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Investing in real estate? Thinking about buying new equipment for your business? The depreciation you take on your tax return can turn into a significant tax benefit. But you need to make some complex calculations. Fortunately, Microsoft Excel can help.

Excel?s VDB function calculates declining balance depreciation for an asset given the cost, its salvage value, estimated economic life, the starting accounting period and the ending accounting period for which depreciation is being calculated, the factor at which the balance
declines, and, optionally, a switch-to-straight-line switch which is set to either TRUE or FALSE. If you set this switch to TRUE, Excel doesn?t switch to straight-line at the point when straight-line depreciation exceeds declining balance depreciation. If you set this value to FALSE, Excel does switch to straight-line. If you don?t set the optional switch-to-straight-line switch to TRUE, Excel sets this value to FALSE.

Note: By default, US tax laws do convert to straightline depreciation at the point that straightline depreciation exceeds declining balance deprecation. But back to the mechanics of the VBD function…

The VDB function uses the following syntax:

VBD(cost,salvage,life,start-period,end-period,factor,switch)

Suppose, for example, that you must calculate 150% declining balance depreciation for equipment that costs $50,000, lasts five years, and will have a salvage value of $10,000 at the end of the fifth year. To calculate the depreciation for the first year, you use the following formula:

=VBD(50000,10000,5,0,1,150%)

The function returns the value 15000.00. Notice that to calculate depreciation for the first year, you set the start period to 0 and the end period to Read more…

Depending on your individual financial circumstances, there are attractive and appealing reasons for releasing your home equity for investment purposes. In fact, when left sitting there, you are incurring opportunity costs because your equity is not working for you as its monetary equivalent can, and neither is it invested in a vehicle that will generate you decent investment returns.

For your home equity to work for you by generating a rate of return, it must be converted into cash. The only way to do this is to obtain a mortgage on your home, or an equity line of credit, both of which will require you to pay interest on the amount borrowed over time.

Consider the interest payments as the employment cost of borrowing cash against your home equity for investment purposes. The only economic benefit home equity offers is that of reducing your mortgage payments.

So long as you can find investments with net returns that will exceed the cost of your mortgage interest rate, then it is a wiser decision to earn more by utilising your equity than what you pay to borrow on it. There are many investments that can easily beat the cost of a mortgage!

This largely depends on ones risk tolerance and financial objectives. Mind you, risk tolerance is also dependent on how much financial acumen one has and their understanding of what is at stake. It pays to learn as much as you can and thereby raise your risk factor within reason.

Let us consider the employment cost of releasing your home equity. You currently hold a mortgage of ?80,000 on your property that is worth ?240,000. This means that your equity is ?160,000. If you took an 75% loan-to-value mortgage, you can borrow as much as ?176,000, which will give you ?96,000 to invest after you have repaid your original mortgage. Your current monthly repayments are ?438 per month. After the re-mortgage you will be paying ?668 per month, an increase of ?230 per month equivalent to ?2760 per annum. This will be the net cost of the extra borrowing in the first year of borrowing. ?2760 over twenty-five years will be ?69,000. I have not factored in tax advantages of interest only payments.

Now, let us look at the opportunity costs for investing the ?96,000 released. At a 13% average annual rate of return, this will grow to just under two million pounds in twenty-five years. This is a no-brainer! Would you be willing to Read more…

Owning your own property is one of the top ten global dreams. You may never have perceived that the pros of owning a home and land are innumerable. But there is much more to ownership than just a piece of paper. Of course, here’s a sense of pride, but property ownership is also instrumental in making a country and culture stronger. A society that encourages property ownership ensures stability and long term economic growth. The economic growth is not limited to the overall population. On owning a home, you have bought far more than a mere place to stay. You have invested in your future.

When you pay rent, you send your money off to someone else for the privilege of staying for another month where you are living currently. When you pay a mortgage, you also send money off to someone else, this time a bank. There’s not much difference there. The real difference comes when you move, or when the house is paid off, whichever comes first. That’s when you discover the true magic of home and property ownership. Of course, there are benefits before then. You can decorate and remodel as you like, without worrying about having to pay for it in the end with your security deposit.

Consider when you move out of the rented home. You pack up your bags and boxes, put them in the truck, and move into your new place. If you’re lucky, you get some of your security deposit back after a month. Now consider when you move out of the home you own and into another home. Again, you pack and unpack, but you have something extra. You have money in the bank, and that’s when the real benefit of home ownership hits you.

You have certainly put up Read more…

You?re selling your home as a FSBO (for sale by owner) and you get annoyed when real estate brokers call you, right? That?s a reasonable response when you?re doing all the work to market your property to save thousands of dollars in broker commissions. However, when a ?buyer broker? calls, you might want to listen.

Why Listen

To understand why I say that, we need to understand the functions of ?listing brokers? and ?buyer brokers.? Real estate brokers can and do serve both functions, though some specialize.

Some brokers who call you are interested in listing your home. They want to market your home for you. The amount of commission charged for this service varies, but where I live, most brokers list homes for a commission of 6 percent of the sales price. When the home sells, if another brokerage firm has brought the buyer to the deal, the listing broker pays the selling broker half or 3 percent.

When you?re successfully operating as a FSBO, you?re getting folks to come and look at your house, or condo, or whatever, and you don?t need a listing agent. However, what if you?ve been doing this for a while and none of the lookers has been converted to a buyer? What then?

Well, if a broker calls you and says he or she is working with buyers and they?d like to be able to show your home, maybe you should consider it. They probably only expect about half the typical listing commission. That still allows you to save serious money. Perhaps you can even negotiate down a bit from half. This is especially true if your home is appropriately priced above the average price for a home in your area. In my area where 3 percent to a selling broker is Read more…

Sheriff?s Deputy Ted Rasmussen was thinking about Carrie?his pregnant waitress problem?when he sighted the traffic disruption meandering near the yellow line on Bay Street. A Bremerton merchant had called the Sheriff?s emergency number reporting a wet morning commuter mess. Two motorists had placed 911 calls from their cell phones. When the police dispatcher asked if there were any units in the vicinity, Ted responded.

?167 Rasmussen! I?m not far from there. I?ll handle it.?

Lights flashing, siren blaring, motorists pulling over to let him through, the willing young officer arrived on the scene.
Although everyone else noticed the lofty deputy, a starched green uniform, the disoriented young woman seemed oblivious to his police presence. Like a sapling, the deputy swayed with the chilly wind gusting between the buildings.

Horns echoed reproach while the endangered pedestrian continued to swing her purse at arm?s length, twirling between cars on the wet thoroughfare. Ted ducked as her shoulder bag came by, his own determined limb catching its strap to halt the lunacy. She seemed bewildered at the interruption.

?What??

?You tell me what,? the deputy demanded. ?What do you think you?re doing??

?I?m playing,? the perplexed woman replied, jerking her purse.

Ted had her attention. She wore no rings. His squad car parked in such a way as to shield them, he pointed to the rear passenger door with his free hand.

?This isn?t a safe place to play. You?d better get into the car, Miss.?

?I don?t want to go for any more rides.?

?This isn?t an option, Miss. Now, get in.?

?No! I won?t.? Tugging on her bag, the frustrated woman insisted. ? I?m walking!?

Ignoring hurry-up appeals of stalled motorists, Deputy Rasmussen confronted his challenge. Releasing his hold on her purse, Ted stepped closer to ask, ?Where are you going??

?Away. Far, far away.?

Not because he needed to know, but rather in a non-threatening ploy to hold her awareness, Ted inquired, ?Where do you live??

?I used to live in that house with the green roof,? she said turning abruptly, pointing at two-story brick house on a distant hillside. ?But, now I?m going far away.?

?You?re already far away, Miss. Now, please get into the police car. This way. I?m not going to hurt you.?

?You promise??

?Of course, I promise. I?m a policeman. I?m the one who catches the one that would hurt you. Here, this way.?

She didn?t resist as he took her arm to gently enforce compliance.

After securing the seat belt around his disoriented passenger, Ted Rasmussen closed the back door of his cruiser. He shut off the siren, turning to the confused lady who looked to be about his own age?in her mid-twenties.

The precipitation?s ample time had saturated her to the skin. Water droplets continued to form at the ends of her brown hair, then dripped to merge with countless others that had found their way to the Washington Cougars sweatshirt?clinging to her body.

Being a man, Ted couldn?t help but notice she was pretty, although she was soaking wet.

You?d be a knockout at a wet T-shirt party, he thought.

Without shoes, Ted recognized his captive was mentally ill or high. Securely in his car, the deputy smiled reassuringly.

?You?ll be all right, Miss.?

?I am all right. I?m a good girl. You can?t catch him, though.?

Ted?s policeman ears perked up. ?Why not, Miss??

?He died.?

?Did you have something to do with that??

?No, silly. He fell off the ladder.?

?Who??

?Daddy.?

Assuming he solved the little riddle, the Deputy smiled. ?He can?t hurt you anymore, then.?

?Yes, he does. He comes back?at night. That?s why I?m going away.?

?So, he can?t find you??

?Yes. You?re a policeman, aren?t you??

?That?s right, Miss. I?m taking you to the Hospital.?

Clearly frightened, the woman pleaded. ?Don?t tell him where I went.?

?I won?t tell him, Miss. Your secret?s safe with me.?

?I didn?t tell you the secret. Daddy told me never to tell. I didn?t tell you. I didn?t.?

?No, Miss,? the officer assured her. ?You didn?t tell!?

A dripping cherub, the woman relaxed. No longer terrified, her eyes glazed over. Ted proceeded?lights flashing?to the hospital, parking his cruiser by the door of the emergency entrance.

His docile passenger content in the patrol car, the officer bypassed the door?s intern and proceeded directly to admissions desk. The formidable Ms. Maxine Reedman was the RN in Read more…

Your house is for sale by owner (fsbo), Along with columns of countless other FSBO’s in the Sunday paper. This one little trick will enable you to have your Ad Noticed by more potential buyers. More buyers means you to sell your home quicker and at a better price.

Have you ever gone to purchase a car. Did you notice when you negotiate the car dealer doesn’t tell you the price of the car he tells you the monthly payment. What would you rather pay $25,000 or $482.00 (a month).

You can use the same principal when it comes to selling your house. You can run an Ad that says 3 bedroom 2 bath 2,000 Square Foot Home in nice quiet neighborhood with Monthly payments of $499.88 for qualified buyers. What would you rather pay for a house $165,000 or $499.88 a month.

Here are 2 more Ads.

For Sale By Owner Nice House with Monthly Payments under $500 a Month, How much are you paying for rent?
Buy your Dream Home for less then a Car Payment on that Fancy SUV. Only $499 a Month for Read more…

The obnoxious guy in the crowded airline seat next to her wouldn?t shut up, keep his eyes off her legs, or quit drinking screwdrivers. Brook Best decided to give him a treat. Slowly, deliberately, she raised one tanned leg, allowing it to fall invitingly across the other. His eyes leaped. He nearly dropped his drink:

?God, those are beautiful!?

?You can get shit-faced on an airplane, but you can?t smoke a cigarette,? Brook murmured toward the window thinking: I want a Virginia Slim. I?d settle for a Salem. Three hours changing planes and now a lecher who can?t hold his booze.

?What? Oh, sorry! Did I spill some on you? Can I buy you a drink??

?No, thank you.!? Brook replied audibly to the pest. ?Feel free to have another one, yourself, though.?

?Oh, I will. Don?t have to drive. My honey?s picking me up at the airport so they won?t tow my car again.?

Brook?s curiosity overcame her better judgment. Lifting sunglasses to rest in her hair she asked: ?Why would they tow your car??

?Ever since that damned Trade Tower thing, everybody?s crazy!?

?Yes,? Brook agreed.

Drink sloshing the isle at the end of his gesture, Brook?s inebriated coach buddy explained: ? I parked my car in SeaTac lot?last week. Fly back?it?s gone. Passed a new law. Can?t park within 300 feet of the terminal. Why the hell did they let me park there? Twenty-nine cars they impounded. $130.00?plus thirty bucks a day?when I got back. Had to pay a cab to my place in Seattle. Got me a lawyer. Says I can sue. Get my money back.?

?Are you going to??

?You damned right, I am! No signs. I get in at night. Car?s gone. Wasted two days getting it back. All my time and inconvenience! Can you believe it??

?I can believe anything. Too many people are sue-happy. At least, you are entitled to your money though.?

?You a Lawyer??

?I?m a broker.?

?Stock Broker! God, I?ve been losing my ass since September 11th! What?s your name? What brokerage you with?

?My name is Brooklyn Best. I?m a real estate broker. You want to buy a house??

?Buy a house? Hell, no! Everybody?s selling! Half the people in my neighborhood are trying to sell. Poor bastards working at Boeing. 70,000 workers laid off. I might want to sell mine one of these days. You got a card??

Brook opened the navy and white patent leather purse to remove her gold business card case with The Best monogrammed on its surface. Seeing its chance to escape, a well-used passport fluttered from her grasp to perch indecisively between her matching spectator pumps. The letch lunged for it. Brook never flinched when she felt his hopeful hand glide accidentally from her ankle up her calf to above her knee as he pretended to help.

Brook closed her eyes, considering her options. This jerk knows how to make the most of an opportunity. Still, he?s a potential client. This is as far as he goes, she decided. Sliding a business card from beneath the bar, Brook held a forced smile.

?Here is the card that you asked for.?

?Oh, thanks. Where?s your picture??

?On my passport,? said Brook, her hand open.

?Oh, sure. Here ya go, doll.?

?Thank you.? Shit, she thought. He?s a real smooth talker, too.

?Brooklyn Best, huh. Port Orchards, Gig Harbor and All Washington State. Why don?t you have your picture on your card? A good looking lady like you should have a photo card.?

?I don?t need too. I?m not for sale,? Brook retorted.

Oblivious to his rebuff, the guy pressed on. ?The Realtor who sold me my house has a picture on her card. Not as pretty as you, either.?

?Do you remember her name??

?No,? the drunk admitted.

?You will remember me though, won?t you? I?m The Best!?

?I?ll bet you are, babe. Why won?t you let me buy you one drink? You look thirsty.?

?I don?t drink with potential clients.?

?Oh. Well, maybe you could pay me a finders fee if I get you some business.?

?In the State of Washington, that?s against the law. Only licensed agents can receive money as a result of a real estate transaction.?

?What will you give me, then??

?Perhaps, an opportunity to buy me a drink?after I?ve sold a house!?

?Let me have a couple more of your cards, then! Oh, Stewardess? Bring me another Screwdriver, honey. Make it a double.?

Brook dispensed two more cards. She liked an honest man. Sometimes, she could even put up with a dishonest man, but not this one. She closed her card case, pulled her pinstriped skirt down to cover her kneecaps. This conversation was over. The new John Grisham novel would be more interesting. Lowering dark glasses from frequent rest on even darker hair, Brook Best reclined the seat to enjoy a good read.

The idea was to extend her vacation all the way back to SeaTac. The Boeing 737 hummed contentedly, seizing the blue above fluffy clouds.

I enjoy aircraft, Brook thought, remembering the pilot client who had invited her to join the ?Mile High Club?. People on Read more…

Did you hear that? Prices of houses in Phoenix have been jumping 5% each month for 2005 according to market experts! Some even predict that the price of housing could jump an additional 10% for the upcoming year. The shortage of houses for sales and the still relatively low interest prices are causing the price of homes not just here in Phoenix but nationwide to escalate. What does this mean? If you are thinking about selling your home, there is no better time than the present. Jump on the bandwagon!

Okay, great, you say. I?ll buy a for-sale-by-owner sign, set it out in the front yard, host an open-house this weekend. I should have my house sold by the end of next week! Well, two months later, that for-sale-by-owner sign is still in the front and you don?t have a buyer. Do not think that just because there is a shortage of houses for sale, selling a house is a piece of cake. It may not as easy as you think. Instead of using a Realtor, you are determined to sell the house yourself. That?s fine and it?s possible. People do it all the time; however, what are some tips to help you prepare your house to sell. I have done the research and found four minimal-cost tips in preparing your sell:

1. Clean-up. The first impression is always the lasting one. You want potential buyers to be impressed the moment that they spot your house from the street. Everything from the yard, to the windows, to every room inside should be squeaky clean. And if you have a collection of, well, several collections of?stuff, it?s distracting to the buyer and really takes away the beauty of your home. If you can?t part with those items, pack them away in boxes. A potential buyer won?t be offended by a few packed boxes in the house. They most likely are expecting you to be preparing to move anyway.

2. Deodorize. This goes hand-in-hand with cleaning your house and removing the clutter. If your house smells, it won?t sell. If the house has been vacant for a while, there is nothing more offensive to a potential buyer than the smell of mildew. Please take care of the mildew before showing the house. And you petowners, understand that your precious little pets that you keep indoors are not odor-less. You just have Read more…

You?re ready to put your home or land (house, townhouse, condo, apartment, farm, ranch, finished lot, raw land, etc.) on the market as a FSBO (for sale by owner). You?ve priced your property appropriately and gotten it ready to show. How are you going to market it so that it gets exposure to enough potential buyers to actually sell?

Signs

In some parts of the county, the real estate market is so hot that you need do little more than buy a ?for sale by owner? sign at the nearest hardware store. Simply put it in a prominent position on the front of your house and stand back.

In other areas, a great deal more marketing is needed, but a ?for sale by owner? sign is a good place to start. Directional signs (?home for sale? with an arrow) at intersections leading the way to your property are useful, too, if your location lends itself to that.

Classified Ads

A classified ad in your local newspaper is a good idea and is generally not expensive. A short ad repeated a number of times is apt to be more effective than a long ad run once, or only a few, times.

Bulletin Boards/Posters

Are there bulletin boards where you work? In neighborhood shops and restaurants? At your church? Any place you, or members of your family, frequent that has something like a bulletin board is a good place to post notices of your property?s availability. If you have the use of a digital camera and a computer, you might want to do a one-page poster with several photos of your house, a description and contact information. Consider having tear-off strips at the bottom with your phone number repeated on each strip.

Magazines

If you?re thinking about selling your home perhaps the ?for sale by owner? signs posted on neighborhood lawns have intrigued you. When you browse the newspaper listings you see ad after ad boasting ?for sale by owner? as an added incentive for buyers and you envy the owners that are confident enough to try it.

There is plenty of money in real estate and who wants to split the profits with an agent? You have to ask yourself the question ?Should I try to sell my own home??

Before you stick the black and orange ?for sale by owner? sign on your front lawn here?s a few questions you need to answer?

?Do I have time to sell my own home??

You guessed it ? a lot of the money you are paying your real estate agent pays for their time. When a prospective client is motivated the real estate agent is available to take the call, show the home and follow up the interest. It is vitally important to be available when an interested buyer is ready to act.

If you want to keep your cash then be prepared to handle calls in the middle of supper or even the occasional drive-by visitor. Knowing you?re saving a few thousand dollars can make this little more than a tolerable distraction.

?Do I have the skills to sell my home??

Not everyone is a born salesperson, but that doesn?t mean you can?t learn. If you find the challenge exciting rather than overwhelming you?ve got what it takes to pick up a few pointers and sell your home.

You?ll also have to Read more…