanley credit
analyst in Tokyo. The extra yield investors demand to hold
Softbank bonds over Japanese swap rates has halved in the past
year. Spreads on Softbank credit-default swaps fell by a quarter.

Softbank said on May 8 its fourth-quarter operating profit
more than doubled, helping allay concern that it would be unable
to repay loans that funded its 1.66 trillion yen ($13.8 billion)
acquisition of Vodafone Group Plc's Japanese mobile-phone unit.
The purchase in April last year extended billionaire Masayoshi
Son's challenge to market leaders NTT DoCoMo Inc. and KDDI Corp.

``The company's earnings showed the mobile phone businesses
are doing better than anticipated,'' said Ohashi, the third-
highest-ranked credit analyst in Japan, according to a survey by
Nikkei Bonds and Financial Weekly. ``Investors are selling
Softbank CDS to earn income because cash bonds are expensive
relative to the CDS premium.''

Narrowing Spreads

Credit-default swaps based on 1 billion yen of Softbank debt
closed in Japan at 25.8 million yen from 26.3 million yen
yesterday, according to prices from JPMorgan Chase & Co. Trading
volume today between dealers was about 8 billion yen, more than
five times the normal daily amount, said Mana Nakazora, chief
credit analyst at JPMorgan Securities Japan in Tokyo.

The cost of the contracts was as much as 39.6 million yen
in March 2006, the highest since Bloomberg began tracking the
contracts in February 2005. Sellers of the five-year contracts
receive quarterly payments because they agree to pay buyers the
face value of the notes in a default in exchange for the
underlying securities.

The cost of the five-year contracts is equivalent to 258
basis points, or 2.58 percent of the amount protected. The cost
may fall below 200 basis points in the next six to 12 months,
Morgan Stanley's Ohashi said.

The yield spread between the company's 40 billion yen in
1.98 percent bonds due in September 2010 and similar-maturity
swap rates narrowed to 166 basis points yesterday, from 333 basis
points a year earlier, according to data compiled by Bloomberg.

Operating profit rose to 73.8 billion yen in the three
months ended March 31 from 34.4 billion yen, and sales more than
doubled to 721.9 billion yen, Tokyo-based Softbank said on May 8.

BBB Rating

Softbank's debt carries a BBB ranking from Japan Credit
Rating Agency, the second-lowest investment grade. Moody's
Investors Service and Standard & Poor's assign the company high-
risk, high-yield ratings of Ba2 and BB-, respectively.

``The earnings showed that Softbank's risk is equivalent to
a BBB rating,'' Ohashi said. ``People paid too much of a premium
to compensate for Softbank's risk.''

Shares of Softbank yesterday fell the most in almost two
months as UBS Securities Japan Ltd. recommended selling the stock
after fourth-quarter net income slid 83 percent. The shares,
which declined 3.2 percent yesterday, dropped another 0.8 percent
today to 2,595 yen.

Excluding gains from the former Vodafone subsidiary,
operating profit would have declined, UBS analysts Makio Inui and
Kei Takahashi wrote in the May 8 report. The focus on the mobile-
phone unit ``led to some stagnation'' in other businesses such as
fixed lines, the analysts said.

Softbank has the worst financial health in Japan among 129
companies tracked by Morgan Stanley, credit-default swaps show.
The company said it booked taxes of 60.4 billion yen, partly
because of goodwill relating to the Vodafone purchase.

`Good Overall'

The telecommunications group is betting it can add to its 17
percent share of Japan's $75 billion mobile-phone market by
offering lower subscription fees than rivals. Growth in the
number of subscribers, which rose a net 163,600 to 16.1 million
in April, may help the company offset declines in per-user
revenue.

The chance of Softbank failing to meet its debt obligations
within the next five years has declined to 21 percent from 28
percent last year, based on a JPMorgan Chase & Co. valuation
model that takes into account swap prices.

``Softbank's earnings looked good overall,'' said Kiyotoshi
Yasuda, chief risk manager of the credit trading department at
JPMorgan Securities Japan Co. in Tokyo. ``Softbank credit-default
swaps showed little reaction to the announcement because the
market has already priced in an increase in sales.''

Credit-default swaps are the fastest-growing part of the
$370 trillion global derivatives market. They allow investors to
speculate on shifts in a company's credit quality without paying
money up front, as would be required when buying bonds.

To contact the reporters on this story:
Keiko Ujikane in Tokyo at

Oliver Biggadike in Tokyo at
.

Real Estate Investing is a Sorting Business

I am about to tell you a partial truth about real estate investing; I will tell you something about investing in real estate to give you specific way of looking at your real estate business, but its actually not 100% true. Afterwords, I will tell why it is not really the truth. So, without further dealy, here it is...

Finding deals as a real estate investor is sorting process, not a sales or convincing process.

Why would I say such a thing? It is to help you understand how to think about the part of your business where you are trying to find deals.

Finding deals is all about sorting prospects... having people contact you, or you contacting them and, through a series of questions, finding out if there is a situation you can solve and get paid for.

It is NOT about selling every homeowner on accepting your offer or otherwise doing business with you.

The first time, you talk to a truly motivated seller (and not just someone with a house for sale), you will understand what I mean by it being a sorting process.

Your are just sorting through all the sellers and houses for sale for the ones that have a unique situation that you can solve.

Now, I will share with you what the untruthful part of what I said earlier is... buying houses is a sales process.

It is about selling yourself and your business to the home owner. Why should they do business with you? What solution and value can you bring to their unique sitation or problem?

The difference I am trying to point out is that you are not trying to convince EVERY seller to sell to you. You are merely trying to find motivated sellers by sorting them out from all other sellers and then selling them on you and your solution.

I hope that helps those getting started in real estate investing with a good big picture concept of what you are really doing when you are out there finding deals.

Alma tourism committee tables proposed lodging tax

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A proposed 5 percent lodging tax on bed and breakfast and motel rooms in Alma was tabled after business owners opposed it.But the Alma Parks and Recreation Committee said the business community needed to work together with the city council to help the city attract tourists.A room tax was viewed as a method of raising revenue from tourists to help pay for upkeep of parks and public recreation services.The city council says it is spending too much compared to other small cities. Most of the money comes from property taxes.Peggy Jost, owner of the Hillcrest Motel in Alma, said she received a “mixed response” from business owners she approached about giving donations to the city as an alternative to the tax.Jost said a room tax would drive away visitors. She said guests would look for lodging elsewhere.She said several people told her it is the city’s obligation to have money set aside for maintenance of parks and recreation.Some suggested Alma charge a citywide sales tax, but City Administrator Linda Torgerson said Wisconsin law doesn’t allow a small city to impose a municipal sales tax.The only alternative tax available to the city for raising revenue to help support tourism is a room tax.The law provides that a majority of room tax revenue must be used for tourism-related promotions, Torgerson said.Alma Mayor Lois Balk and city Alderman Larry Farl, a local business owner, said a change in mindset would be necessary if the city and businesses were going to do a better job of working together to solve funding problems.Farl said the Alma Chamber of Commerce and businesses might have to do more to improve fundraising activities in cooperation with the city to help fund local tourism.Balk recommended the community talk about tourism and come up with new ideas for raising revenue.
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Stocks Online Are Quite Varied

Anyone who decides to get into stock trading will soon find out this can be a world of ups and downs. Still, many investors find trading stocks is one of the best ways to accumulate and build on wealth. Even if it's only a few dollars at hand to invest, stocks online can be a great consideration. Buying and selling online delivers not only a lot of perks in regard to ease, but also variety.

Stocks online now available for purchase come in all types. They can range from a few pennies to those that cost hundreds per share. For the most part, investors will find that stocks online are those that can also be purchased through a broker, paying higher fees. The advantages to online trading include not only lower fees, but also control and access to more markets in many cases.

The types of stocks online for purchase tend to include:

Penny stocks: These stocks are considered "junk" by some, but the fact is some people have managed to make very big returns on cheaper buys. Start up companies and those new to the stock market often offer their stocks at very affordable prices. While they might not actually cost a penny, these lower priced stocks are worth researching for investors without a lot of means. These are common buys online.

Blue chips: Some of America's biggest company names fall into the blue chip category. These stocks online tend to be more expensive than others, but they are typically noted for their ability to maintain or increase price. The theory behind the blue chip stocks is that if they fall, they will generally recover their value and even increase it.

Bonds, futures: It is sometimes possible to buy into bonds and futures online, as well. These are also available for public trade and inasmuch can be great investments. Bonds can include municipal offerings and even those issued by companies. Futures tend to revolve around crops, such as oranges, wheat, livestock and so on.

In reality, those who look for stocks online will find almost everything available on the domestic front can be hand online, as well. The availability of some markets will depend on the site being used. Some traders will only offer specific markets they have access to.

Another option for online traders falls into the realm of foreign markets. Forex trading has become a very big deal with the Internet making it easier and easier for people to invest in foreign stock markets. Getting into foreign markets successfully will likely require some very serious homework on potential buys and pitfalls. The offerings on the foreign market will depend on the sites being used to invest.

No matter how stocks online are bought and sold, it's a good idea to enter the deals with care. Do some homework on the sites being used to buy and sell, study the potential stock buys and do pay attention to major trends up or down. Even investors with a very little bit of money can make some real returns when they play the game well.

Investors Taking the Path to Self Destruction, Happily Line up for the Great Financial Slaughter!

The International liquidity crisis will soon create a mess too big for anyone to easily recover from.

When our Strategic Oil Reserve System wants more oil we merely grind up some trees and rags to make paper to print lots of greenbacks, so we can trade a ton of them to the Arabs for a tanker full of oil! Surely someone gets burned in that deal - no wonder they hate us!

Both oil and gold are traded in the US dollar, so everyone needs to keep some on hand but gold and oil are essentially available "free" to us, so long as we have green ink to print with. The problem is that all Countries have now caught on to our "Ponsi like scheme" so everyone is burning their neighbor by printing fresh cash as more goods are needed!

Cash has become such a free commodity that investors are willing to accept stupidly low return rates for very risky paper assets, as if in a self destruct mode!

China is clearly in a bubble. Shanghai stocks are up 250% since 2005 - and 35% this year alone. Still, investors are so eager to get in at these prices that they take up Chinese bank IPOs at twice the PE ratios of banks in developed countries. And what do they actually get when they buy a share? No one knows what a bank chartered and regulated by communists is actually worth!

China is expected to accumulate more than half a trillion dollars in foreign exchange reserves - twice as much as last year. How does it get that money? It prints up currency of its own to buy the foreign currency from businessmen and investors - who are selling Chinese made goods (including stock certificates) to foreigners at a breakneck pace.

Investors not only take up but scramble to buy Hugo Chavez's paper Venezuelan bonds! They do so at less than 7% yield…barely 200 basis points more than the sovereign debt of the United States of America.

Officially, the Venezuelan Bolivar is quoted at 2,150 to the dollar. On the black market it trades for 3,750 to one. And it's sinking fast - down 15% so far this year, so where is their justification?

Even long-dated dollar-denominated bonds issued by Iraq, trade at less than 10% yield.

From its recent high of 83.10 on April 9th, the US Dollar Index has fallen to 81.53, a 1.9% decline. That may not sound like much, but it works out to a 32.7% decline on an annualized basis. Given that one presently earns only about 5% per annum in interest income on their dollars, the loss in purchasing power is very obvious. You thus need to find assets that will rise at a 32% annual rate to keep up with the dollars rate of fall!

If our interest rates drop by 1/3 we would be OK but then who would finance our National Debt when Hugo pays so much more! The whole International financial mess must fall like dominos some time very soon, as all other Nations in the past financed with fiat money have failed, without exception!

Online Stock Trading - Entering Orders

Online stock trading has become very popular in recent years. Many online brokers such as Ameritrade and Etrade have made it easy to set up an account with online trading capabilities. Once a trader decides on a trade its time to enter the order. In the past you would talk to a broker who may recommend a certain type of order entry based on current market conditions. Now that you can enter orders directly from a home computer these decisions are yours to make.

There are four basic types of orders: market orders, limit orders, stop orders, and stop-limit orders. Understanding the benefits of these different types of orders can improve your trading results.

Market Orders. A market order is an order to buy or sell a specified number of shares in a stock at the current market price. If the market is open your order is almost certain to be executed within seconds of being entered. Buy orders will be filled at the current ask price and sell orders will be filled at the current bid price. As long as the market is not displaying excessive volatility, the price you get will be very close to the price quote you received just before placing the order. Now that online stock trading is available, market orders can be completed, and a report of the actual fill price sent back to the trader in less than a minute. This makes market orders popular with active traders.

Limit Orders. When placing a limit order you can specify the price at which you want to buy or sell. You can place buy limit orders or sell limit orders. A buy limit order will not be activated until the price of the stock is either at your limit price or below it. A sell limit order will not be activated until the price of the stock is at your limit price or above it.

Stop Orders. A stop order is an order that automatically becomes a market order when a stock reaches a specified price. Stop orders cannot be placed for all stocks. Stop orders are commonly used to protect gains once a trade has moved into positive territory.

Stop-limit order. A stop-limit order allows the trader to have even more control over a stop order. A stop limit order converts to a limit order once the stop price has been hit. The trade will be executed at the limit price or better. However, if there is not enough trading volume at the specified limit price the order may not be filled.

Commercial Investing Tips

Commercial real estate investing can be a scary and daunting task, and in most cases you need a lot of money to get started. However if you can get the financing in place and the property fits your situation, you can regain that money fairly quickly. Multi Unit investments are probably the best properties to purchase if you are a real estate investor.

Here are some buyer tips for purchasing multi unit housing.

1) It is very important to way all of your options. Although it may seem ideal to purchase a property that is in your area, consider this: There are many multi unit properties all over the country, it is very likely you can find one that fits within your budget that may generate similar revenue.

2) Multi unit properties may not be the best investment option for each person. Consider both the pros and cons before making a decision. It is always good to know if personally you are prepared to handle the situations that may arise.

3) Always consider prior to buying each piece of real estate on how you are going to make money from it. Are the units going to be rented to tenants? Are you going to fix up the property and Flip it? It is important to know prior to purchasing so you can get a better idea of the costs, revenues and profits associated to each property.

4) Always make sure that the property you consider can turn a profit. There is no sense buying a multi housing unit if you are not going to get any tenants. Make sure you do some research on the area you want to buy in. Find out what the tenancy rate is in the area prior to purchase.

5) If you want the transition to be a bit smoother and have decided to rent the units, it might be easier to find a piece of real estate that already has tenants occupying the units. You will take over the building knowing that you will be getting revenue right off the bat. You will also avoid the daunting task of finding qualified tenants.

Hopefully these tips will help when looking at buying multi unit properties.